david: for somebody that is a young person watching who would say i want to be brian armstrong. to be a person who starts a company, very successful, a leader in his industry, would you recommend is the skill set or the thing somebody should do to become you? brian: well, it is an odd question. i'm sure some people want to do that. not everybody wants to do that. for people who do, number one is study engineering, science, math, stem. i think that is the language of our future that you can have the most impact. and then i would say try building companies. i think that tilting technology companies is probably one of the best levers we have to improve the world regardless of what problem we are talking about, whether that is climate change or fixing education, health care, anything like that. so, and starting companies is hard. i started the number of companies that did not work or they were barely successful in some small way. and it was, you know, coinbase is probably the 10th idea i had that i tried and that when ended up working really well. but there are others i hope to crea

i sat down to talk with brian armstrong about the future of his company.or those who don't know much about cryptocurrencies, what exactly is coinbase and what does it do? brian: coinbase is the primary financial account for many people participating in the crypto economy. we help people buy and sell crypto. we help them use it in a variety of ways. you can use it to send money, borrow and lend. we think of ourselves as the primary financial account for people in that economy. david: i know you are different from another company i will mention but is this what ftx more or less did as well theoretically for its clients was enabled them to trade? brian: ftx did one feature which was the trading aspect. david: what you think happened to ftx? you have been quoted as saying there was more than the occasional bad bookkeeping. brian: i am sitting here as an outsider but it seems clear to me it is not just a run on the bank or for management of funds. it appears and they took customer funds from their exchange and commingled them or remove them into their hedge fun

brian armstrong and the rest of the executive team have made the case since the ipo, like lisa said,you need to have a strong stomach. he likened it in this scenario to the dotcom era, the boom and bust and the internet companies that made it through that, were more disciplined on cost. everybody wants to be amazon in the end. they are making that case to investors that we are tightening our belts and we're going to make it through this and are best positioned in the market at this point that's the new bull case they will be able to rein in spending withsome of the cost cuts and stock base conversation was a huge expense for them. >> absolutely. lisa, if you are assuming that coinbase will emerge and survive and thrive in the long term, the next cycle will look different, isn't it it's the most regulated, the most transparent play, but this industry, does that make it a profitable business? or is the next winner going to come from somewhere else is it going to be a private company that doesn't have to build with all of the regulations or scrutiny in place? >> i don't know that we bel

we've seen a mark of how well you were doing which is another thing brian armstrong talked about. a measurement of success and that has completely reversed and the measurement of success in the eyes of wall street at least or how lean can you be and how much can you do with the resources you've got >> that is the mantra right now for sure kate, thank you very much. >>> mortgage rates dropping to four-month lows. but how are buyers supposed to take advantage if there's nothing on the market? why did one upgrade zillow to buy? he joins to us make his case >>> why our next guest is looking at industrials as we head to break the look across the markets the russell 2000 small caps up nearly 1%. the dow hanging on to a quarter point gain the ten-year note 3.61 >>> welcome back to "the exchange." industrials and materials, two sectors that have underperformed the broad market over the past year but it's where our next guest is looking to ride out 2023 joining us with three of his favorite names and to defend this whole idea, the seen why are portfolio manager, cnbc's dominic chu rejoins

in a message posted on the company website, the ceo brian armstrong seem to point the finger at ftx for the layoffs saying fallout from unscrupulous actors in the industry. his words created a downward trend in the crypto market. >> out of the state's spending of your tax dollars today, governor newsom unveiled the preliminary budget for the next fiscal year. and as our capitol correspondent eytan wallace, that report, the governor spoke about his spending priorities and addressed how california we'll respond to a potential multi-billion dollar shortfall. >> well, here it is. this is the governor's preliminary budget summary. all 149 pages of it, a budget that includes priorities for homelessness, drought and education. and when that takes into account a projected deficit, this budget is resilient. governor gavin newsom describing his proposed preliminary 297 billion dollar budget for the coming year as the state is projected to face a 22.5 billion dollar deficit, a deficit. the governor maintains california is prepared to take on. i think we're better position than any other jurisdicti

brian armstrong saying the steps were needed to weather the industry downturn. ng to shut down several projects. armstrong also said in his blog, it is the first time we have seen a crypto cycle coincide with a broader economic downturn. he noted that the cuts that took place last year perhaps were not -- rishaad: su -- su: sorry, back to you. rishaad: good stuff. the hang seng getting about 1% or thereabouts. that means we are up round about 8%, maybe 9% since the start of the year. (jennifer) the reason why golo customers have such long term success is because we focus on real foods in the right balance so you get the results you want. when i tell people how easy it was for me to lose weight on golo, they don't believe me. they don't believe i can eat real food and lose this much weight. the release supplement makes losing weight easy. release sets you up for successful weight loss because it supports your blood sugar levels between meals so you aren't hungry or fatigued. after i started taking release, the weight just started falling off. since starting golo a

brian armstrong basically explaining that by the end of the day, employees would receive notifications that personal ml addresses and it was very abrupt. our customer information is key. we have to protect the customer data. what kind of serious steps have you reported on the company's taking to safeguard themselves and customers when they go through layoffs like this? >> as you mentioned, the case with coinbase, employees or waking up to already having their emails shut off. more and more companies are having to do this because the risk is just so high. it's so easy for employees to hoard and -- forward in email if they have a few hours left it will be kind of stingy stuff to their own personal gmail's. you have some people that may be want to do something really kind of bad with that. often people don't even realize that what they are doing is against their employment contract and they simply want to better themselves and in their next employment they have been let go. largely we are seeing companies really cracked down and shut down from the minute people are being laid off. they ar

