to make some nice acquisitions and continue to restart the growth >> oki kay >> xly down more today we think you should be a buyer of it. >> riding marathon with jimmy. love that. elliot's got something here. lou's. part of the whole housing world. home depot, this thing's going higher >> thank you for watching. the exchange, a big interview with uber's begins right now thank you, here's what's ahead. peloton opens up to the downside today in fact. it could be the second worse unicorn ipo of the year. have investors had enough of these money losing start ups we will ask and yes, we're going to talk about uber as well on that note. they've lost a third of its value since its debut and now they're dealing with tougher driver laws and questions ab their security practices we're going to speak b about this with the company's ceo straight ahead plus beyond meat has a big new partner. amazon wants to write its own laws and yet another

investigation into big tech. we'll have all of that in rapid fire but would you begin with these markets. dom chu with the highlights here >> the highlight we are having marginal losses for the marketses overall. right across the board, just fractionally speaking, technology really take iing moro a hit than nasdaq down by about three quarters of a percent. the dow was positive to about 44 points it's not a lot of green territory. it was down 166 at the lows, so right in between that range so far. the s&p still below the 3,000 level. a lot of traders are watching now. the ipo market, something kelly mentioned. let's take a look at one that tracks it. this is the ticker, ipo. it's off today, but look at this this ipo at the lows in christmas here, up to the highs of this year was up to about 55%.

so perhaps an indication that the sentiment might be cool iin. then the worse, carnival, the cruise operation, down 9%. the down trend over the past year specifically today, earnings and revenues are bet r, but they've cut that you are outlook citing fuel costs, the hurricane in the caribbean and the cuba travel change policies. those shares dragging down the rest of the operators. back to you. >> thanks very much. and welcome to the exchange, everyone i'm kelly evans. ipo of the day, peloton. opening at 27 bucks a share. below the ipo price of $29 and struggling to hold on. nearly half of the r year's offerings from are down from their listing price including uber and lyft but also smile direct club and slack. have investors had enough of these money losing start ups i'm joined by duncan davidson. bob pisani is monitoring the situation at the new york stock

exchange and sarah fisher is with axios duncan, you said look, there's a price in which you'd be abeer of pell top, but it's pretty, it's well below where we're trading at here. >> this is an example where you're buying a stock and not the company. the company easter risk. but i'm more interested at $14 a share and not 27 >> why that number >> if you look at fundamentals, to really love the stock, you have to believe is going to do what uber did. everybody had doubt about uber when it first started growing. they said oh my god, it's going to take up so much of the market this could never be a big company. it grew the cab market by three to five times. you have to believe in the peloton case, it's going to grow the gym market by three to five times. i think it's really hard because uber was cheaper than a cab. a >> and sarah, people in the last couple of weeks have focused on a business mod el

it's their use of music. they have a lawsuit that's doubled to $300 million against them saying they found 1300 more songs used without permission. in termses of business ris b b k, this would seem major >> it's huge when people are going to invest 2,000 in a bike, 4,000 in a treadmill and 4,000 a month on software, they need to enjoy the experience if they're not going get the music they want, they're not going to be able to grow a fitness market the other thing, john foley said this this morning on cnbc. 34 million people own a treadmill but don't have their software that's where the business opportunity is but why is someone going to download a class if there's crappy remixes of the songs and users are really angry about it right now. >> yeah, it's one of the main things you hear about because people are loyal with the service, but with the caveat being they love their music. bob, this isn't just about peloton's business model this has been a tough week and now a tough year for ipos. >> yeah, and there's a lot of

pushback on price. not so much about whether the company is good or bad, it's a good company, but how much are they willing to pay for it we had this problem with smile direct priced above trading well below couldn't make it out of the some of the software ipos endeavor, which is supposed to price, they lowered the price. they believe the private valuations should be used in the markets and apparently, the public do not agree with the bankers. >> and duncan, we talked about soft bank syndrome plaguing we work, even the lyft and some other names out there peloton is not a soft bank name. what do you glean from this because again, from peloton's point of view, they might say

