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tv   Power Lunch  CNBC  September 5, 2018 1:00pm-3:00pm EDT

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the horn, 30 seconds left, busy day. >> busy day. unusual activity, buyer, buyer, buyer, stock hit $30, i took off yesterday's trade, but rolled up to the 30 strike calls, i think there is more in amd. >> feels like momentum. >> stock up another 2% today john >> nutanix, cloud operating system, buy it. >> stock down 6% john says buy. >> josh. >> jpmorgan, mid-one teens. >> john? >> bought northrop grumman. big tech under fire. sheryl sandberg, jack dorsey facing tough questions from lawmakers about interference on their platforms. dorsey set to face another round of questioning from a house panel this hour. we'll carry it for you live. back to the negotiating table, u.s. and canada resuming trade talks in difficult issues facing them.
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the obstacles that still stand in the way. the bulls struggling to find a reason to send this market higher tech stocks getting crushed. the emerging threat to the rally. "power lunch" starts right now and welcome, everybody, to "power lunch." glad you could join us on this busy wednesday i'm tyler mathisen a check on the markets right now. dow is positive, look at the surge there. 0.01%. that's 3 points higher, we're describing those gains as modest i would call them minh executuse biggest drop in more than a month for the market drom terre. tech and the social media stocks, they are the ones on capitol hill today, and they're the ones dragging down the nasdaq
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twitter, snap leading the declines alphabet also taking a hit down 15 points. >> on morgan brennan, we begin on capitol hill where big tech executives are testifying today. earlier sheryl sandberg and jack dorsey faced the senate intelligence committee over foreign influence operations on social media that hearing wrapping up a short while ago. in just about 30 minutes, jack dorsey will go solo. another round of questioning this time before the house committee on energy and commerce the focus online election meddling ahead of the november midterms and perceived censorship on social media platforms. our team of reporters is on the ground on capitol hill, covering all of the angles and we'll start now with carl keent nia. quintanilla. >> there was a pretty thoughtful
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three-hour discussion about all of the travails haunting google, facebook and twitter for their part, both sandberg and dorsey took pains to say, one, they were unprepared and ill equipped to deal with this when the companies were founded. the big changes are coming in the way users engage with these companies. their original ideas don't work anymore. as dorsey put it, tectonic shifts take a listen. >> i believe we need to question the fundamental incentives that are in our product today every time someone opens up our service, every time someone opens up our app, we are implicitly incentivizing them to do something or not to do something. and that extends all the way to our business and those answers that we get from asking that question, are going to create massive shifts in how twitter operates and i also believe how our industry operates.
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>> question is what does that mean does it mean a bot gets labeled when you go on twitter, something larger, other ways of clarifying information that is deemed false and if so, who is deeming that information false all very big questions shares under pressure today, twitter at one point worst day since july we'll hear jack dorsey at 1:30 eastern time when go hes before the house energy and commerce committee. we'll talk to mark warner about what he heard today, help us figure out what will start turning into practical, common steps that we'll see on some of these companies and influences on the share price >> carl, thank you carl quintanilla on capitol hill now to julia boorstin, what we can expect from the hearing where dorsey will testify this afternoon. julia? >> that's right. i'm over at the rayburn office building where the house energy and commerce committee is set to start in 25 minutes, this time
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jack dorsey testifying solo. the focus of this hearing is on whether twitter is biased in the way it moderates content and decides who and what to block from the platform. the senate intel hearing this morning was meant to focus on election interference. senators addressed a range of topics including the handling of fake news, bots and trolls, and throughout the questioning, jack dorsey stressed that they have more work to do, particularly when it comes to transparency, but said the platform is unbiased and wants to be a safe town square for the exchange of ideas. take a listen. >> our interests are aligned with the american people and this committee if we don't find scaleable solutions to the problems we're now seeing, we lose our business, and we continue to threaten the original privilege and liberty we were given to create twitter in the first pla place. >> today is dorsey's first time testifying on the hill, it is a long day for dorsey.
