tv Squawk Alley CNBC June 2, 2016 11:00am-12:01pm EDT
v verde, and 11:00 a.m. on squawk street, and this is "squawk alley." ♪ ♪ i don't know what it is ♪ but i like it a lot welcome back to "squawk on the street" i'm jackie deangelis, the department of energy out with the report, and delayed because of the memorial day holiday this week. we got a drawdown of the 3.4 million barrels, and it is a smaller than expected so the crude prices are negative, but they are trading a little bit higher since the news came out. we were trading at 47, and
pardon, me $48.38, and now trading at $48.64, a lot of the reason that we are negative today is because of the news that opec failed to implement a production ceiling, and concerns out there that there is too much supply in the market, and reasons that crude oil is supported at this point, but that is the main reason to be seeing a e lower session today. normally the inventory number of iraq would have an impact here. carl, back to you. >> thank you, jackie deangelis. good thursday morn, and we are live in the code conference in ran chose pal low ver -- ranchos pal low verde, and joining us is kara swisher, and walt mossberg, and take a bow right now, because it is an amazing conference. and first, elon musk making a
ton of headlines, and this is what he said about the rumored plans to get into the car business. >> i think that they should have worked on the project sooner actually that, but i don't know -- i don't know, that they don't share with me the details of the production plans. i don't think it is going to be -- and i don't think that there is going to be any volume production sooner than maybe 2020 is the soonest. >> all right. so we have two questions. one reflections on what musk said to you last night, and two, what are the big fat narratives that people should walk away with this? >> and which part, because he said so many thing, and in the end, we are in a simulation. >> and yes, it is like taking the s.a.t.s at 10:00 p.m. at
night. he went everywhere and incredibly smart and nerdy and geeky, and super futuristic. >> and a/i is a big issue here. >> and we had a lot of conversation about the a/i, and he is very worried about it. he said things that none of us, and we talked a lot about the a/i throughout the conference and we can discuss that, but elon musk was unusual in that he thought that this is a serious danger to humanity, and not very long before the a/i could be orders of magnitude smarter than us, and kara asked him compared to what? >> and he said that essentially, we are going to be dumb as p pets, and a/i will control us, and one company, and i think that he was referring to google -- >> we all did. >> and facebook and one company with a handful of people in charge, and that is a dangerous situationb and he has a open a/i
to try to create the a/i for the masses, and if it is going to happen, everybody should have artificial intelligence capabilities, and so, he sort of has the vision of the future that is very apocalyptic. >> cyborg defense? >> yes, the terminator. >> and he was essentially saying without naming them, the google, and we think it is google and skynet, and i mean, also, i'm not making this stuff up, because we are there. >> i know. >> and he was talking about implanting and how we need to implant what is called the neural lace which turns out to be a real thing, and people were madly googling it. >> ironic. >> yes, ironically, and that would give you a input-output with your digital self. >> and advanced capabilities, and there wouldn't need to be surgery, and you could implant it in the back in the veins.
