the s.e.c. francisco office this year. we take a look at silicon valley's watchdog next. ♪ and later in the program, china's tech giants get ready to report earnings. we look at what's on tap for companies like jd.com. this is bloomberg. ♪ selina: this is "bloomberg technology." the u.s. securities and exchange commission san francisco office is no stranger to high profile tech cases. the fire storm around tesla is just the latest one to involve the regional unit. on monday, c.e.o. elon musk offered a bit of an explanation for his funding secured claim. what might this mean for the s.e.c.'s investigation? ben, lawmakers have said that a key focus was understanding whether it was truthful at the time when he tweeted if funding was secured. now in the latest blog post it looks like funding wasn't secured and there were just discussions. how st s.e.c. going to look at this? >> thanks. first, i mean, what we know so far is this is kind of a preliminary inquiry. i don't think we can yet say it's a fo

he seems to be getting ahead of himself which is causing concern with the s.e.c. idi: what does that mean for elon musk? are we talking about a different type of investor pressure then? >> exactly. there are a couple of things at rk with the sawed rain investment. -- saudi arabia investment. it's expected to to be large and could be even larger than elon's holdings himself. his business decisions might be quelled. he might have to make d. moves. that's not how he likes to operate. and president trump's administration has created new legislation that's going to look more closely in foreign investment, especially in tech firms because they're worried about losing tech to overseas interests. haidi: lots of aspects to yet more dramatic developments in this tesla story. keith in detroit. . going to stay with tech and taking a look at the tech selloff overnight. in a further sign of the strain being held by tencent has reported it first drop the in profit in at least a decade. steve has a story from hong kong. what's bringing this down? >> it's the first profit drop in m

the president saying the s.e.c. ld consider ending its quarterly reporting requirement and in fact it was based on a suggestion indra noorry. we hear from her and get her side of the story. herb greenberg and susie welch will be waiting to battle that on the second hour of "power lunch. because you've made sure this sensor and this machine are integrated. atta, boy. & yes, some people assign genders to machines. & with edge-to-edge intelligence, you'll know your customers love this color, & don't love this one. never getting grape again. & you can adjust in near real time. & if someone tries to breach your firewall in london & you start to panic... don't. you've got allies on the outside, & security algorithms on the inside. & if it's jammed up here, & it's hot in here. & you know both those things, you can do this. & your flowers won't wilt. at&t provides edge to edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & when her patient's blood pressure drops, she can

look, it's not like the s.e.c., like the college tournament area looking into it, the s.e.c.'h. but it's just not going to hurt the stock that much. and that's because of point break. short sellers need normal sellers to come out and knock a stock. who in their right mind is going to sell tesla if there is even the possibility of a leveraged buyout how do we know this is even a agreement of keurig green mountain who went private after the very smart david einhorn was worth dramatically less than it was selling for? hey, don't i know it i have been campioning keurig. it turns out i was part of the solution keurig got a bid from jb holdings that was 2% higher than where it had been trading. it was a short seller's worst nightmare. sure, maybe tesla does deserve to be dramatically lower maybe the market is wrong and the whole thing is a house of cards. but remember what the late, create economist john mader canes had to say about these situations the market can afford to remain irrational longer than you can remain solvent and more to the point, in the long run, we're all dead i

if you are the s.e.c. are you going to do, call the suedies in guys get over here we need to talk? >> that's not going to happen. >> that's what i care about. >> what about -- going into the time space that quote sources close to the saudis saying they haven't taken any steps that a transaction like this would entail they raised the cfius word saying it might invite some review on that front if it were to happen. >> this all started with him getting funding that he could have had for his company instead they told them to go buy in the open market the discussion -- i'm not bull nor bear i love the car what has mystified a lot of people is why didn't he need the money for his own company? if he was really in trouble -- why not? the saudis who say, there is $2 million you can buy in the open market or buy $2 million from his own company. then the bears would have no case he would have all the cash he needs. >> do you think he should have done that instead? >> yeah. i think that money is good i think that a co

