tv Squawk Alley CNBC July 16, 2020 11:00am-12:00pm EDT
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we routed the biz into china as more oe-commerce and europe. it's about things -- the last month's events are acceleratiin the shift that was already happening, you know. and the growth for our business is one way of expressing that. >> right, right. toni, congratulations on everything so far, certainly on the blackstone-led investment. we hope to see you again toni pettersson of oatly thank you. have a good one. >> thank you so much. >> david and morgan. we'll see you later. good morning welcome to "squawk alley." as the markets try to work their way to the flat line, we took out yesterday's flow intraday. looking back, banks showing life even amazon is on pace for a fourth day down, something it has done fairly rarely so far
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this year. >> it has been on a tear, and we will, of course, continue and watch and see what the major indices do today we begin with twitter and that massive security hack pressuring that stock this morning. it is off the lows, though, up about 1.5% that attack targeted some of the company's highest profile users including elon musk, former president barack obama, and others joiningi joining us now is robert hirsovek good morning. >> good morning, everyone. >> they say it was a coordinated social engineering attack that successfully targeted some of our employees who had access to tools. what this said to me is this was a con more than it was a particularly sophisticated technical attack, and i'm reminded all of twitter's
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employees are working from home. i mean is this the first red flag of working from home? >> it's the first one that's made so much media i can tell you from personal experience we do a lot of cyber security, manage a lot of corporations we're seeing a growth in phishing like we've never seen before think this is the first high-profile role of phishing. the funny thing you say, the more they become complicated, the easier they come the phishing attack comes on people who have insecurities fundamentally with their password or working from home. home computers are not as safe as work computers. what we think we know at this point about the twitter attack is somehow their employees were
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targeted through a phishing attack, which is really growing like never before, and that's how the accounts were compromised, is what we think. >> granted we don't know, so i'm going on the social engineering component of this as it was described. but in a way, this is a digital version of oceans 14, right? this is somebody who went in with a con of some sort, got access to accounts from employees who have high access do companies have to rethink how they deploy things, how they investigate breaches with people employed in so many places >> i love your analogy people who work in cyber security have been in the dark for a long time, working in the background this has been a golden age for global security. this is about as sexy an attack as you can get in the hacker cyber world, and it's
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fundamentally ransomware driven. what we know is they ask for a certain amount of cryptocurrency, which is another problem because it's really impossible to trace. fundamentally to answer your question is people are working from home, people are working in the office how do i know who you are? and so one of the fastest growing areas of cyber security right now is around something called identity. the idea of proving who you are comes down this vertical known as identity. there are a number of stocks in this area, that we think are going to do really well in the short and mid-term, people like sale point and cyber arc, and fundamentally what these stocks do is awe thenlt indicate, prove that you are who you are in this new age, there is no perimeter. people are working everywhere. >> hey, robert, it's deirdra
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here when you talk about identity, we've heard so much about the important of two-factor or multi-factor identification that's supposed to help with that but this attack, correct me if i'm wrong, can totally by pass those controls what do consumers do what are they looking for to protect themselves >> that's a great question the analogy is if people say, well, multi-factorial can be hacked, it's kind of like somebody breaking into your house. just because somebody can break down your door or break in your window doesn't mean you shouldn't have doors or windows. so multi-factorial is kind of the baseline everyone should have it if they can. incidentally, one of the things we see a lot of consumers are doing is opening up permission from one application to another so i can go from instagram and
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facebook and others. we're highly bullish on this area of identity we recently acquired a company in the uk. we're doubling down in this area because we think in the new world, proving who you are online will become critical to the future. >> now, more broadly, robert, give us an update on your business in this difficult economic environment how have you been coping, what are your latest moves, and also give us a sense how the entrepreneurs whose businesses you've invested in are doing. >> as you know -- thank you guys for having me. we've been on the show since the
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beginning. i have to tell you, when this was happening, i thought the world was going to end it's a scary, scary time anyone who's an interpreter knows how scary it can be. we're fort nate. as people moved online and remotely, it's taken off just like the stocks you follow. look at the wider macrosms mark market we're doing well, but i it's a melancholy well. i worry about macro businesses the seesaw businesses, imagine they're shut down, they come back, and they're being shut down again, and the level of confusion is extraordinary like in california, one restaurant can open, another can't. i think it's a very difficult time for a lot of small businesses, and we hope that
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eventually there'll be a vaccine and on a macro level people will get back but it's a very, very tough time. >> hey, robert, i want to go back to twitter and the security questions around it do you think twitter acted quickly enough and appropriately we didn't hear from the company until more than an hour after the attacks began, and does this raise broader questions about political and business leaders being on the platform? >> yes i mean i think in general when you have a breach like this, it's good to come out with some information. so i don't fault them for their response to it it's virtually impossible to detect but it's important to detect it as soon as it happens. yes, to your point, you can have a widespread attack on twitter, and you can imagine the security they have.