look, we raised over a billion dollars at a nice market cap they might feel relatively okay about how this has gone. >> this is not a soft bank stock. i think though keeping these companies private way too long and the unicorn round's near the end where the i have been way overpriced ooichl a fan of getting these companies out sooner we work is an example where the public markets did their job, even before it went public they clone eeaned up a horribles or they're trying to peloton, consumer stocks haven't done as well go pro fit bit as extreme examples >> right, what would you do to get them public sooner what has to change in terms of the pressure. >> after the 200 bubble, the wisdom of our leaders really screwed up the ipos. it's hard to recreate an ecosystem. i think the sec's been experimenting, but you've got to go all in and really set it wup a long-term view so you have a whole bunch of players back in

we should do this quickly, but given the current situation in congress, i don't expect anything to happen >> good point. bob, the last word >> one of the things i'm really wondering is if this continues to get this pushback, how many companies who want to go public might opt for direct listings. it could be a major factor it's obviously many companies need the money and can't do a directing, but those who don't may find direct listings more palate bable if this kind of pushback continues >> appreciate it we should note cnbc parent company comcast is an investor in peloton and we'll continue to watch that share performance into the close today now to the latest on the impeachment inquiry to president trump. the whistle-blower statement that led to this inquiry has been released. there's some breaking news right now. >> that's right, kelly the senate now appears to have the votes that it needs in order to pass a short-term funding measure that would keep the government open through november

the 21st that vote tally so far appears to be about 73 in favor. 11 against one set actually passes the senate, it will go to the president's desk for his signature and he is expected to back it. now that will be an important lit mouse test whether republicans and democrats can all come together on the basics of governing even though the alsos now come to light. now in the document, the whistle-blower made new accusations include iing that we house aides were deeply disturbed by the contents of president trump's call with the president of ukraine that they tried to lock down an welco electronic serve of the call by placing it in a special server and also that members of f the white house administration met with officials in the ukraine to discuss ways to 1/2 gave president trump's question now the complaint was made public this morning by the house intelligence committee

which just wrapped up about three hours of testimony of a hearing with the acting director of national intelligence they were concerned about the length of time it took him to hand over the complaint. mcguire said he was just try in to follow the law. >> i realized the importance of the matter that is before us this morning i thought it would be prudent to be sure it met that statute before i sent it forward in compliance with the whistle-blower protection act. >> now president trump has been lashing out on twitter he said that democrats are trying to destroy the republican party and he called on his supporters to stand together, play the game and fight back so clearly the battle lines are being drawn here in washington >> and we're watching for a bigger market reaction thank you very much. still down about 67 points with this swirling today. let's get to some breaking

news from the cdc on vaping. sue is at the breaking news desk sue. >> the cdc just coming out with updated figures. they now say they have confirmed 12 deaths and vaping related illnesses. 805 cases in 46 states and one territory. that is up about 275 from the last figures that we had so 12 deaths confirmed 805 cases of vaping related illnesses. basically, the breakdown is that nearly three quarters or 72% of the cases of illnesses are male. two-thirdsare 18 to 34 years old and 16% are under the age of 18 so dramatic rise in the number of illnesses and also a rise in deaths back to you. >> troubling rise. thanks very much appreciate it. here's what else is still ahead on the exchange. >> coming up, uber continues to

be in the cross hairs. with new regulations, security concerns and a falling stock we'll speak with the company's ceo ahead. plus, as we head into the last quarter of the year, will liquidity become the next big issue investors have to deal with and forget the big mac here comes the plt this is thexan ocn e chgen bc servicenow put our workflows in the cloud. this changes everything. you're right sir... everything. no not everything, i mean you're still blatantly sucking up to me gary. brilliantly observed, sir. always three steps ahead. six steps ahead. sixteen. so many steps. you done? a million steps ahead. servicenow. works for you.

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yesterday, the word of the day was trade. with impeachment talk backing the u.s. mca but this morning, nancy pelosi said she's moving ahead with the trade deal to replace nafta all this after yesterday president trump said a china deal could happen sooner than we think. if trade fears begin to quiet down, could liquidity become the next major concern for this market let's bring in mike, chief economist at jpmorgan and kevin. it's great to have you both here kevin, let me ask you about trade situation. one of the biggest concerns yesterday was that on the market was that usmca might not move forward. other deals could get hung up. is it looking better today people were saying they were worried about trump pulling us out of nafta if this goes belly up >> it's hard to imagine this