the problem is, the s.e.c. een looking at elon musk's public pronouncements about how he didn't need to go back into the capital markets because he has convertible bonds that company has to pay off. the bonds are near junk status. you need to pay those bonds off. he doesn't have the cash flow to pay it off. how -- >> you brought up something nobody else has brought up. there's a convertible bond issue here. the convertible bond was under water. by tweeting as he did, the price of the bond went up. if the price of those convertible bonds go up, people will probably convert into the stock. >> at a certain price over a period of time. >> right. which means he wouldn't have to refinance the bonds. so this is the problem the s.e.c. will be looking hard at. no one is talking about that. >> great point. liz: not just manipulating the shorts but manipulating the price he owes on those bonds. stuart: history has been made, ladies and gentlemen. we just had convertible bonds discussed. don't buzz me now, ladies and gentle

the s.e.c. subpoena to the electric carmaker regarding musk's statements about securing funding signaling that a formal investigation may be under way this according to fox. here is max with more. we also had reports that u.s. national security officials may have to clear this potential deal, and what exactly would u.s. security officials have to do with this? >> as i said the other day, the issue is that with the trump administration where it's not totally clear how the government body that regular late foreign investments in u.s. companies would treat something like this. earlier this year the trump administration basically stopped deal on - broadcom security -- national security. saying that it would somehow hurt our interests and you could imagine a similar argument with batteries. tesla has a big chunk of the total electric vehicle company, specifically in the u.s. and plans to have a huge amount of president battery production. it's one of the many headaches that tesla and elon musk will b

they say the s.e.c. itiated an investigation that may result in a stop order according to the 10q filed yesterday the stock order would prevent the company and shareholders from selling stock under particular registration statements in july the company received letter from the s.e.c. that the commission issued an order recommending designate shags to section 8e of the national securities act of 1983 rye yt's ceo john o'roarke didn't respond to our comment. an investigation into riot bl k blockchain caused the stock to fall about 9% today. >>> coming up, newspaper jobs are in jeopardy because, get this, the trade war. we speak to a publisher who is questioning just who is being helped by these tariffs. not amics, herane says not his industry he joins us next we're putting ai into everything, and everything into the cloud. it's all so... smart. but how do you work with it? ask this farmer. he's using satellite data to help increase crop yields. that's smart for the food we eat. at this port, supply chains a

the s.e.c. rities exchange act to compel a statement under oath from any person with respect to the public trading of securities what is required would be that there would need to have been opened a formal order of investigation which the enforcement staff can do on its own. once that order is in place, the s.e.c. has subpoena power. they have the ability to call people up on the phone and if tesla is well advised, it wouldn't wait for a call like that it would be supplying information to the s.e.c. before they even asked any questions. >> if the s.e.c. were to determine that funding was not secured, what are the penalties for elon musk? >> well, the penalties are both civil and criminal if you make a false statement in connection with the trading of securities, you run the risk both of having to pay for the damages you caused and also you run the risk of a criminal prosecution. >> but in terms of his own trading, at least my understanding, he's not selling his shares you're talking about everybo

and late today the s.e.c. said, in fact, it does continue to study public companyng reporti requirements, including the frequency of those reports. >>> tesla's ceo, elon musk,er ge an iew to "the new york imes" which is being described as emotional andoff-kilter. he called the past year quotend excruciatinghe most difficult and painful of his career. details of his struggles sent the stock down nearly 9% today. as you know, tngs intensified for mr. musk last week when he tweeted that he had the funding to take the company eprivate. as reported last night, the s.e.c. is reportedlyig inveing whether the tweet was intended to hurt short-sellers. >>> short-sellers are sometimes portrayed as the bad guysn wall street, rooting for company stocks to go down. but shoing is a legitimate investment strategy. dominic chu explains how it works. >> reporter: buy low, sell high. that's simple market cliche capturing the essence of investing. purchase an asset like a stock today at a certain price. and if it goes up in value,

somebody needs to call the s.e.c. now this smacks of market manipulation this is utter total nonsense what he is doing it may be reflecting the number you said $ch, $631 million of short lost today he not only needs to stop this, but he needs to be fire, leave the company. it smacks of disregard for wall street, for free markets, for everything where. >> i think any short seller would probably share his view on that >> that is a frustrated person with a bearish position. >> yeah. >> on tesla. >> here's what i will say before we move on there was a big feature on him in "rolling stone" late 2017, and the quote is right here. i wish we could be private with tesla. musk mur murs as they exit it actually makes us lessee efficient to be a public company. he has voiced that he would like to do this before. >> very interesting. >> yeah. >> like phil lebeau was saying earlier at the top of the show look, usually tesla is very quick to shoot down things that are untrue, and so far we've not officially heard from the company yet