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he just wrapped up nearly three hours of testimony, this hearing that is set to start shortly is expected to be another three hours. so certainly an exhausting day for him. we expect him to arrive here any minute now >> we'll check back with you, julia, thank you nyu's scott galloway joins us his runaway best-seller is called "the four." welcome to "power lunch. good to have you with us. >> thank you for having me. >> are we going to look back on the hearings and say this was the beginning of the end of big tech >> no. i don't think so i thought it was a thoughtful conversation, a good dialogue, substantive, i don't see anything meaningful coming out of this panel much less washington, d.c. d.c. now lacks a domain expertise or will to go after big tech
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where you night see it is one out of brussels or out of a red state whose attorney general sees the brightest blue line path between the ag's mansion and the governor's mansion as a populist argument against big tech the war against big tech is going to break out where all the major conflicts of the 20th century broke out, continental europe d.c., this will be seen as largely a nothing burger. >> no regulation whatsoever coming out of capitol hill, you think. >> i don't think so. i think they're outgunned. i don't think they have the domain expertise i don't see regulation and personally i don't think that's the right way to go. where you may see momentum and the logical and i would argue the place that it should come from is the ftc or doj i think this is an antitrust issue, not a regulation issue. >> you believe some of the companies are so big, on their face they're so big that they ought to be broken up. >> well, why did google not find time to send a senior executive to testify at the request of elected senators
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one reason, 93 they have a 93% market share, they don't need to show up so far d.c. has been toothless and somewhat incompetent regulating them. i think big tech has become more powerful than the senate i don't -- you know, 93% of the time we try and figure out how intention is going to correlate to action. you type in how to make a dirty bomb or should i buy a gun, the organization and the algorithm, 93% of the time it is one organization i can go one by one across any competitive behavior, not putting in place the safeguard >> why size the problem, why is the sheer fact that facebook so big the problem and the reason maybe in part why there were no
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safeguards put in place? >> i think when you get to the size, you have the capital, the power, the influence to effectively be immune from competition. so i think at this point it is very difficult for any app to get any sunshine, facebook has a technology that goes out and registers if an app is getting traction, if it is getting traction, it adopts the features into its own app if they still can't kill the app this he go out and buy it. i would argue if you have one company that is four of the five largest apps in the world, this is largely an app -- controlled by one company you end up an economy where new business formation is at a 40 year low and larger companies that are traditionally better employers and better taxpayers are being prematurely euthanized not evil haven't done anything wrong, they're doing their job. they're at a natural point in the economic cycle where they become so big and influential, we need to oxygenate the market
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place by breaking them up. >> when sandberg says something on the order of, we favor facebook, we support reasonable or logical regulation, what is she saying there or is she speaking in corporate code that basically they all executives do when they go on capitol hill, and they say, we favor reasonable regulation, which means our regulation, our way, not regulation you impose upon us what is she saying >> i think it is a talking point. mark zuckerberg said the same thing, at the last hearing, he said that i don't, you know, i'm not sure we shouldn't be regulated. but meanwhile, facebook is dramatically increased its budget, i can tell you the lobbyists aren't running around to senators and congress people and asking them to regulate them so i think it is part of a narrative, i think it is part of what i call this faux concern, acknowledge the issue, apologize, point to some modest
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gains against the issue and then, you know, piece out, head back and grow earnings and grow shareholder value. it is a better model for a manufacturer to pour mechanicmuk mercury into the river they're doing their job. we are not doing our job it is time for regulators and in my opinion the doj to join the cia, the parks and recreation service and the coast guard and do their job it is time to break these guys up. >> we're going to leave it there. always good to speak with you. the nasdaq is the big loser today, one of its biggest drops in more than a mix the dow currently up by .04 or ten points september historically a bad month for equities, does the recent rally have legs
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>> people are emotional. you hear that? makes me more bullish. >> why more bullish? >> i think people by and large, melissa, have been trading with this and not trading with this these are great theories we talk about, with respect to the professor, but how do i invest in this? we have the greatest tech companies in the world what is happening in facebook and google are a textbook if you want to write a textbook on how companies grow they grow too much too fast. they didn't have the systems in place with respect to compliance and all of this. now they're getting in trouble they tripped from our perspective, terms like regulation and things like that are scary terms. i do agree there could be something happening with respect to europe first relative to the united states. anytime you get the government involved with respect to companies, that's a little bit shaky. free markets work for a reason and these companies with respect
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to technology have some of the strongest balance sheets, strongest cash flow and most discernible earnings in the world. they'll weather the storm. >> is the regulatory risk the reason why the stocks are down today? >> i think so. i think facebook has been the poster child facebook doesn't have issues with respect to regulation they have issues with respect to user and traditional business. >> we're watching jack dorsey arrive for his hearing on the house side in front of the committee there. >> the bigger issue with tech is that over the last couple of years, investors have become too reliant on the sector for returns. there is not a lot of original thought. that's a big problem for us, that's why from a stock picking perspective, we're still very bullish with respect to value, financials, industrials, companies that are growing their earnings. >> underperforming the market this year. >> underperforming the market this year. just wait, they don't react. >> just wait just wait. i want the 10% return.