>> and the tesla production targets are -- >> oh, yeah, he talked about that. he did. he did. >> we asked the sim isple question of why does the rocket have to land in the ocean, and this is like a 12 minute lecture about aerodynamics. >> and what is important is that she is a very big thinker, and the themes of this is the big thought, and we talked about the cars and the health care with susan desmond and the zika virus, and a lot of them were big topics. >> philanthropy. >> and this is the census of what people are thinking, because when it is bad, they don't want to think big thoughts, but little thoughts to get us to the better place so maybe a tone of optimism than we have seen -- >> no, i don't think so. i think it was -- >> you don't see that? >> well, no the election that elon correctly said it is not the finest moment of our democracy, and it isn't. >> and yet jeff bezos was feeling good. >> and yet, he was in a defensive posture of lawsuits
and election and how he is being attacked and so it is a point of pause that more entrepreneurs are thinking the bigger thoughts about the important issues and not the next app. >> and so, we talked to bezos, and it is worth talking about what he told walt tuesday night i believe. take a listen. >> i believe that the amazon studios koud tu s could turn in fourth pillar, and what this is is happening with alexa, and other artificial intelligence agent agents. and by the way, i think that there are going to be a number of the artificial agents in the world and there are going to be apps and websites that are specialties, and maybe you are not going to have the same a/i for everything. from the business point of view, we will monetize the content in an unusual way, because when we win a golden globe, it helps us to sell more shoes. >> walt, i'm interested to think of what you thought about that
conversation? >> i thought it was great conversation, and happy with the way it worked out. he is different from musk, but like musk, he has his hands in many thing, and the way of tying them together. he was just talking about selling more shoes, and he talked about a/i h helping him to sell more shoes, and later in the conversation, i asked him if he wanted to be a big media player, because prime video is the big deal, and he kind of said, nah, you know, we see prime video is selling more shoes. it is all, you know, kind of ties back. but he spoke strongly about the freedom of the press, and the free speech, because he owns the "washington post" and he was not crazy about donald trump either. >> and what is interesting is that the contrasting versions of what a/i is going to do for
society, and you had sheryl sandberg, and also the ceo of facebook, and how the good is going to outweigh the bad, and then elon said, no, wait a seco second. >> and sin dar pachai is all for it. >> yes, and tease are the big issues that have to play themselves out in the next forward and the quantum leap in computing. >> yes, everyone we know is running one of these companies, and this is part of the theme this year thinks this is the battleground of the next ten years, and if the smartphone was thet battleground of the next seven or eight years, a/i is now the battleground. >> so if i were going to pri prioritize the narrative, autos, a/i, smartphone, and video -- a/i would win?
>> yes. >> and we made a serious effort to talk about global health and racial injustice on stage, and talk about philanthropy, and you cannot forget that we may soom off to mars or into a/i, but we have a lot of problems. >> and there are other problems, because if there is not a simulation that is a/i is going to kill us, but it is the asteroids that are going to kill us and they are headed to earth. >> and the erraf to super powers of google, facebook and amazon, and -- >> yes. and at the same time that uber got $3.5 billion from the saudis and then gene liu saying we are getting more. >> and she is raising like roughly $10 billion for one ride sharing company. and granted, china is big and a big market, but $10 billion for ride sharing -- >> but it is not ride sharing,
but it is the bigger issue of how to manage the cities of a state of too many cars and congestion and pollution, and again, the bigger issues, and it is not just fun and games anymore. >> and again, it is making goldman's targets on apple seem pe des tri yarngs but they cut the estimates and the targets and what mary meeker said about smartphone growth in general. and she said that is the easily growth is going to be coming down. >> we will put the slides up all week on re/code, but she asked what is the next big thing, and what is working. >> did that make you nervous? >> i the will tell you what made me nervous about mary's slides, because the smartphone market is not going away and i don't own a smartphone company, so i am fine, but i was worried about the macro slides of the beginning of the deck and those who have not seen it should go
to recode.net, because she is not optimistic about the macro situation over the next couple of years. >> too much government debt and the interest rates were a huge fuel to growth, and the demographics. >> yes. and political instability. >> and the whole six or the seven slides were kind of scary macro slides and then she had some good slides for tech, and some down and bad slides for tech like the smartphones. >> she does like snapchat. >> who doesn't? >> lots of growth potential in india. >> but it is complicated, because any of the companies operating in india, tim cook would tell you it is very complicated and less straight forward than china. >> and the question is how do you top this? >> i assume that the work starts tonight?