the s.e.c. ow reportedly investigating musk's tweets "the journal" today says regulators want to know whether the tesla ceo was being truthful when he announced he secured funding to take the company private. it follows reports yesterday that they had talked to softbank last year. talks fell apart over control issues a piece in the "times" today, john couffey, well known securities law attorney. >> i think the s.e.c.'s going to run into a man who will be able to have a recall of conversations that he didn't write down that were secure i also want to put an end right now to things i heard all morning. the s.e.c. has officially told twitter that they are the equivalent of reuters when it comes to dissemination i don't want to hear again that you can't use them as dissemination. the s.e.c. actually favors twitter as dissemination >> the dissemination in thereg fd is different than saying something that may not be true >> you can't lie on twitter. >> you have secured funding, do you have equipment le

may be looking into musk's tweets the thing is, the s.e.c. looks into everything. t's a formal investigation or informal inquiry, but i've already heard commentators say they'll be criminally prosecuted by the justice department that's insane. we haven't even seen any charges from the s.e.c. let alone a referral to justice. remember, saudi arabia's sovereign wealth fund just bought $2 billion of tesla stock in the open market if the company really runs out of money wouldn't tesla have sold their shares directly via private placement? and who know what's the saudis told musk about a possible takeover bid or going private? they can certainly afford a buyout if they want to does that count as secured funding? maybe to musk it does. we have no idea. we know the saudis want to diversify away from oil. taking tesla private would help them do just that. look, i don't like the way musk has disseminated this information either it sure seems like he was deliberately trying to stymie the short seller, but if the bears think any of this is going to bring down elon musk, they ne

the s.e.c. or us the bitcoin etf, we were applying for one using bitcoin futures and not the actual bitcoin. for us there is a clear delineation between the two. it is a regulated futures contract, and therefore for us, it looks and feels exactly the same. we are disappointed, obviously, that the application was rejected in its current form and we will wait to see what we do from here. julie: it has been interesting. the s.e.c. definitely has concerns about price manipulation, which to your point, you don't have hacking , or at least knock on wood we , haven't had hacking in the futures market. will: correct. it is different, and it comes back to the manipulation point. that is a disclosable risk in a prospectus, and there are plenty of other etf's in the market that have that disclosure in the prospectus that say the proneying market could be to some form of manipulation. we have one of the largest markets in the world being oil being at some level influenced by opec. these are important factors

the next question is does the s.e.c. jump in here. if you think the s.e.c. riendly s.e.c. than historically, part of the calculus has to be do you make an example of elon musk at the extense of the company and its employees? do you not when do you do it? >> you're talking about whether there's wiggle room in the law itself >> don't we believe the s.e.c. is involved? isn't the reporting indicating that >> there's no question they're looking into it. the question is what does that action look like >> funding has been secured. true or false. >> false on its face unless you believe his intent was something different an we've gone over this before a million times. we've had all sorts of people including our own president who has tweeted out things and people say what did he intend? funding secured in his mind versus in reality? >> it's different for -- when the stock goes up and you've got convertibles >> in the middle of the segssio, the trading session. >> twitter is a terrible, terrible place to try to disclose -- >> i'm not sure it is. everybody gets it at the

a case of this type and significance, obviously, involves the s.e.c. and the fbi and their representatives are standing up here with me today. to my left is my good friend bill sweeney, the assistant director in charge of the fbi's new york field office. and to the far left is john brosnan, the special agent in charge of the fbi new york office criminal division. the fbi's work on this case was spectacular, and i want to thank them for their professionalism and dedication. we work with the fbi on so many important cases, and it is always a privilege. to the left of bill is stephanie and steve pecan who are co-directors of the s.e.c.'s division of enforcement. i want to thank them and the s.e.c. for their hard work on this matter. last, i want to acknowledge and thank the career prosecutors in my office handling the case. to my right is max nicholas, damian williams, bob allen, scott hartman and the co-chiefs of our securities and commodities fraud task force, tim and jason. congressman collins who, by virtue of his office, helps to write the laws of our

