now this is off the table, soft bank may come in with interim financing.y're going to need money. >> that's exactly what's happening with the market, interesting as well. sherman, anything else for us? >> just reading through the statement as i'm getting it here, various different comments by adam neumann and also by the interim ceos and also by a board member from bench mark mostly sort of platitude-ish language, it's saying what a great job adam has done over the years. as you sort of take a step back here from the breaking news, you do have to realize again sort of the sweeping nature of how unexpected all of this has been. it was a surprise to come that we work was going to even ipo at all this year. i have been talking to a lot of people earlier this year and they said it's too late. and then a lot of this came together quickly and as the various demand for this ipo dropped and dropped and the valuation, public valuation of the company got lower and lower, to go from adam neumann as this visionary and this company has a $47 billion valuation and putti

had expected that could spell problems for soft bank which had put capital into wework at $47 billionon. bernstein said in a note today soft bank will need to write down its holding value of wework if the ipo is below $25 billion. sources say that wework and advisers have been speaking with investors about a valuation that is just one-third of that level. now a huge markdown of wework could be trouble for soft bank they are aiming to raise $100 billion for the second fund to invest in start-ups the controversy surrounding wework plus the performances of other soft bank backed companies like slack and uber could turn perspective vision fund investors off and that is that is why they are looking to cut off the losses but wework systems all go for the ipo and another $6 billion through a credit facility, that is contingent on the deal closing guys >> leslie, i wonder, soft bank has been a big inflationary force in silicon valley and tech and beyond could this be a sobering impact not just on soft bank but on start-up valuations in general >> think a lot of people in silicon valley and th

maria: soft bank. >> that's soft bank.the curtains, it's pretty predictable why they would say that. they were a private investor at a much higher price. now, if they go at the level they're kind of indicating -- which is half of what soft bank paid -- soft bank is going to have to take a charge. now, soft bank's a public company, and i think going public is a good discipline if you need capital, if you want script shares to incentivize employees, to bring on new employees. but you have to be prepared for what the public marketplace wants; transparency, clarity of reporting, clarity of business definition. something's going public -- some things going public today are undervalued because they haven't done that properly. some companies going public today have no business being public. maria: do you think it's all going to go digital? i mean, you oversaw -- when i first started on the floor of the new york stock exchange, i believe there were more than 5,000 people in five rooms, right? >> that's correct. maria: you're talki

. >> the soft bank effect. >> i'm totally on board with bill. capital is a weapon of economic destruction is a problem. soft bank is a huge investor in door dash and uber. those two are smashing it out. it's leading to huge burns. i don't think that's a net positive for silicon valley. i don't think it's a net positive for those companies or soft bank. i look at soft bank and i would luchb -- if you look at the value creation created over the course of the last two decades, the vast majority came from a single bet on alibaba. i think soft bank ought to be investing off of its balance sheet in what they know best. the idea that they will raise 200 billion from the saudis and others in order to continue what i think is a dangerous game of investing in competitor companies and pitting them against one another, i hope they shelf the idea for vision two. >> wouldn't -- if let's say soft bank pulled back out here, wouldn't that have a negative impact i don't know that that would be greeted as a great thing in some circles out here. >> i think you can

. >> saga is the right word for it soft bank urging the parent company to abandon the deal altogether according to people with knowledge of the discussions, soft bank is concerned about the valuation that we were could get in the public markets. they are trouble having investor demand and one-third of the $47 billion price tag that soft bank signed in the latest funding round. that big markdown could spell a trouble for the attempt at raising another $100 billion vision fund. but wework does not appear to be giving up easily two separate sources said it's still all systems go wework is still moving forward with the deal. there was a big meeting to discuss plans last night i'm told an official launch date has not yet been set i'm also hearing discussions about governance changes it's unclear whether they will come to pass if this deal does move forward either way, wework needs the cash ipo could bring billions more dollars to the table plus they submit a credit. >> talk more about this. we want to bring in a reporter with "the wall street journal. elliot, they are looking at this bond