>> absolutely. we have some ideas. and we have some stuff this morning that we have nick denton talk about the situation with peter theil. >> i am about to go. >> and just a second. we have john poe ddesta from th hillary campaign talking about that and devin winnig and a whole panel of failure, and what is it like to fail, and that is a good theme in that >> and what inning for you guys? you are completing each other's sentences or cutting each other off. >> that is not new. >> funb? >> yes sh, it is great. it is fantastic and my mind hurts from the conference from the things they have learned. just great. >> join the club. >> it is great to see you guys, and we love to come see you. >> and you look great, carl. did you get a swim in? >> no, but we drove a tesla. >> oh, my god. such guys. >> walt mossberg and kara swisher. we will see you inside. and we have a update on
even late at night, or on the weekend, if that's what you need. because you have enough to worry about. i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business. welcome back to breaking news on oracle, as well as some
political development s s in th valley. we go to josh lipton with more on that. josh? >> well, kayla, news on oracle and the whistle-blower lawsuit that oracle has been hit by a suit by a former employee who claims that she was fired for calling out improper accounting practices in the cloud business. and oracle is responding to the suit saying that we are confident that all of the cloud accounting is proper and correct. this former employee worked at oracle for less than a year, and did not work in the accounting group. she was terminated for poor per for mans and we intend to sue her for malicious prosecution, and of course, oracle, the cloud business is critical and it did $375 million in sales and so it is a relatively small part of the overall business, but it is growing quickly at 40% clip, and not the last that we will be hear about the lawsuit, and keep you posted on that.
meantime, in other news out here, intel's ceo brian krasanich was going to be holding a fund-raising event at his home for donald trump, but "the new york times" had an article inquiring about his support, and so in fact, he is very unusual here, and trump right now has little support among silicon valley power broker, and you remember that facebook, and mark zuckerberg criticized and not directly trump's immigration stance in the stage of the developer conference, and right leaning of those like marc andreesen said that he will be voting for h hillary clinton in the election, and meg whitman who now runs hewlett packard enterprise, and she said that trump's policies would sink the company into recession, and at least one tech
heavy weight that trump can count on which is peter theil, the billionaire investor, and paypal co-founder is said to be a trump supporter. >> and the tide is turning slowly, and interesting wrinkle there with josh lipton out in san francisco. >> and now, shares are struggling despite the beat on the earnings and the revenue, and look at the cloud sector the, and look at the top executive at drop box about that in a moment. "why are you checking your credit score?"
moved into the enterprise business late. box has been kind of finding a way out of it for a while, and trying to compromise the software needs, and how are you doing on the revenue sides to get on the vertical areas to differentiate for the competition? >> yes, good morning. and so this is the thing that we started the company, and we have been fortunate to the users in the middle east with the solution, but we have exceeded half a million british producers and it is from that base of users, satisfied users that not only are satisfied but love our product, and this is how we get on the the enterprise, and it is a solution that is used in 8 million companies across the world, and we have 8,000 paying company, and we have made real progress there, and while at the same time maintaining the focus on the user and the satisfaction with a straight easy solution to use everyday. >> what is your approach and
box's approach then in terms of the value that you hope the add to the vertical industry say like pharmaceuticals which have certain requirements of how the data needs to be stored in order for them to pass the regulatory requirements? >> yes, specifically in the health care industry, it is all about being hipaa compliant, which we are, but it comes back to the platform, because we have a very strong api, and we have integrations into 4,000 company, and is so literal lu any enterprise and the vertical solution and industry they are, that solution can integrate into the dropbox. we have more than 1 billion connections taking place off of the strength of other people's platforms. we have wonderful partners with microsoft, an ibm and hpe, soft bank, telemix, and many
companies extending the platform. >> and a lot of discussion about the seasonality of the revenue, and whether it is getting worse arguably on the large transactions, and is that so, and if so, why now? >> that is not a experience in the drop box at all, and we as a private company are in a fortune situation, and on the user satisfaction, and that is to be the solution that is deployed, activated and used before we really started the big push for the larger end ingagreements fo larger enterprises. >> as a big and well established start-up, i wonder how this talk of the valuations in the valley might affect you. customers certainly are going to be thinking about that as they are thinking of engaging of you, and what is the size of the company, and the close ipo-ready are you, and what is your answer to that? >> look, first of all again, it is wonderful to be a private company, and give us the luxury of what really matters.
