for joining us this morning. dagen: farmers want trade, nodded. we have heard that. maria: see you next week, have a great weekend. stuart: good morning, everyone. talks with china continue in a very congenial manner. there is no need to rush. it is a face-off but not a big market selloff. stocks drop as tensions exacerbate and in a half hour we will be down some more but it is worth noting the dow is within a couple percentage

points of its record high and it is the same story for the s&p and the nasdaq, down 100 for the dow, 17 for the s&p, so as of now, with the tariffs in place we do not see a major selloff but this market is headline driven. there is another huge money story, uber goes public today, $45 a share. that values the company to $75 billion, that is down from the $120 billion talked about last year. it faces rising cost, regulatory restrictions and on the other hand it is a transportation revolution. the wave of the future. you want it or not? the choice is yours as of today. "varney and company" is about to begin. ♪

>> the tariffs, they upped the meeting, it was supposed to take place originally on thursday and 5 weeks ago they said how about next week? what is this about? don't worry about it. i have no idea what will happen. i got a beautiful letter from president xi, let's work together. stuart: here is the tweet this morning, tariffs will make our country much stronger, not weaker. china should not renegotiate deals with the us at the last minute. this is not the obama administration or the administration of sleepy joe who let china get away with murder and we just tweeted this moments ago. your all-time favorite president got tired of waiting for china to help out and start buying from our farmers, the greatest anywhere in the world. let's shift, bring in edward

lawrence. i want to know what china is saying about this? >> china releasing a statement, the us has raised the tariff on $200 billion from the united states, 10%-25%. china regrets it will take necessary countermeasures. the 11th round of high-level economic and trade consultations is underway. it is hope we can work together to resolve existing problems through cooperation and consultation. some of the delegation members from the chinese actually filing in. the chinese delegation has a flight out of dc at 4:00, there is an indication how these talks will go, how we got here, there were complications earlier in the day and steve

mnuchin and robert lighthizer met with the president to update him on what the president did and they went to dinner. our chinese sources are saying the vice premier sat across from the delegation and said there is nothing else he can do. is up to the two presidents to work this out. donald trump said a phone call between him and president xi at some point. we will see if and when the phone call happens but it looks like there will be a short meeting today and the delegations will leave which is not something that has happened in the last couple rounds. stuart: it is a standoff. i want to bring in the author of the book the bully of asia, stephen, in my opinion, this is a face-off and i think the ball is in china's court. what say you? >> absolutely. who caused this problem?

china reneged on a deal that was 5 months in the making, you get 150 pages of detailed texts, single spaced pages outlining what we will do in terms of protecting intellectual property and us companies when they operate in china and that the last minute you get a chinese draft with everything concerning enforcement crossed out. a textbook example of negotiating in bad faith. stuart: i am told that 150 page document was a humiliation of xi jinping and he couldn't sign it. >> here is a game chinese negotiators play, hawks versus doves, the hardliners versus reformers, i am really a reformer, want to help you guys in the united states. i want to deal with hardliners in beijing.

you have to help me by moderating your demands. this is a game. i say this because in 2013 after xi jinping took power the hardliners won. there was a secret directive number 9 which explicitly condemns the rule of law, the market economy as threats to the rule of the chinese communist party so this whole hawks versus dove business they are talking about, the hawks in china had the doves for lunch. they want to have us for lunch next so we shouldn't fall for that particular scheme. stuart: the ball is in china's court. the market is coming back. we were down 120 points. now we look for a loss of 80 points. the tariffs are in place, the meetings will take place, the

sky has not fallen. >> you would think they are still talking, haven't rushed on a plane back to beijing. ashley: wait for the headline. stuart: the president tweeting moments ago about the economy, great consumer price index just out, really good, low-inflation. we have a great chance to rock, good numbers all around. the cpi, consumer price index came in this morning, not as strong as expected. david nicholas joins us now. the sky has not fallen, at least not yet. what do you make of this? >> it has given what happened this week, the markets got beat up starting monday morning given the tweet from donald trump on sunday but something interesting happened. the vicks dropped yesterday. in the midst of this turmoil

traders flooded off the idea the china trade would blow up. either way, i have been positive on a trade deal happening all year but there are a lot of other positive factors outside this trade deal. i am not concerned what happens today, markets will be okay going forward. stuart: we are looking at 70 points on the dow. and here's a chance if you want to get into this revolution in transportation. would you buy? >> and normally i pause at buying at the open. and i would go against that.

and the amazon of transportation, that will change very quickly and i'm a buyer as uber. >> you are the first person who said i would buy today. most guests have said 3 to 6 months, let them settle down. good luck with that. i will see you again shortly. i have individual stocks that are moving that makes misstatements. this is go pro. and $0.07 a share on go pro. and less money coming in over the transom. stocks down 5%. that is wind resort. zillow real estate company in the homebuilding business. they buy houses, fix them up

and resell them. ashley: some were skeptical. look at the payoff. stuart: and check futures again. the market is likely to open at 9:30, down, but the sky is not falling. we are down 70 points. we will be down 25-7, 32 points down for the nasdaq. it is a huge day of news. alex a czar, health and human services secretary, roger wicker, andrew left, big-time investor, chris, acting small business administrator and rick grenell, ambassador to germany. not a lot of bad luck. the military showing off a brand-new terrorist killing missile.

this thing minimizes collateral damage, damage to civilians, it uses 3 taxable blades to kill its target. joe biden making a push for healthcare for illegal immigrants. it is our obligation to pay for their healthcare. illegals included. you will hear it after this. rather than worry about how to pay for long-term care. brighthouse smartcare℠ is a hybrid life insurance and long-term care product. it protects your family while providing long-term care coverage, should you need it. so you can explore all the amazing things ahead. talk to your advisor about brighthouse smartcare. brighthouse financial. build for what's ahead℠

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stuart: the pentagon has a new weapon that kills terrorists and just terrorists. it is called the ninja bomb or the flying ginsu from begins to knife connection. it is called the are 9 x weapon. the wall street has done a story on it but the military officials were not actually talking about it but spoke to multiple sources who say they used this weapon half a dozen times and it is used to pick out a specific individual. there were no explosives in the warhead.

it is based on weight, 100 pounds of metal coming straight down on you but just before it hits the ground, six blades punch through the skin of this particular missile and it will threat anything it comes in contact with. you pick up someone in a vehicle driving around wherever, it can go straight through the car roof and kill a specific target even to the point where someone in the drivers seat is not killed but the person in the passenger seat, the person they are targeting is. there is no collateral damage. which is absolutely remarkable. there has to be a specific target in which they deployed successfully including one time in yemen, half a dozen times, the flying ginsu, it is remarkable. stuart: that is a high-interest story along with china trade and uber. here is another high-interest story. joe biden is pushing healthcare for all illegals. roll tape.

>> everyone who is in a situation where they are in need of healthcare whether they are documented or undocumented they have an obligation to seek care. we need more clinics around the country. stuart: do we have any idea the cost of this? ashley: higher premiums for everyone else. >> he said taxpayers have an obligation, that was his words. it is kind of interesting he hasn't even declared medicare for all which we heard from the supposedly further left candidates, warren and sanders, biden is moving further left. >> an invitation to go straight to the hospital, the american taxpayer will take care of it. what about those here legally who can't get access to medical care. the bottom line is taxpayers end up picking up the bill encouraging people to come to the united states and have access to healthcare. stuart: 1000 a day walk across

our border, claiming asylum and released into society. border patrol says a lot of them are sick. ashley: it overwhelms the system. >> obligated is strong. stuart: technically he is right. you can't turn people away nor should we turn people away but that is an advertisement for more to come and it is a huge new spending program and you are right. here means medicare for all. >> i feel he said that off-the-cuff, taking questions from this scrum in la so he may walk that back. stuart: i don't want to get far from china. he has unveiled the prototype of a moon lander.

he wents to take it to the moon and colonize the move. >> he makes this case, to extract any kind of resources, takes 3 times less energy than whatever activity mining, what is interesting about this is donald trump and jeff bezos have been clashing publicly. this is one project that could unite them. ashley: if you're going to stay there, just because you can, are there minerals you can mine. stuart: minerals and water and you can colonize it establish a base and stay. not him but -- i don't know why you want to do that. >> the allen company conference in sun valley. the children of investors -

stuart: let's check futures. going to be down 70. down about 32 for the nasdaq. the tariffs are in place, the sky has not fallen. listen to this. china may execute a canadian citizen found guilty of trafficking in drugs. what does that do to china canadian relations? big story and we have got it next. what if numbers tell only half the story? at t. rowe price, hundreds of our experts go beyond the numbers to examine investment opportunities firsthand. like a biotech firm that engineers a patient's own cells to fight cancer. this is strategic investing. because your investments deserve the full story.

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stuart: tariffs are in place. to china, a canadian man may be executed. he is a drug smuggler, execution in china. ashley: he continues to process his innocence, originally sentenced to 15 years in prison but unfortunately for him this diplomatic fight has erupted over the cfo of huawei who has been allowed to for ted but the defendant in this case ends up going to court and sentenced to death. they updated the charges to international drug smuggling and we will know in the next

month or two whether the courts will impose a bad sentence as tension continues based on what is going on with the huawei executive. stuart: a chinese national indicted on hacking charges. >> insurer and some, close to 80 million people, the current, former customers and employees we assume, we don't know, we assume that data went back to china but he has been indicted. one of the worst breaches in corporate espionage. stuart: look at the futures market, down 90 when the bell rings in 41/2 minutes. we will take you to wall street. it is a big day, you have the uber ipo, china trade in the news, back in a minute.

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stuart: the president's firing of the twitter account. looks to me like it is going to be sleepy joe, creepy joe over crazy bernie. everyone else is fading fast. you have uber's ipo, china

trade stuff and the president, let's get to uber, they start trading going public this morning. you are our point person today on uber. what is it, $45 a share? >> just a dollar higher than the bottom, a bit of disappointment there but we price conservatively given how lift has done since their ipo and we were only 3-5 times overprescribed and these investors put in bids for 10 million shares, trying to get 1 billion shares back. it is not a lot of interest or enthusiasm, uber is trying to give investors some sort of upside on day one but this is the largest american company's ideas and facebook in 2012. a lot of buzz here and behind me there are a lot of excited investors. people want to see how this

does. stuart: let me explain what is happening on the other side of the screen, china's trade delegation just arriving. they were due to started 9:30 and that is exactly 9:30. the chinese trade delegation has arrived and we are beginning trading. let's see how we start, down 68, down 67. that's not a huge selloff by any means. the china tariffs, it is a face-off. the delegation arrived is the backdrop. back to susan. i cut you off. one thing i want to know. the founder of the company, the bad boy who got things going, how much does he make today? >> he still owns 6% in the company.