which is something their investors previously balked at i think it's a hard bargain for soft bank atme we wework is in a tough spot they need the cash >> this is such a controversial ipo. we'll check back with you soon we appreciate it >>> next up, a possible blow to the gig economy. california state senators will vote on a bill that can force uber and lyft to reclassify contractors as employees in the state. the governor gavin newsom said he le foot the bill. they spent a ballot initiative to exempt them from this proposed law, which in california we talked about how much uber and lyft shares have under performed. this is a major reason >> you are the expert on these topics. >> thank you, on two topics. >> if we're trying to help the plo i years or not or are they trying to get tax monies, we get the taxes directly from the companies, you don't have to worry about 1099s and under reporting. >> do you think the employees want it, whether or not we believe them is up to us they say these workers, they like the flexible. that's the whole point of the gigaeconomy. this undermines that >

add it all up and soft bank which is uber's largest shareholder is down more than $6.5 billion on itsnitial investment that's when the vision fund bought shares from existing investors including travis kalanick and benchmark capital it was the centerpiece of soft bank's to create ride hailing companies across the globe another problem for soft bank is it was supposed to get two board seats along with its investment but because of an extended review into. foreign investment those seats never feral liesed and the ability to get those seats expired with uber's ipo in may for now uber had a no, sir board seats, a deteriorating investment and really not much it can do to exercise its influence. back to you, rel is a. >> when is the lock up expiration all of this seems to point to that there might be investors who would be inclined to sell. >> the lockup should be in november, that's six months from the ipo. you would imagine there would be some selling pressure but at this price you really don't know perhaps they will wait it out and hope for some rebound. >> ari, thank you. ari levy in sa

there are a lot of soft bank directors on the board and they still need soft bank to pump in money, att year, so there' got to there's e situation where this gets resolved. he needs soft bank at the table, agreeing with what's happening. they need that cash infusion. they're not going to be go further without them. so this has got to get resolved this week, lauren. lauren: let's talk about the broader market that all of this is happening in. we're talking recession on one hand and record highs on the other hand. so how do you jive the two? what exactly is going on with the market? >> it's such a weird diet cot my to be in -- dichotomy. we still have strong economic fundamentals. we shouldn't be talking recession. the inverted yield curve situation happening earlier basically created press around looming recession, global slowdown, all these things. investors are getting mixed messages. i keep hearing in the media there's a recession coming and pure economic cycles alone, lauren, we're due. ioverdue.fundamentals are so goe same time. so that's the problem. lauren: i know the u.s. econom

i spoke to the man who runs soft bank bank this spring and he did discuss while he feels it's going to work as investment. >> growing so quickly and they're investing into the cap ex right? but it's a recurring revenue ongoing, recurring like a subscription. you know the subscription of magazines or newspaper and now netflix. netflix is still losing money but the value of the company's tremendous compared to other companies. >> and so there you at least have some sense. now of course he does figure strongly into what is going on surntly. others reporting that there's a consideration at least in terms of trying to get another corner stonement from soft bank to help under gird what it would be in terms of when they come to the public markets or whether they'd be willing to write another check to allow the company not to have to go public in the near term we'll see where it all plays out but from soft bank's perspective, interesting as they try to enter the market for another vision fund. the fact that they're under water so far on their uber investment and the we company given this valua

karl: soft bank is obviously in this company right now.an, can you give us a sense of what their involvement might be moving forward. there is talk of maybe them providing some of that capital what is soft bank's role going to be? out, they haveman to roll up their sleeves and a just on deck, in terms of not the financing piece, but the business operations. specially when you look at a lot of employees of wework with ipo with some of the calm at pectives and now are least temporarily off the table, they're really going to make sure that the house is in order, look at the business model and really right now what see sadors are saying, you with uber and lyft and wework about ers, peloton profitability, there needs to be a path to profitability as risk to come off in this market and it's a fork in the situation for ipos. wework continues to be the what ultimately is investors saying no more in models these business that lack profitability at least the path. karl: ellen, dan mentioned path to profitability. you mentioned tough decisions made.a