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>> this year -- >> that's a hard line to take -- >> it is >> they're underperform at record highs >> it is a hard line to take all the portfolios a we run are outperforming. we have seen massive recoveries. i think some of the weight could come out of tech near term we have another issue with respect to volatility and communications sector coming out later this month which will cause some people to be worried about where the position is. i caution other people to say, listen, still 500 stocks in the s&p 500. let's not go crazy with respect to the new sector and really move things around so hard that you're going to cause too much excess volatility. >> why are the portfolios outperforming. if it is not those ones -- >> i'll tell you -- >> by how much.
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>> i'll tell you we run a value portfolio, and we run four in canada the canadian energy companies have helped us in midyear, but we still own a majority of portfolios, 25, 26% tech we own the right tech companies. so that's helping us we own the bigger banks, because yield curve is beginning to widen a little bit and that will help financials going forward. and the bull market we believe is going to be driven by great companies with great earnings and discernability of earnings those are going to be the -- health care too. these are names and companies in america that are still driving what is happening from the corporate perspective, that's why we're outperforming. >> thank you good to have you with us, fantastic. >> we're standing by for round two of jack dorsey's testimony before the house he'll address how the company determines who stays on the platform and who gets kicked
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off. rtn a bring you the q and poioas soon as it happens. and also keeping an eye on trade, canada and the u.s. have resumed trade talks, will we get a deal, if so what could that look like? harold hamm weighs in on that and much more ahead.
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welcome back to "power lunch. the foreign minister resuming trade talks. eamon javers has more. >> back in washington and she's out front of u.s. trade
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representatives office now take a look. she's answering questions from reporters in this brutal early september heat here in washington, d.c. we'll get you an update on what she's telling our folks over there as soon as we have it. meanwhile, we're looking at some sticking points here in this negotiation designed to bring canada back in to this revised nafta agreement agreed to by the united states and mexico as a bilateral deal last week talks broke down at the end of last week. back at the negotiating table now. the deadline is october 1st for them to get everything done and canada back in this deal a little more time couple of sticking points to pay attention to here, including an improved dispute resolution mechanism, exactly how they can settle any conflict as they go through with this revised treaty also, one question around patent issues around pharmaceuticals and specifically biotechs, that's a question that they're going to have to figure out,
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canadians are very concerned about harming the canadian health care system and prices of pharmaceuticals on their end also the dairy supply chain management program in canada is one that the canadians are sensitive about not making any changes too. we saw justin trudeau, the prime minister of canada, come out yesterday and say, i bet no nafta deal is better than a bad nafta deal he was signaling very much he's not in the mood to make any concessions. saw some leaked comments last week say iing he's not in the md to make any concessions. >> whether it is rhetoric or whether this is just the latest stage in bargaining, thank you >> what is the business community looking for on trade joining us is harold hamm, the chairman and ceo of continental resources. he's presenting at the barclays conference in new york where he says it is time to get back into energy we'll get into that in a moment. but, first, let's start with trade. harold, thanks for joining us
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today. >> thank you good to be with you. >> given the fact we do have the trade talks, trade tensions, between the u.s. and a number of different countries right now, has strengthened the u.s. dollar, put pressure on commodity prices, including crude oil, is this keeping you up at night? >> no, it is not canada is working to perfect the trade agreement. that's good news and certainly it didn't affect our company all that much, but the overall company economy does affect us. so trade agreement with canada will definitely help so glad to see them working forward to get that done. >> crew would not be subject to tariffs. do you think we get a deal >> well, i'm not real worried