the s&p 500 shed nearly a point, wh sdaq shed 4 points >>> the s.e.c. investigating tesla's buyout bid. he announced the proposal to take the car company private in a tweet. he said the financing was secured. according to "the wall street journal," the s.e.c. is looking into musk's wording and method. if it turns outtas shy, musk could opeo market manipulation. >>> the rite aid/albertsons merger is off. the pharmacy and grocer were unable to arrange a deal that appeal to contender. critics contend it gave albert sons the means to take the company public without asking shareholders. >>> do you want to work from home? this is your chance. the ecommerce giant is posting jobs for over 230 virtual or work-from-home positions. most are full-time in customer service, sales, or resources. in addition to working home they get medical and dental, a 401(k) company plan, stock, and discount on amazon products. >> you had me at work in your pajamas. >> right? sounds good to me. >> diane king hall at the new york stock exchange. thanks a lot, diane. >>> still ahead, c

first off, with "new york times" believes musk and the board of directors will likely meet with the s.e.c., perhaps as soon as next week there's not a firm date we've been able to learn at this date. will the board of directors take action and will elon musk potentially take a leave of absence? jim cramer after reading article today tweeted this out, devastating "new york times" piece filled with new facts. we know the safest thing for musk right now is a medical leave. i would insist on it so, who might replace ee long musk during the interview, he made this comment regarding a potential ceo replacement at tesla. by the way, he's not planning on leaving but he says, if you have anyone who can do a better job, please let me know they can have the job. is there someone who can do the job better a lot of news in that interview. a busy week for tesla and for elon musk. back to you. >> in the meantime, phil, in terms of the actual fundamentals of the company, we live in a vacuum, correct? >> correct. >> for a couple months at least. >> we do at i should point out, there have been a couple ana

case and this type of significance obviously involves the s.e.c. and the f.b.i.representatives are standing up here with me today. to my left, my good friend bill sweeney, the assistant director in charge of the f.b.i.'s new york field office. and to the far left is john brosnin, the special agent in charge of the f.b.i. new york office criminal division. the f.b.i.'s work on this case was spectacular. and i want to thank fem -- thank them for the professionalism and the dedication. we work with the f.b.i. on so many important cases and it's always a privilege. to the left of bill is stephanie avachian and steve peekin, the codirectors of the s.e.c.'s division of enforcement. i want to thank them and the s.e.c. for their hard work on this matter. last i want to acknowledge and thank the career prosecutors in my office handling the case. to my right is max nicholas, damian williams, bob allen, scott harman and the cochiefs of our securities and commodities fraud task force. tim casoulas and jason cowley. congressman collins, who by virtue of his office, helps to w

in the sea if the sea and the s.e.c. the trees or commission are sort of known for those of us who worked at one of these places but how are they getting along in the crypto area i think there's a lot i mean at least from what i can read in the newspapers and most of my colleagues at both agencies tell me there's a lot of cooperation that being said i think there was a little surprise in many corners last week when the securities exchange commission declined to approve two exchanges exchange traded products of eight nine exchange data products based on big futures and if you read the disallowance orders there seems to not have been a recognition of the standards that exchanges must certify in the future space regarding anti manipulation and surveillance that seems not to be given a lot of comment to you are a lot of respect by the f.c.c. in their disallowance and i wonder what will happen that was actually done by staff of the f.c.c. and now the full i.c.c. will will be reviewing this matter coming out with their own opin

finally, president trump talking about -- asking the s.e.c. to end quarterly reports. ould ask the question -- who wins when less information is available professional investors guess more access to more information. the analysts will still report, and if the companies don't provide the information, wall street will try to fill the vacuum i think the bigger issue is the mind-set of ceos, more of them are short-termers, the ceo compensation drives the behavior how about a conversation about that and maybe that will help things make the stock market a little less volatile. right now down ten points. >> tell us what you really think, bob. >> we'll talk about it more in a couple hours. >> yes, on "closing bell." excited for that >>> rick santelli at the cme group in chicago, good morning, rick. >> good morning, sara. bob hinted at it with the s&ps, two years down, ten-year down one, down one on the week. same for 30s, down two on the day, down two on the week. not a lot of movement even though those are closes, of course intraday we've had some swings, but for the ten-year