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it really brings into question the motives of somebody who wanted to influence an election or get information or blackmail or anywhere. constant vigilance this is the new world. we're under more attack than ever why? people are working from home more computers are unsecured and more are using them. people are sharing computers, sharing information. it's the new norm. >> yeah. and we turn to exerted like you help make sense of it. robert herjavec, thank you so much. >> thank you, guys >> we've seen retailers implement mask mandates. walmart has one. >> starting august 1st, it will require all of its shoppers to wear face coverings or masks in
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all of its stores except people with health conditions or young kids 80% they're in areas where face coverings are mandated this includes kroger, kohl's, costco, target, and apple. target will provide face coverings for its team members again, target mandating all customers must wear face covering starting august 1st after the break, speak of retail, doordash and walgreens teaming up in a new partnership. we're skull thdiscuss this that the details with the ceo of doordash in a moment 49... 50!
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alley. the pandemic has boosted business for the on-demand food delivery it is the privately owned doordash that remains the number one player in terms of market sharks and today announcing a new partnership with walgreens joining me to discuss that in a cnbc exclusive is christopher. welcome and thank you so much for being with us this morning >> good morning, diedre. so glad to be on appreciate it. >> doordash is getting into
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another very come tell ting space that also have, you know, have a lead on you guys. what's the message you're trying to get out to ambassadors in an environment where we've seen investors respond more to profitability than growth. >> we're super excited maybe i can start with our collaboration with walgreens, what we're announcing today. it's fabulous. we'll have 2,300 items available to doordash's customer base. we cover about 100 million americans. so this willen in over the county medicine. grocery and household items and other categories that are totally promote for this covid crisis that we're in
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while it's 2,300 items, we're going to rapidly grow it to 5,000 so we can bring walgreens entirely to your stomp we shifted beyond going to restaurants and focused on empowering local economies by bringing other things people want to have delivered to their home walgreens is an appropriate example of that. they're going to ramp up stores in the coming months and touch millions of americans thafl's a huge announcement, and boif. but krit dper again pretty strong competitors, amazon and instacart that have been boosting their capacity in the last couple of months. how do you plan to participate
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>> one thing that's true of this space, deirdra, it's been competitive since day one. and one of the things i believe strongly that sets doordash apart, we're not customers that's one of the key reasons why we have a market share lead in food delivery in the united states and so we're going to continue to focus on that this is -- you know, the core to us is listening to our customers, being merchant first. you know, our original vision was to empower local economies some of the idea is we want to connect every local business to every local consumer, and that's a very different strategy than just broad e-commerce, right that is making these businesses successful that are around you and me, and that's what sets doordash apart and what will continue to set doordash apart.
