good morning, it's 11:00 at ups headquarters in atlanta. 11:00 a.m. on wall street and "squawk alley" is live. good morning, welcome to "squawk alley." had some gains at the open, but now the dow is down. september comes in worst since 2009 new order is and inventories in

contraction. >> one name that's in focus today is ups we have some big news out of that company delivery giant becoming the first u.s. company to receive nationwide approval for drone deliveries give iing the company permissiot fly drones over populated areas at nugt out of the line of sight and to use larger unmanned vehicles it's a big coup for ups as amazon and others are also seeking the green light for their own drone fleets joining us now is ups chairman and ceo david alabama knee thank you for being here today >> glad to be here >> so you just received from the faa part 135 certification this was a process that air carriers must go through it's the standard by which regulators are now approving drone deliveries tell us a little bit about this and specifically the drone airline that your you're now going to build out

>> yes, we are very excited about being the first apt at the last earnings call, i talked about it i us said that was a goal and we have worked very closely with the department of transportation and faa. we did want the to make sure that we got the first certification for competitive reasons, but because we are a large airline, we know how the faa and d.o.t. works and the importance of safety so to actually be the first to get it is great. we have had a lot v firsts here. we had the first u.s. deliver iy of a flight with wake med. we have now made a thousand of those flights. that's worked out well now we're the first to get the full 135 certification which allows us to have a full drone airline that we will be making multiple deliveries, multiple

locations. so very exciting, a good day for ups. >> you mentioned you have run p pilots and doing these revenue generating deliveries. within health care as you build out this network here, are you going to focus on health care or expand to other things like perhaps the fithing we have been talking about for years, widespread package deliveries. >> yes, health care is a strategic initiative for us. so that's the first initial initiative it will be in numerous campus-like environments i can see 20, i can see more into where it's dozens and dozens but then there are other opportunities across other industries that absolutely have campus-type environments and when the regulations are complete, we certainly believe there are residential opportunities and other delivery opportunities that will help

supplement the incredible group of drivers we have all over the world. >> this means more infrastructure what do you need to build out and how much will it cost? >> we're really excited about the infrastructure build we're not ready to say how much it will cost at this point in time, but let me just tell you a little bit about what we're doing. so we're developing a ground based fleet of drones that have detect and avoid technologies. so it's going to be very important from a safety standpoint and then a consolidated control center that will allow us to dispatch and operate these drones from a consolidated area. so that's technologies that we're working with several companies to collaborate to develop. and then with this 135 certification, we're using dr e

drones for lightweight deliveries now but we can go up to over 55 pounds we can fly at night. so that will mean different type drones and we're working with several leading companies to be able to develop that technology. so lots of good opportunities for ups and ups customers. >> david, today the san francisco fed has a paper titled are workers losing to robots they point out the share of national income that's gone to workers has drop ped from the lw 60s to the 50s in about 20 years. it's not outsourcing, they argue. it's not offshoring, it's automation long-term, what's the effect on employment here? >> when you look at drones specifically, i can tell you we think it will be an enabler of jobs, especially at the beginning because when you can offer specialized services such

as drone delivery, you also have a better chance of getting your customers the rest of their deliveries so if we're growing our business, then we will create opportunities for our drivers at the same time. we have 125,000 truck drivers. if this is a thriving company that is focused on leading the way with technologies, we believe we can create opportunities for them plus provide opportunities for our customers through the latest technologies >> tell us more about the exhibitions of drone delivery. this seems like this is a premium service, someone who wants something really quickly anding th something that's, i g relatively lightweight you say it goes up to 55 pounds. do you expect this to cost quite a bit more for the customer and significantly more to actually deliver? >> it's hard to say exactly just

a general cost because it is going to be customer specific for their needs. i can tell you first it will be more specialized services, but the advantage of this part 135 is we're going to be able to con sol date and have scale and be able to dispatch from one central office that means there's going to be efficiencies, which we will be able to pass on to our customers. so the more scale we develop, the more economical it will be so we believe it's a viable business that our customers are going to win and it will be economically viable for us too >> i want to shift gears we have another weak manufacturing number today activity con tracking to the weakest level since 2009 whether it's here or in the u.s. or abroad, what's your take on the economy right now? >> in the u.s. i'll start, it's