mary jo white is the former chair of the s.e.c cbs says mr. onves will have no role in the probe cbs will release its latest quarterly results after the bell tonight. >>> a windfall the casino giant down big this morning following an earnings miss. >>> and jim cramer spoke with starbucks ceo kevin johnson about a huge new partnership in hin tha china. his comments when "worldwide exchange" returns. and teaching my kids that no ambition's out of reach. ambitions live everywhere. synchrony helps make them happen with data, insights, financing and technologies. ♪ ♪ synchrony. what are you working forward to? synchrony. show of hands. let's get started. who wants customizable options chains? ones that make it fast and easy to analyze and take action? how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade the platform, price and service that gives you the edge you need. alright one quick game of rock, paper, scissors. 1, 2, 3, go. e*trade. the original place to invest online. >>> welcome back let'

that caught many by surprise, not the least of which was the s.e.c. chairman who told cnbc, sure, companies release information on twitter, but the fact he put that price out there raised eyebrows. let's talk about what he wants to do with the private company he said clearly on the blog post that it would make it more efficient. he drew a lot of parallels to spacex, talking about the advantages that company has when it comes to focusing on development. he wants his team focused on the product going forward. there's context here because musk before has run into trouble on earnings calls. remember when he called out analysts for their bonehead questions. perhaps he wants to do away with that burden. and in his statement he said clearly this company is the most shorted stock in the history of the stock market that means a large number of people have the incentive to stick it to the company. not everyone is on board with this plan. sure, there are some concerns about what a private tesla would do in terms of its ambitious profit targets on the cash flow le

breaking down what might be the biggest real threat to the carmaker it's not musk or twitter or the s.e.cl tell you what it is >>> you might have heard tesla has been dominating headlines for the last couple of weeks, now the s.e.c. is reportedly serving the company with a subpoena, it's thanks to elon musk's tweet about taking the company private and funding secured. while everybody is buzzing about musk, could there be another threat to tesla that nobody is talking about? let's bring in nicholas colas. he has a good way of looking at things from a different angle. we talk about this, that, the balance sheet. is anybody buying electric cars? >> the short answer is they r but it's a small number, roughly 2 million vehicles worldwide a little bit less than half in china where there's mandates to buy them, and about 300,000 in the u.s. the growth has been great, but still a small part of the market overall. >> is it growing -- we know it's small. when you start from zero, the numbers will go up and look sizable. is the number tapering off any are electric cars going to remain a tiny little

can you imagine it the s.e.c. to decide -- quite frankly when steve jobs back dated options he got probably different treatment. do we care about the short term or do we care about our institutions maintaining some integrity? i think we will find that out. >> there is the other argument that in classic pump and dump schemes you have to wait for the dump. he remains fully invested. he has been buying shares. it's not like he is profiting in dollars off of all of this. >> we have been talking about this for a few weeks. the things going on around tesla these days, as a shareholder you look at this and you go it is really hard to explain any of this rationally or as part of a long-term strategy of building value. and i don't get it. i find it really uneasy. it seems to me that as we look for a way to get past 2018, from elon's point of view if i were he i would take a vacation. whatever is going on right now in his head i don't think this is producing any actual value for shareholders and it looks like it will create

and the president could remove an s.e.c. commissioner only for inefficiency neglect of duty, or malfeasance in office, unquote. so not only could the president not not remove a board member who was doing a bad job but he also could not remove an s.e.c. commissioner for -- for refusing to remove a board member who was doing a bad job unless he could somehow show that the s.e.c. commissioner's fill tiewr to remove the -- fail tiewr to remove the -- failure to remove the board member was a neglect of duty. judge kavanaugh said the president's power to remove is critical to response his article 2 responsibilities. yet under this statute the president is two levels of removal limitations away from board members. this structure effective eliminates any presidential power to control the board notwithstanding that the board performs numerous regulatory and law enforcement functions at the core of executive power unquote. judge kavanaugh's logic was inescapable. the president cannot do his job if he cannot control his subordinates and

sources say the s.e.c. robing whether musk intentionally misled investors on hurting short serls llers by driving up the stock price tesla made 2700 model 3s in 2017, well below what musk had predicted when production began in july. the company could face sanctions if regulators find it misled investors about the cause or extent of production delays. and tesla could face sanctions if they lied about the cause of those delays and carl hanson was a former member of tesla's internal investigations team. his attorney says he is accusing the company of spying on workers at the giga factory and failing to act after learning a mexican drug cartel may have been dealing drugs at that plant. wow. this gets weirder by the minute. >>> stocks to watch. after walmart we were waiting for nordstrom. and then it was a bizarre afternoon for me i got a tweet that said sorkin admitted the trump economy, that you had been wrong about it? did you see that then i found out you were on closing bell phenomenal job phenomenal job tha