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>> right and especially because you guys over the last few years have gone into the suburbs, which i know has been an incredible advantage and increased your market shafrmt i want to ask you about the action we've seen in the delivery market, grubhub going to takeaway, postmatess going to uber. is this a net negative or positive for you and what happens next is more consolidation needed >> this is sucharily days in this category. we're not focused on what competitors are doing. that's the right strategy for us we won't rule out acquisition. as you know, we did a caviar acquisition late last year that's going incredibly well, but our focus has been on helping our merchants drive. the latest example is what's happened with covid-19
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you may have known we swung into action back in march and april called main street strong. we built a program that generate $120 million in relief for merchants to keep them on their feet one stat i love to share is that restaurants that were on doordash during this crisis were four times as likely to make it through the first wave by being on the platform. it took the form of commission, promotion, to drive the sale to the small businesses so we will continue to focus on our customers, merchants, dashers. that's what is key right now we're not going to be bothered by what others are doing. >> hi, christopher i'm jon fortt. i want to ask you about the partnership with dash pass, which is $9.99 a month it's interesting to me once i
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can get children's medicine and batteries and things. how hard are you going to drive that how many get dash passes for free >> absolutely. thanks for the questions dash pass is our subscription product, you pay 9 it's important to note wall green is included in that. we've added poichs wi s -- partnerships with cvs, circle k, wha-wharo
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wha-whas, and now walgreens. i can get the medication i need immediately, perfect for this situation. that is our strategy our strategyis to eventually grow to cover all local merchants so that down supers get what they want convenience is the first piece of that. the inclusion of dash pass is really important because it removes the friction we can see as you suggested. i can get other things, and i should broaden what i'm doing. from a business perspective, that's nice, because it increases our market, you know, totally addressable market. >> finally, christopher, last question from me where does this expand to? do you think they'll be
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delivering prescriptions and yac yacht others >> one of the ways we do that is by building more and more services for our merchants we have a company called doordash drive which is taming it if you're ordering walgreens grocery delivery or you're getting an ftd flower delivery on mother's ay, often behind t skroothe scene s we want to make that very much available. we want to evolve our platform to absorb that in time most of our efforts are focused on food delivery, screens, and
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when you walk into an amazon fulfillment center, it's like walking into the chocolate factory and you won a golden ticket. it's an amazing feeling. my three-year-old, when we get a box delivered, he gets excited. he screams, "mommy's work!" when the pandemic started, we started shipping out all the safety stuff that would keep the associates safe to all the other amazons. all of these are face masks, we've sent well over 10 million gloves. and this may look like a bottle of vodka. when we first got these, we were like whoa! [laughing] with this pandemic, safety is even more important because they're going home to babies, they're going home to grandparents. so, our responsibility is to make sure that they go home safe every single day.
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rotation that we appear to be seeing, art cashin joins us this morning, director of floor operations at ubs. art, good to talk to you. >> good to be here, thank you. >> art, you said going into the week, 3240 would be fierce resistance and you've been right is there any evolution in your thinking on that front >> no. i think we're seeing a market that's been pushing up against the higher end of the range. the dow and nasdaq are still alittle bit below their ceiling of resistance. the s&p very clearly is showing resistance between the area of 3240 and 3245. i think the viewers should keep an eye on that any bullish news or bullish attempt is going to take us up against that, and we need to push through conclusively, otherwise we're going to be
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range-bound, and that could last for several more weeks now, the market is as a point where cycles indicate maybe a change of pattern. a little too early to tell today it's a narrow range between 3195 and 3240 again. so the viewers should keep an eye on that and see if we can test and maybe break through it. >> you've been -- you've written this morning about this rotation from some of the nasdaq high flyers to what you call basic stuff is that a function of confidence in the economic reopening, or is it about comments we've gotten this week on infrastructure or something else >> well, i think the infrastructure speech helped, and that added to the rally in those areas. but i'm not really sure it's a full rotation. i think what we saw on monday,