congress and administration is going the agree on anything between now and november 2020, but if we get ratification, that's a net positive because it means what was tentatively afwreeed to might move forward and ultimately, something between the u.s. and chip. zpl you're right about the japanese trade deal, which we shouldn't overlook but are we talking about the ten-year yield going from 175 to 3% how big ofove are we talking? >> i don't think you're going to get to that level. i think what's created these concerns were some of the ove e overrepo cases and people are going back to '07, '08, where rates skyrocketed. but i think this time is different. i hate to fall back, but this time is different. we have a strong underlying economy and what we're finding that very hard to pull ourselves out of this massive q ere we put into the system following the great recession. >> that's why i wanted to speak to you about this because you have people saying now, wait a

minute, the federal reserve has to go back and do more quantitative easing because of all these issues what is happening in terms of the monetary policy impact here from the drying up of liquidity? >> i think ideally, the fed would like it not to have monetary policy impact in other words, they see this as dealing with the plumbing of the interbank system and financing needs of f that system and monetary policy should be set on its own course. i think you heard that from powell last week he's just using the repo market, important, but probably not having much impact on the broader macro economy it's really not affecting interest rates that are available to households and businesses, so if that's the case, he shouldn't expect a big impact and i would agree with what kevin said. this is different from '07 you're not really seeing signs of worries about bank, banking system health. so this is very different. >> but mike, did they drain, they pulled too much liquidity

out of the system as they've moved to tighten conditions and raise rates. is it an indictment of what the fed's done here? >> well i think there's the, a case can be made i don't think anyone knows for sure, but it seems like there, we may have overshot and that the fed will have to increase the total amount of reserves in the banking system so they're learning by doing, just like everyone else here and they may have overshot a little bit but again, i don't see it as a huge problem they've been able to control the repo rate since last week. so it's not a problem, but yeah, they may have overshot >> if they have to increase reserves, is that the same thing as quantitative easing >> i think there's a difference in so far as qe quantitative easing the aim of that is to push down longer term interest rates the buying here to supply liquidity to the market wouldn't necessarily be out for buying longer term securities so it

wouldn't have the long er term rate >> when we have seen mashlgts calm down in the sense of the rates settling back down, but demand, especially for the 14-day facility, it gets people over the end of the quarter because the quarter ends tomorrow demand has been very, very strong for that kind of product. >> that's the key point there, kelly. we have another quarter ending on monday. we saw at the end of 2018, rates rojacked up to % i think the fed is trying to get ahead of that now and thai going to use their balance sheet to do that perhaps they tighten too quickly with respect to trying to shrink their balance sheet. >> so does it then provide a boost? does this juice the economy? we focus so much on whether they're going to cut rates and so forth if they're putting more reserves into the system, what impact is that going to have does that mean there's more for banks to lend out? >> no, i don't see that. they're just controlling these disruptions and it would only provide a boost to the economy if it lowers interest rates below their target

they're keeping the fed funds rate and ree poe rates around where they want them to be and reserves have come down quite a bit. for regulatory reason, banks are not well able to kind of intermediate that activity to bring interest rates back down so they're having to do these operations instead but they're just keeping interest rates where they want them to be, rather having the market move above. >> push it higher. kevin b, real quickly. people have flagged concerns about there not being enough liquidity in bond markets. sometimes in stock markets and now, we have this overnight funding issue. is there a larger problem here we're not seeing >> i don't think so. i think it goes back to the fact that we still have a slowing but growing economic base to sit on top of we're going to see q3 earnings come up positipositive we have a strong, confident consumer i believe we're going to have a record hol ta shopping season. i think thooez liquidity concerns are nor short-term in

nature >> all right, we'll see if we can put them in the rear-view mirror thank you, guys. coming up, amazon's jeff bezos says facial regulation technology should be regulated and his company is writing the book for lawmakers and how to do it is it a smart move or conflict of interest? plus, uber's ceo joins us live the company developinging in u products after a new article alleges they're dropping the ball on that front we'll ask him about thatne, w regulations and the stock performance. the exchange is back in two. this is apple card.

