they all praise adam neumann. however, adam neumann is stepping down.is making it out to be his choice to step down. he talks about being the cofounder of wework and so proud of the team and the incredible company we have built over the last decade. we're hearing reports that a third of the staff will be laid off eventually. this all delays the ipo. this is bloomberg. ♪ amanda: while world leaders and corporate execs are gathering in new york city at the u.n. climate summit, local politicians in canada are watching closely. i spoke with toronto's mayor about the role the city can play in growing climate emergencies. >> we can change over our plate. if you think about the city with the transit vehicles, police vehicles, city vehicles. we can retrofit to make a more environmentally sound in terms of energy efficiency. we can encourage retrofitting of homes and other buildings across the city. there is a host of things we can do. we can make the city infrastructure more resilient, with the help of federal government we are doing. most of it is going to be

just how bad could things get. >>> wework ceo adam neumann is out.now off the table lawmakers in wa w about to kick off a hearing to address concerns around the dominance of google and facebook. we have full

taylor: what is it about adam neumann?s it the spending more than the income, his quirkiness, his management style? what is it investors are so concerned about? gene: he is perceived as being reckless. when you look at the evolution of a company, there is a period when recklessness is seen to change the world. there are several factors we have talked about that play into it. the list is long. ultimately, i think it creates some anxiety around investors about what is going to happen. it really is an open-ended question when you hear stories about the party type of culture. that recklessness does not sit well with public investors. taylor: abby, explain for us the role of the board. we know corporate governance 101 is to hold the ceo accountable. is the board holding the ceo accountable? abby: i think it goes beyond that. the first rule of governance is the business judgment rule. the board members have to act in the interest of the overall corporation. they have a duty of loyalty and a duty of care. when they look at the ro

the man credited for adam neumann. cosmic success, until now, that is. —— wework‘s success. the business could be left extremely exposed in a recession. the value of the company quickly plummeted to less tha n the company quickly plummeted to less than $20 billion, and as part of that fall from grace, mr neumann‘s own behaviour came under scrutiny. investors worried he had too much control over the firm and at times is that control to enrich himself personally. in stepping down, he will give up the majority of his voting rights, and so will his wife. he will be replaced by two co—chief executives, the current financial officer, and its vice—chairman. now let's brief you on some other business stories: the us state of massachusetts is imposing a four—month ban on the sale of all vaping products amid concerns about the health effects of the relatively new devices. at least six deaths have been linked to vaping in the us and officials are investigating 450 cases of related lung illnesses. germany will guarantee a $400 mil

the question will be, does adam neumann hold on here?more power because of the corporate governance structure ubertravis kalanick had it who has. vonnie: who has expressed support for adam neumann, and could he win? guest: that is what we are trying to figure out. there is a company in asia that has a board seat, there are also two other seats who are real estate investors. we are trying to figure out who backs him. he certainly made money for others of involved early in the company. lesson here the regarding companies coming from the private sector into the public sector? this is in the first time it is happened with uber, and it is happening with a number of companies as well. are we seeing a devolution, our founders capable of making this transition? company structures based around our full founders, are they capable of making these transitions? guest: we haven't seen an extreme drop in valuation. this is the biggest discrepancy to 10from 47 billion, billion, that is just a huge difference, and that will be the lesson here, should pri

adam neumann has stepped down. his wife is really pushing her high payroll. two new ceos.hey salvage the ipo? tom: it solves part of the problem. it solves the corporate governance issues that were raised as more people learned more and more about his self-dealing, about some of the choices he was making as ceo. to the investor who may not be as familiar with silicon valley, these are people who were going to be looking at this company as a real estate company. once it sells shares to the public, they are not used to silicon valley antics. if you are concerned about adam neumann and his leadership, these changes will address that. they don't change the underlying fundamentals of the business. questions about path to profitability, the long-term leases, questions about underlying fundamentals of the business still not addressed by these changes announced today. kathleen: ok, well, thank you so much. more questions than answers but at least that long-awaited move is done. that was tom giles. we thank you so very much for joining us. that is bloomberg technology global link.

why is there this concern over adam neumann at wework? ? is it because the company is not profitable? gene: the exception to the rule, i think mark zuckerberg is one. the line is drawn generally around what i refer to as recklessness in the past. drug usage, which is common in the tech community. i think there is a level, awareness of that that gets public investors more concerned. ashink a culture that is not respected as they should be, that is a concern, too. i know it is easy to say negative things in an environment like this. i think the simple take away, if you look at somebody like mark zuckerberg, even though he had a break things type of mentality, i think those two former pieces, he was measured and respected. i think that is why the differences. in the brief time we have, i want to quickly -- taylor mentioned, i think there will be some changes. i think this concept of super voting rights will probably go away over time. now not onlypany having power around politics, media, the economy, this is a perfect example of why 20 to one