it is the user, and the user first and foremost, and of course, innovating and growing the front line, and continuing the lead in that space. so i see enterprise across the world at all time, and i have not seen the valuation or the ipo question at any time, because it does not matter to the useers out there, and whatt matters is that the solution can work, and they can get the userers across the large organizations to use it everyday. the classic challenge in i.t. has been i.t. would select a solution in the space, and then train employees and try to get it used, and in the classic i.t. space, shelffwear -- shelfwear, and the big thing is that we lead with the user first. we won't see the enterprises like that, and where there is the cio of expedia six months ago, and we went in there and
they have a large office, and 365/7 user, and so, when i went in to see him, he actually had 4,000 people bringing drop box to work everyday without them being a dropbox customer. >> so it is making the sale easier? >> the discussion is easier in, hey, we can have quick success in rolling it out, and by you, as i.t. rolling it out, you can be the hero in the eyes of your own company. >> and some say that the transition to public life is that much more jarring, don't you think? >> well, again, what we focused on is the focused on building a great product, and the notion of the ipo and the public is not something that we spend time on. >> and we look forward to getting a look at the numbers behind the user growth and all of the partnerships and the technology that you are building. thomas, thank you for joining us. >> thank you. >> and coming up, not a great milestone for twitter officially cast by snapchat and active
sarkar. they say that he is a former doctorial student who accused clug of stealing his computer code and giving it to someone else. >> and the takata air bag recall had gm at the largest total, and covering pickup trucks and suvs, and the total recalls are coming up to $16.4 million. >> more evacuations in southeast texas as the brazos river continues the rise. they are rescuing those who had hoped to wait out the rising waters. and madonna is continuing her lawsuit with a copyright snippet from "vogue" that
originated from the song claimed to be "lovebreak" but would hardly be recognized. it is all about the ecb, simon. >> yes, we slipped through the markets, but it is the ecb dominating people's minds. they are meeting for the policy meeting in vienna, aus try ya a tree -- austria, and people are waiting for the inflation, or r&d growth, and people say, well, extend the qe until march, but they are waiting for two things, the start of the corporate bond buying beginning june 8th, next wednesday, and the fresh allotment of the super cheap capital for the banks which is trtro which is to pay the banks to take the money off of them. and so they did not make a desuggs on the greek debt collateral rule, and they played down the idea for the record any
near term support for the nonperforming loan situation easing, which is transfixing many investors in europe. some did make gains with the upbeat comment about the spanish banks saying they would continue their profitabilitprofitability increase their census, and that is bringing banco popular up 1.68. and one of the austrian players was able to beat expectations, and earning expectations, because it is going up the value chain on steel, and steel on both sides of the atlantic is affected by the dumping as they like to refer to it from the chinese. so on both sides of the atlantic the authorities are coming in to try to deal with that. thank you. >> and thank you, simon. meantime, from europe to california where we will find jon fortt who spoke with twitter
and four square ceo john dorsey out at code. out to you, jon. >> well, kayla, there is a lot of talk about twitter's user growth, a growth, a rightfully so, and i wanted to get jack dorsey away from the crowd to talk about his team and the program fix, and that is where it will happen and this is what he said. >> twitter is a reflection of the world in the same way that i worry about where my mom is, and who she might run into in the real world, i have to do it in digital world adds well. in the physical world, you will give people better controls and p protections around how they live their life. in the past, we have had some rudimentary controls for people. i think that we are getting better and better and applying more engineering to the problemt as well so that we can build a
very simple mechanism for people to, you know, block, to report, to mute, and not just accounts, but potentially hashtags or the key words so that they can continue to feel free to express themselves. >> and you are on the board of disney, and one of the things about that company that i find fascinating is that through the acquisition, through the culture shift, and they have taken some things that were not working so well, and made them work. and pixar brought in john las e lassiter to help the the marvel group, and new movies have brought the mythology to a whole new level. and what have you learned or taken away from seeing how disney does what it does with story, with product to revitalize things? >> well, this is a testament to bob iger's leadership, because
he is phenomenal to drive the company to where it is today. i learn every conversation i learn something every conversation that i have with him. one of the things that was really enlightening to me is just how much he focused when he came back into the company, the company was not doing well. stock was all-time low, and morale was pretty low, and he took on a lot of challenges at once. you know, he focused on what is disney? we are story tellers and the craft is story, and we will strengthen that. so we will do so through creativity. we will do so through technology. we will do so through optimism. that last part was very important to have an optimistic approach to the workb and not only saying it, but demanding it from the people around the team.