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zblncht under half a percent, but more than that for the nasdaq today as you heard earlier t dollar hitting its highest closing level in two years for more, let's check in with rick santelli at the cme what are you watch something. >> it's all about the doll r lar. i've been talking about the dollar for months. impefr yous to big corrections i want you to pay close attention to the highs they're a far cry from 1357. that was the intraday high it closed at 99. yesterday, look at a year to date chart, dollar index closed

out 99.04, so a fresh high close. how far back, may f o 2017 the third of september, we closed at 135. 167. hovering in the middle of the recent extreme range back to you. >> thanks very much. watch that dollar closely. rick santelli, now to sue herera for a news update. >> president trump arriving in maryland he once again blaed a drats for their impeachment inquiry. >> it's a disgrace a terrible thipg for the country. they're gloing to lose the

election, they know it that's why they're doing it. and it should never be alloweded what's happened to this president. >> and a lawsuit against dunkin' donuts for failing to protect customers against a series of cyber ab tacks she charged that the company failed to notify customers their accounts had been compromised. and britain's princess beatrice is engaged. prince andrew and his ex-wife say they are thrilled with the engagement of their oldest daughter and the wedding will take place next year you are up to date that's the news update this hour kelly, back to you >> is that going to be another big really wedding to do >> i think it might be, yes. who doesn't love a royal wedding? >> maybe we'll watch we'll see. here's what's still ahead on the

exchange >> ahead beyond meat plans its biggest partner yet. amazon wants to write its own facial recognition laws. some bad news for hong kong tourism and a look at which company is the most vulnerable when it comes to government v t investigations it's all coming up on the exchange in the human brain, billions of neurons play in harmony.

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welcome back let's catch you up on a few stories that should be on your radar. it's time for rapid fire here are julia, bill and seema first up, beyond meat. mcdonald's is the latest fast food restaurant to jump on the trend. they're auring a beyond meat sandwich in a test run in canada, correct? >> ontario >> starting next week, they'll test what they're calling the plt. plant, lettuce and tomato at 28 restaurants in canada. shares are up about 12% on the news stock is off the all time highs, but it's still hangening on to 150. >> the ceo has been coy about this recently saying we're going to watch watch the trend to see

if we commit to this or not. why t they sell these in the united states? they're going to try it out in canada first >> it's like they're too big they have to make sure they can get it right i think it's significant because mcdonald's is the biggest. if they can sell it to them, they've got something going here >> this is not a ji buveggie bu. i have a question about the name i i do, too. it makes you think it's going to be a bacon thing >> that's why i was confused but i guess the interesting thing in the day when we're talking about peloton not going well is beyond meat has been one of now the few really, really strong performers of the year and all of the run up in the shares has been predicated on hopes for something just like this involving mcdonald's. >> especially on a day where lyft is hitting a low. it kuz share similar to these tech outfits an address in

california beyond meat does as well as a company that's really focused on innovation and rnd if you look at the percent of rnd versus revenue, it's around 11% compared to kroger and hormel some of the other legacy traditional players. they're only spend iing about 1% >> 1%. >> beyond meat is really trying to make that you are a big part of their future growth >> that's shocking to me look at the way mcen donald's is ewing technology these days. you have to increase your budget there dramatically >> it's eventually going to become a technology company. >> i would say all companies now are tech companies technology is important for every -- >> taco bell is using it effectively. d domino's f. and plants >> i would say they still need the work on the name >> it's kind of clever >> it's a blt. not a hamburger. right? >> serving on a bun or toast >> tough round here.

>> important question. >> tough crowd the canadians, they'll take anything i guess i'm kidding. moving on, china's golden week is the first week in october when virtually the whole country goes on vacation one of the most important periods in the whole global travel industry, but according to hong kong's travel council, the ongoing protest could be putting a serious strain on the business chinese group tours are down 86% from the year before and overnight, more data about the hong kong economy struggling so the first week of october is when millions of chinese travel. not just dmesically, but around asia, and last year, you saw this big uptick to hong kong it's always been a big destination for chinese travelers, but as they enter their 17th week of protest, you've seen vacations come down. occupancies are lower and ceo of bookings telling us last week it's hurt bookings for their u.s. tral operators as well. fashion retailers are getting hurt saying that sales have been hit.