adam neumann, wework‘s chief executive, has agreed to step down in the "best interests of the compa ny the company as a non—executive chairman. their market listing ran into trouble after investors raising concerns about losses and governance. back in mid—august, wework‘s initial public offering was hotly anticipated with investors valuing the firm at $47 billion with revenues doubling over the past year. a month later, it's all come crashing down for adam neumann, the man credited for wework‘s success, up until now. new investors were highly sceptical about wework‘s mounting losses and the business that could be left extremely exposed in a recession. the value of the company quickly plummeted to less than $20 billion and as part of that fall from grace, neumann‘s own behaviour came under scrutiny. investors worried he had to much control over the firm and at times used that to enrich himself personally. he will be replaced by two co—chief executives, wework‘s current ceo and its vice—chairman, sebastien cunningham. is now launching ahead of the wily and the sarah —— two large cultural

is adam neumann poised to leave the company, does the board have the ability to make it happen?ere's a lot of stuff in play now i think adam neumann needs to think of what's best for him and the company and other shareholders i suspect that in addition to talking to board members, he probably needs to be doing some consultation with his family, with his closest advisers. the challenge adam faces now i suspect is like a lot of fallen founders, he is finding himself with not a lot of friends to turn to. it is clear from news coverage coming out that former employees are starting to reveal things about what's happening inside the company, big supporters are falling by the wayside i think there's a real lesson for founders about the way to comfort themselves as they build their companies. when things get rough, you need friends. it seems like adam's friends are falling by the wayside. >> we talk a lot about what it means from an investor standpoint, i can't help but think this is probably weighing on blou east aemployees and folr within the company as well >> absolutely. i think the

re-work.ng, we work ceo adam neumann stepping down in a move to salvage an ipo.is bloomberg. ♪ president joeice biden says he would back impeaching president trump if the white house refuses to comply with congressional demands for information about his interactions with ukraine's president. in biden spoke to reporters wilmington, delaware, today. mr. biden: with such a written -- continuing to obstruct commerce -- obstruct congress and flout the law, president trump would leave congress know choice but to initiate impeachment. that would be a tragedy, but a tragedy of his own making. mark: earlier today, president trump said tomorrow he would release a full transcript of a july call with the ukrainian president. nancy pelosi is expected to announce that she is beginning impeachment proceedings against the president. in an address before the united nations general assembly, south korean president moon jae-in promised to achieve security for north korea in order to achieve denuclearization and peace on the peninsula. translator: we will continue dialogue with nort

netflix is down almost a percent. >>> new developments this morning about wework and its leader, adam neumannand how they would replace neumann. among those in favor of ousting the ceo is softbank's largest investor we have walter isaacson, bedrock capitol founder jeff lewis is here and we are thrilled to see both of them i'm going to start with walter this morning great to see you, walter >> you're in new york city times square. >> i'm sorry we're not seeing you in person. >> careful. >> i understand what this story means in the larger context of public offerings, of corporate governance and what this says about maybe we we are maybe in the ipo process. >> well, first of all, i'd put it in the context of founders who start companies, who tend to be like steve jobs and travis kalanick or now adam neumann, they have a pretty strong vision and adam neumann, who i happen to know, my wife and i and he and rebecca have been social friends, he understands the major transformations happening in the way we work, in the way people move to cities, in the way we need communities and even the gig economy

. >>> wework ceo adam neumann is out. is ipo now off the table lawmakers in wa w about to kick off a hearing to address concerns around the dominance of google and facebook. we have full coverage. >>> we're down almost a percent right now and the small cap is down by 1.6% take a look at the stock netflix down 4%. we'll have much more on these moves later this hour. kelly. >> let's begin this hour at the united nations where president trump talked tough on china seemed to turn markets and the headlines about impeachment sending us lower e eamon has the details. >> reporter: the president taking a tough line on china today suggesting that they're guilty of intellectual property theft and putting that in the context of a deglobalization of the overall world economy saying leaders for too long have participated in globalization that hurts their own citizens. the president has been ticking the opportunity throughout the day to defend himself on this burgeoning ukraine scandal even as democrats are talking up the idea of impeac

think all we know right now is he played a pretty big role in hosting for the last several days adam neumannand sort of trying to walk him through our understanding is as reechktly as late last week friday and saturday jamie dimon had kind of told mr. neumann we're an investor in you we don't think you have to go with this step forward. we're not entirely sure what changed over the weekend but i think it's pretty clear to say he has a pretty significant role it seems like, jamie dimon, in terms of the talks goinon and hosting them i think means he had a pretty prominent piece there. >> guys appreciate it, great reporting from you both, dave benoit and our deirdre bosa on the latest with wework there coming um, two tobacco giants abandoning merger talks and juul's ceo stepping down as america's backlash to the vaping epidemic grows we'll have the very latest next. and take a look at shares of sonos which are hitting session lows as amazon ueinvls three new echo hardware products at its latest launch event. sonos is down more than 3% "the exchange" is back in two. i had a coach. math. ooh. so,