>> and how so? >> well, if you are not optimistic, you are not in the company. you know, we want people to be happy at work, and we want people to feel fulfilled at their jobs and the work, and if we have negativity around what we are doing, it is going to be drag on every single thing that we do. so that is something that is just very refresh ing ing to he and it has worked. >> what is your favorite metric? the one that maybe everybody doesn't have access to, but you look at it most often when you are looking at how the product is doing, how the product is changing? >> daily usage, and that usage is repeat. like people are coming and, you know, what i do every morning when i wake up is that i look out the window, and i look at the weather and i know exactly what i need for the day in terms of my outfit and umbrella, and whatever sut, and i know what it is going to be like.
and the other thing that i do is that i open up to search. when you don't have a search query plugged in, it will go to trends. trends right away show what is happening right now in the world, and why that is interesting and why i bring up the weather, because it tells me what i are will be talking about when i get into work. beyonce just released a album, i am going to be talking about it, and my co-workers are going to be talk ate, and they are going to be tweeting about beyonce and my family and friends are going to be knowing that beyonce happened and now i know, too, because i saw it on twitter and it makes me smarter. so i want to enable everyone in the world and anyone in the world to have that sort of the ability to wake up and this is what is happening. this is the fastest way to see it. and not only that, but i can get into the conversation about it right there. ki start to talk to people. i can even talk to beyonce.
>> so he is demanding optimism, carl, and if you are not optimistic, you are not staying around and i asked him the best disney movie, and he said "ratatouille" and he is following the golden state warrior, and he is looking at users. >> and this is snapchat overtaken twitter on the daily usage, and we will look back in a few months and ask if it is a turning point, and who knows? >> well, that is right, carl. the question is, can he get the team playing together to rally from behind. he seems to be ep stosteeping h in the thenarrative. kay l.a. it is interest, because he has a whole different level of animation talking about the product and trying to get it go going in the right direction. >> because sle the product guy. he created twitter and square and one of the reasons why the board wanted him to come back, but i think that the daily usage number is so interest, because as carl mentioned, snapchat also
according to my sources has 150 million daily active users and people said, that is a totally different beast, and why are you comparing twitter to the facebook or twitter to snapchat, but it is proof positive, if you can build a product that is sticky enough, and it does not matter if you are four years old or 12 in twitter's case, people will flock to it. >> i will tell you why, because they all live on this thing here on the phone, and there is only so many hours in a i dashgs and people -- in a day,ed a people are spending time on facebook and snapchat, and twitter needs and wants more of the time. >> and a big discussion on the stage is the priority that twitter has placed on the safety and trust as they have killed a bunch of the isis-related accounts and trying to make it a safer and less vicious platform the play great stuff. thank you. and so jon fortt and jack dorsey, thank you.
we go the sue herera for breaking news. >> former pepsico chairman roger enrico has died at age 71. he was responsible for key moves while running pepsi. he spun off the restaurant which we know now as yum! brands, and he signed michael jackson to the advertising deal, and brought in tropicana and other brands. we are back in a moment. roger enrico was 71 years old. intensely-flavored. colorfully-diverse. beautifully-misshapen. cultivated for generations, it's the unexpected hero of any dish. when you cook with incredible ingredients...