those people, their communications that they have, any communications that they have with brokers, the s.e.c. said at the press conference, that they have recorded telephone conversations with the brokers' side of things. those do exist in this case. obviously, they have a tremendous amount of trade logs. so they will know exactly when people logged on to their online accounts to be able to trade this. the exact orders that they put in. when you come to try to track stock trades, particularly when they are done through public markets like this, it's really easy for the s.e.c. we are not talking with s.e.c. capital and steve cohen. they are routing shares through all sorts of brokerage houses. they traded stocks like we would. >> this is much more straightforward? >> yes. it's brazen, actually. >> we will get to the legal aspects in a moment. this doesn't come out of nowhere. there were already questions about collins' trading for the past year and a half or so. chuck todd to talk about the politics of this. today was not a good tay fday f republicans. the buffalo times reported they received

concerns over manipulation also at the heart of the s.e.c.'jection last month of a petition who had been trying for years to start a cryptofund. the original digital currency trying to hold its head high. it's been up all day, moving higher by $161 to $6,431 per bitcoin. >>> let's get to mcdonald's. mcdonald's sinking at this hour after reports that new york state health officials are investigating multiple illnesses potentially associated with a location in jamestown, new york. shares are down about $1.35. also in food news, hormel is getting spammed. let's go to the new york stock exchange. nicole has been watching that stock for us. nicole: they make spam and they make skippy and the truth is hormel and sanderson farms are under pressure. tyson is down in sympathy. the big story is that you do have hormel trimming the sales outlook but facing an uphill battle with several things, including tariffs, freight costs, grain costs. the tariffs, hormel see up to six cents impact on their annual profit due to the levies on steel and aluminum. and t

however, i haven't seen anything new from the s.e.c. connell: crazy times. thank you very much for that. >>> from cars we move to boats. kind of like luxury cars. new boats are an indicator of health in the economy. we are live with gerri willis, who apparently loves boats, from the hudson river of all places. that's next. i get it all the time. "have you lost weight?" of course i have- ever since i started renting from national. because national lets me lose the wait at the counter... ...and choose any car in the aisle. and i don't wait when i return, thanks to drop & go. at national, i can lose the wait...and keep it off. looking good, patrick. i know. (vo) go national. go like a pro. you wouldn't accept an incomplete job from any one else. why accept it from your allergy pills? flonase sensimist relieves all your worst symptoms, including nasal congestion, which most pills don't. and all from a gentle mist you can barely feel. flonase sensimist. you can barely feel. retail. under pressure like never before. and it's connected technology that's moving comp

point out, while we are disappointed because we answered the questions, and alayed the concerns that the s.e.cor us the bitcoin etf, we were applying for one using bitcoin futures and not the actual bitcoin. for us there is a clear delineation between the two. the bitcoin futures are no different than any other etf that we provide for any other company provides. it is a regulated futures contract, and therefore for us, it looks and feels exactly the same. we are disappointed, obviously, that the application was rejected in its current form and we will wait to see what we do from here. julie: yeah, it is interesting. the sec definitely has concerns about price manipulation, which to your point, you don't have hacking, or at least, you have not had hacking in the futures market. will: correct. it is different, and it comes back to the manipulation point. julie: right. will: that is a disclosable risk in a prospectus, and there are plenty of other etf's in the market that have that disclosure in the prospectus, that says the underlying market could be prone to some form of manipulation. clearly,

they filed a whistle-blower tip with the s.e.c. d of security led a team of former cia case officers at uber. at tesla, they allegedly spied on employees' cellphone conversations and hushed up a drug trafficking investigation. >>> the albuquerque general reports new mexico medical investigators confirm the remains of a child found at a makeshift compound are from the missing boy from georgia. the body was found of abdul-gh- was found in a nearby tunnel. the father and four other adults were arrested at the compound on suspicion of child abuse. authorities found 11 children living there in filth. >>> "time" has a far-reaching interview with serena williams where she opens up about a lot of topics including struggling for time to spend with her daughter as well as her career. she didn't think she would be so attached to her daughter olympia and said at times it was difficult to leave her. she also said she breast fed for 18 months even though it was harder to get back in shape. whelp it com doesn't end here. >>> and "the new york time