i think also as we talked about soft bank has put in more than $10 billion into wework.hey want to keep a close eye. we know that they had close ties with neumann it could be a way for him to keep an eye on the company that's his reputation and see if the mess will be cleaned up. >> thank you very much >>> china ease top trade goernter will lead the country's trade negotiation some time next week despite these talks, tension do not appear to be easing. >> donald j. trump is standing up to chinese like no president has done before. i'm a little puzzled why you want us to go even further president trump is standing up for america on this on seven clear vectors that need to be addressed. it's like what more do you want us to do >> speaking of president trump, we have breaking news. mr. trump answering a question from the oval office let's listen >> going to find out about a whistle-blower we have whistle-blower that reports things that were incorrect. as you know, probably now have figured it out, the statement i made to the president of ukraine, a good man, a nice man was

i don't think so by the same token, if they can get an infusion from soft bank, then it kind of shoresp one problem the market has in my opinion. >> on top of all of those issues there are also the corporate governance issue, questions about the ceo, the board, how diverse it is. >> and i'm a huge fan of the network as all not only am i a participate from time to time but an avid viewer. on the squawk show in the mornings, in sam zell was on and threw a lot of cold water on we work if he doesn't like it, why should i we mentioned a way to play this space. i will say it again, nasdaq makes an all-time high and dan ridicules me all the time about exchanges, although it is not in the equity space, the chicago mercantile exchange continues to make all-time highs and, might i add, isn't terry duffy going to be on our show in subsequent weeks? >> i believe in october. >> that will be very kpooesing. >> yes you can read more about we works ipo plans from cnbc's alex sherman on our website beyond meat getting grilled after davidson initiated coverage on the stock, with an underperform beyond m

its biggest investor for an increased lifeline soft bank is now considering doubling down on their bet on the company after having plowed more than $9000000000.00 in already a new $1500000000.00 lifeline would help to open up fresh financing options for we work after its upcoming fell apart. given its uncertain future when we work is looking to cut costs and we're going to fire thousands of poison and potentially shut down its peripheral businesses managed by we company. by q q. was acquired by we work earlier this year in april for about $250000000.00 tempted to business in itself as a tech company. time now for a quick break but here because when we return. the british american. model and. the tense situation in venezuela is still all over the news the problem in venezuela is not that socialism has been poorly implemented but that socialism has been. inside venezuela different sanctions against. the. story is a new. henry kissinger. turn of the economic and social system could take hold and therefore the policy would be to make. the economy scream. it would run for for the what i

out there peloton is not a soft bank name. what do you glean from this because again, from peloton's point of view, they might say look, we raised over a billion dollars at a nice market cap they might feel relatively okay about how this has gone. >> this is not a soft bank stock. i think though keeping these companies private way too long and the unicorn round's near the end where the i have been way overpriced ooichl a fan of getting these companies out sooner we work is an example where the public markets did their job, even before it went public they clone eeaned up a horribles or they're trying to peloton, consumer stocks haven't done as well go pro fit bit as extreme examples >> right, what would you do to get them public sooner what has to change in terms of the pressure. >> after the 200 bubble, the wisdom of our leaders really screwed up the ipos. it's hard to recreate an ecosystem. i think the sec's been experimenting, but you've got to go all in and really set it wup a long-term view so you have a whole bunch of pla

just burning cash right there are 3 it's pretty emblematic between the combination of we work and soft bank and then the vision fund it almost i'm not an expert almost seems to be sort of perfect storm of the creature question whether this model can exist or would would take unicorns and major investors like most she saw him coming in and making the same level of return on investment they used to exactly as model previously was betting on the entrepreneur and if he ousts newman here that actually goes against his entire philosophy so now founders are going to be reluctant in going to him for a couple because they're going to fear that one day he's going to out me as well the founders can be inconvenient time now for a quick break but hey here because when we return thousands upon thousands of travelers are now stranded in airports as the story of british travel agent thomas cook has collapsed molly barrows of america's lawyer joins us to break down how the british banking mess went on there and as we go to break here the numbers at the club. join me every thursday on the alex simon chill an