so we really need to see how this really quantifies >> it's going to reverberate >> and the committee >> absolutely. >> seems like tourism is a huge industry there so the question is how does this decline really impact the way these you know, these disputes are settled? >> absolutely and the potential winner that the data also shows that chinese travel to singapore, mccow and thailand is on the rise. >> yeah they're not coming to the united states now because of the trade war. not going to hong kong befocaus of the protests. >> the biggest travel market we care the most about the chinese travelers. especially as the middle class rises. they're pending more on travel and see iing the world. >> just because of the time, we're getting very, very close to october 1 the 70th anniversary of the communist party handover what does that mean for these protes continuing? because all summer long, we've heard it might quell when the students go back and pressure's going to rise on the chinese government as that anniversary

approaches last weekend, we saw them get more violent you wonder if it's come tog a head or not. >> october 1st, the 70th anniversary of the people's republic of china, the founding and of course there's supposed to be a big military parade. this is supposed to be a big secelebration for president xi >> be watching to see what happens with the protests. as everyone's faengs gets focused on that. meanwhile according to reuters, the u.s. justice department is preparing to open an investigation into facebook. if it sounds familiar it's because every other agency is. which had been reported and this will be the fourth antitrust probe targeting the social media giant. in a recent survey of cnbc's technology executive council, 55% of these ctos said facebook is the most likely company to face punitive action as a result of these vest ginvestigations >> what i think is really important here this is not a separate new thing

that the doj is doing. they were going to be investigating tech as a whole. it is no surprise that facebook is wup of those companies. but i think what's interesting hes investigating facebook for antitrust concerns the fact that the doj's also investigating facebook for antitrust concerns, which means they're going to be scrutinized on every level possie. this is in addition. >> they have to dif vi all the stuff. so much fighting among all these agencies as to who gets what >> what do you think they have to sell instagram and what'sapp eventually here'seen a will the of speculation especially from folks on capitol hill that maybe they should have to sell some of these companies, but facebook is doing everything in their power, make iing it easy and seamless communicate between these apps facebook is not going to want to ever sell any of those big assets >> to talk b about undoing an acquisition, if you're going down that road

>> and proven that you bought it to take a competitor out of the market >> what facebook would say and what they have an argument here for is when they bought instagram and what's app, these are relatively small companies they bought for a billion dollars, then they scaled it because they had the weight and the power of facebook behind it. so they would argue that instagram and what's an app would not have become as big >> i wonder if they were to sell instagram, what it would mean to facebook's bottom line because even though tech companies have still come out of that you aeir, facebook is still the outperformer up 36% compared to netflix which is down on the year. >> and because of the ongoing growth i don't think facebook could ever f sale it as jim cramer said this morning, is the navy looking into them? what about the coast guard because every other branch of government seems to be involve >> pushback. after all the investigations, the ago atsies, something's going to have to an.

>> ipg there's going to be a privacy rule there's a california privacy rule scheduled to go into effect january 1st. stringent. so there's a big push to have federal privacy law before then. >> that road california, you can't trust them next up, if wrur going to get regulated, you might as well write them yourself. jeff bezos says his company is writing laws to regulate facial recognition. their software has served a lot of contra versy and all bezos is doing is saying something that every other industry is fwlt of. they know a lot more about their own business operations than congress does. >> i mean the only difference this time is that the ceo is publicly admitting they're doing that >> which is surprising >> so many companies do try and write their own regular lations hand it off. that's called lobbying >> facebook said let us help you regulate facebook.

>> classic the right way meaning hurt us where it's not going to hurt us. help us where you might not realize you're helping us. whether it's the oil and gas industry, health care, you name it these companies are so complex that these are the people writing so much of the laws. >> you know they have to and they don't and just leave it in washington's hands, they could be even worse and have a lot of negative implications. >> and this could backfire on amazon because you know when other companies quietly write the regular laces and hations a off to the regulators, the regulators look like they came up with the ideas. >> he wants ownership. >> i think the regulators might balk since it won't be coming from them directly >> we got some matso animated we ran out of time to tuck about the ring whatever they're going to call them echo buds? you've got to give amazon credit though they tried everything, man it mig not work. >> a lot of spa getty on the wall >> we thought the echo dot was

going to be a huge hit i don't think the ring is going to be the same thank you all. appreciate it. coming up, uber unveil iing new safety measures for riders amid a scathing new report saying the company puts its own interests ahead of passenger safety. we're going to ask the ceo about this and how the company isregus also how he plans the turn the stock around that's straight ahead. sometimes, they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group - how the world advances. ♪ i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade?