still consumer driven. and we are seeing that it's holding up it may not be as strong in increases last year, but we still feel pretty good about what we're seeing. of course, we'd like to see industrial production and manufacturing increase, but the consumer is holding on right now. we're glad to see that from an international point of view, there are head winds, no doubt about it growing concern about brexit and what's going to happen october 31st then u.s./china trade negotiations there's concerns there too. when you have a flexible network like we do, we're going to monitor these macroeconomic conditions then we have to respond. we have to reduce costs and change our network we have to move trade flows. so there's a lot of work to do, but we think it's manageable and

we keep our eye on it, that's for sure >> today is the start of the fourth quarter as well, which means that peak season is really kind of just right around the corner can you give us a forecast of what you're expecting this holiday season >> i can peak is here right now we're starting to hire and train people and finalize our plans. we do expect a heavy peak driven by the consumer, driven by e-commerce going to be a bigger part of our business this year that's why we have added 100,000 employees or will for this peak systeason. we have added an additional 400,000 packages an hour of capacity 5 million square feet, we think that we'll have another successful peak as we did last year, but peaks are always challenging. there's no doubt about it. >> david, thank you so much for joining us today, the ceo of ups

on the heels of the news of a certification of a drone airline. david, thank you >> thank you on those comments from david about the economy, we do want to note the move in the markets today. disappointing manufacturing data contracting to the worst level in a decade. dow falling by more than 100 points here. s&p got within 10 points of 3k ism is going to be a concern on the manufacturing front. we'll see what services does because the split between the manufacturing economy and the service economy is what's defined the year really. >> continuing conversations to be sure on the impact of this trade war to what extent is is this pause of that does this put pressure on one side or the other. >> dot discount the drag that a strong dollar creates when it comes to manufacturing or move of goods and trade flows around

the world as well. as we get into earnings season as well. >> coming up, semantics battle 'lexaiafr e ch means wel pln tethbreak. stay with us

the tech labs in washington cause some to distance

themselves from the label. one of our next guests notes it's not really a broad tech lash, only a referendum on certain companies. former ftc commissioner and facebook adviser is joining us good morning >> good morning. >> bruce, i want to talk google to start interesting kind of development there. our parent company comcast jumping in on the antitrust pressure on the company arguing that youtube hasn't been open enough allowing companies to place ads there on behalf of their clients. if this conversation turns more toward the ad market versus impact directly on consumers, does this get thornier for big tech >> i think it definitely gets a lot thornier if they are going to focus on the ad market.

when you look at google, their search market share is 90% very dom napt. and like wise between google and facebook, they have an overwhelming majority of advertising. by contrast, traditional antitrust has tried to take a look at the question our consumers harmed and when services are free, in traditional antitrust, it's a harder case to make. >> yeah, unless you view the customer as being business in which case it gets a little touchier i want to also talk facebook you know that company well we'll have casey newton on later about the leaked audio of mark zuckerberg talking about so many of these pressures when i read and heard some of these comment, he's been more unguarded than he normally is about how he really feels about some of this stuff does this hurt him if they agree they are unguarded comments are

out? >> i guess i look at it differently. i thought he was candid, but probably not as unguarded as i have seen him. i have seen him be remarkably candid with employees. i thought the positive side was pretty honest with them and said things i thought were appropriate for a ceo to say he'sclearly face iing these pressures. he's clearly thinking about them and clearly thinking about how do i us get my employees to understand what's going on and still feel comfortable with the work environment and not cloud their work ethic i think that's a good talk and he didn't say anything you're not reading about in the paper. >> you think based on those comments we saw and heard he's handling the situation well at least internally >> yes, i thought so >> we know they are upping their lobbying effort but to say we're going to go to the mat and force a legal challenge against an

incoming president, you don't think there's a difference there? >> i do think that some candidates have made it very clear as part of their platform that they want to attack the company directly and i think his response was fairly moderate in saying we're going to defend it that makes sense to me now i also think elizabeth warren has responded i guess i have more reservations about things that people say when they are focused more on the remedy than what's the harm. and it seems to me that other than pure anecdotal stories about what the harm might be, if you're going to change basic antitrust law, if you're going to treat all tech companies as public utilities, you need a lot more data and study about the pluses and minuses before you get there. >> let's get to the key

question how do you fund a tech company if you were to see increased regulations or tech companies that are safeguarded as public utilities, what would fall under that jurisdiction, especially in an era it seems nearly every company wants to be a tech company in some capacity or another? >> that's a great point. there are two challenges first, the behaviors that have been most upsetting and tech bashings were the pop list on the left meet the pop lists on the right. but the behavior that's been most upsetting has been google and facebook and amazon. the worry of the broader tech community, companies that remain popular and not directly under attack, i'm thinking of the ibms, dells, oracles, is that regulation aimed at these dominant player who is maybe