adam neumann steps down but isn't fully leaving the company. more on that when we return. concerns about mild memory loss related to aging? prevagen is the number one pharmacist-recommended memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. woman: what gives me confidence about investment decisions? rigorous fundamental research. with portfolio managers focused on the long term. who look beyond the spreadsheets to understand companies, from breakroom to boardroom. who know the only way to get a 360 view is to go around the world to get it. can i rely on deep research to help make quality investment decisions? with capital group, i can. talk to your advisor or consultant for investment risks and information. a new kind of credit card. advisor or consultant created by apple, not a bank. with a better way to track where you spend. a new level of privacy and security. daily cash you get back every day. and no fees. not even hidden ones. oh, and if you happen to be somewhere that doesn't accept apple pay yet,

we know that the two co-ceo's were appointed after adam neumann stepped down.hole raft of changes over the last couple of weeks, mostly coming from pressure from the likes of softbank, which owned a massive chunk. both adam neumann himself owned a massive chunk of wework, said the difficulty was to get him to change his voting shares so that he would have less than a majority of the voting power. that happened just at the end of last week. he went from having the power of 10 shares per share to having only the power of three shares per share. that is very likely what made this possible. guy: absolutely, but i think given the valuation difficulty the company was clearly having, with going from the mid 40's and high 40's down to around 10, clearly this was a business struggling to find a valuation. as you say, that has resulted in significant management changes. we've now got two bosses. it has led to a suspension of new leases, we understand. this was a company trying to refocus on the nuts and bolts of his business and understand how to generate value and produ

wework chief's adam neumann is out.ing its controversial chief with two senior executives in an attempt to salvage the embattled ipo. the company plans to go ahead with the listing, but we are told it is unlike you t -- it is unlikely to take place next month as planned. that is your bloomberg business flash. lisa: let's take a look at the wework saga with bloomberg's sonali basak. what a story from some any different angles. as we see adam neumann step down, it calls into question the entire lifeblood of this company that has risen up, and now owns a significant portion of real estate in new york and london, and other major markets. what is the future for wework? sonali: that is definitely a big question, not to tension the fact they need to do what they are going to do with their financial situation -- not to whaton they need to know they are going to do with their financial situation. they are looking at job cuts, thousands of them. they are looking at potentially spinning off non-core operations , according to bloom

the boss of wework, adam neumann, has agreed to step down as chief executive of the office rental firm firm. our north america technology reporter dave lee has the details. back in mid august, wework‘s initial public offering was hotly anticipated, with private investors valuing the firm at $47 billion, with revenues that have doubled over the past year. but, just over a month later, it has all come crashing down for adam neumann, the man credited for wework‘s success, up until now that is. new investors were highly sceptical about wework‘s mounting losses and a business could be left extremely exposed in a recession. the value of the company quickly plummeted to less than $20 billion and, as part of that full from grace, mr neumann‘s own behaviour came under scrutiny. investors were worried that he had too much control over the firm and, at times, used that time to enrich himself personally. in stepping down he'll give up the majority of his voting rights and so will his wife, rebecca. he'll be replaced by two co—chief executives, wework‘s current chief financial officer artie minson

click, call or visit a store today. >>> still ahead, adam neumann is out as wework's ceo, but is it too save the company's ipo? that's next. after my dvt blood clot, i wondered. could another come around the corner. or could it play out differently? i wanted to help protect myself. my doctor recommended eliquis. eliquis is proven to treat and help prevent another dvt or pe blood clot. almost 98% of patients on eliquis didn't experience another. and eliquis has significantly less major bleeding than the standard treatment. eliquis is fda-approved and has both. don't stop eliquis unless your doctor tells you to. eliquis can cause serious and in rare cases fatal bleeding. don't take eliquis if you have an artificial heart valve or abnormal bleeding. if you had a spinal injection while on eliquis call your doctor right away if you have tingling numbness or muscle weakness. while taking eliquis, you may bruise more easily. and it may take longer than usual for bleeding to stop. seek immediate medical care for sudden signs of bleeding like unusual bruising. eliquis may increase your bleeding

of capital could be of off the table for now. >> that's why this is such a tricky balance for adam neumann. he may need no li need to go about a to masa appear softbank. it was a $3 billion capital raise. and concontinuing on ant $6 billion-dollar debt facility that's 9 billion they don't have to continue growing. >> dedra bosa in san francisco and of course the company burned $2 billion in 2018 the rate of cash baurn is high here. >> we talk about we work because it's a fascination with the company. but what it speaks to for the broader market, wework if it was a stocks down 65% from the all-time high effectively from a $48 billion valuation to current levels -- that's a significant move we would talk about this with a publicly traded company. what does it mean in sterms of central banks? tim and i talked about this. means the central banks flooded the systemway cash lacking for who homes. those are negative consequences of this. but if you are looking to play stocks, people will say the nasdaq maybe loses to thp. the stock was up on a lousy tape today. names in the exchange space still w

ceo adam neumann getting real saying, quote, he had been humbled and he needed to learn a lesson about publicly traded company oth others contributed to his decision to delay the offering >> lawmakers grilled the justice department and ftc officials calling the anti-trust probes empty suits as apple continues to fight european union watch dogs in court calling their $14 billion bill for back taxes a reality and common sense >> and senate fighting on line extremeism joining us now from london, a lot to get our hands around here give us an overview of what happened yesterday some pretty strong words in that panel. >> strong words, they are taking the lead on big tech getting their own chance in the hot seat yesterday. we heard from ftc chairman and assistant attorney general kind of admitting there has been overlap in their investigation like companies like facebook and google we know the ftc is conducting their own antitrust negative ocean at the same time as the justice department proud review. some senators saying these agencies need to con doll sat and not overlap quite as much on th