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diedra >> thanks for being here today >> happy to be here. i want to get to the product and the safety measures, but i want to pick up on something you said last time. you said you had to do a better job of telling uber's story. doesn't feel like you've gotten any closer in terms of your share price, down 30% since that time do you need to change your story? take a hard look at the business >> well i think anytime that the market is sending a message asking whether or not they like the story, you got to listen that said short-term market sentiment will go up and down. while what realcounts is long-t building and building great products and making sure that product over a period of time is profit bable as wellment so we have listened to our investors we think we're on a great path

q2 was messy >> are you getting any indication that markets are listening to your story or starting to get it what do you look for to judge whether or not that's happening? >> i think you've got to let a couple of quarters go. i think markets are sending the signal of being more risk averse. i think markets in this kind of environment that is getting more risky, more uncertain, presidential tweets going out, we are get iting the message and we've got to here as a company, that markets want growth but they don't want growth they need a cost they want disciplined growth and we think we can deliver that >> so in terms of disciplined growth, what are you telling investors? are you going to be taking a hard look at some of your businesses uber has done that in the past when it became really

competitive and losing a lot of money. are you looking at all your businesses all the time to see where you might be able to cut and what's the threshold >> we look at our businesses all the time i came from a company, expedia, i ran for 13 years that was profitable essentially every single year in operation we take a hard critical look at what we're doing we think that the rides business and the environment around the rides business is constructive we think that we can grow, but we do think that we can take costs out of the business on the rides on and on eats side and build for the long-term, but responsibly. >> briefly, walk me through what happens if uber still isn't profit bable in three years? what changes >> i would be very disb pointed. >> investors are expecting profitability going forward. i think our rides business is the most mature so it is going to enter in an area of profitability sooner than our other businesses eats, we're looking to get into

number one or two position in every market we compete with and i think our investors expect us to deliver >> walk me through what actually happens. do you start to look at consolidating? today was about showcasing how many different things. kelly has a question back in -- >> sure. >> thanks and dara, really appreciate you being here. today there's a lot of focus, a lot of millennials leaving cities and moving to the suburbs and making them cool again, whatever you want to call it, but one of the main arguments i hear for uber and transportation as a service is is based on this idea that we don't need car ownership. are you seeing trends go the other way now? whether it's a coastal thing that might be true in 20 major cities but is never going to be true for the rest of country

remember the majority are outside of the u.s uber is a truly global enterprise so i wouldn't take trends and declare them as trends happening globally as well in general, too, we find our services originate in the center cities but they actually grow far from the center so in new york, for example, the fastest grow iing segment of our business isn't in manhattan, but the boroughs as well we think our business will grow even if millennials move outside of city centers as well. >> are you going to have to raise prices in order to be a profitable company >> i don't think we have to raise prices in order to be a profitable company i think the company can scale. we can improve margins we're looking at costs in every part of the business, but i think we have pricing power. and we have seen in certain markets because of new york city regular laces for example, we

have to increase prices significantly to consumers it's not something we wanted to do, but we have to because of new regular laces and our new york business continues to grow. >> and finally, would it had been have been better for uber to go public much sooner than it did? >> i can tell you once once i took over, we went to reform the tulleture, went to fix governance and sprinting to get to the public markets. when i look back, execution there was pretty darn good >> you've done a lot in terms of the culture, but there's some discussion about reputation still particularly when it comes to safety measures you have the post report yesterday suggesting that uber investigators you employ act in the swres interest of the company instead of the actually riders what's the good of safety measures if that's what you're doipg? >> i disagree with that report i think that report is absolutely off base.

we have a special unit there over 100 people traineded. we've consulted with law enforcement. talked, we've con ultimated with advocates. the goal of the group is to help the victim and survivor first. that's what we are all about >> is there a three strike system >> no official three strike system at this point now these issues are complicated, right, so if someone makes a claim we do need to make sure that the claim is verified if a survivor says that something has happened, we look at it as quickly as possible and if the survivor wants to notify law enforcement, we will help them do so constructively. >> would it be different if your drivers were actual employees? you'd be responsible for their actions, so does that con train you in some ways, especially when it comes to law enforcement? >> i think when it comes to safety, we take every single step we can. >> how do you convince your r e riders of that though? it's case after case lawsuits as well what are you doing now that's

not working? >> you know, when you have over 16 million, 17 million rides every day, the one in a million happens 16, 17 times a day with all the investments we're making, check your ride right now. track your loved one pin dispatch check the license. et cetera. the 911 integration. i believe that we are the absolute leader in safety. can we get better? absolutely, but we've got over 100 engineers working on it every day. >> you shared your thoughts on one of uber's biggest share h d shareholders you said he dubt throw good money after bad. you were happy to have him as an investor two of his biggest bets though have taken significant write downs on their valuations, what is it that public markets aren't seeing that maybe a visionary as he was, is seeing and what kind of conversations did you have with em him ahead ub ub ore's ipo? >> they were very supportive of us ahead of the ipo.

