tv Squawk Alley CNBC October 12, 2017 11:00am-12:00pm EDT
welcome back to "squawk on the street." i'm kate rogers. telecom standing out as the worst performing s&p 500 sector, down by nearly 2%. at&t is a large part of that story. that stock is off by more than 3% after the company said its third quarter results took a hit from the string of hurricanes and it will lose about 90,000 directv video subscribers due to growing competition. now back downtown for the start of "squawk alley". >> kate, thank you very much good morning, it is 11:00 a.m. on capitol hill, 11:00 a.m. on wall street, as well, and "squawk alley" is live
good thursday morning, welcome to "squawk alley." carl quintanilla with john fortt, sara eisen, and business insider editor in chief henry blodget, guys, good morning to everybody. got a news alert to start things off. inventory is out on the oil complex. let's get to jackie. jackie >> good morning, carl. you can see crude prices are pairing losses, but still negative after this report, saying last week crude inventories fell 2.7 million, so that's a little bit supportive, but on the flip side, gasoline inventories were up 2.5 million, so sort of cancelling each other out there. the other thing i would note is u.s. production was actually down we've been watching this steadily creep up. 9.48 million barrels a day people are waiting for it to
eclipse its peak of 9.6 million barrels a day, so definitely a good sign we're moving in the opposite direction $50.44, as you know, we've been trading around the $50 mark for quite some time. these numbers aren't going to help us find a direction i'll send it back to you >> thank you very much for that. facebook is on the offensive this morning as pressure continues to hammer big tech sheryl sandberg sat down with mike allen earlier today, talked about facebook and its role in the presidential election. >> facebook owe the american people an apology? >> well, certainly, any time there's abuse on our system or foreign interference on our system, we are upset and it's not just that we apologize, we're angry, we're upset, but what we really owe the american people is determination. we're determined these are threats, these are challenges, but we will do everything we can to defeat them, because our values are worth defending. >> that says the company is
overhauling its ad model ahead of the 2018 midterm elections. lawmakers also say they plan to release the thousands of ads linked to russia in the coming weeks. henry, i wonder in the evolution of this story what you heard today out of sandberg. >> i think facebook is going what it should be doing, trying to get ahead of this the worst thing that could happen is they sit back and wait and get regulated. that would be a disaster they can fix a lot of this they've already overcome enormous technological problems. they say they want to be a platform where anything can be shared, but that's not true. you can't share porn, drug paraphernalia, all that stuff, so they'll figure this out, too, but they have to get in front of it again, this was an attack on the united states. it may have swung the election it was a huge issue. >> farhad, i guess there are a few ways of looking at what this issue is for facebook, ranging from a p.r. problem, engineering problem, or a business model problem. maybe it's a combination of all those things, but do you think that facebook believes it has a
handle on, as henry suggests, essentially walling off this type of content and getting this issue behind them? >> depends on how expansively you think of the problem, right? i think they can fix the ad problem pretty easily, making the ad model more transparent, they could allow people to kind of figure out who paid for ads and, you know, see what each page, all the ads that have put a certain page ran, so that problem is pretty easy i think the harder problem is it's not kind of a facebook problem, it's a facebook in society problem, so, you know, facebook is kind of the biggest driver of news and that affects how media, you know, that affects the kinds of stories that media cover the kind of effect that facebook has on the rest of the media is a much bigger problem and it's hard to see how facebook itself can solve that that was sort of going to be the biggest problem, what do you do with the free speech concerns, what do you do with how media
react to facebook, and that's like a thorny problem that i don't know if facebook or anyone can solve in the short term. >> henry, i'm not so sure that this is going to be simple, even on the front end of it we talk a lot about political advertising. this comes down to me it seems to attribution do we understand where people are and who people are that are placing all kinds of advertising and then beyond that, this issue of shadow influence. are we clear all of the ways that you can use money to influence what people see on facebook and it seemed up to this point part of the way facebook has grown is by making that a little bit difficult to parse >> it's definitely not going to be simple. there's no question about it, but nothing facebook has done since it was founded has been simple, and they are very much up to it if you look at the range of how different silicon valley platforms are dealing with this, all the way from snapchat on one
side, google sets an a go rhythm, facebook, here to fore, has put very few restrictions in there or quality assessments or what have you. they are going to have to do that they are not going to raise their hand and say, hi, i'm a political advertiser, please review me. they'll be more clever than that, but facebook as an incredible engineering team. they can rise to this problem and they'll get on it and i think cherl being in washington, we have to get in front of this, we're going to have washington regulate us, and that would be a disaster >> you did a great interview for zuckerberg not too long ago and i wonder how you are characterizing the evolution of their stance, and that interview, what zuckerberg said