. >> copping town "halftime report" a former wall street star making a dire diction about apple. and also, no deal in vienna, and we are there live with opec wrapping up and movingp and we will speak to ebay and his thoughts on come petition, and e struggling price and much more as well. that is straight ahead on the top of the hour on the halftime report, and we will see you in 15. >> okay. scott. meanwhile, the yahoo! saga continues. the latest in the form of softening in that aurora is saying that it is not raising the funds of the recent shares of alibaba to buy any of the core assets, and aurora was
discussing last night on the conference call to discuss the plan to share the sars of-- pla to sell the shares of $8 billion, and what is interesting about the timing is that, yes, soft bank is among the largest shareholders of alibaba and turned $20 million investment in 2000 to close to $60 billion, so you would have to imagine that they would sell down some of the stake, but it is coinciding with the yahoo sclm decision of what to do with the massive stake in alibaba, and we will find out later what yahoo! plans to do with that but there could be a whole lot of shares coming down to the market, but perhaps that is why the stock is down this week. and meanwhile, we go to rick santelli and the santelli exchange. rick? >> thank, you kayla.
and viewers and listeners, there is going to be some mature material here, and i'm serious, so be careful. jim, i look at what draghi and others are doing, and i can't believe there is not more outrage. corporate security, and the b r bear, and the other -- >> monsanto. >> the monsanto is questionable, but it is the view as a dance, and so this is rolled by who? >> the ecb. >> and they can pick and choose, and the debutante ball other monsters get together, because they need the girth and to keep buying. >> the purpose of the capitalism is to take money from bad goos s and give it to the good ideas and we can efficiently allocate the capital in the world. the ecb is going to be buying the corporate securities and they will financing the monsanto deal fit happens, and they will say yes to everybody, and it is de facto industrial policy, and
they don't have to bother with wall street. >> and the import/export if that is going on, what have the bowings said when airbus is in bed with the government, and this going to be creating another arms race of bad acti activity? >> absolutely. because these governments and the ecb, they are not going to be saying no to everybody, but yes to everybody, and no matter how dubious the deal is or questionable, go to the ecb and you will be funded. >> and talk about the brexit, because this is the part that the people, and this is nasty stuff. all right. listen, i will gone to record, i believe they are in a government shutdown and the current administration tried to make it look much uglier than it has and then some honesty coming out that it was the case, and take it to the nuclear level because your argument is that they have to make it a miserable outcome if uk decides to leave to protect other countries to make the group not have a mass exodus, and explain it.
>> yes, if the uk on the 23rd votes the leave, it is arguably the end of the e, u and maybe the beginning of the end of the euro, because the other countries are higher percentages to want to leave like france and italy, and -- you will have to make it unpleasant for the uk to leave. >> and this is how you tie it up with the ownership of government in so many markets how easy to make this outcome look nasty if the biggest buyer of the old days like the hunt brothers and silver, and nasty outcomes happen when one entity gets too big. and in this case, it fits with what you are thinking. >> absolutely. the government or the central banks and all of the powers that have the ability to make it unpleasant if they leave. again, if they don't make it unpleasant for them, everybody else leaves and it is the end of the eu, and they have to protect the eu, and that is why the vote is so important, and it makes trump winning if he wins the
second biggest story of the year if we have brexit. >> and viewers, we are not going to be saying if this happens, but it is a large game of chess, and wu thing thone thing to rem enough is not enough, and i don't see abenomics saying, in japan, we did too much, or draghi h saying we have gone over the magic line, and unfortunately our fed can't say anything, because they have kicked the ball in this play. >> and so the reason ta you have have the backlash with the sanders and the trump movement is that the populations are saying enough to the establishment, because they have done it. >> and the populations, and how much leverage they don't like have. >> and exactly. they know that if we continue down the road that we continue down, they are not happy with that? >> and gentlemen, we have to break, but i could talk about it at great length, and thank you for watching, and jim, tau for the questionable place, and kayla back to you.