have abused their market power will create policy shrapnel undermining both startups and traditional tech companies it's worth noting that gallop took a look at favorability and it's the second most favorable strindustry across the company compared to social media or particularly compared to pharma, which is lower for net favorability for congress. >> what do you think happens to an apple or a microsoft, who are very big companies that aren't as often brought up in these conversations around antitrust, at least not here in this country and not on the scale of some of the others does it leave them in a more favored position or do you they need to watch themselves too >> as a policy risk, we're seeing new policies at the state level, new policies proposed in washington, aggressive new policies and enforcement at the european union, all of which is creating the same rules whether you are a big dominant company

what is behavior has offended policymakers or whether you haven't taken actions that have put you in the cross hairs so in the eu, their privacy law applies to everybody and ironically the gdpr helped the well-financed companies such as google and facebook grow their market share, whereas new competitors are finding challenges there are similar risks with california coming out with the new privacy law at the ind of this year. the companies that haven't caused the problem are at risk of the solutions undermining their businesss. >> all the regulations coming out of the eu and california, hit iting the mark or missing i? >> i think there are broader questions tough look at. the market definition is really different in the sense that it's not just, with all due respect to bruce, i hear complaints about apple and microsoft too. it's not just biger is bad it's got to be a more

sophisticated analysis than that and to recollection news that these companies are not in isolation, there are all these chinese companies that are here. i thought it was interesting in the discussion about the about tik tok. they are here and competitive around the world they may not have the same kind of regulatory oversight, so it's an interesting world out there and can change on a dime >> good discussion, thank you. >> thank you get a check on the market this is morning. we're starting off q4 with a little drama started out groan and lost it all on a weak ism. 2959 is where the s&p is is a wework discount coming? robert frank has a good piece. we're back in three minutes. - [spokesman] if you've tried college but never finished,

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welcome back to "squawk alley. debt on top of debt and we risk

the real estate market >> reporter: good morning, morgan wework is the largest commercial tenant in manhattan with 7 million square feet of space this building behind me could tell us a lot about the risks of the broader market it's part ly owned by adam newman, the founder and former c ceo of wework. they lease the building and the building is now on the market for $110 million, which is a little optimistic given where the market is now. newman and his partners bought it in 2015 for $70 million but there are some layers of debt here. newman borrowed to buy the building and there's a $78 refinancing. so the loans on the building are now higher than the purchase price. they have been critical of the commercial real estate market helping to absorb a lot of the new space and now you have projects like world trade center

and hudson yards adding even more some buildings that were leased to wework have been pulled from the sale market and landlords now at least some of them will no longer lease to the company >> occupation rates fall because of the wework factor, among other things, you're going to see at some point a catalyst that's going to kick off a major reprice iing. what that happens, it's by the door >> we r were told one of the reasons newman put this building on the market was to deflect the criticism of self-dealing and conflicts of interest ahead of the the ipo. that ipo now postponed indefinitely back to you. >> it's going to be interesting to watch this company's impact for better or worse on the real estate market here in new york also european markets about to close

>> european stocks trading lower after new data confirmed this ongoing trend, which is the slowdown in europe's manufacturing center it slump deepened to a seven-year low it dropped to 45.7 from 47 in august spain, italy seeing big declines while germany's reading was the lowest since the financial crisis in 2009 but that's not stopping u.s. banks from getting more bullish on european stocks following a bold call from jp mojpmorgan european stocks at 600, which is a benchmark in europe to rise 415 points by march of next year which is implying a jump european airlines, mining firms and banks. the call is predicated on a weaker euro, which is now at a

29-month low against the u.s. dollar, slightly higher up a third of a percent against the dollar key events to watch will be the summit in two weeks. the next ecb monetary policy meeting on the 24th and that brexit deadline, which is still set for the 31st >> let's get a news update for that back to sue back at hq. >> good morning, everyone. here's what's happening at this hour republican congressman chris collins had his regular i guess nation read and accepted on the house floor this morning he resigned from congress ahead of an expected guilty plea to insider trading later today. charles squab is dropping commissions for stocks and funds. it is the latest slash in an industry bat thal has drastically cut the cost of investing. it will go into effect on mon y monday the news sent the brokerage shares plummeting. and britain's duchess of

sussex says empowering women through education could be transformational for communities. she made the comments during a visit to south africa. >> it's a really exciting day. i'm thrilled given the context of what's been happening in south africa universities, which i have been following very closely, that we are able to do our small part through the acu and support so many people who are just eager to learn. >> you are up to date. back to you. >> sue, thank you. up next, over two hours of mark zuckerberg audio leaking online the reporter behind that scoop is going to join us next looking at the markets, major averages are all in the red after starting higher. the dow is down 163 points the s&p is down 13 nuctinnu wk m s mafaurg mber and a big fall in treasury yields. back in a moment woman: my reputation was trashed online.