$82 billion valuation, $5 billion. he is on the floor of the stock exchange but he will take a look at other investors and cofounders as well. stuart: i am sure we will be back to you frequently in the near future. how did we open? we are most one minute into the system. that is a loss of a third of 1%. it is down a 12:45%. as for the nasdaq, that is down a third of 1%. we are down across the board. trade sensitive stocks, export companies, boeing, caterpillar, united technologies, let's look at lift, the competitor to uber, lift went public a few

weeks ago at $72 a share and it has come down to 56, that is where it is today. very active market. i need help to cover it. look who is here, jonathan honing joining us in new york city. let's start with china, china trade, the sky has not fallen. what do you make of this? >> the ball is in play and as long as the ball is in play you will get the market stabilized. it is when they got on the plane was nothing accomplished you will see a decline, but it is still on. >> the towers and crashing so tariffs are not having an impact. this is the second or third level effect. right now you have 3000, you

have hundreds of thousands of business leaders big and small trying to say what impact is this going to have on my bottom line or my margins? this is a positive for the us economy in taxes, this is a real negative even if we are not seeing it. stuart: welcome to new york. i consider myself put in place, that was solid analysis. uber, i am going to go back to you. would you be a buyer of uber today? your kind of company. >> amazing company but company and stock or two things. what worries me is this is a company whose price was marked down in the last couple days. some pre-ipo investors are underwater even in the shares bring it back to 2000, march 2000, when companies like palm went public when ipos data

to flop, then you knew the top was in for the market. stuart: would you buy or not? >> most likely selling short but it is the tip of the spear. is uber goes so goes the nasdaq and the market. stuart: may i introduce you to an early investor in uber named jeff z car, frequent guest on the show. you were an early investment but you sold your stock. >> i think they are a year late on this ipo. when talking about valuations in the 120 billion, that is the time they should have struck when the iron was hot. they thought they could get a better valuation and they had a very very tough year. they lost $3 billion up to april. things have been difficult and they created all these mechanisms to invest in stock pre-ipo and made it almost and liquid stock so to be in it

today. >> didn't cost $1 million. stuart: we are down 90 points on it now when tariffs are imposed. i get your point. it is not a gigantic selloff. >> i will say one more thing if i can. this echoes back to 2009. remember the short sale list the government was running? they were going to decide which stocks you could sell short and which stocks you couldn't, this creates a terminus amount of certainty. it is a cliché to say the market hates uncertainty but you have thousands of ceos and executives watching the president's twitter feed to find out what their margins are going to be. stuart: headline driven market and any headline moves the market we are down 120. i have a beer deal to tell you about, $300 million deal, the brewers of sam adams and dogfish head are getting together.

why? >> millennials hate domestic beers, the biggest demographic outside baby boomers, they would rather have craft beer so what better way for two brands to combine. beer is getting pounded at silicon valley. >> it has always been sam adams, they haven't diversified at all. sales are flattening out a little bit. this is an opportunity to buy this particular brand and expand while they can. >> we consume $20 billion a year and craft beer, $100 billion a year in the overall beer market, we are big beer drinkers in this country and that craft market has grown substantially so i think we will see more consolidation where big beer companies will realize craft will over -- >> they having a orchard and other things. stuart: who has angry orchard?

>> before sam adams came around they invented the modern day craft brewery composition to the big brewers a number of years ago. they have to compete with big cannabis. >> that the big threat. >> consolidation is positive for all in a free economy. stuart: we are down 120 points, we are waiting for uber's first trade going out at $45 a share. we have not seen the first trade yet. did you know that zillow real estate companies in the home clipping business and that business is doing very well? they are buying homes, fixing them up and reselling them, stock up 18%, nice gain on zillow. marriott hotel chain down, look at the start, down, 3.8%. viacom better profit, lower cost. is the stock up? it is down $.10. two items on delta. testing free wi-fi on planes this month but the bigger story

is the company confirmed it is behind a poster that suggested nonunion employees by video games rather than spend their money on union dues. i don't inc. many people did very well with that. no impact on stock, $56 per share. you want to discuss this? >> it was a funny quote. there is a videogame console that said union dues cost $700 and pretty much said by this instead. that is creating an uproar. had somebody saying lol on delta and twitter and retweeting the company. your pearls. stuart: your pearls too. look at boeing, former engineers reportedly said that cost-cutting hurt safety. stock is up 351. ashley: we have heard the story before. boeing engineers who retired saying to try and appease

shareholders and increase efficiency they sacrificed safety for profits. that is their belief. stuart: here is a story. ashley: headlines for boeing. stuart: look at microsoft. i own a little bit of it. given this story, microsoft is using ai to check your writing for political correctness. >> what does that mean? they are taking my handwriting? >> if you were a policeman they would suggest police person or member of the force. stuart: i am selling. that is a silly thing to say. >> a little picky but also grabber which is necessary for a lot of people. ashley: politically correct, maybe you don't want to say that. say this. >> given how inaccurate so many public pronouncements are these days, a little grammar check,

maybe twitter could adopt that. >> microsoft should write twitter. >> don't be concerned about ai. this has gone on since technology started, computers becoming smarter. if you want to) wagon go ahead and write it but it is uncouth in today's culture, you have to understand that. stuart: you are coming back to new york. >> the big tech companies are not going to be happy they control every move. we got to draw the line. >> carbon-based organism. stuart: i am not selling. thanks very much, appreciate it. check the big board, 10 minutes in, down 80 points. officials in china telling members of the communist party christianity is, quote, an enormous harm soon society. a little provocative.

governor huckabee coming up on that. big victory for the administering just secured a donation of $1 billion worth of hiv prevention drugs. alex as our joins us to tell us about that in a few moments. secretary of state mike pompeo canceling a meeting with german chancellor merkel at the last moment. question? is our relationship with germany on the rocks? we will ask our ambassador, richard grew now in the 11:00 hour coming up. ♪ ♪ at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. thank you. there is reward. beyond the classroom... there is inspiration. ♪ ♪ beyond work and life... who else could he be? that's what i say.

there is the moment. (laughing) beyond despair... there is hope. ♪ ♪ stay safe. i love you mom. i love you too, sweetheart. ♪ ♪ beyond treatment... ♪ ♪ there is care. say hi to grandma and grandpa. ♪ ♪ beyond technology... there is human ingenuity. every day, comcast business is helping businesses big and small go beyond the expected, to do the extraordinary. take your business beyond. let's talk about thisd when we meet next week. edward jones came to manage a trillion dollars in assets under care by focusing our mind on whatever's on yours. back then, we checked our zero times a day. times change. eyes haven't. that's why there's ocuvite. screen light... sunlight... longer hours... eyes today are stressed!

but ocuvite has vital nutrients to help protect them. ocuvite. eye nutrition for today. stuart: breaking into commercials to show you the scene on the florida new york stock exchange. i see travis, founder of uber. >> that is him. the founder of uber in 2009, single largest individual

shareholder up there on the balcony. he is watching the first trade, he will be opening the stock. stuart: he has $6 billion worth of stock at $46 a share. >> reporter: 61/2. that is a $5 billion stake at $82 billion valuation. he has been put on the sidelines of this ipo. he was kicked out as ceo in 2017. he is fifth on the board but left because of culture issues and ethics questions. stuart: we will be back with you shortly. minutes ago just as the market was opening, china's trade delegation arrived to resume trade talks. edward lawrence, you were watching. any idea what the mood is. can you tell anything from

smiles or otherwise? >> there were a lot of niceties, there were smiles on both sides but robert lighthizer shows emotions on the other side but doesn't have a good poker face. you see robert lighthizer, and that is an indication, and the wave is coming here soon. there was a pat on the back. there is the way you see it there. a level of frustration with the chinese trade representatives. stuart: there plane leaves

going back to beijing at 4:00 this afternoon. we will be back to you shortly. there is this. officials in china worn that christianity is an enormous harm to society. mike huckabee, i say that is provocative. >> the chinese have been hostile to faith for a long time especially toward christianity because it is a very liberating faith. it causes people to believe they are individually accountable to god and not just the government but here's the interesting thing. i'm talking about the cosmetic church, so people can think there is an official acknowledgment of religion but the true church is growing more rapidly that it was expected to be the largest body of christians on planet earth in 2030. the more government represses people the more their souls and spirits cry out to be free.

the chinese government doesn't understand these are not christians who want to overthrow the government but their own sin and their own sense of being shackled by their own personal guilt. stuart: it adds to our knowledge of the us china situation. here we have donald trump taking a strong line in terms have been opposed and america achieve political unity in china. can it hold when tariff start hurting the farm belt? >> i come from a cultural state. they continue to be bullied with cheaters. exactly what this president is doing and what he said he was going to do, there was never any doubt of what china was accountable for the way they abused this.

and globalist practices of getting cheap labor at the expense of american jobs. i'm so proud of the president and wish more democrats were like chuck schumer who praised the president for standing tough. it made me rethink my position because schumer liked him but this thought to unite americans and short-term pain for long-term gain. not unlike you don't do a colonoscopy because they are fun. you do it because it is a necessary medical procedure to make sure something worse is not happening. this is our colonoscopy if you will. it leads to something much better. stuart: i am shocked. thanks for bringing that up. that was just great.

happy friday, good stuff. that news on christianity underground in china. that is fascinating. come back and see us some more. 25,00761. donald trump pushing congress to pass a law that ends surprise medical bills. health and human services secretary alex days are coming up next on that. you wouldn't accept an incomplete job from any one else. why accept it from your allergy pills? flonase sensimist relieves all your worst symptoms, including nasal congestion, which most pills don't. and all from a gentle mist you can barely feel.

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of this. how do you come up with wording on legislation that will stop those unpleasant and surprising medical bills? >> great to be back with you. what the president has laid out our principles. is calling on congress to enact on a bipartisan basis and what it would say is when you go to a hospital on an emergency

basis you the patient should never get a surprise bill. if an anesthesiologist, if any are doctor works on you when you are there on an emergency basis it is not your fault they don't have a contract with your insurance company and are out of network. you should not get that bill for any balance. you should be charged in network charges and the hospital out to have the incentive to bring the facility. if you're going into a facility that is out of network for an elective procedure you should have full information ahead of time about who is giving you care and what their charges will be so you can make an informed choice whether you want to get your procedure done there or somewhere else. stuart: how you propose to do this. i want to move on to a drug money, they are donating billions of dollars of hiv

prevention drugs over the next ten years. are they looking for good pr or did you strong-arm them? >> donald trump, the deal master in charge setting up an executive branch about getting the best deal for taxpayers, bears fruit. we have a team here that is focused on how to deliver against this agenda the president - in the next 10 years. as part of that, a key part of that, at risk of contracting hiv, they need to be on this drug, it has 97% efficacy, of keeping people from getting hiv but it is expensive and we need to negotiate a donation of enough drugs to care for 200,000 people every single year for up to 2030 so billions of dollars of donation to the

us devoted to the uninsured and those who can't afford access to the medicine. it is a huge amount of money. we always appreciate it. uber goes public this morning. this is your chance to buy into a revolution in transportation, some real head window facing uber. we have legendary investor andrew left on the show later, uber could be the next amazon. there is a headline for you. investors take note, join us in the 11:00 hour. it's tough to quit smoking

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at adp we're designing a better way to work, so you can achieve what you're working for. morning. what are you doing? isn't it obvious? nah. we're delivering live market coverage and offering expert analysis completely free. we're helping you make sense of the markets without cable or a subscription from anywhere you are. i get that. but what are you doing here? nice pajamas. really? i say pajamas. pajamas, pajamas, whichever. good. yahoo finance live. stream free anywhere. welcome to the show. let's make finance make sense.