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about crude oil being under tariffs. it has been open free trade and, you know, we're -- they need our oil. i don't see that happening, so -- but, you know, overall, free trade is good for everybody. and we need that to happen so i think we'll get it done we're getting in a better environment as each one of these agreements are made and with the work that mexico, u.s. has done, that paves the way for canada to come in and also good things to happen with china. >> harold, about three years ago, i was standing in the permian basin in front of an oil rig. wti dropped below 30 bucks a barrel it rebounded quite significantly from there where do you see oil prices finishing out the year >> i think we're entering into what i'll call an oil
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supercycle, much like we had in 2007 we have been through a drastic rebalancing in the world and right now there is about 1.5 million barrels a day excess capacity in the world, that's all it is. that's in 100 million barrel a day market that's razor thin. so if i equate that back, you know, in my history, i see that at a level that we were at 2007 going forward, and so we call that a supercycle that lasted some seven years so i think we're in for a long term growth cycle. the u.s. is definitely in expansion cycle, some 800,000 to a million barrels more per year. with the demand that meeting 1.5 to 1.8 million barrels a year within the current economy
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i can see this being a very long-term situation. we got some things coming, like the international maritime organization that will require clean fuel 18 months away. some people think that will take 2.2 million barrels a day. we're going to be in a shorter supply cycle >> let me turn your attention to a topic i know you're familiar with and probably want to talk about. an op-ed that ran in the new york times by the writer bethany maclane, business writer by all accounts or most accounts. the heart of her argument is there is no shortage of capital to go into exploration projects, horizontal drilling and the like but much harder has been to create positive cash flows and she points out at least according to her research that of the 20 biggest something like
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only five have managed to produce positive cash flows. i would like you to address her argument and her concerns about the ability of some of the exploration and drilling companies to make money over the long run >> basically the first paragraph there, she had three misstatements in it. george mitchell proved you could get natural gas out of a vertical well. he didn't. he wasn't drilling horizontally at the time. that was done by devin, bought his properties, you know, this fracking goes back 75 years, didn't just start ten years ago. it goes on and on. so we're a good bellwether company in that regard this year our company will -- we announced it will have free cash flow of 800 million to 100
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billion, just this year. there is a lot of companies making money there is a lot of companies laying -- capturing the natural resources that was out there for a while and basically use d rigs to hbp those properties. during that acquisition phase, people, you know, layered up with debt. but they have been paying that off as our company has and other companies. and making a profit. so today we're in a different environment. we're harvesting those assets going forward. we have got a long, strong portfolio of assets to grow from >> always good it see you. thank you for your views today, appreciate it. >> you bet, thank you. >> howard hamm >> jack dorsey's second hearing, this one in front of the house, is just minutes away and we're waiting for him to arrive
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we thought we saw him arrive earlier. maybe it was a false sighting. fake news. lawmakers expected to ask him about election meddling and censorship we'll bring it to you live when the questioning begins don't go anywhere. are you taking the tissue test?
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we promised you jack dorsey's arrival and there it is. he has officially arrived at the rayburn house building i guess the southwest side of the capitol. there goes mr. dorsey through the magnetometer now to sue herera. >> here what's happening at this hour, everyone we begin with secretary of state mike pompeo holding talks with pakistan's new prime minister in islamab islamabad. the meeting comes at a time when relations have sunk to a new low. the u.s. recently can't lcancela fund payment to pakistan. two russian men charged with the poisoning of sergei skripal and yulia. they were charged in absentia.