in the past, his tour around america, and now sandberg on the hill where are we on this narrative >> i think it's been a slow evolution on the part of zuckerberg and facebook in general. over time they've sort of come around and now they see it as an emergency that they have to fix. i think that will continue, but i think that -- i still think they do not know what facebook is they sort of think of it in the way that we, you know, used to think of it as the way to post videos of your friends and family, and it's been -- it's sort of taken on this much greater role in society, you know, it affects kind of everything we see in the news, even if you don't use facebook, you know, the news is kind of filtered and mediated through facebook, what people -- what editors and producers kind of choose to show is in large part
influenced by social media, and i don't think they get that part of it, and i don't think -- it's hard to know if they have the skills necessary to kind of fix that, because this is an engineering company. this is a company that, you know, has worked on data problems and a lot of these problems are not sort of data problems they are political problems, they are social problems, they are in some ways kind of not really matched to the skills that facebook has. i mean, i agree with henry i think they are up to the challenge and i think lots of smart people work there and you never get far in this business by underestimating mark zuckerberg, so i think they are going to try to do a good job to fix the actual problems and also the p.r. problems, but i think it's probably much harder than they or anyone else kind of expects it will be >> it was only a matter of time, guys, that "southpark's" trey parker and matt stone would have their fun at facebook's expense.
take a look. >> here he comes okay, mr. zuckerberg, that's going to have to be it can't let you into town. >> so, you think you can block me >> look, people don't want you here, okay this is a quiet little town and -- >> you cannot block me >> there's plenty of other places you can go, sir can you please just -- don't do that, please >> ahhh! my brain, my brain >> he walked through >> talk about going from your harvard dorm room to national zeitgeist, right >> look, given it's been ten years and he runs one of the most important companies in the history of the world that he built, mark is doing a great job. didn't help the v.r. experience with puerto rico, but recovered. i think he's doing a terrific job. >> meanwhile, the stock is worth
half a trillion dollars in the stock market the stock's down all of 1.4% from the high. the market is not saying all these set of issues is going to be seriously compromising their business just yet, but there have been bouts of doubt >> yes, and the doubts come, again, when you think that washington is going to regulate it like a utility. that would be a disaster and i think you'd see a big reaction in the stock >> one last point here, guys, and farhad, i'll throw this out to you we should mention twitter, which has its own issues today regarding rose mcgowan and other things, stock was up 3%. best day since june 21st is there feeling, farhad, that twitter benefits from any problems that facebook may have? is there a zero-sum game here? >> there's no zero-sum game. it happened to twitter, too. twitter was in some ways probably more of a problem a lot of -- there's been a lot
of reporting on bots and other ways that, you know, foreign governments and basically anyone who wants to manipulate the media use twitter to do it and twitter is a great place to do it because we all hang out there, so if you want to influence the largest media narrative in america, twitter is the place to do it i don't think people at twitter should be very happy about what's happening to facebook, because they are in for it next. you know, they didn't respond very well to, you know, lawmakers were very critical of how twitter responded and probably should work harder to get their act together >> all right farhad, henry, thanks very much. we'll continue to talk about this, i'm sure from tech or maybe media to financials, major banks out with earnings this morning. will back at hq. >> share price reaction has been muted, given that one quarter expense control was a main
driver for the eps beats for both banks other factors that contributed was solid lobe growth and decent net interest margins investors will also be keeping an eye on reserve builds, albeit the numbers still small at this stage. trading was a differentiated between the two companies, but overall soft for both, down 21% year on year for jpmorgan, whereas citi down 11%. here is citi's ceo on trading. >> fixed income revenues of $2.9 billion declined 16% on lower g-10 rates and currencies revenues, given low volatility in the current quarter and the comparison to higher brexit-related activity to a year ago and as well as lower activity in spread products. equities revenues were up 16%, reflecting client-led growth across cash equities, derivatives and prime finance. >> he particularly talked up
exposure to corporate clients. away from the numbers, jpmorgan's cfo was asked about the equifax hack she said it won't affect jpmorgan costs, but added this -- >> not to sort of diminish the importance of any, you know, individual breach or situation is that we are, honestly, under constant attack, both in a more general side but also from a raw perspective, so while we'll always react and learn lessons from every individual situation, this is not the first breach, nor will it be the last breach >> share prices as we look at things now are both down and extended the losses over the course of that citigroup call down 1.3%. guys >> we have been watching that price action, wilfried frost back at hq watching the banks. when we come back, the ceo of cargurus as stock soars on its bay due at the nasdaq. we continue to watch
wildfires that continue to spread across california later on, speaker ryan holding his weekly press conference, talking distsaer relief and health care we'll bring his comments to you live when "squawk alley" comes back and hey, unmanaged depression, don't get too comfortable. we're talking to you, cost inefficiencies, and data without insights. and fragmented care, stop getting in the way of patient recovery and pay attention. every single one of you is on our list. at optum, we're partnering across the health system to tackle its biggest challenges.