stuart: this is uber day, the day when ordinary people can invest in the biggest

ride-sharing business of them all if they wish to do so. i'm going to spell out the pros and cons as i see them. first of all, if you buy uber's stock you're buying into an idea. you're buying into a revolution in transportation. use your phone to get a ride. what a concept. uber is a disruptor. they have upended the taxi business and the whole idea of buying a car of your own. if you buy uber's stock, you're buying into what some come to be known as the gig economy. however it is not all plain sailing a revolutionary idea does not necessarily translate into a profitable, dynamic company. for a start uber about is losing money a lot of it. it lost a a billion dollars in e first three months of this year. its costs are rising. drivers went on strike this week for higher pay. there is pressure to make drivers regular employees with benefits rather than contract workers. that would really change their

business model. there is threat of regulation with surcharges on fares or restrictions what types of cars can be used. yes, uber has competition. these are the owners headwinds investors face if they buy uber's stock. this is how capitalism works. they come up with a good idea, form a company, go into business. at some point they want to bring in more money to develop and expand. that is what uber is doing today. they will raise $8 billion. the founders and early investors will be rich. you have the opportunity to buy in or stay out. it is yours call. so let's go straight to the new york stock exchange with gerri willis. what's the latest on pricing and timing of uber's offering? reporter: we are just getting underway here, stuart. as we mentioned the early look here 49 1/2. as you can see this is going right now. you have all the traders up near this post.

citadel securities is running this ipo and as you can see everybody is getting ready to make bid or see how they get involved here. here is what is going on with uber. they are expected an valuation of 82 billion. the look last night, the price last night was 45 a share. it is going up from here. i'm talking to traders all morning here. there is a lot of enthusiasm, people, there is a lot of enthusiasm here for this stock. let me tell you there are some people down here that it is just really crowded and a lot going on but back to you. stuart, i will send it back to you. stuart: can i say it is rather chaotic there, trying to get that first trade priced. reporter: it is chaotic. stuart: i think we're right on that one. before we to any further, a loss on the dow, 32 minutes into the trading session, let's see down we're down 145 points. that is the china trade deal

that is hurting the market this morning. uber has got nothing to do with the overall market. at least i don't think it is. ashley: no. stuart: staying on uber, i want to bring in tech watcher ray wong. come on in, ray. uber is facing headwinds. i lay it out as i see it. would you buy uber's stock now today? >> i would wait a couple months, happy friday, i would wait a couple months to see how the stock stablizes. we think it's a great buy. we think it's a digital duopoly. if you go to every market there, is uber, someone else into the space. if you buy into logistics and gig economy this is one of the stocks that will pop. stuart: not talking about how the dot-coms ended up, i'm saying the dot-coms as a revolution in technology. then it was social networks, a revolution on the internet. now it is the gig economy. am i buying into something

absolutely brand new if i get into uber or lyft? >> you're buying into something brand knew plus a data driven digital network. these are powered by consumers, hundreds of millions of users to use the information take next best action, top location, pricing all the models. they're building future of digital duopoly. uber is in the digital due open poly of transportation and logistics. stuart: they have all the information. can they sell it and make money of it. >> they can in terms of deliveries, people going uptown to downtown. people going from philly to new york, looking at transit lines, looking at transportation logistics, figure out pricing, deliveries. companies like amazon might use them for last mile deliveries in the future. stuart: it has to be a little disappointing though, doesn't it? they were looking valuing the company at about 120 billion last year. they are looking to get 80 billion into today's

offering, a little disappointment there? >> there is a lot of disappointment there. i think because lyft went first. performance of lyft in terms of stock there, weighed down on uber. that caused a pricing decision to be a little bit lower. but uber has a bigger name and market. it is also losing bigger than lyft at the moment. stuart: let's summarize it like this. ray wong wants in, but he will wait two or three months before things settle down before he buys it, am i right. >> that's it. look at the performance next quarter or two i -- you i nadarkhani whether it make it or not. stuart: thank you, ray wong. there is another story, china trade negotiations which indeed are happening right now in washington, d.c. time to bring in curtis ellis, one of our trade guys. curtis, welcome to the show. seems to plea we have have a standoff. i think it the ball is in china's court. it is up to make the move, right.

>> absolutely. president trump is not backing down. he is defending the american people against cyber hacking, intellectual property theft, state-owned enterprises undermining free enterprise capitalism around the globe. they're dumping products below market cost, destroying american companies, destroying american jobs, currency manipulation, their dumping the fentanyl, poison drugs, into this country. china knows what every person does everywhere they go but can't seem to locate the factories manufacturing poison killing our people. president trump is the first president to stand up for the american people to do something about it. these tariffs are what brought china to the tariffs, after 30 years of happy talk and empty promises. stuart: the trade delegation arrived at the d.c. negotiating place today at 9:30. it was a cordial exchange as they walked in but i'm told, edward lawrence is reporting that their plane leaves at 4:00 this afternoon to take them

back. so it will be a relatively short meeting. are you expecting much to come out of it today? >> no. stuart: nothing at all? >> nothing we're going to hear about because bob lighthizer, our trade representative has tighter lips than bob mueller and his team ever did. stuart: is it possible, china would have to back down substantially to get anything going here. the terms of that 150 page document, that was almost humiliating to xi xinping, wasn't isn't. >> from what we hear, there are certain people in the politburo didn't like it. the idea you will change the laws and not subsidize your industries, you're not going to have whole save theft of property and intellectual property? oh, my gosh, that goes against everything the communists believe in, which is no private property. what is yours is mine so. stuart: if president trump does not back down from his hard-line stand, and i don't think he will, he is not that kind of guy, this will drag on for a long time, isn't it? >> we'll see continued booming american economy just like you

said. trade reform, tax reform, regulatory reform that makes america the best place on earth to do business. the only reason jobs left here because companies were taking advantage of subsidies they were getting and cheap labor they were getting in china. put on equalizing tariff makes no sense to do business in china. if they want cheap labor, go to mexico or honduras, give people jobs so they don't come rushing to the border. stuart: tariffs, 25% on $200 billion worth of product, maybe more to come, that is up the president's sleeve, that would hurt america's economy. i agree. not by much. >> they said that on the 10% tariffs. stuart: it would hurt the farmers t would hurt the farmers. that is an important voting block. >> president trump says the government will buy crops that china is not buying. it is not tariffs that are hurting farmers. it is china's retaliation, their recalcitrance, their inability an unwillingness to face up what

is going on here. instead of dealing with their problems they're retaliating, purposely targeting farmers thinking it is going to hurt president trump politically. but the farmers understand, they don't want to be under the thumb of the chinese communist party with more than market influence over the agricultural economy in this country. stuart: i think it is the most important financial story of the year. >> of the century. stuart: faceoff. maybe you're right. look it is a faceoff of the two largest and most dynamic economies in the world. >> yeah. stuart: curtis, thanks for your coverage. we'll see you soon. thank you, sir. two big stories, china trade talks continuing, high-stakes game. the other market story? we're waiting for a first trade in uber stock. that could happen in any minute. what you're looking at on the screen, that was arrival at 9:30 this morning of china's trade delegation. all set to start talking. ashley: are they smiling? stuart: a little smile right there. ashley: there you go.

stuart: as president says, it is cordle. anything more than that we don't know. we'll do this for you as well. going back to 2012, remember, when democrats blasted republicans for holding attorney general eric holder in contempt. my, how times have changed. we'll play you the tape from back then. we'll shoal you what it is like now. ashley: golden oldies. ♪ fact is, every insurance company hopes you drive safely. but allstate actually helps you drive safely... with drivewise. it lets you know when you go too fast... ...and brake too hard. with feedback to help you drive safer. giving you the power to actually lower your cost.

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stuart: overall this market is down 167 points on the dow as we speak. two major events on the market today. first off china trade, on going talks in washington happening as we speak. the second big story the stock

market will await the first trade in uber. they are going public today. no first trade yet. as soon as it happens you will know about it. in a rare show of unity democrats agree with president trump, we got to make a deal with china on trade on our terms. senator roger wicker, republican from mississippi, is with us now. mr. senator, how long will the unity last? these tariffs will hurt the farm belt. >> i know they will hurt the farm belt. president's tweet, the tariffs will raise over $500 billion for the united states treasury. the president says he intend to use some of that money to buy agricultural goods and donate them to third world countries where people are starving. so there is a way to ease the burden on our agricultural sector and, i think, the president is really on to something there. stuart: that will work, you

think? if we charge these tariffs and use the money to buy commodities and then distribute them to people around the world for free, you think that works, to keep political unity? >> i think it goes a long way. let me just say, the american farmer, the ones in, down south in mississippi where i live but also in great midwestern heartland, they have been very, very supportive and patient with the president. they understand what he is trying to do. they know that, as you said, on a bipartisan basis we need a better deal with china. we need to get them to quit being the international scofflaws that they have been, stealing international and intellectual property and cheating in every way possible. so i think the american farmer is supportive of what the president's trying to do and i think this will buy him some sometime and also just seems to me the chinese must understand

at this point how determined president trump is to hold their feet to the fire and actually get a deal that works for us. stuart: i think they do actually. mr. senator, i want to talk to you about facebook. one of the cofounders, i'm sure you saw this but one of the cofounders of the company says, this thing should be broken up, much too powerful. i know that you met with sheryl sandberg, facebook's chief operating officer i think. you met with sheryl sandberg. did she make any comment? how do you feel about breaking up facebook? >> i did see that interview on another network. actually when i met with miss sandberg, that information was not yet out, that op-ed had not come to my attention. so we didn't talk about that. we talked about net neutrality which is a big issue facing regulatory agencies and congress. talked about data privacy, a bill i'm determined to get done

with broad bipartisan support. stuart: i believe that facebook faces a 5 billion-dollar fine for invasion of privacy or misusing information. >> right. stuart: what was miss sandberg's comment on that? >> she didn't comment on that and i'll tell you why. it is an ongoing, an ongoing matter before the courts so we didn't get into that. she thought it would be inappropriate. i was happy to talk about legislation. stuart: okay. >> with regard to the op-ed by mr. hughes, and his vary are you interviews, i would be happy to have hearings about that. certainly would take more regulatory determination to do something of the scope he is talking about. stuart: mr. senator, if you did that, we would run them on our air, that is a fact. mississippi senator, thanks for joining us, sir. >> thank you. stuart: yes, sir. bernie sanders and alexandria

ocasio-cortez team up to beat up the banks. they want to cap credit card interest rates at 15%. we're going to deal with that in a moment. also keep your eye on uber. could start trading any minute. they go public today. we're waiting for the first trade. we want to know what the price is on the first trade. you will know it real fast. china trade negotiations happening right now. this is big market news. we're on it. the china delegation arriving earlier this morning. they're talking right now but i got to tell you their plane leaves at 4:00 to take them back to beijing. how about that? meanwhile the dow is down 200 points. we'll be right back. ♪

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stuart: a momenting ago we were down 200 on the dow. now we're down 190. it is a down day. china trade dominates the overall market. right now i want to go to the floor of the new york stock exchange. susan li is there. susan, do you have any indication on the first trading price of uber? reporter: okay, so as gerri mentioned we're still awaiting that at this point. we talked to a few traders that walked by. maybe $50. maybe at 11:30 or so you have to trade around 10% of your book. so we had 180 million shares sold in the ipo. you want 18 million shares to trade. that is a big trade. we're still waiting that. that will take some time. i want to tell you a story what is happening here on the floor of new york stock exchange when it comes to the uber ipo. yes, it is largest american

company to go public since facebook in 2012. those megabillionaire cofounders are here in tow. that does include travis kalanick. who is staying away from the press. we're on floor of the new york stock exchange. travis is up there on balcony figuring out first trade for a company that he still owns 6% of and still sits on the board. meantime for corporate ceo and corporate leaders of uber, we have dara. he will be back on the floor when we get the first trade. you see the divide, ceo, dara khosrowshahi on floor of new york stock exchange. cofounders of uber, travis kalanick kicked out of the company on 2017 on cultter and ethics questions. he will be up there. you see the divide. that is telling and symbolic what is happening with the company themself. stuart: susan, they will both be

rich, right? >> i would say travis is richer than dara. he is still an employee. not a founder. he does not own as much as travis does. i think they both will be happy. stuart: back to you soon as possible when we get the first trade. susan, thank you very much indeed. i have a story about netflix. they are buying story bots, a media company focused on children. ashley: media company 3 to 8 years old. that is major battleground attracting parents and children to programing. disney will be in the game later on in the year. netflix is trying to get programming in there. the growth for netflix subscribers has really slowed down. i didn't know this, stu, more than 80% of netflix subscribers, new subscribers, from overseas. eight out of 10 new subscribers to netflix are outside of america. stuart: i'm not surprised. that is a huge market over there.

ashley: continuing to grow. but this family friendly content is something they will try to take on disney with these types of acquisitions. we don't know how much they paid for it. they're not saying. stuart: let's get to uber. we're still waiting for the first trade. ashley: we can wait. stuart: coming out at $45 a share. some indication the first trade may be between 46, 48. that is not a huge pop by any means. that price of 45 was a little disappointing to start with. we take you there when we get the first trade. we have a guest on the program who says, here is the headline for you, uber is the next amazon. again that is an extraordinary headline for you. happening in washington right now as you can see the chinese trade delegation has arrived. they're talking right now. anything happens, anything hinting at some action you will know it real fast. we'll have this story, conservatives banned on social

media. later this hour, david horowitz one of the conservatives kicked off twitter. we'll be back. ♪ can't see what it is yet.re? what is that?