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all hands on deck. the latest explosive from the verge posting over two hours of leaked audio from internal meetings between facebook's ceo mark zuckerberg and his employees. here's mark zuckerberg talking about calls to break up facebook specifically from presidential candidate elizabeth warren. >> elizabeth warren who thinks the that the right thing to

break up the company, i bet we would have a legal challenge and we would win the legal challenge. and so basically does that still suck, yeah i don't want a major lawsuit against our own government that's not the position you want to be in we care about our country and want want to work with the government and do good things. be at the end of the day, if someone is going to threaten something like that, you go to the mat and fight. >> with us is facebook investor roger mcdamu k casey, it's quite a story. we had a big discussion a moment ago about whether he's saying anything we didn't know already. just more plain spoken opinion what did you learn >> well what i think the story

reflects is the deep unease at the company. mark zuckerberg is being mostly very politic and diplomatic here but what you hear in the audio and see in the transcripts is employee after employee coming forward to talk about their unease with what's going on. so that was my main takeaway people inside facebook are rattled by the threat of government intervengs. intervention >> he also talked about your story earlier this year about how facebook is having contractors moderate content his response was interesting some of the contractors have just had some troubling psychological effects, as you documented he was dismissive of that saying, yeah, it's a concern, but called the report overdramatic >> yeah, if it you think the reports are overdramatic, i would encourage you to talk with any of the moderatorers i spoke with about the post-traumatic stress disorder that they have

come down with after doing this job. sometimes for just a few months. so while it's true not everyone has a terrible experience doing that job, there are real mental health consequences for doing it i don't think the folks that i spoke with would have called their own stories overdramatic >> you have a deep knowledge of this company you have had meetings with mark zuckerberg what did you think of the audio? >> first of all, i need to compliment kcasey on an extraordinary piece of journalism he's been rocking this story from the beginning i think there are a few things that standout. the first thing is that as casey said, employees are beginning to push back. somebody leaked this to casey. that's a huge deal to my understanding, this is only the second time something has been leaked by active employees. that represents something really interesting. but to me, the really important thing is that mark doesn't appear to have learned anything. he's looking at this like, it's

okay for him not to testify before parliament in the united kingdom or canada, two of his largest markets. and that secondly, that the antitrust issues that have been raised here are in some way something he can dismiss and fight in court i think there are underlying issues going on here that are really, really substantiative, he doesn't seem to understand that this is a bipartisan issue. that the threat to facebook, but also to google, microsoft and amazon from antitrust is based on the fact they are really harming innovation in the economy and they have done a lot of damage to democracy, public health, privacy as well. so i look at this and say, wow, mark is learning a lot about how to do politics facebook's pr has been amazing this year, but he doesn't seem,

in this particular audio string, to be the kind of thoughtful, forward looking person that he ought to be given all the things that are going on. >> casey, roger may be right that opposition to the firm is somewhat bipartisan, but that's not at issue here if it goes to court it will be a judicial question >> yeah, that's right. and i think you hear mark zuckerberg saying they are ready to fight really hard they think they can win that case and have been working as hard as they can to knit facebook and what'sapp and instagram together so if and when president warren emerges and try iing to break up the company, it's going to be as hard as possible for regulators to split it up so they are active ly working t undermine any case that comes down the road. >> roger, he calls in the audio, mark zuckerberg does, this

extense shl issue. the idea of breaking up facebook i think that's a pretty strong word, but arguably one that any ceo who put a company together from multiple pieces might use what's your take >> my take is that investors should be applauding antitrust action here. we have just seen the ipo market blow up in smithereens because these companies have managed to force venture capitalists into other sectors, which haven't produced the same business model. and i think we will see that what happens here in aibt trust is the same thaing that what happened when at&t was regulated and taken apart when ibm was regulated. which is it will unleash a whole new next big thing i think the issues that mark has, he feels threatened

he put this vision together, but at the same time, he's act iing irresponsibly. the company has acted irresponsibly. it's clearly within their rights to fight legally in any way they can, but the notion here that elizabeth warren is the only one b who is a threat to him is laughable. there's a clear understanding of the issues here and breaking these companies up, i suspect, i can't speak for her, but i suspect she knows that breaking them up is a end of a process, not the beginning. the right thing to do is to restore the ability for competitors to operate by senator rowing the space that google, facebook, amazon and microsoft can operate in by making sure their infrastructure is fabavailable to startups to build their own audience, which was done to at&t before the breakup. >> you mentioned unease among employees.