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police in dallas arrested a man after he repeatedly crashed his truck into the local fox tv station. the man got out of his crashed vehicle and began ranting about treason. police said he wasn't targeting fox, but drawing attention to an officer-involved shooting. a study from harvard business school says home prices increased by .5% in neighborhoods that are home to a starbucks coffee shop. researchers believe the increase may be due to more affluent customers moving into these neighborhoods who then frequent the chain. you're up to date. morgan, back to you. >> i believe they call it gentrification thank you. let's check on the bond market, rick santelli tracking the action at the cme. >> february 1st start of tens shows you everything you need to know we really move in range tight formation. we closed just a little bit under 290 yesterday. everybody will round it to 290,
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was the 18 session in the 280s today, hovering on change and the same spot, italian tens, pretty wild times since april. back under 3%. easy in some of the spread pressures keeping our rates in sovereign rates in europe a bit firm the emerging market, look at the volatility between 9 and 10:00 eastern. we have gone guns hot again. the fundamentals of emerging markets aren't going to change that takes a long time finally, volatility in the dollar index matched right up with the emerging market etf, that makes sense as there is always a scramble when the numbers change to find those dollars. rick santelli, thank you very much. coming up, round two for jack dorsey on capitol hill. his testimony in front of the house minutes away we'll bring it to you live ♪
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monitor their blood glucose every day. which means they have to stop. and stick their fingers. repeatedly. today, life-changing technology from abbott makes it possible to track glucose levels. without drawing a drop of blood, again and again. the most personal technology, is technology with the power to change your life. life. to the fullest. welcome back to power. let's get to sarah with news aalert nike is out. >> a new ad is out, yes. nike doubling down on colin
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kaepernick, posting on their youtube account an ad that will run in tomorrow's nfl opener colin kaepernick is the narrator tells the story of a number of athletes that faced obstacles called "dream crazy" >> if you're born a refugee, don't let it stop you from playing soccer for the national team at age 16. don't become the best basketball player on the planet be bigger than basketball. believe in something, even if it means -- >> you're listening to kaepernick's voice telling the story of a numbe o athletes including lebrome is nd and sticking with it, that is a message to the nfl, and tos it s just do it campaign 30 years after the beginning. a lightning rod with president
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trump tweeting earlier, nike is getting absolutely killed with anger and boycotts for nike's stock part, it is higher after dropping 3% the company reports earnings in three weeks. we will see what the real sales impact is on the quarter >> did i hear you say they're going to run this tomorrow night on the nfl opener? >> correct >> that is a hot poker in the eye of roger goodell. >> absolutely. and the nfl was forced to come up and say we support issues like social justice reform, colin has animportant message, skirting the issue nike is a close partner with the nfl, just reupped a ten year deal this year to 2028 to outfit the team as much of a statement to nfl and to roger goodell as it is to the consumers. >> thank you very much >> thank you >> big tech on capitol hill today facing questions from lawmakers about election meddling and censorship.
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round two just about to get under way. we'l question and answer portion begins let's get to reporters on the ground we'll start off with you what do you think is the biggest burning issue out there for the congress people. >> well, this hearing is really focused in on whether or not twitter is biased. whether its algorithms are biased the way they decide who and what to block on the platform, this, of course, comes on the heels of president trump accusing twitter as well as other platforms of being biased against conservatives so that iss dispu twitter as to whether jack dorsey played any role in deciding who stay on the platform, twitter saying adamantly that jack had no role, but some news outlets are reporting that he actually had some say in it
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did he address that this morning? >> this will be a much different line of questioning, probably more challenging for dorsey. that piece in the journal argued twitter's safety team making certain calls on certain accounts that were later either weighed in on by jack or even reversed by jack we'll have to see if he confirms any of that. to julia's point, on the lookout for algorithmic fairness. jack may get to that also, watch for him to come armed with a lot of data he'll point out something about conservative tweets. tweets referencing make america great again, #maga he'll try to rebut some of the lawmakers' questioning, i'm assuming, that will point to whether or not twitter has some left leaning bias. as he said, some employees do in
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one of his recent interviews >> i realize twitter has come under fire in the last couple of weeks for this idea, debate of bias, it is not the only social media company that has been sort of at the heart of that debate why is it only twitter being asked to testify in front of the house today? >> well, remember, of course, morgan, not only twitter and facebook, but also google was invited to speak this morning in front of the senate intelligence committee here that was intended to be about election interference, but it did turn out to be about a range of things including transparency and fake news and even the topic that is going to be in focus this afternoon, which is whether or not these companies are biased and whether or not their interests are aligned with those of the american people so i think that the reason why twitter is coming under particular scrutiny here and dorsey in particular is because it is this open platform twitter is unlike facebook,
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unlike snapchat, in that twitter is really about what dorsey himself calls the town square. facebook is much more about those personal private relationships, twitter is more like an open platform where there is more of a traditional analogy for censorship allegations now that twitter is censoring the likes of alex jones. >> we'll leave it there for now. i'm sure we'll see much more of you as the hearing gets under way. let's get over to elon who spoke with senator marco rubio outside the hearing room earlier she's with us live from washington. >> a run in with alex jones himself but the hearing that rubio participated in had been fairly cordial fireworks in the hallways. he said he would prefer not to regulate social media companies, but instead let competition and free markets do their work
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then, alex jones came up and interrupted him as he was trolling the hallways outside the hearing room. >> here's the question -- >> don't touch me again, man i'm asking you not to touch me. >> i patted you nicely. >> i don't know who you are. you'll get arrested. i'll take care of it myself. >> you're threatening to beat me up. >> he said he's a staunch supporter of the first amendment. so he was trying to keep that interview on track, didn't really work. >> elon, thank you for bringing us that. let's break down what we heard so far and talk more about what to expect from the hearings set to get under way a few minutes from now joining us is james pethakousis.