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there was a rather dramatic what looked to be profit taking in the high-techs that looked completely vulnerable and led us all the way up, so that may be more than rotation it could be a change in pattern. too early to tell. i think you have to give it a week or so to see where they're going. i'd like to believe it was on confidence on the economy, but i'm not really sure that that's where we are yet obviously the v-pattern is not working. so we have to see if the virus continues and the reopenings which appear to have aborted and are reversing, that will stymie the economy and, therefore, the market >> art, i wonder how you're processing the pretty good news -- pretty constructive news we've got thn week on vaccines from a variety of players
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versus, for example t commentary out of the attorney general right now regarding china, some of the accusations regarding russia out of the uk, allegations that they're trying to steal data? is thei is there asymmetry there is the upside better >> absolutely. let's remember, when this thing hit, people were taken not only by surprise but astound. it looked to be an extraordinarily sound con tanken it looked like the modern-day version of what the black plague might look like. it's like, my god, everybody is catching it, and the mortality rate is very large they shut down theaters, restaurants, and bars. that can only change if we get
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either a ee february tin effect. any news on the medical side can be a game-changer for the market, and i think we've seen that so far. the other things you mention are absolutely stunning to me because in prior months, earlier in the year and certainly last year, any confrontation with china would have a dramatic effect on the market it's having a minimal effect so far. even the problems with russia. so the market for now seems to think the election's far and away, the international tensions are not hurting the economy. so they're very focused on the short term, what's happening
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with the medicines and can we continue to address. i think the international tensions will come to the surface, but i think that's months away. >> art, i'm glad we got a chance to talk because it's been too long hopefully not too long again. >> thanks. >> art cashin. coming up, more on the twitter security tack. rbc's mark mahaney will in ujos on the other side of the break do stay with us. is it because people love filling out forms? maybe they like checking with their supervisor to see how much vacation time they have. or sending corporate their expense reports. i'll let you in on a little secret. they don't. by empowering employees to manage their own tasks, paycom frees you to focus on the business of business. to learn more, visit paycom.com
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this hour. johnson & johnson wants to start a late-stage human trial of a possible covid-19 vaccine in late september ahead of schedule phase 1 of human testing starts next week. you can go to cnbc.com for more on the technology behind the vaccine candidate. michelle obama will be hosting a show on spotify. she has a partnership with obama. kanye west has met the requirements to appear on the presidential ballot this year amid uncertainty whether he's actually running >> it was a small and big crowd at the all-star nascar race yesterday in tennessee bristol motorway hosted roughly 20,000 fans, one of its smallest crowds in its 60-year history. but it's also probably the largest amount of people at a human sporting event since they began. they're kind of social distancing that's the news update at this
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hour carl, i'll send it back to you i saw a little bit of distancing. >> we're learning as we go. >> we are. >> thank you, sue herre rarerah. let's get back to twitter. close to session highs as the stock's are down less than half a percent. mark mahaney joining us. hey, mark. >> hey, carl. >> i don't know about you. does it seem like the price action is moderate considering the level of the attack we saw last night >> yeah. look near term this doesn't have any real business p & l implications for the company, but i think there's a much bigger takeaway from this. this is a company that i think has underinvested in its business for quite some time this isn't a new point but there's now new evidence of. this i think this company has had problems rolling out products on time that's why we've had to push
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back on the first half of the year with this map on a product they've had problems with. but then this security breach, this is the third major and probably the single largest security breach this company has ever had frankly, it could have been a lot worse. it was a crazy bitcoin scheme quoted here. imagine if somebody has taken over a senior administration official's account and tweeted messages that implied war was imminent or something like that. i don't mean to make that stuff up, but that's what we could have been facing they're underinvested in product development. and, frankly, there should be a lot more responsibility here they take down those margins this is a company that has broad social impact. because of that in.