. >> what about the relationship between mashiyoshi son and adam neumann. why has that changed why is he turning against him? do you have any sort of insight into what happened >> i wish i had more, sarah. as i said earlier, i think that "wall street journal" story of a few days ago detailing, you know, using the plane and leaving marijuana on it from a trip from israel to the united states and tequila parties there was a lot of different things in there it did seem to have an impact on a number of conversations i had. was that enough to fully turn them it's unclear at this point mr. neumann didn't show at a big pasadena conference that mr. massa held last week, but that's unclear that had any true impact here they have had a very close relationship and mr. neumann sparked mr. masa's imagination, his enthusiasm so it does surprise that masa would be willing to say, let's go in a different direction. but when you have over $10 billion invested and seemingly of values that would have come in below what you've already put in, that can affect your decision maki

first up, pressure mounts for ceo adam neumann at the board pushes him to step down.hedge fund turning back to investors for more money as it prepares for a market downturn. 's zurich suisse banking drama spells out after an employee moves to a rival firm. joining us is sonali basak. let's start with wework. the headline on bloomberg was neumann, new woman? what happened? sonali: it's been a tumultuous couple of weeks. but i can't wrap my head around is how fast all of this came about. softbank is one of the major drivers, and they want to keep the company private for longer so they don't have to take a right down -- take a write -down. they now want to potential he ousted neumann. if they get rid of neumann, who is going to take over the company? will people believe that new person can move it into the public market at some point in the next year or so? alix: does it matter as long as softbank likes them? sonali: i think it does. if you ask new investors to come in, they also have to like the ceo. how much is wework adam neumann? are they very intertwined entities? t

adam neumann wants to live forever, be king of the world, and the first trillionaire.us know what you are spotting online. use the hashtag #bbcthebriefing. that's it for the business briefing this hour. but before we go, here are the markets. japanese stocks were heading for a fifth consecutive week of gains. bird populations in asia and the us are in crisis, according to two major studies. the first says there are 3 billion fewer birds in the us and canada today compared to 1970. the second claims that, on the island ofjava in indonesia, more birds now live in cages than in the wild. 0ur science correspondent victoria gill reports. sold in their thousands every day, injava, indonesia, sold in their thousands every day, in java, indonesia, the sold in their thousands every day, injava, indonesia, the songbird trade is thriving. it is fuelled by a national passion for birdsong. singing competitions like this take place all over the country every weekend. but it is also driving an extinction crisis. dozens of species caught from the forests to supply the trade are disapp

japan's softbank is reportedly looking at ways to replace the chief executive of wework, adam neumanne space provider postponed its stock market listing last week amid lukewarm investor interest and tumbling valuations. rico hizon is in our asia business hub in singapore. they are saying that they are losing faith in the israeli billionaire who co—founded the space. they say adam neumann‘s + influence has become the biggest hurdle for the public offerings. he is one of seven and has the power to fire the board. adam neumann‘s unusual leadership style a nd adam neumann‘s unusual leadership style and conflict of interest have also risen. there are talks the board is planning to call for a meeting as early as this week. wework has ipo ambitions. last week the group delayed its public offerings until at least 0ctober. that's it for the business briefing this hour. the duke and duchess of sussex and li—month—old son archie will arrive in south africa today for their first official tour as a family. during the ten—day trip, prince harry will also visit malawi, botswana and angola where he'l

people are pointing to your expose about adam neumann's lifestyle. what more have you seen in terms of reaction because we know what kind of character mr. neumann was or is. it shouldn't be that surprising. >> exactly right weworks board members have long known he's this very unusual character, the life of the party, et cetera they decided very recently to act upon that once the magic had worn off with the previously really high valuation that they had. >> paul, what do you think is most damaging in terms of these anecdotes in terms of how he runs the company or conducts himself that may have changed softbank's mind about him or is it just the valuation. this were going out 30, 40, upwards of that billion dollars there wouldn't be any problem. >> i think part of it starts with socme of the marijuana usag on the airplane going to israel. some of his behavior in terms of side deals his wife being involved in the business trademarking the word we there's a number of things that i would not call this a regular surprise, what we call predictable surprise

that was adam neumann, the founder and chief executive.hour, but before we go, here are the markets: asia stocks are on track to notch falls for the week on friday following on from declines on wall street amid political uncertainty in the us as the white house faced accusations of a cover—up. plenty more coming up a little later on. see you soon. a british couple have been jailed for eight years by a portuguese court for drug smuggling on a cruise ship. roger and susan clarke, who are both 72, were caught last year while attempting to smuggle 9kg of cocaine with a street value of £1 million. damian grammaticas reports from lisbon. lisbon... beautiful in the autumn sun. last december, a different ship was here. the marco parolojust arrived from the caribbean. in cabin 469, roger and susan clarke, pensioners who took frequently costly cruises, living beyond their modest income. police had noticed. today, the couple, both 72 years old, were brought to court in handcuffs, sentenced to eight years each for drug smuggling. as the judge spoke, s