dealers and more than 5 million car listings all without significant outside venture funding. joining us now, cargurus founder and ceo langley steiner. langley, congratulations thanks for being with us >> thanks, thanks for having me. >> so what's the secret sauce here because i see advertising for your competitors a lot more than i see it from you guys, and yet you have grown huge and huge in mobile how did you do it? >> sure, sure. i mean, we have a simple mission, to provide trusted transparency for the consumers, and trust being all the elements of price, helping consumers quickly and easily figure out if a car is a great deal or overpriced, whether the dealer is reputable, whether it's a good dealer or bad dealer as evidenced by our community ratings. the major differentiator between our company and application and our competitors is fundamentally our competitors are newspaper companies. they've taken an outdated
concept of newspaper listings and put it on the internet we're not a listings company, we're a search application, we're a technology company we have 80 engineers, we're based in cambridge, mass, and we use mathematics to help consumers quickly and easily get answers, while most of our competitors see it more like a listings business. it's really a different way of looking at the marketplace >> now, you did this post tripadviser. how much of this is based on the same dna because the experience i'm used to on tripadviser has some parallels to what you built here >> yeah, i started tripadviser in 2000, we sold the company to expedia. i mean, the same routes of transparency apply and a lot of the reason i started cargurus was to provide transparency. so a lot of the same transparency routes and also just having a tech focus, being a technology company >> now, it seems that you would
be subject to the fluctuations in the auto market and also you'd need to expand into machine learning, you know, artificial intelligence, which everybody is talking about these days how does the business grow as a technology platform, do you have to move beyond cars, or do you get kind of deeper into the value chain. >> great question. we're focused on three vectors of growth for our company, one is international, we're already in the united states, england, germany, canada. so international is one growth vector second is providing more tools and services to our dealer community to help them run their businesses more effectively. and then thirdly, really exciting new vector of growth for us is peer-to-peer trading helping consumers trade and sell cars to other consumers. you look at the growth of peer-to-peer merchandising, if it's in travel it's airbnb,
transportation it's uber we see that as exciting growth vector for our company >> langley steinert, ceo and founder of cargurus. stock now up 82% on ipo day. once again, quite a move thanks for being with us >> thank you when we come back, devastation in northern california as wildfires continue to destroy thousands of homes and businesses we'll talk to one winery owner about how he's dealing with the damage dow is trying to make its way back to the flat line. back in a moment o investing, looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock.