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what did you make of what you heard this morning and what do you expect from mr. dorsey this afternoon? >> well, tyler, especially given the range of hearings going on over at the senate, i thought this one was the more encouraging one and more thoughtful one i think you had senator warner and senator burr who put a lot of thought into this issue, have serious ideas and they're trying to figure out what the right thing to do is what i found most encouraging, i'll say, not just good news, but i think they are all focused on the fact that this is a complex and long run problem and the question of interference in our political process through online platforms is going to continue there is not a silver bullet that will solve this problem it is like the hardest cybersecurity problems that we have today we have gotten used to the fact
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that banks are vulnerable to cybersecurity, and what we're learning here in the social media environment is that this is a new kind of cybersecurity attack at the information level. these are not -- the russians are not breaking into the back end of twitter or facebook, they're coming in through the front end and the challenge is to detect them i think everyone is focused on the right set of problems and i found it sobering that i don't think anyone is really saying there is a magic technical fix or magic regulatory fix. it is something that both these companies and the governments are going to have to continue to put more energy into to try to understand how to manage it. >> jimmy, mr. weitzer points out the complexity of the problem and finding a solution to it, lurking -- when congress is having hearings. they're having hearings generally because they're
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seeking some sort of legislative approach to solving the problem. is there a regulatory or legislative element in this or is it really just incumbent on the companies to do their jobs and for the free market to be freed to do its job. >> well, listen, i think, you know, i think the company could love to be left up to their own devices, would love to get out of the moderation business if they could and you could say, listen, if you don't like the job these companies are doing, go create your own if conservatives don't like twitter or facebook, go create their own conservative platform, much like fox news or something like that. i think it is unlikely the government is not going to get involved at some point mike warner has come up with a white paper, some 20 different policy approaches. i'm not sure any of those is the right one or solves some of the problems my concern is that they have forces on the left and the right
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who may not be -- who may not be satisfied with those kinds of technical approaches you have recently people on the right talking about turning these companies in the public utilities, a big breakup, big tech movement on the left, and i wonder if sort of the political process may be moving a lot faster than the legislative process. we could get a bad result here. >> when you're talking about technical fix on the legislative side, the danger is that this is like whac-a-mole as soon as you put a fix in place, these bad guys will find another way into the platform to exert the influence. on that point, what fascinated me was your point that this is a cybersecurity issue. this is a national security issue that is happening in the cyb cybersphere. are we approaching it in the wrong way with congress holding hearings such as the one that we're watching jack dorsey by the way, entering the hall, so we may have to interrupt this. should we be looking at this as a security issue
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>> i think that it is actually very good news that congress is paying serious attention to this issue. i think congress reflects the concern that a lot of people in the american public have about what is happening to these platforms and do users have a sense of trust these companies are responding to a whole range of signals, they respond to market signals, they respond to signals from government whether or not legislation actually happens they certainly are responding to the fact that there say lot of attention being focused on them. i think that's clearly appropriate. what i would say, though, is that i don't think we're in an either/or binary environment as to legislation or market forces. we have a lot of legislation already that governs the online environment. we have a very important law that protects the online platforms from liability -- congress just amended that there was a lot of concern from
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some of my former colleagues that this would really harm free speech so far it is not really clear. but i think that companies have always had some responsibility that the trick is to get the right kind of balance and make sure they're investing the right amount addressing the security issues. the only way that's going to change is with continued pressure from congress, continued pressure from the market and i think, you know, that has to go on one thing i think that is really tricky here is distinct from other kinds of cybersecurity issues, if you attack a bank, there is financial loss and you can figure out who was responsible. who has the financial harm here? this is really the public as a whole in some ways that is suffering when the platforms don't take adequate care of
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their environments so if there is any role for government, it is probably here. the question is how to do it in a smart way. >> okay. gentlemen, thank you we're still waiting for twitter ceo jack dorsey's q and a testimony in front of the house. right now we have got greg walden, chairman of the house committee, on energy and commerce, giving his opening statements we will bring you the q and a once it begins and goldman sachs has a change of heart when it comes to its crypto plans l osdeilahd well.