it is unclear how receptive adam neumann has been. the dynamic is very interesting.reported that softbank's stake is obviously larger than his, but that his could actually ratchet up if the stock hits various valuation targets over time. guy: do you think they are being freaked out by what happened with smile direct? gillian: a little bit. that was obviously a huge signal. that ipo priced above its targets range, and then dropped . it was the first ipo to do that. vonnie: obviously it is not trading, but bonds are trading. what can we tell from the trading of the bonds right now? gillian: the biggest bond holders absorbing the changes. i think funds are up. vonnie: the main traded one in my bloomberg right now, if you guys want to take it, it is higher. gillian: so i think they are taking it is a strong signal that the company is willing to make these adjustments to its corporate governance structure to appease the investors. now it will look a little more like any other public company. one other thing i didn't mention earlier that i think is notable to investors, th

last tuesday, then ceo adam neumann had withdrawn as ceo. and noww the big drop, lower, down 5.7% over all of this news around wework. we will be following this very closely. the quarter is coming to a close. big moves here as well. take a look at this chart in the bloomberg. the dow and the s&p 500 in white and yellow, they are up on the quarter. the tech heavy nasdaq in blue down, the first down quarter since the very volatile fourth quarter of last year. that is true for the russell 2000 in pink, along with the dow transports in orange. mixed signals here, especially when you put it together with the big rally for bonds in the third quarter around the world. we may have a chart of the 10 year yield on the quarter. look at that, giving up 34 basis points, at one point -- at 1.69%. interesting considering the mixed-signal for stocks anti-big rally for haven bonds -- stocks and the big rally for haven bonds. vonnie: just an update on wework. a statement coming out from the new co-ceos, saying, "this was an official pause in our process of be

spent $60 million on a private jet for adam neumann and his team, that's crazy uber announced they werelling the policy of having helium balloons for the birthday, cost the company $100,000 >> here's the broader concern among many in ten years, you want to have created googles, amazons, microsofts of tomorrow if it is not uber lyft, not wework and not the other things that haven't done well, bitcoin or whatever, what's it going to be >> you hear amazon, microsoft, are there four companies with startups that will likely be that yes. but we're eager to anoint, we accept the notion of as long as they keep growing, they'll figure the rest out, become profitable at some point if a founder can't say here is how we become profitable in x amount of time, trusting them to figure it out is not a good business strategy. >> if you're airbnb, said 2020 is my year, we are going public, you see what's happened in the last couple weeks, throughout this year, what do you have to do when you are crafting the s-1, thinking about governance to have the best debut possible. >> i think in this case, airbnb h

take a look at the risks. >> the big question here is is there even a wework without adam neumann? without him is it just an overvalued real estate claplay. pot on a plane, numerous tequila shots, unconventional hiring. before that neumann grew wework into one of the most valuable in the world. soft bank was the biggest believer of the vision pouring in more than $10 billion. interesting benchmark. benchmark was an early investor in wework. the firm has experience with founder risk and getting rid of it. it was just over two years ago that benchmark led the investor revolt that led to the departure at uber. it's not clear where the wework director stands. take a look at wework's board. over the next days or weeks, these people are going to be critical. we may learn more about where these directors' loyalties lie and whether adam who is more powerful than any of them is willing to relinquish control. >> thank you. there is a founder risk and corporate governance risk in allowing the founder ceos to have a supermajority. >> there is. i think you have to reference whether it's besos or

even though it's run by a suboptimal ceo, adam neumann, they invested in higher prices, like marking tock and blowing it out at an artificial level. bgl. neumann was so busy self-destructing it didn't work and hence incredible stories we're seeing that wework ipo has been -- they want to get it back on track it's a sideshow. during the period we learned of massive self-dealing by neumann in a stock that's tailor made for short sellsers as a approximaproxy proper falling prices. it's a real estate firm and seen this movie before. who nows how something like uber really got to a $68 billion valuation that last private round. it seems like it was fooled by the greater fool theory with investors who put in money because they were salivating by a $120 billion valuation when it became public. google that's what they were looking at it's worth 55 billion and shrinking rapidly as people realize that uber is a glorified cab company that's losingmoney i think it's only going to get word now the investor bankers are lined found are the first trillion dollar ipo. saw di aramco is profitable. it's

the big thing is how are they going to get rid of adam neumann?ding to various reports, they are looking into whether he's self-dealing. he has a stake in a lot of companies that lease back the property to weworks so he could potentially have a conflict of interest by being the landlord of the company as well as the tenant of the company. they are also looking into whether he took drugs while working. there was a "wall street journal" report about him smoking some pot on a plane. then they will possibly, this is another theory, he could step down or be put into the interim ceo while they look for another replacement. one of those big proponents is benchmark capital. they sit on this board and they have experience having or forcing ceos and cofounders to step down. they were behind the big push to get uber's boss to step down. however, if you put the cards in adam neumann's hands, he does hold the vast majority of the voting rights and could potentially fire the entire board. you are seeing, for some reason he's shaking trudeau's hand. it would be