winery in southern napa value leechlt good to have you with us, thanks for your time >> thank you very much >> it sounds like you were able to escape with some minimal damage, but your neighbors were not as lucky >> that is absolutely true we were very, very fortunate the side that surrounded darioush, the vineyards protected us we did have some fire on the property, simply because the winds are blowing embers across, you know, acres of vineyards, but we're really happy that the winery is safe it's actually operational. i got on site yesterday. our wines are safe, and the vines are safe we're trying to get back to work here >> dan, obviously, beyond hope for continued safety of everybody in the area there. what longer term is your main concern in terms of getting back to work for the industry is it just the expectation that tourism will be on the decline, or is there really perhaps any
fundamental damage to the actual vineyards themselves and the ability to get back to growing >> yeah, good question i mean, there's a couple different angles there first and foremost, i'm going to just say that the 2017 vintage is a good one. you've got to remember that 80% of our harvest is complete it is safe and sound sleeping in barrels. there is no impact so that's tremendous news. i can live on 80%, even if the rest burned away but the rest hasn't burned away at darioush and many, many other wineries i'm not worried about smoke tint, that will take a week or more to affect the grapes. the grapes are mature, ready to be harvested, so i'm not terribly concerned on the impact of the vintage, as far as
drinking delicious wines in napa valley now, turning to tourism, it's to early to tell. i have people calling all the time my staff is very busy at work. people are, believe it or not, some people are looking to come into the valley. everything is just completely up in the air i do know that as soon as the roads are clear, and as soon as, you know, the authorities start giving some okay, we're going to be back and operational and many are just waiting for the right time it just has to be appropriate. >> dan, from a winery operator perspective, is this just a one-time tragic event, or is there a trend you sense into more of this happening, something that you need to protect against differently? are there methods that you're looking at employing towards minimizing the potential impact in the future?
>> no. interesting question, but, no, not really you know, this is california we're, unfortunately, plagued by forest fires it's a very dry state. this happens in many states out in the west, and we're just very, very unlucky that the weather was against us this week and there's just a lot of grassland and dry tinder that caught on fire in our backyard, and we're very, very, very unfortunate. and this is by and large a much more of a humanitarian and property damage rather than to vineyards and things like that >> dan, you've got much of the country hoping and praying that the recovery is as fast as possible we appreciate you taking part of your day to talk to us thanks so much >> sure, sure. we're eager to get back to work and, you know, there is some good news out there. happy to talk to you in a few
days >> dan de polo of the darioush winery thank you, dan still to come, awaiting comments from house speaker paul ryan on what is shaping up to be a very busy y cdaonapitol hill. "squawk alley" back after this . wait, what, what happened? i was having a good round, and then my friend, sheila, right as i was stepping into the tee box mentioned a tip a pro gave her. no. yep. did it help? it completely ruined my game. well, the truth is, that advice was never meant for you. i like you. you want to show me your swing? it's too soon. get advice that's right for you. investment management services from td ameritrade.
we take you to the president and an executive order on health care in the roosevelt room unwinding some key provisions of the affordable care act. let's take a listen. >> president trump and his administration are committed to ensuring hard working americans have access to affordable health care mr. president, your executive
order signed today is an important step in achieving that goal i want to thank you and your administration for continuing to focus and finding affordable health care solutions. in addition to instructions ginn to the treasury and health and human services departments, the president will task the department of labor with considering ways to deliver quality affordable health care to the american work force i'd like to call upon senator rand paul to say a few brief words. thank you. >> thank you, secretary. today's a big day. president trump is doing what i believe is the biggest free market reform of health care in a generation this reform, if it works and goes as planned, will allow millions of people to get insurance across state lines at an inexpensive price 28 million people were left behind by obamacare.
do not have insurance today. this specifically targets and will help people who don't have insurance or people for whom insurance is too expensive i'm very glad to be part of this, and i really want to commend the president for having the boldness and the leadership and the foresight to get this done, and i'd like to introduce the vice president of the united states >> good morning. secretary costa, senator paul, secretary mnuchin, director mulvaney, administrator mcmahon, senator paul, thank you for those thoughtful remarks and to congressman greg walden and congresswoman virginia fox, other distinguished members of congress and job creators. it's an honor to share this moment with you today. a moment where president trump will take a critical step to lower the cost of health insurance for working americans.