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welcome back to plumplg. the etf that tracks emerging markets is down 5% over the past week week amid worries in independent indonesia and eight argentin argentina. let's bring in tim seymour
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tim, good the see you. >> good to be here, to talk about a very difficult time and an asset class that has periodically throughout the years been in it this is about as extreme as we've seen that's saying something for emerging markets the dynamics of trade, the dynamics of the federal reserve liquidity being sucked out of the markets, a lot of the liquidity being dollarized with the corporates is what is pressing there. >> you mentioned the s&p 500 does that imimply that you expect a reversion to the mean, that that gap closes, or is this so bad at this point and also give the weakening macro, the numbers that we are seeing do you think this continues >> i am a me reversion trade person. >> what's what they say about you. >> that's the secret, tyler. >> does that mean reversion guy tim. >> bottom line, if you have been
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playing moon reversion trades over the past eight months it's been painful we had an outperformance after the elections in 2016, you saw emerging markets rally into the january period where they outperformed the s&p 500 since then, april 1st, they have underperformed by 21% to the s&p, extreme. >> there is a tarring with brush phenomenon there are emerging markets and there may be others worth taking a look at. >> right. >> you can pinpoint argentina, they, indonesia, and maybe others, but are there some where there is a flicker of light and you would put money? >> it is a fair question again, just to understand the dynamics of the index and how it's compiled. 65% of the eem or the voo or the etf is asia. a lot of people think asian growth is still good we are worried about china but india is growing gang busters,
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8.5% the current account currencies in those countries india and indonesia and brazil and, they -- i think mexico, actually, if you consider the tail winds coming possibly from the nafta deal also we have gotten through elections there, we have seen what was expected to be an extreme left government coming more to the center i think a lot of bad news is priced in there. the eww playing mexico i think is interesting into what about tech today they are trading down along with big tech here in the united states? >> it is hard to know which is the tail or the dog. if you think about the eem, ten september between its ownity with aing, alibaba is 4% are you getting sold down because the asset class is being hedged one of them. we just got numbers out of alibaba. they are going to grow 60% they have multiple driver drivers. it is a stock i'm long but i think investors arev to look at
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key levels on some of the stocks and see where they are willing to take risk right now this is a key level for alibaba. >> you are sticking with it. >> i'm sticking with it. i'm concerned about the next couple of weeks with the fed with some of the dynamics here and the spreads to u.s. markets which are not getting better. >> thanks tim, great to see you. >> bitcoin and the cryptos getting whacked today following comments from goldman sachs. seema mody has more. >> that's right. right around the time bitcoin hit an all-time high in late december rumored started to circulate goldman sachs was looking to launch a crypto trading desk a. new report today shows that goldman is shelving the plans due to rel laer to concerns bitcoin is down 6% when we asked about more details they stuck by their statement from the past saying we are exploring how best to sever them in the space at this point we have not reached a conclusion on the scope of or digital asset
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offering investors were hoping goldman sachs's crypto space would provide credibility and provide access to cross examination. some experts say a delay may not be such a bad thing and a rollout could happen sometime next year. meantime traders are awaiting a decision by the pcc on a bitcoin etf which has been pushed to late december. bitcoin is trading at under 7:000. others are also trading do on this news. we are still awaiting jack dorsey's q and a in the house. we are going the take you there as soon as it begins we have another jam ckpaed hours of "power lunch" that begins right after this your healthcare business. so that if she has a heart problem & the staff needs to know, they will & they'll drop everything can you take a look at her vitals? & share the data with other specialists yeah, i'm looking at them now. & they'll drop everything
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welcome to a special edition of "power lunch. i'm melissa lee. big tech getting grilled on capitol hill round two of testimony versus twitter ceo jack ---y before the house energy and house commerce committee. >> there he is giving his opening statement. we will pick up when he is answering questions from the