adam neumann had been under pressure from investors after a failed attempt to take the company publicn co-founded the company in 2010. he will stay on as nonexecutive chairman. it's unclear if and when the company will go public. >>> meanwhile, nissan has issued a massive recall to fix many of its most popular model vehicles. the japanese automaker is recalling more than 1.2 million vehicles in the u.s. to fix a problem with defective backup cameras. the affected cars include 2018 and 2019 nissan and infinity models. owners can take their vehicles to a dealer to receive the upgrade. >>> and a restaurant in minneapolis is being credited with making a burger that's believed to be sending women into labor. the burger is called the labor inducer and got its nickname after two women ate it and within hours gave birth. it's made of angus beef and comes with american cheese, spicy mustard, and a cajun sauce, peach caramelized onions, and honey-cured bacon on a pretzel bun. while it's not medically proven to induce labor, it's gaining popularity. >> i'm going to put it out there that if you h

and wework founder adam neumann steps aside.e rental company back on track. and before we go, a story that some people might find hard to swallow. we all know that chefs and food critics don't always see eye—to—eye. but one celebrity chef in france is taking thing to a whole new level. marc veyrat is suing the michelin guide after his restaurant was stripped of their three star rating. and what's caused the stink? he said food inspectors accused him of using cheddar! he denies it all. saying the cheeses in his souffle were always french. that's certainly food for thought. hello there. well, september had been on course to be a dry looking month across the south of the uk until a more recent spell are very u nsettled until a more recent spell are very unsettled weather. yesterday we had this area of low pressure bringing heavy rain, thunderstorms mixed in with that. some really heavy downpours, actually. causing some localised surface water flooding. quite near the bbc around the oxford circus area in london. in boscombe down in

firstou mentionedar zuckerberg one of the founders of fv continued to b adam neumann, the cofounder muchk had to step dow this we can. the issue of an entrepreneur who then continues to try to run company, the google boys. >> yes. >> they even had to bring somebohe in to run company for a time. are you a fan of an entrepreneur, an elon musk for example who found a company and thenns as ceo. >> look, i'm the f t of the on vi and i think there is a role there. but at some point it's an operating entity. you had on the ceo of peloton it's probably endemic of ipo abthe focus on growthocusthe expense of profitability. right now wall street is saying no to that they want food on the plate. >> david nelson bell pnt asset management thank you. >> thank you. >> coming up older maren becoming more vulnerae to financial abuse. but there are steps you can take to stop it. ♪ ♪ >>> here a look at what to watch tomorrow.l reports on encome and spending and consumer sentiment due out. consum spending has been a driving force behind the economy. durable goods orders will be released giving a peek intoee

adam neumann was the founder of the space. he was what separated wework from these other.he reason wework has grown to be the large behemoth that it is that's in the news is because of adam neumann. this signals right now that softbank has really gotten their way. they have been pushing to push neumann out. it looks like they have won the battle which is big news and folks in wework, the private shareholders who own that, the private equity groups, all those folks will have soul searching to do about what they want to do, especially now that the value of the company might have been reduced down to $10 billion from $40 billion or $50 billion. david: shareholders matter. shareholders do matter. we don't hear enough about that. but also, i think it gives notice theo a lot of ceos, particularly from social media type companies, you can't be as wild as these guys have been and not expect some kind of feedback for that. elon musk, you think of, a bunch of other ceos. >> you know, but the other challenge that exists here, a lot of these ceos that have been pushed out have been br

and in other news — the job of wework‘s chief excutive adam neumann could be on the line, amidst reportser wework‘s planned flotation was suspended, following waning investor interest and tumbling valuations. thomas cook's fortunes have been hit by a series of problems over the years — from heavy debts, high fuel costs, stiff competition from the internet — and some say, poor managment which simplyleft the tour operator behind the curve, and issuing a string of profit warnings. over the last five years, the share price has lost over 90%. pippa jacks is the group editor of travel trade gazette she says the problems aren't typical of the industry as a whole. the current management has done a reasonably good job with what they have had to work with, some of the problems are so long—standing that you can't necessarily play them at their door. but some of the problems that have been external factors more recently that have affected other tour operators, tui still doing well, jet2 holidays is still doing well, jet2 holidays is still doing well, which would support the thinking that we can'tjus

softbank turned against adam neumann. big idea guy >> likes to vest >> a kindred spirit and has been a champion of his. i wrote a story a couple of days ago, which was the cofounder of wework saying the one complaint masa had with adam is that he wasn't crazy enough. now he's saying he's too crazy >> people are always asking, why do you care so much for the wework story it is a private company, a real estate company the reason we care is that wework -- it has its own problems itself but $47 billion valuation, taken the red pen down to maybe 10 does wework tell us there is a bigger problem in the startup market maybe valuations are possibly too high across the board? this is a bigger story than just wework is the point. >> the biggest of the unicorn from slack and uber that have gone public. this one so big, it couldn't even get out the door. that there is an issue with softbank these companies balloon in investment >> thursday raising the value of its own portfolio. if i sold my house to myself more than i paid for it, th