since day one of our administration, president trump has made it a top priority to rescue the american people from the disastrous failure of obamacare. every day obamacare survives is another day the american people struggle and all the job creators gathered here today at the white house have witnessed the failures of obamacare firsthand. premiums have more than doubled since obamacare went into effect, and next year premiums are set to increase even more. while costs have been skyrocketing, choices are plummeting next year nearly half of america's counties will have only one choice of health insurance provider, which means they essentially have no choice at all as the president and i have traveled the country, we've heard stories from small business owners like those gathered here today, from working families who are struggling under the weight of obamacare. today president trump will take action to provide the american people with flexibility and freedom from the burdens of obamacare and expand the number of affordable health care options options for working americans. mr. president and i can say i speak for everyone here and for
millions of americans when i say how grateful we are for your determination to repeal and replace obamacare and your commitment, demonstrated today by this action, to provide the american people with more choices, for more affordable health care in the 21st century. with that, ladies and gentlemen, it's my privilege to introduce the president of the united states of america. >> thank you thank you very much to vice president pence for that wonderful introduction and for the great job you do and i want to thank secretary acosta, secretary mnuchin, administrator mcmahon, for joining us today we're all gathered together for
something i believe that's going to be very, very powerful for our nation and very good for a lot of people. but before i begin, i have an important update yesterday, the united states government, working with the government of pakistan, secured the release of katelyn coleman, joshua boyle, and their three children from captivity from the hakani network, a terrorist organization with ties to the taliban. the pakistani government's cooperation is a sign that it is honoring america's wish that it do more to provide security in the region, and i want to thank the pakistani government, i want to thank pakistan. they worked very hard on this, and i believe they are starting to respect the united states again. it's very important. i think a lot of countries,
right now, a lot of countries are starting to respect the united states of america once again. we hope to see this type of cooperation and teamwork in helping secure the release of remaining hostages and in our future joint counterterrorism operations so with that, i want to begin by saying it's my pleasure to welcome so many great small business and association leaders to the white house, as we prepare to make this truly historic announcement. and that's exactly what it is. we've been hearing about the disaster of obamacare for so long in my case, many years most of it outside in civilian life and for a long period of time since i started running and since i became president of the united states. i just keep hearing, repeal, replace, repeal, replace
well, we're starting that process, and we're starting in a very positive manner i say when you get rand paul on your side, it has to be positive that i can tell you. boy, rand. just think as he's getting up and saying all these wonderful things about what we're going to be announcing. boy, that's very unusual i'm very impressed but seven years ago, congressional democrats broke the american health care system by forcing the obamacare nightmare on to the american people it has been a nightmare. you look at what's happening with the premiums and the increases of 100% and 120% and even in one case, alaska, over 200% and now every congressional democrat has blocked the effort to save americans from obamacare. along with a very small, frankly handful of republicans, three,
and we're going to take care of that also, because i believe we have the votes to do block grants at a little bit later time and we'll be able to do that premiums have gone skyrocketing. but today one-third of all the counties in america have only a single insurer selling coverage on and exchange, and next year it looks like nearly half of all counties in our country, think of that, all of the counties, one-half, will have only one insurer. and many will have none. many will have absolutely created roadblocks for people to have any form of the insurance we're talking about. this is why in a few moments i will sign an executive order taking the first steps to providing millions of americans with obamacare relief. it directs the department of health and human services, the
treasury, and the department of labor, to take action to increase competition, increase choice, and increase access to lower priced high quality health care options, and they will have so many options. this will cost the united states government virtually nothing, and people will have great, great health care. and when i say people, i mean by the millions and millions. first we aim to allow more small businesses to form associations to buy affordable and competitive health insurance this would open up additional options for employers to purchase the health plans their workers want i'm also directing secretary acosta to consider ways to expand these associations and these health care plans all across state lines this will create tremendous
competition and transformative in so many ways change aimed at creating more and lower prices for millions of americans. but the competition will be staggering insurance companies will be fighting to get every single person signed up and you will be, hopefully, negotiating, negotiating, negotiating, and you'll get such low prices for such great care should have been done a long time ago and it could have been done a long time ago. this will allow thousands of small business employers to have the same purchasing power as large employers to get more affordable and generous insurance options for their workers. rich and leslie bordray. where are you? nice to see you. nice to see you, leslie.