>> well, i think the s.e.c. be looking at potentially two things the first is whether or not the tweet itself complied with regulation disclosure. which is a regulation designed to ensure that any information put out to the market is put out broadly and not in an exclusive channel. >> we got that part. >> right so now the other question then is was the statement truth or -- true or false. when you're talking about truth of false, the s.e.c. does look at intent. not necessarily for criminal intent but the s.e.c. in order to bring a fraud charge does need to determine the speaker's intent >> 20 seconds. here's the question. market manipulation. that's the other thing people talk about if the intent was to shake out the shorts jun unto themselves, it that the incentive is also to be long. >> it will depend on the facts and circumstances. >> it's a much longer conversation we thank you both for it >>> coming up, a man steals a horizon airplane, performs stunts in the air, and then crashes. what this tells us about th

but the s.e.c. wants to know if he has enough money to buy out the company. the tesla board of directors plans to meet with financial advisers to explore the possibility and cnbc said the board is likely to tell musk to recuse himself, meaning he's his own separate set of advisers. >>> california wildfires are causing animal shelters to be overcrowded. a lot of animals fled for safety and there is also a spike in hoarding cases. volunteers don't have the space to take care of the animals. many shelters are posting about adoption on social media but say hundreds of animals still need homes. and nbc bay area is trying to help. next saturday we want to clear the shelter. the fourth annual event. our anchors and roereporters be will across the area. head to our website at nbcbayarea.com for more information. >>> city leader in san francisco cut the ribbon on the long awaited sales force transit center. it will cater to nearly a dozen transportation systems feature a five-acre park with retail space and public art. it will be something. but when it opens this week

both tesla and the s.e.c. declined to comment. >>> and britain's "independent" says instagram was hacked. hundreds of users were locked out of their accounts in a mysterious russian attack. users reported their account names, profile photos, passwords, and log-in email addresses were changed. they're sending instructions to users on how to regain access. it's also urging users to create stronger more secure passwords. >> still ahead, a frightening day at the beach. a swimmer is injured, and a shark attack at cape cod. injured, and a shark attack at cape cod. like you do sometimes, grandpa? well, when you have copd, it can be hard to breathe. so my doctor said... symbicort can help you breathe better. starting within 5 minutes. it doesn't replace a rescue inhaler for sudden symptoms. doctor: symbicort helps provide significant improvement of your lung function. symbicort is for copd, including chronic bronchitis and emphysema. it should not be taken more than twice a day. it may increase your risk of lung infec

reportedly, the target of an s.e.c. subpoena. be enough to derail elon musk as he considers taking the company private. joining uspolitan technology dave lyons he's the former engineer of tesla where he led the development of the roadster, model s. dave, it was a good era back then, 10, 15 years ago, really, when tesla was the subject of a lot of doubts and whether it was ever going to be a real thing. what did you learn about elon musk then that sheds light on perhaps his mind-set now and his tweeting habit >> sure. well, in my experience, tesla was a different company at the time, as you said. but elon, i think, is pretty much the same kind of person that he's been most of his life. he's one of the most driven individuals i've ever met. he's got incredibly high bandwidth. but he's got zero tolerance for any hint of bureaucracy. and he often asked us to take special forces methods to get our jobs accomplished. and i can imagine -- >> what does that mean >> well, it meant, basically, try is not good enough you need to do and basi

the s.e.c. gasparino saying the s.e.c. san francisco office has launched a formal investigation, issuing the company subpoenas over tesla's plans to go private and that is spooking some of the board. reports swirling that at least three board members have lawyered up, hiring outside counsel to advise them. one person familiar with all of this tells me that some of them feel that elon musk's tweeting has put them in a personally liable situation. the s.e.c. is looking into whether musk may have misled investors when he tweeted funding was secured, also tweeting he had secured goldman sachs and silver lake financial advisers which had been reported was not a done deal at the time of the tweet. one source also tells me the board sent a clear message to the ceo, stop tweeting and to keep plans that are still in progress about them going private, private, and off of twitter. neil? neil: thank you very much. i heard the stop tweeting, i thought you were talking about the president of the united states