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♪ stuart: that is a good one. check the lyrics very carefully. 216 points down. china trade is story of the day. they're talking in washington,

d.c. right now. it's a faceoff. the plane leaves at 4:00 this afternoon. >> speak quickly. stuart: speak quickly, guys. uber ipo. we'll get to the first trade shortly. mitch green, an early uber investor. well come back to the program. >> good morning, how are you. stuart: seems uber is facing serious headwinds here. costs are rising. they're losing money. regulation is coming down the pike. they want unionization. a lot of headwind as we might say? >> i think a lot of it is frankly overdrawn and overexaggerated. you know, people were making a huge deal about the strikes on.

here is interesting stat, varney. rough approximations. 50 billion of d and d, 5 billion rides and they lost 2 1/2 billion dollars. average price after ride is 10 bucks. if they, if they get 50 cents more out of each ride, nobody talks about money losing because they're now break even. i think there is huge pricing levers they will drive. lyft an, on their earnings call a few days ago was kind of much less combative isn't is the right word but you know i think you will see these companies operate like duopolies. stuart: why did the value come down so much? we were talking about $120 billion as the valuation for uber last year. now, at $45 a share they're going to bring in just 75 billion? >> yeah so i think -- look it,

part of that is banks pitching a company. you know, what they think it might be worth. nobody really has a clue until you take it to the market and nobody's really going to -- what really, people are like, oh, you disappointed by the stock price, yada-yada, what i really care about, we're all locked up. what we care about the stock price is in six months to 12 months. i believe dara, and rest of the management team at uber have set themselves fairly easy going business to deliver on and beat. that is what matters. stuart: if i was early investor in uber like you, i got shares in uber, like you i don't think i would sell them, i think i would hold them very long term because i want to be in on a radically new an different company with a radical new idea of how to conduct the transportation business. will you hold on long term? >> we plan to hold our shares. we have no interest in selling any of our shares right now.

we can't but we have no interest in even selling them after six months when we're unlocked. stuart: okay. >> we believe this is the beginning of a big paradigm shift and any idea that uber is going away, i find quite silly. i think it will be way bigger in five years than it is today. stuart: how did you get into it in the first place? were you right there at the very, very beginning 10 years ago? >> no, no. i wish i was that smart to be at the very beginning. we invested like three years ago, roughly about that. you know and -- stuart: are you underwater now? >> no, no. stuart: invested three years ago- >> i think we're in around 33 bucks a share. no, we're up. we're up on our investment. for us, you know, gmv pretty much hit what we expected. it has been way more capital-intensive and dilutive as a result of competition and huge amounts of money have been thrown at this, at this

industry. so if there is one thing that would disappoint us, that would be what it is. stuart: can i chuck this one at you? i'm sorry to go through so much, real fast now. >> no worries. stuart: a big thing in uber's future is self-driving cars and uber wants to be a real innovator in that sense but here come the trial lawyers. they will take you to the cleaners with jurisprudence and liability. that has to be in the back of your mind, doesn't it? >> i think self-driving, true self-driving where you can get in a car newark airport and you know, drive to middle of long island in self-driving is 10 to 20 years away. i think, you know, people say, the taxi lobbies and lawyers got mad when, you know, when people literally started taking you know, ubers. wait until people are driving around with nobody in the front of the car. i think it is longer way than people think. stuart: mitchell green,

congratulations on your far-sighted vision for investment all those years ago. >> thank you. stuart: i'm sure you're going to do well. i'm sure you're watching the price. mitchell a pleasure. thanks for being with us. >> thanks, again. stuart: next case, i'm going to take you back to 2012, okay? all the way back there. i have got a reason for it. this is when republicans voted to hold attorney general eric holder in contempt. here is how the democrats reacted back then. watch this. >> contempt of congress, contempt of congress? it is not only to monopolize his time, it is to undermine his name. >> some of my colleagues on the other side seem almost giddy about today's vote. after turning this investigation into an election year witch-hunt. stuart: that was back then, okay? absolute outrage that a democrat attorney general in the obama administration could be held in contempt of congress. it is very different now when the republican, when the

democrats are holding republican attorney general in contempt of congress. my how times change. i wonder if we can explain this? tammy bruce can. she is our guest right now. >> hey, good morning. stuart: explain it, that is a stark difference. >> sure is. we know all of this is politics. it's a game. it us is a maneuvering dynamic. there is big difference what was happening at the time with eric holder. he was refusing to hand over thousands of docuements regarding "fast & furious" which was the gun-running expedition they were doing. and so that was involving, you know, congress not seeing anything they needed to see about an emerging problem. here we know that the congress, nadler, everyone in congress has access to the section of the report regarding obstruction with the exception of two full lines and seven partially redacted lines. out of hundreds of pages. so they have the material. it is not something they don't

have. stuart: that is now a constitutional crisis as jerrold nadler said, a constitutional crisis. >> a constitutional crisis now trump is a putin stooge. that is the replacement line of hysteria here. it doesn't serve the american people. it doesn't move along any of our issues or any of our policies but it is the campaign. it is the democratic campaign now. and i don't think the american people wanted that in particular when they gave the house to the democrats in 2018. stuart: this just won't fly. while you're sitting there. you see that bank of monitor screens? >> yeah. stuart: that is msnbc on the top. they're in a commercial right now but when think come out of the commercial they will be bashing mr. barr and trumpeting to high heaven constitutional crisis. >> yes. so when you look at the news, whether you're on line, see certain headlines, it is almost a template. the new messaging. they can't say collusion. can't say he is a russian spy, the president.

there is constitutional crisis. americans are tired of being misled. look, there could be a constitutional crisis. that is a serious thing but once again it is about dragging people along into something that is not true. almost like another hoax. and this is the american people know the future is at stake. we have families to raise. your program here is about money in the future. this is what the american people care about. they're tired of the reality television of, you know, the real congresspeople of washington, d.c. this is not what we wanted. stuart: what was that, the real -- >> real congresspeople of washington, d.c. stuart: new reality tv show? >> clearly is. we're paying for it. stuart: who is the star? >> at this point still donald trump who will be the winner in this i think. stuart: tammy, thanks again. >> thank you, sir. stuart: thank you, ma'am. next case, facebook's instagram. this is important, they are blocking anti-vacsers. didn't know that? this is new? >> new for instagram. not new for facebook, which is

the parent company of instagram. this follows decisions made by pinterest, youtube, amazon. the world health organization said people not getting vaccinated is a now a global health threat. this is no joke. we've been following it, mostly with measles, here in upstate new york. instagram blocking hashtags with any misinformation about vaccines. stuart: i think that is necessary in my opinion. >> at this point now a global health issue. stuart: you want freedom of speech, how do you sort of clamp down on anti-vaxers who are speaking freely? a very important question. how do you do that? who makes that judgment? >> soapbox on street corner. debate writ large. stuart: it is not easy. >> these companies are really struggling with that. we talked about it more in the context of hate speech, how do you police that. germany has taken a very extreme view, anything you write can be considered hateful, you're pulled right away. thanks very much, deirdre.

i want to get back to the market. we're close to the low of the day. the big story on the market, yes the china trade talks. they continue. you see the chinese delegation arriving there. when anything happens, you will know about it. they're talking hype closed doors at this moment. the dow is down 250 points. ahead twitter's crack down on conservatives. account suspended. david horowitz one of them. he joins us. tells his story in a few moments i'm working to make each day a little sweeter. ♪ to give every idea the perfect soundtrack. ♪ to fill your world with fun. ♪ to share my culture with my community. ♪ to make each journey more elegant.

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stuart: look at this, now we're down close to 300 points on the day. 294 to be precise. we're watching latest on

washington and chinese trade talks. apparently that is the negative that is pulling this market down. here is the story on twitter suspending conservatives. david horowitz was suspended. then he was reinstated. here's the tweet from mr. horowitz after twitter reinstated his account. here is what they said. here is what he said. i protested my suspension this morning and i received email from twitter saying it was a mistake. and unsuspending me. meantime i have lost my twitter feed with 62,000 followers. david horowitz himself with us. author of book, dark agenda, the war to destroy christian america. david, what exactly did you say that got you suspended? >> i just pointed out i had not violated their rules. their rules are you can't attack a person for that are ethnicity, their race gender. i hadn't attacked anybody like

that. i was responding to ilhan omar and rashida tlaib who basically said the united states should not be supporting israel and blaming israel for the palestinian 700 rocket attacks on civilians in his rail. i just said, oh, then we can get back to killing jews? that was my tweet. anyway, i protested, they wrote an apologetic letter in the afternoon, apologizing, saying it was a mistake and then it had to do with confusion with spam, which i knew it didn't. the next day, they suspended me again for the same tweet and then they made the same apology. so you know, they're stupid and incompetent which is, makes it even more dangerous but the serious threat is coming to from the democratic party. that is where the pressure on these tech companies are. kamala harris sit there at naacp

calling about war on hate speech. democrats think everything, if you disagree with them that you're in hate speech. stuart: a way of shutting down the conversation. >> if you want borders, you're a racist. so -- stuart: it is a way of cutting down, stopping the debate. call somebody a name, racist, sexist, homophobic, it shuts down debate, gets you suspended from twitter. you don't trust them, do you? you don't trust social networks to allow any free speech? >> no. there should be no censorship. there would be hate speech but the -- also. this information is out there. it can be refuted. it can be answered. we have to this discipline in democracy, because one person's dissent is another person's hate speech. and, the democratic party, it is marching toward as one-party state, that they don't want borders. they want illegal, illegal

immigrants to vote. they want convicted terrorists to vote. they want children to vote. and at the polls, they don't want to you have an i.d. so if you agree with them you can vote 100 times. stuart: what can we do about this. >> we have to fight the democrats. i have to, sounds very partisan but that's the reality. you don't have a single democrat standing up and saying, the most fundamental freedom we have is the first amendment. it is freedom of conscience and free speech because if you don't have free speech you can't defend any of your freedoms. and this book i have written, "dark agenda," war against christians. that is what it is about. they didn't close chik-fil-a in el paso airport because they make bad chicken. they did it because chik-fil-a's philanthropic arm supports non-profit policy groups that express their christian views.

well if christian views are hate speech and pete buttigieg, probably most decent man in politics, mike pence, over this. he doesn't like his christian beliefs. you know, if the democracy, we don't like somebody else's beliefs, so we argue with them. stuart: okay. >> if you don't have that freedom it's over. stuart: i don't know how you define hate speech. i don't know how you allow real free speech where you can say what you like. the debate will obviously continue. there is no way around it. david, look, thanks very much for being with us. sharing your story. >> thanks for having me, stuart. stuart: come see us again please. >> all right. stuart: get to the new york stock exchange. we have more information on uber, the first trade, when it is going to happen, what price. gerri, what have you got? reporter: new indications that -- [inaudible]

stuart: sorry. you better come back to me for a second. i'm afraid we have the problem with the audio feed there. i'm not sure that we don't, we have some indication that when uber opens for trading the price will be in the range of i think 45, 50, to 46.50. 45.50 to 46.50. coming down a little bit. okay. that is what we're looking at right now. going out at 45. first trade likely to be 45.50 to 46.50. that is not exactly a pop, now is it? ashley: no. stuart: more on uber, more own the market, after this.