they are here today from louisiana. great state. just left. had a little hurricane damage, they got hit, lake charles, but we took good care of it, right we took good care of it. they are great people. they are small business owners, and they know personally the benefits of association health plans, one of which used to provide health insurance for their employees. but after obamacare, they were unable to afford their association plan, so they had a great thing, their employers were happy, and then it ended. this is something i hear, greg, you know exactly what i'm talking about. greg has been so incredible on this subject, and people had plans that worked. and then all of a sudden they were just totally cut off. happened to your company also. rich and leslie have said they would love once again to use an association health plan, and there are millions of americans
who want more affordable options just like them and now with this executive order, americans will likely soon have those options. we will be very happy to provide them to you, and you will be very happy you're going to be extremely pleased. if you're not, you can tell them right now. thank you, appreciate it great to see you, thank you very much in addition, my administration will explore how we can expand something called short-term limited duration insurance these health insurance policies are not subject to any very expansive and expensive obamacare coverage mandates and rules. the cost of the obamacare has been so outrageous, it is absolutely destroying everything in its wake. they were so attractive that just last year the previous administration crippled the market in an effort to keep people from fleeing the failing obamacare plans.
in fact, they prevented these plans from lasting more than three months they will take action to fix that and to make these affordable flexible plans much more widely available. so we're going to have a very widely available plan that's going to cost much less, and from the standpoint of the united states government, we will be very happy won't we, virginia so they'll get better and it will cost us nothing that's not too bad, right? we need some more answers like that finally, today's executive order instructs secretaries acosta, mnuchin, and harden to explore how they can let more businesses use tax-free health reimbursement arrangements, or hras, to compensate their employees for their health care expenses currently only about one-third
of small business employees receive coverage at work, forcing millions of workers to enroll in the exchanges or remain uninsured and to pay the individual mandate penalty not good not good that is one of the most unpopular things i've ever seen in government, i can tell you. this order takes first steps to make it easier for businesses to help their workers afford high quality and more flexible health care through reimbursement accounts with these actions, we are moving toward lower costs and more options in the health care market and taking crucial steps towards saving american people from the nightmare of obamacare. today is only the beginning. in the coming months, we plan to take new measures to provide our people with even more relief and more freedom and, by the way, on another
subject, that will include massive tax cuts we are going to get massive tax cuts, and i believe even senator rand paul, and i know virginia, greg, i think you're with us, but the whole country is looking for these massive tax cuts, and we will get them and we are going to also pressure congress very strongly to finish the repeal and the replace of obamacare once and for all. we will have great health care in our country thank you all very much. appreciate it. thank you. >> that is the president signing an executive order directing federal agencies to consider loosening the rules that control the issuance of health coverage by small business groups, as well as the duration of some of the health plans, usually
short-term health plans that don't currently meet obamacare rules. in the president's words, the cost of obamacare has been so outrageous, that it has destroyed everything in its wake, and he makes mention of a new ally on this front, senator rand paul. >> exactly the question remains how much the agencies will execute this menu of options to change policy on the state level, as well. >> this will be something that millions and millions of people will be signing up for and they are going to be very happy this will be great health care so, congratulations to everybody. >> as we watch the president sign the executive order, also a brief comment in there, eamon javers about tax cuts saying i believe senator rand paul and the whole country are looking for these tax cuts and we will get them eamon? >> that's right, the president taking opportunity to do arm twisting on the tax cut proposal, saying we'll get those massive tax cuts that he's promised the nation. the president here, though, very frustrated he hasn't been able
to get anything done on capitol hill, so this executive order is a way to go around that congressional lawmaking process and get something done, at least on the margins here. bear in mind nothing happens immediately here he's directing a number of agencies and departments of the federal government to consider certain regulatory changes that has to go through a complicated rules process, a multi-day clock for all of that, so we might not see any impact here from these changes for several months, maybe six months, but ultimately the administration says this is about expanding choice and competition in the health care industry something they very much think obamacare has devastated in the country. the critics of the president's proposal say what they are doing is allowing healthier and younger people to come out of some of those pools, so those people will have cheaper options, but could mean more expensive health care for the rest of us, and particularly people who are sicker and need more access to health care carl >> eamon, thank you for helping