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>> it sounds like two things, mark one, we see the pattern given the ad pattern problems from a couple of years ago and this it sounds like they got lucky. even if it was a serial run. but it gives them some time to respond? >> yes i want to give you the tale of two cities t this is twitter today twochl years ago facebook went through a major hack and they had this huge issue with cambridge analytica. to their credit facebook and the june quarter earnings call was almost infamous. they said, stop the presses. we're taking down our revenue numbers. we're going to dramatically increase our operatives and make security the number one thing. i hope twitter does the same thing here for their own
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business but also because of the power of these plams forms it's been wonderful creating the ways we communicate, ways we can learn. there's been a lot of wonderful things that have come out of that mentality but it's created these real vulnerabilities that can have social, real, economic impact. facebook did it two years aechlg i have yet to see twim every do that. >> i'm looking at the stock chart, looking at year to date, the past 12 months facebook, underformed, snap, underperformed all of them have underperformed, square is twitter in a rut among
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multiple networks right now? >> i think that's true, john take it back it's underperformed a good none gler it this is a classic story. it fumbled its way out of the ipo box and then through a series of management, it looked at effective product developments there's been a lot of feature enhancements with snap there's a lot of growth twitter has been part of it. twitter is the opposite example. i don't want to be critical of jack dorsey. great visionary.
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one company that's run well. there's something amis with twitter. >> hey, mark good morning it's deirdre, by the way is this more fuel for activist investors? we know that elliott management has been pushing changes but left jack dorsey in place? do you think things will rise particularly after the hack? do you think dorsey is the right person to leave this company >> i like to lean toward the full tur of the companies. this is one of the best industries whether he has good executives around him, that's the open question at twitter. i'm not sure they have the solution there are others involved in
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this who come with a lot of great tech background and expertise, so maybe they can be part of the solution i don't know you know, this is -- it's not the first time we've seen it and there ee's something that needso change they need broader management change doim know if it's dorsey my bias says no. it's probablyover people around him. >> he's calling out a lot of american companies with their relationship with china. did nirks google, microsoft, apple, quote, have shown themselves all too willing to collaborate with the communist party there. are you having to revisit your china? >> i don't know where that comment comes from google as a point of principle pulled out of china.
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google, you know, to a lot of investors, they were teed off 10 15rks years ago when they pulled out of china years ago i'm not sure where that comment comes from. >> it's not so much about whether he's right or wrong, but the fact that he's saying it and the resulting tension, i guess, and risk. >> yes. >> whether as much as they first were or not. >> they're relatively limited. of the major tech companies, apple, they've got your exposure but in terms of the media, most of the major networks, very few
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have the presence there. the ring would be relatively know so but more than the vast majority. >> thank you for d great insight on twitter mark mahaney. coming up, if you invested $10,000 in this company back then, it could be worth $20 million now. we'll fill you in on which company after the break.
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stock splits it would be worth around $20 million now, guys. i don't know who could hold onto that for this long after seeing it go up i don't know maybe the same people who are buying tesla >> what a journey it was one of the games i like to play on twig werfel low amazon nerds is what's the next business to get to $10 billion in revenue. aws, cloud computing just got their last quarter some of the potential ones, advertising, we know that's growing very, very quickly $4 billion in revenue, there's physical stores after whole foods. this could be the slooper, guys. $5.6 billion in revenue last quarter. that's the area growing year after year from bookseller to really the everything-store and beyond, it's been quite the ride.
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>> deirdre, is that a game you literally play on twitter? that's a weird game. >> it's fun to speculate fun to guess that's what some of the nerds do. >> indeed we do. as we head to break, take a look at shares of vmware and dell vmware up almost 1%, dell, 14% we'll be right back. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555.