phenomenal investors early on in the company, later on in the years it was soft bank driving valuation. tbd whether it holds up. >> i'm sort of struck. given your stature, both of you out here in the valley, that's a pretty scathing critique of the ceo and the company itself. >> i just think that, you know, you have to call these things when you see them. i mean, people are already concerned about the behavior of technology companies. if you see examples that just show an almost shocking degree of lack of self awareness, you have to call it out. >> that is an important distinction. you knew that losses were coming. they had been reporting financials for years already, but the amount of corporate governance to closures and potential con fliblths of interesting, that was something unique to that s 1 that we haven't seen from other big disruptive long time private names coming to market. >> i'm glad you made that distinction. if you look at someone like darra at uber who is forth coming and is trying to be out in front of all of this with the market and help the market understand when he

sources say the pressure is coming from their main investor, soft bank, amid serious concerns about wework'sdel and corporate governance, the structure of their board. the wall street journal reported that wework may cut its valuation for its ipo for somewhere below $20 billion. it was expected to start pitching the offering to new investors yesterday. lauren: treasury secretary mnuchin and mark colabria will testify today before a senate panel about their plan to overhaul the housing finance system. the trump administration unveiled the plan to privatize fannie mae and freddie mac. investors looking for more details on this plan from a hearing today. cheryl: the ceo of saudi aramco says a domestic ipo would be the primary listing, meaning it would be there and it would happen, quote, very soon, but he declined to say how much of the company would be listed on that exchange there. the chief said the company is ready for an international offering. saudi's crown prince first announced plans for the ipo in 2016. exchanges around the world clamoring to get this ipo. lauren: north korea continues

he may actually still need more soft bank money. soft ba softbank has its record to protect.t treats neumann could affect how it invests in other start-ups. as for the rest of the board it is unclear where they stand on him. ron fisher represents softbank stev steven langman and bruceton levy, the vc firm that ousted travis kalenik they'll have to weigh risk versus reward. >> deidre, a lot of people say it will impact their ability to work with other companies who need money nobody talks about the impact on raising the investor money which it's trying to do right now because in the eyes of an investor, if you're going to side with management all the time you don't have my best interests in mind. >> melissa, that's a good point, right. they have to tread carefully as i said you got the founders on one side and have to show they're tough and going to protect their investment so in one sense when you have all of these trying to died if they want to throw billions in the hat it could be seen he's willing to get tough against a founder that is acting the way that neumann which cou

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 buffet or hastings or look at sales force. i think what will potentially be the name that's added to that which is jeff lawson, i think there is plenty of success stories. i do agree, the common denominator for those that i mentioned is the stability in the culture. you are cre

the other part of this is soft bank. who comes in and bids up private companies and gives them a much higher valuation just before they ipo. you saw that with wework and uber. this is from about a week ago this is keith verboy. he said welcoming all converts. this really tells you what sort of the view point is here, what people chatter about in the valley. >> i wonder for the people you're talking about if they expect some of the vc money to be a little more selective in where it goes moving forward now. >> i think they might say that it always has been selective. the big high profile names that we have been talking about, uber, wework, lyft, these have been bid up a lot. the ones that we don't talk about quite as much, data dogs, crowd strikes, some of those, they might argue that they have been selective and have been able to fetch higher valuations in the public market. so perhaps it's these really sexy high profile names that are sort of tech companies, sort of transportation, sort of real estate, sort of dental com

other growth investors are had go raise bigger funds so they can, you know, keep pace and hunt down soft bank or move earlier up the food chain. and that's happened as well. >> it's been great having you. >> thanks a lot. >> that does it for us today, the exchange begins right now. ♪ >>> thank you, scott hi, everybody. here's what's ahead of us. google under fire. ags of almost every state are set to announce an antitrust investigation into that tech giant in the next hour we'll talk about what they're alleging, how google will respond and whether a breakup could be on the horizon now. >>> plus, we'll double your value. that's what one investor is telling at&t as they take a huge stake. what's on the table. that's ahead >>> and big tobacco bet big on vaping and now that may go up in smoke. what's their next move that's all coming up today, but we begin with the markets and don chu is here with those numbers. >> it hasn't been a massive, massive selloff but it's a notable reversal in the markets. right now we're still in the green for the dow, just up 2,200 points but for more people for the s