interview, and julia boorstin, what happened as a result of your interview? >> well, as an explosion of the ad video, she is looking into potential to grow facebook's revenue and showing the advertisers how the ads have a direct impact on the sales. >> we represent a small fraction of the most marketers' budgeters and even our largest investors with the time they spend. so of the time, average american is four hours on tv and 5.5 on t the mobile. so our challenge is to help the markers to make the shift of where the consumers are. >> and as the growing competition from the likes of snapchat, sandberg is not concerned, but she is focused on maintaining facebook's
innovati innovation. >> facebook remains the best place in the world to get the largest audience of teens, and we are proud of that, but we know that we need to execute, and work hard an invest, and build the products over the 3, 5, 10-year time frame and we have a long view to keep the audience and the people engaged. >> sandberg says that facebook is committed to maintaining a dialogue with the con ser serva on the heels of the controversy of the alleged bias in the facebook's trending topics, and it seems like it is going to be blowing over for the time being, but she did address it, and the response has been good. >> and yes, i wonder if we had not spent most of the conference talking about that, and about theil-gawker, we could have covered more ground on instagram ormessaging. >> yes, this week, instagram rold rolled out more advertisers and it is not news anymore, because they are make it easier to create ads based on the images
and the to respond to what the consumers are doing on the service, and it is showing how much facebook has going on with the family of apps now. >> and i know that facebook says they are not concerned with the competition, but how can they not be concerned about the snapchat, and the way they are pioneering the interfaces on the mobile, and the engagement of snapchat, and are you are buying it? >> i asked cheryl when she is having a dialogue with the advertisers and the snapchat lenses, and something i like to play with, and she said there is always a conversation with the product side and the advertiser side and also to give the consumers what they want. so we have seen the shift in the visual conversation, and we have seen it on video and facebook, so it is looking like they are try ing to address the needs that snapchat fills, but within their own universe. >> we talk about how great the portfolio management is, but you can't say they didn't try, because in another world they would have had it.
>> what do uber and opec have in common? as of yesterday, saudi arabia, the company raising 3.5 billion from the investment arm of saudi arabia, and the total round is $5 billion and if you add the $3.5 billion of new cash on to the valuation of 62.5, you will get about $66 billion and guys, the fortune is reporting that the public investment fund is doing this as a way to diversify away from the oil revenue, but we know in talking to the company, the ipo is not any time soon, but you have talked to bill gurley who is uber director, and he says that nobody likes when your competitors get billions and billions of dollars, and now they have a few billion as well. >> yes, and gurley was not thrilled about the subsidization of another company, but he is happy with this one, i am sure. and so, kayla, a couple of
takeaways from the conference at large, and there is a darker element here, and mary meeker talking about some of the macro issues facing the entire world and not just tech. and a large arer stratification between the haves and the have nots. and we have not seen a gulf this wide in a long time. >> and this is right, carl, but on the haves side, and we heard from a lot of them, bezos being perhaps chief among them, and sindar and there is optimism of those who are big that they can be bigger and taking the share and busting into the new areas, and not all doom and gloom. >> and the graduation of the smartphone era, and not a surprise that people are realizing it is coming to an end, and not saying it is over, but it is seeming like we are going to be moving on the something just as interesting. >> yes. i like to call it the post-smartphone era and not that it is dead or anything, but the growth is sort of out of it, and on to what are the fly wheels as jeff bezos put it that companies can exploit from here? can you get a system is going where prime gets people to buy
not only more shoes, but watch more video and add to the empire. >> on a day when bernstein comes out to say that prime video is the number two reason that people are prime members at all, and hard to say that a few years ago. good time. >> great. >> and we will see you all in new york later next week, and this is is going to do it for kwauk alley and back to the head quarters and the half. ♪ all right. "welcome to the halftime report" and i'm scott wapner, and we go back to code red for apple. a superstar drops a bombshell wondering if the company's best days are behind us. with us for the hour, joe terranova, and stephen weiss and jon and pete najarian, and off with the former banking star mary meeker telling the code conference that the iphone has peek and the ios is quickly losing