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stuart: there may be some disappointment expressed today amongst those people who got in early on uber. early investors because we're getting an indication that the first trading price will be between 45 and $46 a share. there is no pop there. they're going out at $45. ashley: yeah. stuart: if the first trade is between 45 and 46, i tell you again that is no pop. ashley: right. stuart: most ipos, not all of them, certainly big names, they

get a little bit of a pop on the first day. they may trail after that. but the first day -- >> even lyft, which suffered greatly got a pop on the first day. to your point this is much lower valuation to begin with. most bankers a year ago were talking about 100, 120 billion. looks like market value is 75 1/2. ashley: 45 bucks is 82 billion. stuart: that disappointment, i think i'm okay to say this, that is disappointment and spilling over into the larger market. you now have the dow down 285 points. much of that loss is because of china trade talks at an impasse. we have imposed the tariffs. part of it surely is disappoint ment over the no pop on uber. >> no enthuse as i am. it's a rain any friday. stuart: i will move on. i will leave that on the screen. down 270 on the dow. bernie sanders and alexandria ocasio-cortez, they're socialists they teamed

up against the big banks. in fact bernie sanders soul canning them, equating banks payday lenders. thatthat is a stretch. and alexandria ocasio-cortez says the banks are gambling with the economy and gouging people with interest rates. come on in please, congressman jason smith. republican from missouri. if i was a socialist i think i could sell that pretty strongly. these banks making billions of dollars. they're gouging you on interest rates. i could make a political case to vote for me. how do you counter that? >> it is easy for bernie sanders and aoc to make any aspect they can because of populists. this is ridiculous motives. the green new deal, costing $93 trillion. universal health care costing 32 trillion. those two items alone cost more

than every penny every american owns and putting our country $20 million in debt. it is unrealistic. they're continuing to try to you know, pander to whoever they possibly can get a vote from. stuart: sir, i think you're right. look i'm terribly sorry, sir. i have got to cut this short. we have all kinds of stuff breaking around me. i will get to that in a second. congressman smith. thanks for joining us. >> thank you, stuart. stuart: got to get back to indication of uber. first price likely to be 45 to $46 a share. that is a disappointment. no pop there. they're going out at 45. they may open between 45 and 46. not great. now coming up we have a guest who says uber is the next amazon. that's quite a statement. amazon has zoomed. we'll see what he has really got to say. third hour of "varney" minutes away. ♪ ♪

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stuart: 11:00 on the east coast it's 8:00 in california, two huge stories we're following for you. china trade, weighing on the market at the moment we're down 300 points, the trade talks are at an impasse, they're ongoing in washington that's a fact ongoing but there's a hard line trump facing a xi-jinping who can't lose face and can't back down, so it's down 300 and the other big story, uber, the ride hailing service going public today, and it's going out at $45 a share, and the indication on the first trade is between $45 and $46 per share, the first trade is imminent. news coming thick and fast this morning we are all over it. yes, this is and welcome to it, the third hour of "varney" & company, starts right now.

let's get to the new york stock exchange, susan li covering uber for us this morning, what do you got, susan? >> susan: right now, stu, so the last shouted offer, 25 million shares on offer for $45, that's the ipo offer price, and they are booking a book below $45 as well so we're not looking at a big pop on day one, so far we're still trying to get that first trade matchup via buy and sell orders but let's talk through it with the chief operating officer here is joining us, and we're still waiting for that first trade, so it's taking a while to build a book, i guess we're offering 180 million shares. >> right this strategy a very large ipo and a large ipo you want to take your time, you don't rush the open and get the price right and then have a nice smooth entry into the market and that's what it looks like we're seeing this morning. >> susan: when you're building a book below the ipo offer price isn't that an indication there maybe isn't that much interest out there? >> well i haven't looked at the book in a little bit but they're

building it right now aggregat ing orders the general rule of thumb is we find 8-10% or north of that as the offering side and a good rule of thumb the price has played out and make sure there's a book beneath that price and support above that price as well to ensure smooth, orderly entrance into the market and you don't want the stock selling all over the place impacting investor confidence. >> susan: we're looking at pretty large block trades is offering 22, 25 million shares that's what 10% of the book on offer already. >> yes, this is a very large transaction. remember we're looking at $8.1 billion capital raise, which puts it in the top 10, top 20 ipo's of all-times so there's big blocks and big transactions. >> susan: the ninth largest ipo actually in u.s. history even at $45 so when do you expect the first trade to happen >> you know if we put this into context and look at alibaba the largest ipo of all time that waited until after noon, we looked at spotify just over a

year ago that was about 12:40 so as long as it takes until we get that time right. it's 11:00 right now i wouldn't anticipate it taking too much longer, you see the process playing out behind me and we should be ready to go in the next half hour, i would say. >> susan: john, thank you so much, so stu, it looks like we're watching for the next half hour according to john and, you know, we're here if you need us. stuart: we'll be back to you very shortly that's a promise. i think that look, i'm going to say that there's some disappointment here about uber. if you're only going out at 45 and the first trade might be around 45, you've got no pop. and that's a disappointment. >> and the smaller competitor lyft has cast a very long shadow it has not performed well since it went public. it did have a pop on the first day but it's down significantly from its listing. stuart: and some of the disappointment about uber i think may be spilling over into the market. because you've now got a new low of the day now we're off 347

points. now, that's mostly, i think, china trade, but uber may be a problem for the overall market. >> just concern that this company has sales and no earnings. that's the same thing with lyft and for a lot of investors that you have to be a very long term investor as your previous guest was he said fine i'm in this for the next five years and maybe you don't worry but for people who want to be invested for the next 12 months if you don't have earnings that's a problem. stuart: and you're losing $1 billion in 13 weeks. not good. the other side of the story is china trade. i want to bring in edward lawrence with the other side of the story here, on china trade. what do you have as the latest please? reporter: stu, they've been talking for about 90 minutes and oh, to be a fly on the wall inside that meeting. we know the chinese are leaving washington d.c. at 4:00 p.m. today. that's the earliest they have left the last day of trade talks , since they started last year. now, the president also what's not on the schedule the president does not have a meeting currently on the schedule for vice premier, which

he has had in the past and when they have come here for talks. this should be very interesting to see what happens. u.s. trade representative robert lighthizer says he's not willing to go back and renegotiate what has already been negotiated which is something the chinese had removed the concessions in pretty much almost all sections of this deal, the concessions included binding language so they could be talking about the last 10% of the agreement inside the still a lot to be negotiated the treasury secretary steven mnuchin says this was 90% done. clearly frustration here but we'll have to see how these talks end and the chinese going back to china today. stuart: edward lawrence right there, i want to be joined by steve or liens, the president of the national committee on u.s. china relations. it seems to me that the ball is in china's court. hard line trump imposes the tariffs. next shot is for xi-jinping, am i right? >> well i don't think they think that, no i think the chinese think that the u.s. is

trying to recut the deal. they have this expression, sleeping in the same bed and dreaming different dreams. i think what they feel the changes that they proposed were simply clarifications, not fundamentally changing the deal, and i think we're in for a tough ride. i think we're in for a tough ride. stuart: it is a faceoff at this moment, a standoff isn't it? you don't expect anything? >> i don't expect anything today. i expect the chinese will go back. i hope we'll have a conference call between president xi and president trump, and hopefully they can put a floor underneath the deterioration of the relationship, but you have the political pressure is probably greater on president trump than it is on president xi. stuart: why do you say that? >> president xi removed term limits he has consolidated his control, there is no active opposition to him, so president trump has an election coming up. he even has a primary coming up. stuart: so xi-jinping can't lose

face. >> that means he couldn't concede. so that actually hardens his position it doesn't soften his position so that's why i think we're in for a very tough road. stuart: but these tariffs will really hurt china, and extra tariffs are imposed beyond the ones we've just imposed, that's even worse for china. >> it's bad for china. it's bad for the united states. there's no question the chinese businesses are going to be hurting but there's no question that soybean farmers, corn farmers, dock workers in houston , machinists in seattle are going to be hurting too and they can bring more political pressure on president trump through the congress than people in china, who are going to be probably more hurt can put on president xi, because don't forget, there is no active opposition to him. stuart: so china knows this, and is exploiting what they think is the weakness? >> it's not clear that they're exploiting. it could be that i don't buy this idea they saw weakness in the united states and they recut the deal.

i think that's a narrative fiction. i think what happened is there was clarification in these agreements that took over 150 pages, the chinese sent back a draft, and the americans said no you're changing the deal. that's not what -- stuart: so look, let's summit up like this. it's a faceoff, a standoff and you don't expect any progress in the immediate future? >> i don't expect progress but again, i think your viewers are smart people. they need to understand that this bilateral trade deficit as kind of the intellectual foundation for these discussions is fiction, that we really need to be looking at multi-lateral trade deficits, you know, current account surplus as i think i said the last time on the show, the ratio of current account surplus to gdp and that has been moved, that moves from 10% 10 years ago to almost zero today so the chinese are not as bad as we're portraying them as. should we be fighting for these

concessions? i wouldn't argue that they're even not concessions. they're ending of incumbent protection that this six years ago the chinese laid out a plan which would have basically satisfied what the united states is doing. that the third plan of the 18th party. stuart: okay we should discuss at length stealing intellectual property, taking our technology. i don't have time right now but that's what we got to deal with at some point in the future. what do we got next? big day for your money, we have the big names for you, andrew left, i'm getting confused with the ride hailing, big time investor he's going to be with us. he's the guy who says uber is the next amazon. we also have brand new small business administrator, small business not happy about higher tariffs, we'll see what he's got to say, stay with us. >> ♪ ♪