old-fashioned stock picking. josh brown with some fee-free advice every investor needs to hear all that coming up top of the hour carl, we'll see you in just a bit. >> handsome alert. we'll see you in a minute. thanks so much. interesting comments coming out of the imf fall meetings where sara eisen is today. hey, sara. >> hi, carl. with the action in the market you know i have to be talking to some of these folks about bitcoin surging to new record heights past 5,200 with the tal of its legitimacy and its underlying technology heats up i did q & w with world banks president and asked whether it provided a viable pay solution in economies with cashless payments >> really the technology is something that everyone is excited about. bitcoin is one of the very few
instances when block chain was used, they were basically ponzi schemes, so it's very important if we go forward with it, we're sure that it's not going to be used to exploit. now, right now a very different approach to facilitating the transfer of capital in developing countries is ollal alibaba's approach it takes three seconds, three seconds to transfer as much as $160,000 to anyone who's part of the alibaba network because they can assess credit worthiness in three seconds. the argument is of course that online activity is a far better indicator of credit worthiness than the traditional kyc practices. >> you're not a buyer at 5,200 christine leguard said it's too expensive. >> it's very expensive. >> also some skepticism, guys,
there on its legitimacy and a plug for alibaba as sort of a cashless payment solution, when he says is working in china. this is all something we can talk to tomorrow we've got an interview with stan fisher, the vice chairman of the federal reserve. this is his final interview as vice chairman. this is his final weekend as vice chairman of the federal reserve. so we have a lot to talk to him about. reflections on his tenure, some policy advice going forward for the next fed chairman and of course what's going on with growth and that mysterious inflation, which is the current debate right now in central banking. that's coming up tomorrow this time >> i can't wait for that it's been a fascinating week of commentary from greenspan and rwd anke too, sara, so we look foarto fischer
the #women boycott twitter is gaining some traction on twitter. julia boorstin is in l.a. watching that. good morning, julia. >> good morning, carl. some people are calling for a boycott of twitter after actress rose mcgowan was partially sus extended for violating its terms. she posted a screen shot she said twitter has suspended me there are powerful forces at work be my voice. twitter telling us, quote, we've
been in touch with her team and her account was temporarily locked because one of her tweets included a private phone number which violates our terms of service. the tweet was removed and her account was unlocked we will be clearer about these policies and decisions in the future mcgowan who settled a lawsuit against harvey weinstein has been tweeting in support of women against abuse and calling out men who allegedly abused women or knew about weinstein. twitter shares are actually now up today about 4% on a pivotal research report maintaining the stock as a hold, setting long-term top line growth for it as well. but rose mcgowan is trending on twitter across the united states it will be interesting to see what happens tomorrow. guys, back over to you. >> there's a bunch of cross currents here. there's the pivotal research and even theories, really unattributed that, argue if facebook is going through so much political pressure, it's not that hard for some funds to
just switch a little holding to a name that has much smaller market cap. >> twitter is really such a small piece so anything incremental might be good. they have also been fighting these wars for a longer time perhaps but this little controversy, i don't know if this twitter response will quell it entirely. >> also, i would say -- >> julia, i was going to say the action they took against mcgowan against actions they have or have not taken against other users in the past. >> yes many have asked whether twitter should consider suspending president trump's account because of certain tweets he has sent so there's a lot of debate right now on whether it really made sense to violate her -- to suspend her account because of those violations whether they're really significant enough but if you look at sort of some of the other tweets and look at twitter's role in the political sphere, twitter has also been called to testify november 1st along with facebook and google so it's interesting this idea that twitter might be less
exposed than facebook when there's certainly a lot of concern about russian ad purchases and use of that as well, use of that platform as well >> julia, thanks for that. it's worth paying attention to on a day like that when, mike, i should also mention snap is up 4%, above 16 for the first time in three months. >> and it's happening on a day traditional old media stocks are under pressure it's hard to know whether that is money moving toward the newer platforms. snap has raised as one of these relatively insulated from one of these problems about incursions of fake news. >> their ad model is getting a little more efficient. goog enhiem cuts disney to neutral. >> he said, look, our upgrade in march was based on certain premises that are no longer in place and so they downgrade it when it's in the 90s. >> disney was the laggard for a
while. we continue to watch the banks they have lost some ground on the headline, although any gain in the major indices today would be another record high on a day when mcdonald's, cat and boeing are doing it again. >> you got that levitation in the afternoon to records. >> we'll see if that repeats today. don't forget summers with sara at the imf let's get over to judge and the half and welcome to "the halftime report." i'm scott wapner our top trade this hour, retail wreck. that sector getting slammed yet again today, now on track for its worst week since january and why some say the worst may be far from over. we do want to start today with that rough day for retail stocks, the worst day since august pete, i quote the great philosopher, mr. t i pity the fool who tries to pick a bottom in these