can see uber up 3 1/2% wework, another company with a long anticipated ipo getting support from a soft bank plan to buy $750 million worth of shares you don't want to say they're propping up the ipo but the news flow hasn't been that great. >> they own $10 billion of the private offering to begin with they're already very very deep in this thing. if they want the ipo to come off, they have to pony up more money. they have to put something together. >> leslie made the point, uber is probably glad they made it before uber and lyft, as opposed to after. they have had enough of a struggle as it is. >> speaking to one friend who knows very well, and i asked if this will change soft bank's investment style, perhaps, become a bit more conservative, given the underperformance of uber and also the repricing of wework's valuation he said absolutely not >> my guess would be fat chance. >> if you double down and look at his history, this is a man who was almost bankrupt and took a big bet on yahoo and alibaba he's going to try to make sure it's successful. >> if he wants to be the cowboy, that is great

what is the thinking inside soft bank we were talking about the fact that soft bank raised a second fundnvestor in one of these unicorns then they come in subsequent series to help keep that valuation higher soft bank could theoretically do that, come in and continue investing at a higher valuation than they might get at an ipo. no to the have to mark down the value of their investments that's a possibility most of the soft bank investment, they did invest in at the $47 billion range but they also inbe vested at something in the 20s >> right. >> so their exposure -- >> blended rate. >> yeah, it's a blended rate their exposure to this is more complicated. if they did contribute more capital, would they do it at -- nobody is talking about $47 billion anymore. >> what were they thinking of? given the leadership's practices and judgment of going with an ipo in the first place and, secondly, can the ceo survive this >> it's a good question. so they have a triple class share structure. theoretically if the ceo wants to survive this he can survive this because he does maintain control through t

and that's why you have things like soft bank play out. you have them invest and the parent company able to market up they look like they have huge paper gains. they can raise another fund. almost 2% on $100 billion is $2 billion. that's a lot of money per year you can take off the table why wouldn't you do it >> adam? >> yeah. the other thing that we're seeing in private space is incredible barbell on both sides of the equation. the super early staging have so many investment firms that have been fired up to go after early stage. you see evaluations there all of a sudden get very overheated and now at the ultra late stage, first, with the vision fund and all the follow on with that. raising other large found try to match. you now have -- are sitting in on a situation where do you find value? at the early stage it's overheated and the late stage, as we're seeing, is overheated it puts the private market in a peculiar situation i think there's an opportunity for the gap in the middle between the two barbells it's, you know, when these compa

adam newman wants to take the company public and has been pushing back against soft bank and the advicedo so now for weeks, months from the softbank point of view, the people have been saying to me, no, no, no, look, the write down is de minimis we don't want adam newman because he's not a professional ceo. >> don't they feel like leaks, alex the journal or times that huge story he's smoking pot on an airplane. >> "wall street journal," yeah. >> feels like those were the stories that people put out there to further their game, further their own ends, you know what i mean? >> depends on who you ask on that one softbank will say, no, that's why he should be this is maybe criminal who knows. but yeah on the weworks side, no, no, no, this is just an excuse as a means to an end to prevent this company from going public and that's why they've take thn battle stance. >> alex, stay here i want to bring you into the conversation but also bring in another voice here head of trading and media technology and media trading at web bush securities. joel, good morning listen, i know weworks is not publ