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is right for your first treatment. stuart: i believe the first trade-in uber is imminent susan li down on the exchange tell me more. >> susan: okay, yes it is because we have the co-founders on your screen you're looking at ryan graves that's the first ceo of uber and he's worth just over $1 billion with his stake in the company and now next to him we have the uber ceo, along with nelson shing, the cfo and i saw garrett camp walk by so he's the other co-founder second largest individual shareholder, and they are in this crowd right now, it looks like it's pretty imminent we'll get the first trade, the last called out offer, 26 million shares, $45 a piece that is the ipo offer price, and there aren't a lot of buyers right now. i suspect it might come in below that for the first trade. stu? stuart: that would be a significant disappointment if

i'm not mistaking. you go out at 45 you can expect a modest prop, probably not going to get it that's a disappointment but let me bring in andrew left. now he's with citron research and he's the founder and andrew is the guy who says uber is the next amazon. not going your way at the new york stock exchange at the moment is it, andrew? >> well i don't think uber is necessarily the next amazon. different businesses, but historically, if you bought great companies that were so disruptive on their day, whether it be a facebook or whether it be a google and you're not worried about the next six months you take the size of uber and what it is theres a reason why there's such hoopla about today's ipo because it is a disruptive company so you can't discount that and if you want to just talk about short-term profits we could probably eliminate 20% of the stock on the nasdac. stuart: i take your point, andrew i'm with you all the way. i think if you buy into uber you're buying the idea of this

revolution in transportation and i for one will be doing that at some point in the future, but i don't understand the disappointment of it going out at 45 and maybe the first trade is even below that. that is a possibility. can you explain why that's going on now? >> it's a market dynamic. i wish i understood, stuart, why all of a sudden the market cares about profits today but they didn't care about profitability of any of these companies like three weeks ago. that's just maybe it's a wonderful opportunity for long term investors to get in. imagine if the stock opened at 100 then you would say well how can i invest in this right here, only the early guys get in. i've been personally in the stock for years, four years in the private market, and i think for an investor as an opportunity to get in at these levels it's not too outrageous and compared to other stocks you see other high-growth stocks, on on on the market, this is disruptive. lyft and uber have a duopoly that's not going anywhere and they've just started to penetrate the size of the market

stuart: i'm disappointed and i've got to press the point here , that you have lyft go out at 72, and is now trading around 55. uber's going out at 45 and may be around that at the first trade. i call that disappointing response to a fabulous new technology, and i think that it's maybe spilled over into the overall market, because now we've got the dow down 300 points. do you think there is that spill over effect that disappointment effect? >> i think the market is very f ickle, and it's very tough to make these long term judgments if you're an investor based on day-to-day but think about the big name ones we've had the past five years off the top of my head, i'm sorry, 20 years, the google, the facebook, the day alibaba went public. if you bought any of those stock s the day they went public, you're doing quite well. uber, i believe, is in that category, so whether that opens at 41, 52, i can't be a stock

jockey and worry about the next two hours of movements on the stock. stuart: just stay there for a second andrew. i want to bring in kevin laws the ceo of angel list and kevin, is an early investor in uber. would you take me back, tell me how you got into uber, when you got in and why you got in. >> got it. so that was 2010, angel list is a platform where early stage companies come to raise money, to hire employees, to get their first customers. uber came through in 2010 and met many of their first investors through angel list. we saw it coming through and one of our co-founders had tried uber a few times and so after we sent it out to the investors, one of our founders whose running a fund at the time, also put money into uber. stuart: you still hold it i take it? you still got your investment? >> oh, yeah. stuart: a little disappointed

because you've gone from a valuation of 120 billion for uber, down to a valuation of around 75 billion to 80 billion now and the first trade may be, i don't know but it may be around the offering price, $45. disappointed? >> not at all. this is not how we think of these early stage start up investments because if you think about it from our perspective, this company went from being worth zero dollars, 10 years ago to over $70 billion today. we leave it to wall street to quibble over the last 25 billion or so, but that first 75 billion is what we're in it for so we are very excited. stuart: how do you respond to headwinds by loss of $1 billion in the first three months of this year, the facing regulation , they're facing demands for unionization, they're facing demands that you change the nature of employment from contract workers to employees with benefits. those are all headwinds pretty

strong i'd say. >> absolutely, but again, these are the kinds of things that you face when you are a big company, and you've already made it out of the, nobody would call uber a start up any more. now they're a giant tech company , and those are the kinds of headwinds they face. facebook is facing similar, google is facing similar over privacy. that doesn't mean you wouldn't want to be in any of them when they started. stuart: i want to go back to susan li on the floor of the exchange very close to the post where they trade uber. we're talking here, susan about disappointment. did you say that they might be going out at $45 or below? >> susan: well you're looking at the market maker right now he's shouting out the trades and the shares that are available on offer and the last offer is still at $45 which is the ipo offer price, but there aren't a lot of buyers so you have to matchup the buy and the sell orders so right now there's an offer of 26 million shares i don't think there's been a lot

of takeup so far so you have to reduce pricing, i expect, but we are still awaiting the first trade, which we anticipate at some point within this hour, but seeing on your screen the uber cfo next to him, amongst the crowd there are a lot of people here crowding the post as you can imagine anticipating the first trade. we have the ceo, you see ryan graves and a lot of the early investors as well, garrett camp is in there, i still have not seen travis kalanick come back out on the floor or the balcony but if you have all of these executives and the early investors on the floor you can anticipate the first trade is pretty imminent. stuart: okay, we'll be back to you momentarily. andrew left with us, what's your thinking right now as we head towards the first trade? >> well i just put in, i just spoke to my broker. if it does go lower i'm a buyer here. this is a generational company, this is not just a company of

how it does today or tomorrow. this is the type of company that you will pass out to the next generation and we'll be talking about i was on your show, mr. va rney, the day uber was published. stuart: good point. of course there's no saying that uber is the next facebook, or google. i mean there's no, or amazon. there's no saying that is there? i mean would you put them in the same box? >> no, ridesharing is not going anywhere. if anything, it's only penetrat ed around 1% of all rides driven on the road so it has nowhere to go but up. we might look back in 15 years and laugh that we actually drive "our bodies, ourselves" many times so it very well could be. stuart: deirdre you and i have talked on the show i do sense some disappointment here and its spilled over to the rest of the market am i really wrong on this >> i don't think you're wrong and i'm laughing at the angel list founder's comments there that why do people today all of a sudden care profitability because we saw with lyft let's

call that uber's little brother on the first day there was so much enthusiasm, but i do want to point out that stock now 23% lower, from its offering price, and personally, as an investor for the next 12-18 months i would be concerned about lots of sales and no profitability. one of your other guests said if you're invested in this for the long-haul -- ashley: it lost 3 billion last year, it lost 1 billion in the first quarter this year but the price, the latest i have here is indicating between 44.50 and 45. now the problem is to the bottom line is supply is out doing demand and that's what happens. price goes down. >> and i think there are a lot of public investors right the frustration is the early money is making the big money as the angel list guest said it's difficult for people who want to participate now to capitalize. stuart: kevin laws you're with us. i've got lyft on the screen and that's down $3, down 6% meaning it is down 27% since the offer

ing price. what's your thought process at this moment? >> as we're taking a look at these, so lyft, we also had some investors that invested in through angel list. all of these companies, we are about kind of that early stage before it goes public so as we watch them after public, that's really not our world, so we are taking them up to the point where the public market investors are interested in them and we hold until then. angel list physically is about those very early stages of getting them off the ground, so that's more of a question for some of the mezzanine investors that came in just before the ipo stuart: okay let me go back to andrew and ask you, andrew left that is, why are we looking at an opening price that just might be below the $45 offering? put your finger on it what's the problem here? >> it's a matter of supply and demand, how much supply is out there, how much stock is being offered and the demand for it

right now. obviously there's a media frenzy about this profitability over the past month. hopefully it's a spillover to other non-profitable companies and benefits those that are, but i just think it's a short-term phenomenon. stuart: okay, i've got the indication now, 44.50 to $45 a share. if it opened in that range, it will be below the $45 offering price that you are. i do want to bring you up to speed on something else in the market of course and that is a china trade. "the talks" are ongoing, they started this morning around 9:30 eastern time, we're two hours into these talks. we've had no word on how they're going but i can tell you that at 4:00 this afternoon, a plane will take off from washington d.c. and the chinese delegation is out of here, back to beijing. it looks like a standoff at this point. we've got no news from those talks. the dow industrial is down 254 points that puts us back to 25, 500. we went on the air this morning

at 9:00 and said the tariffs have been imposed, the sky has not fallen, i'll hold with that because the sky has not fallen. a loss of 258 points on the dow is up a near 1% and we're still by the way only 300 points away from the all-time high. ashley: yes. stuart: i'll leave it at that. i'm waiting for the first trade to come in and we'll tell you what the price is when it occurs you'll be the first to know and that's a promise. do we have crist pilkerton with us now, small business administrator. chris let me talk to you about china trade. how are these tariffs which were imposed today, how are they going to effect small businesses >> well i'll tell you what first and foremost we have to give the president tremendous credit for taking this issue, head on. its obviously been an issue for quite some time but the important thing to note is that the chinese delegation is still here. they are still at the table, and at the end of the day, the

president wants to get a fair deal for the country, and when i look at this, i look at the most objective evidence that i can find, the most recent negotiation for u.s. mca, and small businesses, for the first time in history, actually had their own chapter in u.s. mca dealing with some of the issues that are specific to small businesses, so i think small businesses appreciate what this president has done for the economy, appreciate what he's done for them, and we'll look optimistically to what he will do. stuart: you can't just walk away from the tariffs that have been imposed. that is going to hurt small business isn't it? >> i think you have to look at the larger size of the economy. stuart: i'm sorry chris i've got to interrupt you i've got news on uber let's go to susan li on the exchange. >> susan: we have the price moving lower 43.50 bottom end of the range, 27 million shares on offer and i'm hearing traders around me it looks like we could go lower from here, there's a lot of interest to buy right now

, but they are offering 43.50 so we are wow below the ipo price here of $45. stuart: okay, andrew left still with us i believe. you heard that andrew, 43.50 is the latest price that we are hearing, again i've got to return to the disappointment theme, that is disappointing. >> it's disappointing if you sell on the ipo. if you wanted to buy the company right now and hold on to it, it's encouraging. stuart: [laughter] i guess an interesting point. >> it's true. and the stock opens at $70 you say what will we do now. stuart: wait a second if i'm an investor not necessarily interested in uber or lyft but i just like buying stocks i'm know the stock market, i look at this huge ipo and i see that the offering, the first trade price is probably below the offering price, that doesn't fill me with enthusiasm for the stock market does it? >> stuart if i'm an investor and i see this is happening i'm looking at the rest of my portfolio i'm seeing what loses

money and getting rid of it immediately because if this starts to change, this is the catalyst for people carrying short-term profits and uber, there's a lot of other stocks that are collateral damage. that's what i would do if i was an investor. stuart: i'm going back to kevin laws, an early investor in this company in uber. you still got stock in it, you explain to me why it is that we're going to go out maybe it looks at 43.50 or lesson a $45 share offering you've got to explain this to me kevin. >> so this is as an early investor i have to say, we are really focused on those early years of the company at the point at which it crosses over that we turn it over to the next set of investors who turns it over to the next set of investors and at that point we're along for the ride. stuart: let's get back to susan with more information for us. >> susan: we have the price moving a little bit lower so we're still at 43.50 the range titled so we're at 43.50 to