ceo brian armstrong telling me, looking back, he says, we should have done more when it came to layoffs says the best you can do is react quickly once information becomes available. that's what we're doing in this case armstrong also underlined the company's shifting focus to operating efficiency and doing more with less, as he put it the move will add new restructuring costs in the first quarter. overall, should bring operating expenses down by 25% coinbase also expects ebitda to stay within $500 million and pointed to renewed cost discipline across silicon valley and tech we've seen a handful of tech companies, including amazon and salesforce, rein in spending through similar job cuts he talked about some of the recent damage in crypto markets that's been a drag on coinbase's business and investor confidence he called ftx's downfall a black eye on the industry, adding there's probably more contagion onout there. he said scrutiny on crypto is a good thing, but now there's a lot of fear. market shares are up this morning but down 80% or so in the past 12 months back to you. >> kate roon

. >> brian armstrong of coinbase, and this is very interesting.crypto, this is truly a must listen. he is the chairman and ceo and cofounder of coinbase and far more importantly, as mentioned, bad actors by all accounts, he is literally the good actor in bitcoin land and coinbase land. we are watching what is going on with no real news and the faa. southwest airlines mentioning their services and schedules need adjustment, but we await the faa. as we near the 9:00 a.m. point, some confusion. we are at 930 a.m., but maybe in the next 12 minutes and new york, we will get further information. david rubenstein joins us with carlisle, and the host of peer-to-peer conversations with a really important conversation made more important by the news flow in the coinbase world. this kid is from palo alto, from engineering, and he took one of the great double degrees in america. rice university economics and game theory. he did the right things, and his company is now falling apart. >> i would say it is falling apart. company is publicly traded, and had a mar

this is, this is, the least coinbase, brian armstrong has a clue about how to tripe to make it if theain if the sec wins expect that regulatory axe by gary gensler and company at the sec to be hot and heavy. he already said it, already said, everything but bitcoin is a security. get your rear ends in here and register. after the ftx implosion, the question why didn't ftx to register beforehand? liz: they weren't based here. >> no, ftt, people were trading it here. liz: they were but based elsewhere. >> or gave a lot of money to joe biden. liz: gave to republicans in shadow money. >> he gave directly to joe biden. changing -- liz: not just coinbase but the dow jones industrials, we just touched the 200 handle. right now we're up 192, charging higher. the nasdaq up three days in a row. it is about to close at the highest level since september 15th. speaking of nasdaq, what about a nasdaq stock meta, which has been brutalized over the past year. nasdaq's instagram, i'm sorry, meta's instagram is removing the shopping button at the bottom of the homepage. this could be good news for users

in a message posted on the company's web site ceo brian armstrong.e to point the finger at ftx for the layoffs, though. ftx's a crypto trading exchange that went bankrupt. he said, quote, fallout from unscrupulous actors in the industry created a downward trend in the crypto market. the biden administration is moving forward with this proposal to lower student loan payments for low-income americans. this so-called safety net plan offers a new route to repay federal loans. changes include lower monthly payments and easier path to forgiveness and a promise that unpaid interest will not be added to a borrower's loan. however, this proposal is separate from the loan forgiveness plan which is set to go in front of the u.s. supreme court next month. >> next at tahoe ski resorts getting a lot of snow with one resort reporting tonight. it's had more than 7 feet of new snow since the beginning of the year. also a decades long study and a lead exposure tied to a bay area airport. the warning for children living nearby and the governor unveiling the latest cali

lauren: cost cutting so it's another 950 oh, jobs, in june they slashed another 1,100 the ceo brian armstrongo contagion across the cryptocurrency sector because of the ftx fall out but bitcoin is holding about 17,000 right now, so this crypto winter , i wouldn't argue that it's continuing into the new year. so they're firing another 20% of their staff. the stock had been down but it opened higher and i guess investors say they are moving in the right direction, saving money. stuart: up 8% they like that. all right, bed, bath and beyond i know they had a weak report card earlier this morning so why are they up 5%? lauren: because they aren't spending as much money. they gave their expenses $580 million when it was about $700 million a year ago, so cost cutting. stuart: i like the store but i can't see putting money into the stock. lauren: i get a text message about a 20% off coupon almost everyday. i'm not enticed to buy anything. nobody is. same-store sales cut by a third. they reported a quarterly loss of almost $400 million and yes, a bankruptcy filing is still possible. its been an active

the ceo brian armstrong says looking back, we should have done more with layoffs the best you can doilable. he says that's what we're doing now. in this case, overall, this would bring operating expenses down 25% by the end of the current quarter. it will move restructuring expenses with $149 million to $163 million coinbase expects losses to stay within a guardrail of $500 million. armstrong pointed to operating expenses with tech companies like amazon and salesforce rein in similar expenses. armstrong talked about the damage to the crypto markets dragging on coinbase he called ftx's downfall a black eye. he says there is likely more contagion. scrutiny is a good thing, but market fear. coinbase shares rallied 15% yesterday. still down 83% in the past 12 months lower here in the pre-market back to you. >> kate, thank you all these companies. it is weird. when they were hiring, you wonder whether -- no tree grows in the sky tech across the board. you wonder what they were thinking when you have gotten that bloated the good times they thought would last forever >> coinbase said they w