japan's softbank is reportedly looking at ways to replace the chief executive of wework — adam neumannket listing last week — amid lukewarm investor interest and tumbling valuations. reuters reports wework‘s biggest shareholder — softbank is now looking at removing mr neumann. as we've been hearing thomas cook has collapsed after last—minute negotiations aimed at saving the 178—year—old holiday firm failed. we are joined now by tim johnson, director of the civil aviation authority. thank you for being on the programme, operation matterhorn has been underway for some time, talk us through the logistics of getting all these people home. good morning. yes, a hugely challenging repatriation exercise, 150,000 people, that's a town the size of oxford or huddersfield, we have over 40 planes that are in the system at the moment and preparing to bring people home. the first of those planesjfk into people home. the first of those planes jfk into manchester people home. the first of those planesjfk into manchester is people home. the first of those planes jfk into manchester is about to leave so

wework, adam neumann told friends he has the support of most of the board, he thinks discussing new options be thinking, do we have someone come in, just to level out the playing field. to bring in someone who is experienced and keep this company measured throughout. >> he got forced out and became a billionaire. would you be forced out for a billion. if you own netflix, you won't like this story. netflix is now plot to negative. our parent company coming out. what is the world on netflix >> it is an international problem for netflix. their growth opportunity is overseas their app growth overseas is slowing. they are competing with sharp elbows with amazon and other companies. >> laura mark am on our show has been worried about this. this is all they've got. >> all they've got is the ability to raise prices. >> a lot of people sara blame that on hbo go and "game of thrones. a lot of people, they'll cancel and resubscribe every month. >> yes it is like okay i'll cancel netflix and watch "game of thrones. and when "stranger things" comes back, i'll return. >> the churn is the biggest issue. i

. >>> wework cleaning house after the resignation of ceo adam neumann.he company is trying to remove high level employees and sell neumann's private jet. >>> hard seltzer, the biggest trend in the alcohol business now. the company behind the nation's first craft beer is cashing in on it. that story is coming up. >>> speaker pelosi says president trump has betrayed his oath of office and violated the constitution. so why isn't she putting impeachment up for a vote in the house. we will deal with that next as "varney" gets rolling. what do you look for when you trade? i want free access to research. yep, td ameritrade's got that. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td amerit

planned for the week of september 23 it has been a difficult few weeks for wework with cofounder adam neumann'snder scrutiniy including curbing neumann voting power. another could see the ce o's wife rebecca removed from the committee that would decide his predecessor should he die or be disabled concerns with softbank spurring the possibility of softbank injecting capital to suspended ipo. this one is just a drama >> it is there has been a lot of high-profile ipos this year. this one has an air of intrigue around it maybe unlike others with the exception of uber >> it has been interesting the household names, the splashy un unicorns we saw this yesterday with smile direct fell 10%. while another not as well-known had a fantastic debut pricing above the range as well. >> it is the ones we would never talk about bertha, thank you. we'll see you in a few minutes >>> when we come back, the red hot cnbc cfo survey is out amazon making big changes at hundreds of whole food locations across the country much to the dismay of some of its employees and new details on one of the worse stock rkmaet debuts

negotiation between some of the investors who may think it is in the best interest for the ceo adam neumann out. i think it will be more of a persuasion more than iron handed enforcing. were to leave, would that help the ipo because people would see the company and more stable hands, or would it delay the ipo and give them time to regroup and perhaps go for a higher valuation down the road? ellen: it could do both. removing the ceo at this point will be seen a such a major upheaval of the process, certainly not what the company had planned to do when they first started going through the process of going public. it is possible it would be seen as something both dramatic enough to change the fortunes of be soyed ipo, or it could complicated it delays the ipo access to which means a credit facility. that raises the question as to why there wasn't more of an effort. when you think about some of the investors, benchmark capital, the way they dealt with travis , is therever at uber no sense prior to this that he is the wildcard that would need to be dealt with. he has a strong personality. he has

. >>> adam neumann's stepped down.t week wework announced it would delay its highly anticipated wall street debut. even with the leadership change, it's unclear if wework will go public any time soon. >>> we may find out details of president trump's call with ukraine's leader today. while we were slaping, the late night show played its version. >> hello, this is ukrainian president zelensky. >> congratulations on chernobyl. >> it was a bad rating. what can we do for you, president trump. >> give me some dirt on sleepy joe. >> i don't think i could do that. >> how would you like to wake up next to the head of a horse. >> agreeing to help you is an impeachment inquiry. >> to me it's a dirty word, filthy does gusting word. >> where do you stand on grab them by the pussy. didn't you do the same thing with hillary in the 2013 election. sorry, mr. president. ukraine is going into a tunnel. i have to go. >> well, some hard work by editors. we didn't expect one of those lines there. hard work there. all right. thanks to our in