also soft bank's role and how much the ipo's japanese firm would purchase soft bank is the biggest investor valuation, which looks like it could be 1/3 of the $47 billion level wework was valued privately by soft bank is enough to bring investors in the door the company needs to raise 3 billion at least to tap a $6 billion credit facility. the lower the valuation, the more the company needs to float to the public market to get to the $3 billion figure. that's what makes softbank's approach such a critical piece of the wework or the we company puzzle, guys. >> leslie. thank you. stay here. for more on this we're going to bring in two guests that have been watching wework's progress. jeff lewis is the founder of bedrock capitol. jeff, let's start with you you're very bullish if it comes in at a valuation of 10 to $15 billion. 47 to $10 billion, you're okay with a 10 billion. >> big if. i like the haircut i will caveat that i think it's a big if of whether that even happens but one of the things that's interesting here is there's a huge delta between investor sentiment around the company now a

below the $47000000000.00 level the company was valued at one some big pocketed investors including soft bank already ponied up so they're looking at a big loss here if they go with a 20 $1000000000.00 valuation number what's your prediction about what's going to happen here. and i actually wrote about this morning and i think that the i don't know they're going to go to 20 but you know we're starting to see a sudden change on a sudden but a gradual change in the whole market structure right now i mean we're extremely overvalued here we've got markets that are running away again today into what i believe is the start of a recession in this in this market and of course always at the end of it you start to see one vet when no one valuations are no longer exciting when people are jumping into these and we watched what happened with hoover and left over the hottest things going and of course they're all getting baked in those things i think the same thing is going to happen here and i think they're going to have to continue to lower their valuation they may not come they may have to change their

of about 5 months it is now turning to softening its biggest investor for an increased wife was soft bank is now considering doubling down on their bet on the company after more than $9000000000.00 in already a new $1500000000.00 would help to open up fresh financing options for we work after its upcoming apart given its uncertain future where we work is looking to cut costs and fire thousands of employees and potentially shut down its peripheral businesses managed by we companies. by q q. was acquired by we work earlier this year in april for about $250000000.00 business in itself as a company. time now for a quick break here because when we return. the british american. the tense situation in venezuela is still all over the news the problem in venezuela is not that socialism has been poorly implemented but that socialism has been played only implemented from the inside venezuela things are different we're going to announce sanctions against petroleum to venezuela associated famously that have a supplement goes. down the sense that political battle sun moon to keep the mass of the moment

soft bank could boost the size about seven-year issue to $1 billion yen.verlook concerns quality.dit >> thank you. hedge-fund veteran ray -- spoke exclusively to bloomberg about chances of recession in the u.s. take a listen. >> do you see a chance of any recession in 2019 or 2020? i think it's probably a 25% each of those years probably. of the recession. says a ext guest recession is some way off. william harris is head of global at the banc arch, of america and merrill lynch. give us your reason for why you recession is still a way off? >> i think it's because of the way trump and the fed are behaving. if you watch the trade war develop, when things get good, tends to escalate. the trump administration becomes bottled, to accelerate the trade war but when things weaken they tend to back off. that as we go into year end and into an election year, will slow istration down the trade war, so the trade war acts as a ceiling on growth in some ways. t's certainly not what trump wants but that's what he's doing. when things get bad he backs off. think the fed s

this is a huge embarrassment on soft bank on top of uber i don't know how suppressing the ip ipo willbout how much of a disaster this was if not a scam it's built on the form of a ponzi scheme that's going nowhere good it's built on bigger and bigger growth making it up in the volume doesn't seem like a promising investment some of these investors who put a lot of money into this were real estate people, people who know this business somehow suspended. you know, there's a guy named john bennett in the 1980s out of philadelphia who was a hukster he was supposedly a philanthropist if you give me x, i'll give you 2 x back to the charities. the people he drew in were john whitehead, john templeton. university of pennsylvania harvard medical school all kinds of people who should have known better that the thing was a complete scam. he drove that up only to half a billion in that case it was a non-profit. sophisticated people make dumb mistakes all the time. it's the old if you're so smart -- if you are so rich, why aren't you smart >> right right. both good questions, jeff. thank you. >> t