how would you categorize that? what's the moral of the workforce within facebook? and what does it mean for the future of the company and the folks that mark zuckerberg was trying to address necessain thoe comments >> it's a great question the one part the audio when an employee says what do we tell our friends who don't like facebook anymore and that's an extraordinary thing for an employee to be asking the ceo for a long time work iing at facebook has been a badge of honor. it's beenless comfortable to talk about at a cocktail party and there's a very real effect for the company that it's harming their recruiting efforts. we saw earlier this year reporting that suggested that the percentage of people who are offered a job at facebook who accept that offer has been declining this year. it's clearly in direct result of the sort of scandals that we

have seen over the past couple years. so basically, everything we have seen over the past couple years contributing to make it harder for facebook to recruit and if they have trouble recruiting, it threatens everything at the company. >> before we wrap this up, roger, i want to get your take on something else in the news today. you have this event in san francisco. more than 100 startups have been invited to discuss the idea of direct listings. your thoughts? >> i don't think this fixes the core problem today, which is we have had a mania around growth at any cost. really taking reid's notion of blitz scaling and saying if it you get big enough, it doesn't matter that the business model is terrible, you'll still create a lot of wealth. there's a dark side of that. the market is saying it's ridiculous this is not about how you list it doesn't matter whether you do a direct listing or ipo. what matters is you have a biz model that's worth something and i just don't think we have that.

people don't appreciate how successful google has been to look in areas like crypto, like transportation, like delivery services and away from the core internet it's an argument for antitrust law. you need to create the opportunity for new startups with different business models to compete at the heart of the internet before it's closed off. >> before we let you go, what do you think is the next big story with facebook. what's the question that you want answered most now >> somebody replied to me after i posted my story saying it would be great if we could hear the audio from 2013 and 2018 and some of the problems that we have seen the consequences of since 2016 were really starting to take shape. there's a lot still to come, but there's a lot we don't know about what happened in the recent past. that might be one place where i turn my attention next >> and carl, christopher wyomil

the whistleblower from cambridge analytica, he's putting out a book next week, which i think is going to have a lot about facebook in it and who knew what and when relative to the russians so i think there will be more action it come from that particular thing >> we'll watch that. we are talking about changes to the instagram feed we'll have our eyes peeled on that too i'd say congratulations, but it seems a little inappropriate given the content, but it's an amazing story. roger, thank you for your help >> congratulations, casey. it was really great. thanks, guys >> thank you, i appreciate it. we continue to watch the selloff in stocks. dow is down 217 points right now. we're seeing that off the back of weak manufacturing data we havmoe re on that after the break, stay with us. with time, comes change

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the new aag advantage jumbo is changing the way people use reverse mortgages, and another way aag is working to make your retirement... better. call here's what's coming up at the top of the hour. stocks falling to start the fourth quarter investment committee debating what's likely to happen in the months ahead flus new at noon, inside the secret silicon valley meeting that could change the way companies go public. we have the details, who's there and what's being discussed and a big development in the way you'll trade in the future got the latest when we see you at noon. we're about 15 away. see you then >> sounds like a big show. we're looking forward to it. thank you. we have stocks near session lows right now. every sector in the red. big moves in the bond market for that we get over to rick santelli

>> good morning, yes, big moves in both directions looking at the chart for the yields we are four or five basis points up now look at us same could be said for ten years. we're basically lost everything plus more. and why? what are the whys is the number we have this morning we are going to call it a hard exit but it isn't our exit. it's japan's exit. basically three things have happened in the last 36 hours that spilled over into our markets and granted i don't think it's that missing piece of the puzzle or the final straw that truly breaks the camel's back, but it's certainly something to pay attention to and gives us a great lesson that

if you're going to manipulate markets, be prepared to buy everything because when you stop buying and you're short of everything, today's kind of a thing that happened. let's start at the beginning we'll talk about 19% what's 19% 19% is the government pension investment core fund in japan at $1.5 trillion. they dldsed they don't want to buy as much domestic debt. they want the to buy more foreign debt that's a big deal. all of this led into a bond auction. jgbs to be exact so what do we have we have a bank in japan, we have the biggest pension fund those are basically the wizards that keep the greater theory going. what greater fool's theory, and i don't mean to sound mean spirits, but in order to buy