. >>> adam neumann has stepped down as ceo of wework after the failed attempt to ip on the office rental company last week. artie minson will take the reigns the former ceo has agreed to give up his majority voting control. wework's listing was delayed after initial value was slashed by $20 billion in january, he insisted they were ready >> we are ready for the ipo because we have our bond we report on a quarterly basis wework is always ready >>> coming up, trump under fire. democrats launch an inquiry to possible impeachment we'll sit down with an exclusive at lulrdw with james bla, th'sate later tonight. stay with us gives you the strongest hold ever to lock your dentures. so now you can eat tough food without worry. fixodent and forget it. here's another cleaning tip from mr. clean. cleaning tough bathroom and kitchen messes with sprays and wipes can be a struggle. there's an easier way. try mr. clean magic eraser. just wet, squeeze and erase tough messes like bathtub soap scum and caked-on grease from oven doors. now mr. clean magic eraser comes in disposable sheets. they're perfect

wework will likely postpone its ipo following the resignation of adam neumann. expected to be the second biggest ipo in the u.s. and threatens $6 billion of credit financing that was contingent on a successful offering. is in talks for a new loan. paul: credit suisse is scrambling to contain the fallout of an investigation into a spying scandal. shares have fallen around 6% this week as outside investigators tried to find out which senior figures two authorized and managed to track one of their former senior staff who moved to rival ubs. top executives may be criticized, including the ceo. shery: let's take a quick look at how the markets are looking. robert kaplan speaking at an event, saying negative rates abroad reflects pessimism on the outlook. there is a low chance of recession. this is bloomberg. ♪ ♪ - custom ink helps us motivate our students with custom gear. we love how custom ink takes care of everything we need so we can focus on the kids. - [spokeswoman] custom ink has hundreds of products to make you look and feel like a team. upload your logo or s

after the ceo, adam neumann, stepped down on tuesday.ew given this leadership shakeup and two new co-ceos coming on and are sourcing said it was unlikely for the company to continue on with its plans for ipo in 2019. even though they had the week before when they delayed the ipo, they said that was something they were committed to doing. this is making official something we knew was coming but it is a dramatic step. so, is the ipo going to happen down the track and will there be investor interest for a second time around? ellen: i think the company is trying to make changes to make sure the answer to that question is -- is yes. they are planning to have an ipo, that is part of the message they put out to their employees in a staff memo. they said we only get one chance to go public and we want to do it right. we want to make sure we are taking the time to get the business in order before we take it to the public market. that being said, it seems like there needs to be a lot of changes for the reaction and reception from public investors

these are people who have been at wework for a long time, have close, personal ties to adam neumann -ce with him or in the case of the chief product officer, the brother-in-law of adam neumann's wife -- so there is an interest in time to have a changing of the guard and there's high-profile departures and we would expect larger numbers potentially of more middle ranking employees in the weeks to come. shery: thank you so much for the latest on wework. coming up next, brazil's top diplomat tells us how he is making the most of u.s.-china trade tensions paired my exclusive interview with the foreign minister is next. this is bloomberg. ♪ paul: we are counting down to asia's first major market open this morning. japan opened 14 minutes away, 13 minutes and eight seconds, to be precise. currently higher by .5%. we have got futures. australia pointing higher as well. this after modest declines in u.s. equities. this is "daybreak asia." i am paul allen in sydney. shery: i am shery ahn in new york. the continuing trade tensions are putting many countries in a tight spot as they juggle their

. >>> decision by wework's board on the fate of adam neumann could boil down to just one board memberdiscuss his future and how the company's valuation has been crushed luioof the private market vaatn. "squawk box" will be right back. woman: what gives me confidence about investment decisions? rigorous fundamental research. with portfolio managers focused on the long term. who look beyond the spreadsheets to understand companies, from breakroom to boardroom. who know the only way to get a 360 view is to go around the world to get it. can i rely on deep research to help make quality investment decisions? with capital group, i can. talk to your advisor or consultant for investment risks and information. talk to your advisor or consultant plants capture co2. what if other kinds of plants captured it too? if these industrial plants had technology that captured carbon like trees we could help lower emissions. carbon capture is important technology - and experts agree. that's why we're working on ways to improve it. so plants... can be a little more... like plants. ♪ >>> welcome back to "sq

co-founder adam neumann stepped down from his role on tuesday to salvage the planned ipo. copresident and chief financial officer and sebastian cunningham, the vice-chairman, were named co-ceos. i discussed the shakeup. >> i think the writing was on the wall. this is where the momentum was. my reaction is to think of this in three chapters. there is the past and things that were very good and things around the leadership that were not good. the leadership had a lot of the power that built the company. then there is the present and i have to applaud everybody involved in how smooth this is going. it was just a few weeks ago this started and they already have some replacements, temporary or permanent. adam, the way he stepped aside, was respectable. so i credit the company for that. it is different from movers -- uber's. it took a lot of time for leadership to change. then there is the question about the future. to circle back and talk about the timing, i think it is unlikely that anything happens in that october frame. equity investors want the senior management to have a h