44.50, 30 million shares on offers, and don't forget, that we had uber, what they raised about $8 billion, they this politico at $1 billion cash burn each and every quarter. some investors and traders here say that we're on the pace of cash burn, there might be a secondary placement so how much, how long does 8 billion last for and especially if we're going below the ipo price. back to you. stuart: hold on a second susan. you can't see but on the left-hand side of our screen we've got the people who are right around the trading post, for uber, and i don't see much enthusiasm. i don't see much excitement. what i see is some rather gloom faces. >> susan: on ipo on day one you obviously want to go out with a bang, and if you're trading below your ipo price that's pretty much indicated with that tightened range it's obviously not something they want to celebrate. and don't forget when they price

these shares -- stuart: i'm sorry susan, on their screens, on your screens right now, the chinese delegation is leaving the office building, where they were holding meetings with lighthizer and walking away. there's a handshake and some smiles but that's it, but they've only been talking about two hours but that is it. i'm not really coming back from a break. ashley: they could be out of here. stuart: i hesitate to make judgment with the expression the negotiators will walk out or the length of time they were meeting i don't want to imply some negative there. edward lawrence what have you got on the spot? >> edward: yes, stu, you saw there they just left the u.s. trade representatives office they started this morning at 9:30, was supposed to start at 9:00 that's 30 minutes late and they are leaving the vice premier turned and waived at us and smiled and got into his car

not quite as big a smile as we have seen in the past but they are leaving now. we do know the chinese have a flight from d.c. to beijing at 4:00 today, so this could be the last of the talks i'm going to try and verify that in a little bit but there you have the delegation on their way. clearly the meeting is over for at least right now. stu? stuart: edward if you can hear me the sirens are in the background but if you can hear me would you expect any kind of statement from either side? >> we generally get a statement from the u.s. side, the u.s. trade representatives office gives us a statement that , well exactly a read-out is what happens so we do expect that from the u.s. side, so we are expecting that and on the chinese side we don't know. yesterday the vice premier gave us a briefing to the chinese media. we'll see if he's going to do the same but they're on a pretty tight window if you count back for an international flight at 4:00 p.m. stuart: you got it edward thank you very much indeed.

michael pillsbury is with us senior fellow of the hudson institute and a man very much in touch with china trade. michael what's your interpretation of what we just saw a mere two hour meeting, a friendly goodbye and a handshake as we walked out the door. your interpretation? >> well based on my years of negotiating with the chinese this is not a walk-out or break down of the talks that's the good news. the bad news is obviously there were two sets of issues to be worked on. one is what the president referred to as chinese re negotiation. sometimes the word renigging has been used as well and the other set of issues was the remaining steve mnuchin said we're 90% there at one point. the remaining 10% and both those issues are separate, so i would expect the smile that ed lawrence thinks he saw, that's the good news. the smile is not a breakdown, it's not leaving in a huff, but

these issues are really quite important for the enforcement side of things. we talked about this before and it looks like the hard liner is in beijing, getting a look at the whole 150 pages and they must have been quite shocked at how many concessions had been made. that seems to be what happened. stuart: michael i'm finding it very difficult to say other than this is a faceoff, this is a standoff, this is an impasse, and i don't nowhere we go from here. do you? >> i do know. in an impasse both sides kind of take a break and the chinese have got to calculate what these tariffs cost them. they've got to calculate will the president go all the way, and put 25% on all of china's imports to the u.s.. the chances of that are pretty high, i would say, so they've got to do some mark rosenstein economic calculations back in beijing. how long can we go on like this, versus the concessions that they've made, or that they still have to make, those two categor ies i mentioned to you. that's going to take some

thinking and some calculations back in beijing. stuart: just hold on for a second michael the other big story of the day is uber going public today. our susan li is at the new york stock exchange with the latest. susan what do you have? >> susan: stu we have 30 million paired up shares on balance of 6 million to share and if we opened right now indications are we're at $43 a piece, that's $2 below the $45 offer price and don't forget they were being very conservative in pricing these shares, after the lyft disappointment, so today you could say it's a tough day for uber, especially a tough week with the sell-off we saw on u.s. /china trade concerns and that lyft disappointment looming over this. stuart: susan let's go to andrew left, i know you've been listen ing to all of this. now we're down to maybe $43 per share. we keep coming down, i keep asking for your reaction to this

how about it? you can't be happy? >> i would say you buy cautious ly but you're a buyer. if you lack at the different rounds and where this is priced and the underlying business is strong, you have a super star ceo, you have a generational- type business, historically, if you bought these businesses on day one, you're going to be very happy in four years. and now the fact that it's priced at such a discount to what people thought it would be, you'd be extremely happy in those amount of years. so i'm a buyer today no doubt. stuart: i've got to tell you, now it's 42 to 43, it's down more. this is not good, andrew. >> my personal order is in at 40 so if i don't get it i'll re evaluate. stuart: oh, your order is in for 40. >> you keep saying it's disappointing stu i agree with you 100% and i also think this casts a very long shadow over the rest of the billionaire unicorn bubble popping. it does not bode well for

pinterest, we work, airbnb and remember this is the year that we were seeing all of these so-called unicorns come to market and great enthusiasm. i think lyft's going first, the long shadow it's casting a similar business model meansing tons of sales profits it's a problem. stuart: susan come back to you are we still looking at 42? >> susan: 42 to 43 indications are we're very close to opening ashley because we had 35 million shares to sell, they've paired up from what i understand, they had 36 million shares to sell, they paired up 35 million of them, and i think on balance we're still looking for buyers for 1 million, but indications are if we're going to open it's at 42 the lower end of the range stuart: that's very close i've got to say very close indeed. now let's bring everybody up to speed on the two big stories here i keep saying disappointment about uber, and at 42 to 43 i think that would be a disappointment. ashley: definitely. stuart: i think there's disappointment about the china trade talks we saw the chinese

delegation walk away from the office building where they were holding "the talks", they were just talking for two hours. i don't want to leave a whole lot into the facial expressions here but it was a short meeting and that delegation goes back to beijing later on this afternoon. that's why, i think, these two negatives, the long shadow cast by the disappointment over uber, and the problems with china trade, that's why we've got a lot of 322 points on the dow industrial as of right now. michael pillsbury i interrupted you to go to the uber news, i'll bring you back in. fill out your thoughts, please on the china trade talks. >> well stuart, you know it's hard to compete with susan li in this really hot story right from the floor but i think china's far more strategically important so i was explaining the idea of an impasse is not a breakdown. this is not a trivial distinction. the impasse means both sides especially the chinese side have to think over how much of these tariffs are going to cost them. they obviously underestimated

badly president trump's determination to do something, when he said this morning that president obama got away with the chinese got away with murder because of president obama, and it shows you the depths of the president's feeling. the problem is on the chinese side, stuart, the hard liners have begun to gain influence over the past couple years. we've seen really strange things , nuclear bombers flying around, taiwan, jet fighters from china going over the mid line, toward taiwan, a whole series of crackdowns on the ti betans, as many as 3 million muslims put into reimaged concentration camps and this is all new and it looks like xi-jinping may be under a lot of pressure from the hard liners so when they looked at the details and i'm sure it's the legal issue versus the state counsel directive a number of other issues we can go into some time the hard liners just said no, we're not agreeing to this and that's the impasse we're in. stuart: i'll go back to chris

pilkerton as the acting small business administrator. chris i've got to come back to you on this. the tariffs have been imposed they are in place and there is the possibility of more tariffs down the line on more chinese goods. i have to, you've got to tell me how small business is going to respond to this. it's no good saying oh, well we're in support of the president's overall hard line against china. you've got to tell me how small business is going to cope with these tariffs now, and maybe more later. chris? >> well stuart the president is dealing with something that has been a long president issue and quite honestly the fact that he is pushing forward on this, small businesses appreciate that and understand it. as you know, this week was national small business week and i had a chance to meet with dozens of businesses, and consistently to a company they all said keep up the good work. why? because the economy is fundamentally strong. stuart: but did they say anything to you about these

tariffs? >> well i'll tell you this. we talked to a number of small businesses that are exporting, and they see great opportunities , but what they want at the end of the day is a fair deal, and they know the president is going to look out for them so they can get that fair deal down the road. stuart: let me step away from china trade and step away from uber for just a moment. i want to go to jeff flock who is in polo, illinois with hog farmers. they're in the middle of these china talks. what are they saying right now? >> jeff: you're not stepping away from china trade coming here because this is all about china trade. you're looking at hogs, and there's nobody more concerned about what's happening in washington today than the folks that raise hogs. >> jeff even all of agriculture , not just hogs, we're watching and hoping this week. >> you're getting killed right now because of these tariffs, 45 % tariff by china on everything that goes to china. >> well i think it's even

higher on hogs so yes we were certainly hoping for relief. >> where do you stand right now >> well that's a good question. jeff, agriculture needs a win. its been a long time coming. >> you've got to win, aluminum has to win, manufacturing has to win. >> well i hope we can get one too and that's what we're hoping for today now we'll see. >> stuart here is the deal. you talk about trade deficit. agriculture is responsible for lowering the trade deficit. you have a huge trade surplus or at least you did. >> absolutely and we are an export-dependent industry. >> huge consumer and stuart i'd add one more thing and that is they've got the swine fever in china typically they would be buying a ton of pork right now but unfortunately because of these tariffs they're not so there's winners and losers i'm surrounded by losers right now in addition to these pigs which are losing in about three weeks i think because they go to slaughter. stuart: jeff it's a very good story because can the president retain the political support of the farm belt in the face of

these tariffs? that's exactly what we've got here. now back to uber, we've not got the first trade yet but i want bring back andrew left. i know you've got to leave us. last word to you with the indication that uber opens between 42 and 43. >> last word is if you're an investor, do what historically has been the right thing. a generational company with strong management, with an opportunity to buy at a discount right now, because the recent souring of wall street to their current unprofitability i think is a wonderful opportunity for an investor. stuart: okay, we thank you very much for your commentary, andrew , valuable indeed and we thank you very much for being with us. andrew left, everyone an investor who counts there. susan back to you on the floor. are we still looking at 42 to 43 as the first price? >> susan: that's the last called out price so from what we hear we're very close to the first trade. we have 35 million paired up shares and there's 36 million up

on offer, so they still have 1 million on balance to sell, from what i understand, we're getting very close as you can hear, i don't know if you can hear, some of these shouted questions about if we're close and i think they did nod at one point, so if we were to open right now i think we're going at a 42. stuart: 42, okay. ashley: we started at like 48 or 50 earlier in the day and its just come down steadily, down now to 42. stuart: because they can't match up buyers. ashley: correct. stuart: at a given price. >> i don't want to speculate too much but i think the delay is part of the specialists and the system looking to make sure quite frankly that it doesn't open even lower than 42. your guest said his personal order was for 40 that's somebody in the no. the angel list founder that you spoke with essentially long story short said i already made my money and whatever happens from this point on, not really indicating. stuart: kevin you're still there , kevin laws you're the guy who got in early, and you don't

care about the price that might raise now on the new york stock exchange, you're home free aren't you? oh, well i wouldn't quite put it that way to be clear. our founder, he was the one who made the decision to put in the money. the kinds of valuations that we're putting in where we're at the earliest stages mean these final few dollars really don't matter that much. it's pennys per share when you're talking about these stock s at the time that we're investing. stuart: now i know that you're locked in as an early investor you can't just walk out today and sell what you've got you're locked in. i don't know how long you're locked in your but you're locked in. now over the very long term would you consider selling? i know it's a very hard question to answer, because who knows what happens a year from now, but the way the company is going , the way the competition is shaping up, the way things are going right there, would you even think about selling down