>> the question's always been well, soft bank does not want it to go public.ork. i think at the right price, they are. it would be a mistake for the company not to proceed. being public is a great avenue for additional capital raising. so this company should proceed if it can get investors and also remember, soft bank, they could come in and buy on the ipo as well. maria: there was not a better marketer than dick grasso when it comes to ipos. i remember you getting on planes for three hours just to convince the italians, a company in italy or in asia, just to go list on the new york stock exchange and you got them. >> well, it was easy in italian, pitching in italian. [ laughter ] >> kathy, tell me, the private market, has it gotten out of hand in terms of valuation? because that seems to be what the problem is with soft bank wanting to stop the h wework ipo. they came in at a valuation that's not close to where we're talking now. >> there has been a huge disconnect between the excess capital in the private market and a more discerning public market. it has to

, he has been long, i'm sure since the ipo he believes the ride hailing companies do have a path soft bankspeaking about some of the concerns for wework and said some of their corporate issue enss were unique >> a nice word special conference we appreciate you bringing us more from it >>> how can you profit from or vest trade in, coming to us from the summit, jimmy, i know you have a job you heard some of these ideas. was there one or two good or bad, short or long that stood out to you >> i hate to say what it was because i fear people will think i'm being political. i swar to god this is coming from a trader where my needle starts somewhere in the middle talk about elizabeth warren. many people agree, there is a lot of things that need to be changed in private equity. when she speaks, it seems like she's coming at it instead of with a razor blade but with a jack hammer. for someone to make an argument that could be really bad for the stock market is reasonable argument we see the federal reserve zero out rates to counter balance that would that happen again? it is reasonable to argue tha

and south korea the declines in asia over in japan the nikkei slid 1.3 percent led by heavyweights soft bank and it our ongoing troubles with we work the escalating dispute with south korea is now also impacting the overall health of the market as a race for supremacy and the semiconductor industry is at the center of this conflict and despite the limited trade deal between. the market it appears to basically shrug it off as the agreement does not cover trade in autos policy makers in tokyo believe that japan gave away too much and the u.s. could now make harsher demands ahead and when that happens japan doesn't have many cards left in it there pam over in shanghai the composite slid 1.6 percent after trying to all of got smacked down once again with most likely not renewing waivers that lets american companies do business with way in another the footsie russell decided to not. bond index this came after 2 other major fixed income indexes incorporate chinese bonds this year are ready footsie didn't cite any specific reasons for leaving china off although it remains on the watch list this dec

. >> all the headlines you need in 60 seconds soft bank planning to put an extra $1 billion or more intom will renegotiate an agreement before the valuation fell and the ipo was delayed. still in early stages. >>> general motors and union workers are close to a deal. talks have reportedly intensified in the past two days >>> james bullard says he thinks the central bank should continue cutting rates. he said his preference is for one more quarter point lower by end of the year. that doesn't mean he is not without concern. listen >> one of the biggest risks we face is falling into the kind of negative interest rate trap that you see in europe today or japan today. if you get to that point, it is kind of too late the trick here is do what he with can >> just to make sense of what is happening because there are no shortages does the market, the stock market care what the fed does the rest of the year, if they cut or don't cut, would that matter to the markets >> sure, it will to si certain degree i think now that the trade war is still an important issue. that has moved the markets going fo

behind it has collapsed -- the whole soft bank behind it has collapsed. -- softbank behind it hasnge of ceo close to the ipo, uber has a similar play. we have seen that will potentially damper investors' confidence in softbank investment. this.how do you look at is it we works working on its own or a market top or private valuation? michael: think about the worst have had.e excess we it requires the notion of new era thinking, where it is enough to drive a successful company. regardless of what happens with we works, it is great with the overall markets. they immunize investors against companies that are not ready for prime time. euphoriat strike me as or a market top but the public markets are functioning and saying this company is just not ready. we don't want to see speculative excess and see a company coming out losing money and get valuation. look at the struggles of uber and lyft. i think these are good things. alix: if you want growth, you have to ipo and you have to buy them. michael: the market needs ipos to work in the right kind of ipo's. when i think about what this me