better life. >>> the s.e.c. red flag regulators probing elon musk's tweets as the tesla ceo floats the idea of taking his company public. >>> rite-aid and albertson's calling off their merger ahmed investor opposition. >>> and new york is one step closer to becoming the first u.s. city to cap ride hailing services like uber and lyft. it's thursday, august the, 2018. "squawk box" begins right now. ♪ >> live from new york where business never sleeps, this is "squawk box." >>> good morning welcome to "squawk box." i'm andrew ross sorkin along with joe kernen. michelle caruso-cabrera is here with us today hanging out. becky is off look at u.s. equity futures this morning. let's try to show you what's going on dow jones looks like it would open off 7 points. the nasdaq up 0.21 points. yields are hovering under 3% 2.959. also show you what's happening overnight in asia. shanghai composite up 1.85%. hang seng up nearly 1% nikkei off marginally. european equities right no

there's the s.e.c. number of class action lawsuits from shareholders, clearly, there were hundreds of millions, if not billions of dollars traded during the time that that first tweet went out and then when the stock was halted, and then, by the way, if you want to measure it from when the second blog post went out, that actually explained the first tweet and i think there's going to be a legal case over when the stock, the clock stops on that, how much is all of that worth? >> that's a fantastic question and look, this is precisely why we're downgrading. we're not lawyers. it's very difficult for us to assess sort of the legal ramifications here our view is that regardless of how severe, there is likely to be a penalty or afine imposed from at least the s.e.c. part of the investigation, but nevertheless, to be mired now in this, if you will, self-inflicted legal, you know, wound or woes, is totally unnecessary, unnerving, and distracts from the broader vision, the broader case that they were making as

lawyers are saying the s.e.c. is still going to have a lot of questions around that. it's one thing to have a big, wealthy investor say we want to take you private. it's another thing entirely to go and say that the funding is secured. so this is all going to boil down to what is meant by the term "funding secure." what should the market take away from that and what are the expectations around that and did he break some kind of a rule about what you can say about your publicly traded company when you make a statement like that? lawyers are telling us that the .e.c. will not be completely assuaged by his statement on the saudi p.i.f. >> with the saudi p.i.f., saudi wealth fund, are they just interested because it's diversification away from oil? >> certainly we do have an indication that the saudis want to look at the future beyond oil at some future date. certainly electrical vehicles are a good hedge for that. there are many who believe that tesla itself is a good investment. it's innovative. the cars have style and a very committed fan base. despite some of the prod

. >> the s.e.c. is reportedly asking tesla directors what c.e.o. them -- elon musk told them ahead of his tweet last week. the "wall street journal" cites an unidentified source saying the regulator is investigating whether musk intentionally misled investors. tesla meanwhile is suing the government of ontario for canceling electric vehicle incentives. global news 24 hours a day, on ir at on twitter -- and on twitter. i'm paul allen. this is bloomberg. ♪ rishaad: still ahead this hour, the business of e sports and how a league of legends tournament in the 2018 asian games could boost tech stocks. the next trump targeting turkey with a threat of further tariffs. we'll get the lira outlook. this is bloomberg. ♪ rishaad: this is bloomberg markets. president trump once again turning up the heat on turkey over the detention of an american pastor. he's tweeted that the united states will, quote, pay nothing for the release of an innocent man. that after the white house confirmed it is prepared to offer more sanctions. it doesn't look like either side's ba

the s.e.c. hit the trump campaign with 1100 errors, totaling 3.1 million. >> here's the point. the guy on the fec at the time when the obama fines were leveed, don mcdwan, who's now his white house counsel. these matters weren't referred to law enforcement because they are technical violations that are common in campaigns. >> thanks, david. see you next time. we'll be right back. my name is jeff sheldon, and i'm the founder of ugmonk. before shipstation it was crazy. it's great when you see a hundred orders come in, a hundred orders come in, but then you realize i've got a hundred orders i have to ship out. shipstation streamlined that wh the order data, the weights of , everything is seamlessly put into shipstation, so when we print the shipping ll everything's pretty much done. it's so much easier so now, we're ready, bring on t. shipstation. the number one ch of online sellers. go to shipstation.com/tv and get two months free. ♪ call on me brother ♪ when you need a hand ♪ lean on me, when you're not strong ♪ ♪ and i'll be your friend ♪ ♪ i'll help you carry on ♪ ♪ lean on me