the road? >> so the way this early stage investing works is the answer is always, yes. even if you believe strongly in the company. the reason is you want to turn that money back around into more early stage investments. we want to try to find the next uber, and so there are thousands of investments that we have made through the angel list platform with investors coming to the platform, where many of them will fail, like it's not a game where every company is an uber by any stretch of the imagination, but that's where you want to put the money back into, building up new companies, that could become big companies. stuart: we're juggling the two big stories of the day, uber and china trade. i'll leave the camera on that trading post on the new york stock exchange and when we get that first trade, you'll know it real fast. back to michael pillsbury, the other side of the market story, which we now have as a loss for the dow of 316 points. michael i know that you're not a stock market analyst i know that

but i'm going to ask you anyway. do you think that the stock market decline is the result of i'm hesitant to use the right word here, the standoff between china and america? >> i told you i like impasse better than standoff. stuart: okay impasse. >> a lot of chinese stocks, if you and i had bought 10-cent for example,, as recently as seven or eight years ago, its gone up 50 times, so it's possible to make money in china, through private equity through buying the right stocks, and at the macro level there's not any bad news. jamie dimon, yesterday i think it was from beijing, from the jpmorgan morgan conference in beijing was very very optimistic the problem is president trump is looking at the overall issue of fairness and trade deficit, cheating, technology theft, these are much bigger issues than individual stocks or what jpmorgan is advising people to

do. that's where i use the word " impasse" that the hard liners in china, who have temporarily blocked this deal, they've got to have pressure brought to bear on them now, but they're harming china's economic prospects for the next 10 or 20 years. if they fade, under that kind of pressure, from the reformers showing them what's going to happen that president trump will go to the full 25% on all chinese exports to america, i think the hard liners will cave in, so this is not a long time this debate will last in beijing i'm still relatively optimistic stuart. stuart: okay i'm going to pause on the china trade story for one moment and show you lyft and now that is the ridesharing company that went public a couple o of weeks ago at $72 per share, and look at it now. 51. >> that's a record low. stuart: all-time record low 27% slump from that march ipo price.

ashley: 27%. stuart: $51 a share. >> i keep saying this but all sales and no profits is bad and then you have people saying oh, well amazon came public in those circumstances. i, personally think amazon is the anomaly. not every company has a jeff bezos, love him or hate him at the helm, superb operator, again , even if you don't agree with everything that he does or invest in but i think right now, another question too is that uber has been private for 10 years. there are a lot of people who say it's just too long. it's too long for the public to be able to participate. there's no, there's nothing left stuart: the upside is limited. ashley: when you're not profitable on both cases -- >> it doesn't even matter. ashley: how do you value the company that's the problem for investors. it is a long term bet there's no doubt but -- stuart: look, lyft record low $51 a share. remember it popped on day one when it did the ipo. susan li of the exchange,

there's no pop for uber, is there? >> susan: we're minutes away, stu that's the last call so i think we're closer to five minutes a away from the opening trade so right now we have 33 million shares paired up at $42 apiece, short order is up to 42.25, maybe 42.50 but i think the call is we're going at $42, five minutes away from the first trade. stuart: okay, let me do this. the five minutes away from what is likely the first trade in uber, and i'll leave it for five minutes hold on susan. we've got the dow industrial is down 300 points, in part because of uber, in part because of china trade. i want to go completely in another direction. i want to get this man in. i want to bring in america's ambassador to germany, rick grin ell, a frequent guest on this program a man we know very well indeed. mr. ambassador, thanks very much for coming on the show. i want your quick comments on mike pompeo, secretary of state,

skipping a meeting, with angela merkel chancellor of germany at the last minute. what does that tell us about america/german relationships? >> well look, america/german relations are in good shape. the meeting will be rescheduled as you know, secretary pomona had to go somewhere else at the last minute and that was to iraq , so we're working on a reschedule both sides will get this done, so really what it means, for relationships between germany and the united states is that we are friends and we can talk frank with our friends, but the one thing that your viewers need to know, stuart, is that the foreign direct investment from germany into the united states is increasing. last year we had a 9% increase because what german ceo's tell us is they want to be a part of what's going on in the united states. they not only love the tax cuts and the corporate tax rate cuts but they really like deregulation. they're telling us all the time,

they pes relooking for companies to invest in we're up to more than $400 billion a year that german companies have invested in the united states and that's growing. that's a growing number. stuart: mr. ambassador, i am loa thed to cut short america's ambassador to germany, but sir i hope you understand i've got to do it. rick i know you very well and i hope you'll forgive me but i've got to segway to uber which is about to start trading on the new york stock exchange, so ambassador thanks for being there. let me get to the new york exchange. we're real close to the first trade, right, susan? >> susan: seconds away. we had a two minute call a few minutes ago we're about to go at any point, 35 million paired off shares, $42, 2 million shares on offer, 42, and two on 35, and i think we are very very close at this point. here we go! >> bell ringing.

>> [applause] stuart: there it is. first trade. you saw it right there. >> susan: 42.50. stuart: the trading price, this is not the offering price, 42.25 as we speak, so okay, i think that it opens stock is down. ashley: two big stories today, china trade talks and uber and both are not as pretty as we'd like them to be. >> we may often hear people complaining about the investment bankers how did they not price this correctly or anticipate the lack of demand, and that's perhaps why we've seen some other companies choose to do what's called a direct listing as an example. stuart: susan i want to go back to you when we heard that first trade around 42, i didn't hear much cheering or enthusiasm. >> susan: we just lifted to 43.5 now, so that was the last trade as we have bid up for the

shares up to 43.25, closer to $44 so there's a bit more cheer as we edge closer to that ipo offer price but look there's a lot of shares on offer i think we traded hands about 35 million , that's 20% more than 20% of the book, and usually you want to go out on these ipo day one at 10-15% of the shares on offer so there was interest to sell. it took a while to match up the interest to buy, and looks like we are actually lifting from that 42 level so i think in the first few minutes a little bit more encouragement. stuart: okay i guess there will be some criticism of the bankers who priced it at 45. i'll see it drop a bit. stuart: go ahead, susan. susan: at 45 the bankers are being more conservative than what happened with lyft. i think it was a lesson for the uber underwriters maybe not to get too greedy and overpriced

and you have major disappointment so they are being conservative in that $45 range and at the end of last year we were looking and there was a value of $120 billion in valuations so i think they trim med those expectations. stuart: susan, perhaps you can not see it, but lyft, the stock price of lyft is down to an all-time low of $51 per share, and lyft was falling as the opening price for uber was falling. there's clearly a relationship between the two. i find it rather sad, because i'm intrigued that this new technology, this is your way into a whole new area of invest ing, here it is, at large and we bring the price down. >> in the worst case scenario we say the bankers miss priced this and misjudged but if you are interested in the next five years then okay you buy. stuart: susan get in, please? >> susan: so you may want to zoom in on the camera, we have the co-founders here on the

floor, so garrett camp i think that's where our camera is positioned, he's the second largest individual shareholder, right now just made his way through. we do have some of the board members as well, they're still here around the opening bell in the first trade, but again, these are companies, lyft and uber, that are still bleeding losses they're not making money. they try to make the comparison they're like the amazon of the gig economy but amazon didn't take as much venture capital money as uber or lyft did. in fact when amazon went into the ipo they saw growth rates of 3,000%. that is not the case when it comes to uber or lyft and i know amazon took seven years to get that first profitable quarter but some are saying you're not comparing apples-to-apples but on your screen you're looking at garrett camp again the second largest individual shareholder, co-founder we haven't seen travis down here or on the balcony to witness that first trade. stuart: the gentleman on the screen moments ago is a billionaire as we speak.

>> many times over. stuart: kevin laws, i just got to come back you're an early investor in uber you still got your shares. if this had gone out if you'd gone public, last year, the valuation would have been 120 billion instead of 80 billion. do you think uber waited too long to go public? >> so i think there's a problem in general, of companies taking too long to go public. it doesn't just cause problems for the later investors who don't get the pop. it causes a problem for the early stage investors who aren't able to turn that money back around into new companies. we need to invest and wait for it 10 years and that money should be back at work building new companies, so in general, and it's not a problem of uber deciding. it's a problem of the market and some of the availability of capital prior to going public that's just stretching out how long it takes for a company to go from zero to public. stuart: i wonder why people go

public anyway. ashley: the scrutiny there's the quarterly earnings all of the fun and games that come with us. the short sellers will take you there. stuart: the lawyers will be all over you but then you've got to raise capital and your founders have to cash out and that, you go public. >> right that's the "successful exit" what are your choices you either go public or you get purchased, right? that's it those are your choices to get your money back or give some of these early investors such as the angel list investors ashley: now it's down to 41. stuart: right hand side of your screen look at that. ashley: down 8%. stuart: uber was offered at $45 a share first trade was $42 a share and now, just a couple of minutes later, we're at 41.22. >> we are also going to hear more and more criticism of the seattle bankers who are supposed to understand the rules of supply and demand and price this so you do get that 10% pop at open and that's why we saw spotify take a huge risk, do a direct listing. they basically cut out the

investment bankers who in this case we'll call the middlemen, and probably with we work that's the next direct listing. ashley: but they were being conservative. they were on the low end of this pricing. let's play it safe. well look at this. stuart: we should say this has been a very bad week for stocks overall. ashley: not a good time. stuart: you're down 300 on the dow, as we speak, we've had a down week throughout the week. ashley: correct. stuart: so the sentiment is kind of negative. >> even with lyft, right lyft going public at the end of march , as we've been talking about is trading at an all-time low but even before today is net -net down more than 20% so i think people began to pay attention a little bit more to the business model. what do you mean this company just went public, that stuart: i would like, i will not give investment advice. we don't do that. absolutely don't do that. i will say this. >> okay. stuart: i would be a buyer of

both uber and lyft. >> okay. >> i would buy a little piece of both of them. >> five years. hold it for a long time. >> you like the business model? you like the disruption that it is, the technology that it is? stuart: it's new. i want to be in on the ground floor of what is really, really knew. >> fewer people are driving or buying cars. this is big reason. stuart: kevin, i know you're still with us. you've been hearing all my disappointment about this, that the and the other. i'm actually with you. i will at some point make a long-term investment in either both uber and lyft. last word to you? >> so i have to say that is part of what angel investing, the stuff at earliest stages is all about, getting involved with the companies that are going to change the world. you never know which ones they are. uber was doing 10 ride as night in limos in san francisco at the time angles got involved.

we wouldn't have predicted this is the one going to the 70 billion plus valuation. stuart: look. you don't have to tell me but, what did you buy uber at? what was the share price that you pout it at. will you tell us? >> i will share adjusted for splits, the earliest investors were in under a penny a share. stuart: whoa. you got to be kidding me? >> that is what i mean about the kinds of stages these companies are in. but keep in mind, it doesn't matter what the share price is if the company is going to go bankrupt right? so most of these startups do not succeed. it is not just a matter of seeing uber, of course that will be it. it is a matter of finding a lot of companies doing interesting things and getting involved in him. stuart: let me introduce to the law of television news, you put the best thing right up front. your best thing you got uber

into under a penny a share. if you had told me that i would give you the entire show. let me wrap it up. dow down 300. uber 42. nowhere close to the 45 offering price. time's up. neil it is yours. neil: thank you, stuart. we're learning from the treasury secretary steve mnuchin flashing on the wires that saying trade negotiators are done for the day. they are done for the day in the china talks. for the china delegation which left the u.s. trade representative's office a few minutes ago. does not appear to be coming back. heading back home to china with no deal done. although we are told some constructive developments. hard to say. this much is not the disappointment over this is palpable. the dow going into the day down 700 points on the week was adding to that to the tune of another 288 points. call it roughly an even thousand on all of this. we have this covered from