they agreed it was time for the company to go public the stock hasn't reacted the way that we'd like it to react, but we're focused on building a great business and when ever i talked about >> yeah. >> public company and the value has been -- >> absolutely. >> are you feeling pressure from him? >> the greatest pressure that i feel is from myself. >> a lot of folks can't help but make the comparison between uber and wework both burning money both founders and ceos were founded. you came in more than two years ago, what did you do what was one of the immediate things you did to turn around uber at the time >> we immediately went out and made sure we formulated the culture of the company we took some the old because it

wasn't all bad but some of the aggressive cultural that made uber was it was was weaponized we made sure we changed that so we have company was responsible growth going forward we did take a lead on governance right now i'm focused on our company. i think there's a real business there. i think focus on building the business, they will get there. >> thank you very much >> thank you >> back to you >> thank you before we go, i have one more question just as a user. you guys are trying to be the all in one transportation platform, correct? that's part of today's big announcement

>> yes we want to be the operating system for your daily life >> i can get on google maps and see when the next bus is coming and compare my options that way. how are you going to move people out of something they might already be getting information they need from >> i think google is a great service. the way i think of google and google maps, it's all about information search uber is about information search, realtime pricing and transaction all the way. just like google has great product search, amazon has built out their product search to delivery which we think is a terrific experience. we think about transportation the same way we got search. we got information you can transact all in one go, get loyalty point, use your uber cash we think all that together is superior >> i've got five stars but it's mostly because of my mother-in-law. she's a great passenger. >> thank you for using us. >> thank you both very much.

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welcome back investors have been creative to find returns intermaster works. the company buys pieces by renowned artists and lets investors purchase shares of them in 2018 blue chip art returned 20%. this week it could be one of the most profitable works. a banksy joining me is master works ceo scott lynn it's only to 20 bucks for me to buy into a piece of art work >> yeah. anyone can invest $20 a share. for the first time in these blue chip paintings that are on master works

>> you're still small. you only have a couple of paintings. what are you plans >> we're releasing more than one painting a month we have-- we want to build prods and trading markets. do things that will be more typical of other financial products >> right now there's not a great way for somebody who's not a million narp to get in on fine art market what makes you sure this will be a good investment over time. >> if you look at the high dynamic, the blue ship segment has been out performing the s&p for over 20 years. over hundred years of performing public auctions. people haven't been able to invest in it >> i wonder about the timing

risk and tastes changing if i buy a piece now, if it goes to market there's a recession. that's my liquidity. my return is predicated on what you're able to resell that for >> there's no question when we talk to investors who say they need to think about holding their investment for between three to seven years we haven't done that yet >> is it one of those things you say overtime the track record is fine art well out performs the s&p but maybe over 30 years that's true. on any given year it could be a roll of the dice >> it's not true of the blue chip segment we're talking about the 100 selling artists. if you just look at that segment over time, that's consistently out performed. that's been a relatively low volatility kind of out

performing >> do you think you'll be able to get in on skom ome of those g art acquisitions >> we're definitely focused on that segment >> i have friends and family in. if you're allocating three, four, five percent, we thinks that makes sense >> what happens if someone is listening at one of the major shops and goes gad idea. we'll do that too. >> we're kind of surprised we don't have any competitors it's 68 billion dollar market this year. it's ultra wealthy people trading. >> you're trying to change that.

thanks for joining me. that does it if the exchange today. i'll go join tyler for power lunch which begins right now >> thank you very much we'll see you over here in just a moment here is what's new for you at 2:00 peleton hitting resistance today. the stock falling in its debut what does that say for stocks overall? everything it seems these days is available through a subscription service are we over subscribed we just heard from uber ceo. did he say enough to convince wall street? we'll hear from a top analyst about that stock and more as "power lunch" begins right now it's a sunny day outside here in new york but the markets are a little soggy right now