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wrap-it-up moment. >> while it's a little bit better than some of the horrible horrible numbers that we've been reporting, it's still pretty bad. here's the number. q2 now averaging among -- we have five economists on this down 33% is the estimate we still have trade to come. so that could help a little bit maybe. q3, though, looking like a nice bounceback, 23%. q4 up still better, up a potential 6.8% full year, we don't make it all back you see it there, first quarter, 5% decline he took it up and retail sales are up 0.6 below where they were in february. said parts of the economy are
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coming back in a "v" shape others in an "l" or "u." perhaps services will be one that has not done quite as well. some of the purchases people have made, they've shifted their purchases, guys, from in-store to and perhaps from discretionary goods to food or other things they are using at home i was hoping this would come down by 20 points, but it looks like we're headed to 33% decline in the second quarter. >> yeah. that's good information, steve we tend to think of it as one letter but may be a mash up of more take a break here. we're back in mite a nu (upbeat music)
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welcome back the sec meeting this morning to address the lack of diversity in the asset management industry. joining us is the gilbert garcia he moderated this morning's panel with the sec fwraet to have you good morning >> thank you for having me it was an extraordinary moment just incredible meeting today. >> tell me what was extraordinary. >> sure. we're at a critical time in history. it's an extraordinary time in history. everything that's happening around us, everything that's happening in the civil rights movement, the sec has the right tone at the top. that's why they have given us
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this platform. the key is if you look at the data and we got to be data driven here, there's 70 trillion assets out there in the universe to be managed. diverse firms only manage 1% of those saassets and it's been a constant number for well over a decade all the other studies, things that have been done by the night foundation, other krecredible organizations have proven and shown that diverse firms had the same bell curve as all the other general firms. if you look at the top, we're over represented in the top decile there must be something going on >> how the you define the issue? is there too few of the minority owned firms? is it they should be getting
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deals they aren't getting for various reasons? what >> there's no doubt there is either unconscious bias or clear bias and at the end of the day we want focus on the positive than the negative. there's no doubt, the concentration of decision making and wealth makes it very easy to continue to hire the same people it's very difficult to get in if you look at the consultant community, if you look at the largest 100, they make up about 35 trillion with the largest ten have 80% market share. it's even worse if you look at something like doe mimestic fixd income >> wanted to get your take on this move that california
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lawmakers are considering requiring diversity on company boards >> there's no doubt there are things happening this is magical moment in time i think it's a wonderful first step i think what the sec's guidance, california, the whole country will move that way you have to start at the top if you crack open some of the top ones then everybody else follows. if you look at what's happening in society, the biggest problem is the great wealth inequality it leads to unequal access to education, unequal access to
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health care, unequal access to the american dream that needs to be focus or we'll be in same place talk about the same issues when my son is here 30 years from now. >> we spent weeks talking about untraditional labor pools, are there some still undiscovered? >> flst no doubt we have the talent the key is firms need to find the talent and if they can't find them, call me, i'll tell you where you can find them. there's many programs out there that are sourcing young folks for interns, grooming them, getting them prepared. the real key is once they get there, you have to retain them it doesn't do any good to say i'm going to take my number of minority professionals from 10
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to 30 because what about at the top. what's going on at the top if i hear we're going from 3 to 6. all i heard is i'm going to make sure the ceiling of everybody else goes from 97 to 94. if minorities and women are good, why can't there be 20, 10, 40 at the end of the day, there are good minority and women professionals. we know where they are we know they are capable firms need to bring them up. ultimately they will because it's good business old habits take a long time to change >> that's what i wonder about this across many of the initiatives that companies, institutions are announcing. are the cultures going to change to be data driven and to offer opportunity to every one who shows potential according to the data isn't that the core issue? >> yes, it is. i'm hopeful, i'm skeptical
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i have great hope this is the beginning today. this is landmark today where the sec is looking at the issue. even the sec's own work, here is the regulator on record when they seek out demographic information, they can't get data from the people that regulate. no one wants to -- there's no accountability hopefully we'll come up with suggestions and our committee will go to the sec on how to really get transparency, how are decisions made transparency will set us all free >> thank you for being with us >> thank you please, invite me again. >> will do great discussion thanks for the help this hour. it's always good to have you on squawk alley we're watching the market
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action pronounced weakness in some of the key areas like travel. don't forget netflix tonight, q2's historically not the blow out quarter of the year. things are a lot different in streaming these days let's get to the half. >> i don't think the market will make a new high until dedra brings back the eagle. you can see the move, they are muted but the nasdaq, the big laggard. that's been a trend the last few days there's a lot talk about including the faang names. we have some
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