products, financial products in japan or europe, you have to be pretty sure there's somebody behind you that's going to pay up for something whose value doesn't match what you're paying there's the greater theory but in order to have the greater theory, you need to have the biggest partner. you need the wizard. you need somebody that starts this parade. in this instance, it was shared by the bank of japan b and the largest pension fund in japan. and both of them, all of a sudden, decided no safety net required how will this play out i'm not sure how it plays out, but it's a life lesson whether it's a exit by japan, it's very difficult to leave the room when everybody in the room is looking at a reality that can't exist in real financial markets. become to yback to you. >> thank you after the break, the unicorn battering oracle and,000,000, i cloud storage. st wh t.lk to the ceo, nex

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. all right. almost halfway through the session. session lows, dow is down 208. the ism number continues to reverberate today. "squawk alley" is back in less than three minutes medicare. many plans provide broad coverage and still may save you money on monthly premiums and prescription drugs.

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mark zuckerberg has posted a response to that leaked audio that the verge and casey newton published today. he talks about the fact that every week he does a q & a at facebook where employees can ask

me anything. he said now that it's out there, you can check it out if you want to see an unfiltered version of what i'm thinking and telling employees on a bunch of topics like social responsiblsponrespo breaking up tech companies, libra and doing the right thing. acknowledging the voracity of the audio. >> then he posted a link to the verbal article, which is a classy move, i think it's going to bring them a lot of traffic certainly endorsing the content of the transcript which, of course, you can hear in audio as well moving on, snowflake computing fresh off a 3$3.9 billion valuation was named the top startup to work for in 2019 by linkedin as the data warehousing company takes shares away from tera data and ibm. is an ipo ahead in what has been a tough market to debut in joining us is snowflake's ceo,

frank slootman, former ceo after service now and greater domain great to have you here >> great to be here. >> you took greater domain public, emc bought it for 2$2.4 billion. you were the ceo of service now, a $47 billion plus company when is snowflake going public >> don't have a date yet, we're preparing the company. s this an expectation that we will timing-wise, we're having an election looming next year, that is a big factor. we're ready in terms of the scale and velocity of the business not quite ready in terms of preparing ourselves for the compliance requirements. >> the election is a factor in that you want go public before that or don't want go public during that? >> well, i mean, we believe that if we don't get out by, say, end of june, it will be post-election. what the state of the market will be post-election is

anybody's guess. >> interesting >> you guys are an interesting play on the cloud economy. you play on aws, azure, et cetera, and argue that you're helping to get customers more access, more analysis of their data how much do you see that growing? when do you see kind of a level of maturity hit? >> so, what was super important for snowflake is the ability to take advantage of cloud scale. most of what you're seeing in cloud computing really does not take advantage of cloud scale. they're just hosting in the cloud, that means, great, i don't have to run my own data center, but it can take advantage of an environment where you have computing storage capacity snowflake does that. that enables big data in a way we've never been able to process. the whole world is trying to figure out the data strategy that's the biggest thing going on the heels of facebook, google, everybody is trying to harness data

that requires being able to process tremendous scale, tremendous performance that's what snowflake does that's why the company has been on a tear since it hit the market in 2015 >> when you see the current ipo market, wework pulling, endeavor pulling, what does that tell you about what investors are demanding now and how does that cause you to think about your own prospects of going public in the next nine months >> i always tell investors try to understand the inherent profitability of the business. the basic thing that you're selling. are you selling at a multiple of what it actually costs the operating expense side can be manipulated you have full control over it. unit economics are much more per sis te persistent it's at the company's will how profitable the business will be. if those unit economics don't add up, you have no answer for

how much you spend >> thanks for being with us. >> you bet >> i can't think of a more appropriate conversation to end the hour, given everything the market has been through. ism will count adp tomorrow, all leading us to the jobs number on friday. the judge is back. let's get to hq. >> i'm scope what happtt wapner. what will the final three months of the year hold for stocks and your money it's 12 noon this is "the halftime report." >> the bulls three for three should you stick with stocks in the fourth quarter your playbook is straight ahead. brokerage stocks getting battered schwab scrapping commissions on etf trading what it means for them and your portfolio. >> silicon valley's top vc firms holding a major meeting to warn startups about going public through ip