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members. we have full team coverage of the hearing. let's go to capitol hill now where carl quintanilla is standing by with the vice chairman of the senate intelligence committee, mark warner of virginia >> tyler, thank you. senator thank you for your time. >> thank you. >> a thoughtful discussion today. i think it's getting strong marks were people who watch closely. >> that's awesome. but the bar was set low in terms of other senators' knowledge level you. >> said this would not be internet 101 you were true to your word you said in there after a few false starts you thought the companies were starting to get religion in a sense. what changed >> i think the extent of the russian interference became more and more obvious tipping threat that congress or others may step in and i frankly think there were an awful lot of users who were starting to lose faith this the fact that these platforms were doing any self policing at all
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the volume of bots, the volume of fake accounts, i think they realized it was in their own best interest to try to help clean this up a lint if they are going the maintain users' confidence. >> he would didn't hear the words very much, break up, anti-trust, utility style regulation, fcc. are those arguments fading >> i think there are some people who would still argue that i have -- that's not why i am going to start i'm also a little worried if we look at these companies in isolation without looking at this as a worldwide market i don't know to replace american innovation with chinese tech companies who will come in with virtually no restrictions at all. where i thought the markers were today was a willingness for example, from twitter to say yes maybe we ought to go ahead and indicate whether you are being communicated with by a human being or with a bot. i thought sarl sandberg took a bold step saying not only was
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she willing to make it known what facebook users knew what they were taking, how they were using their data but also said she would take the step to make sure users knew how they were monetizing that. and facebook admitting they had a moral obligation to take down the sites that insight violence. i thought the companies were leaning in. >> if this is the beginning of a long debate, those are some concrete examples of things that could happen practically, and soon >> you never like to say practically and soon and put congress in the same sentence. >> okay. >> i think there is a growing are anything that even though these companies are going the lean in there are a series of or platform companies that might not be as willing. you are going to need some rules of the road. not about cutting off innovation
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but trying to restore users' faith. >> i have to ask you about google's absence why? >> great question. i have known the google folks for a long, long time. i don't get it you know, frankly, in terms of the misinformation, diss information, you tube has been a smaller khang challenge than say the facebook or twitter posts. there are a series of others questions that have arisen but they indicated they were not going to come even before mr. trump started tweeting allowed. >> why isn't the general counsel here >> we had them last november this is the time for the ceos, the chief operating officers to appear i think you heard uniformly from senators of both parties real frustrationed with google not showing up. >> people who speculate about a a subpoena are they off base >> i think we have been trying to do this in a ways that cla
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raabtive today was not a bunch of gotcha questions. it was really about how do we work toward a solution i think it's in google's best interesting to be at that taliban. >> my question is how badly do you want to, need to hear from them, will you force them? >> we are going to keep all of our tools. i would still rather start this process in a collaborative fashion. we have not heard in a formal way back from google other than the fact that they weren't sending anyone else and that they were willing to still sent kent to debrief but i think they need to be publicly explaining to the american public why they think they shouldn't be part of the solution since clearly there is a challenge and a jose of other challenges maybe they didn't want to raise that they are cooperating with china to build a search engine that would accept chinese censorship. i would think if they aren't doing that they would want to make the case and explain to us as policy makers. >> i want to ask you about al
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egg jones, because his presence some argue colors the debate just being here. what did you make of what they said how do we talk about these things if he is going to be coming in? >> i didn't see the whole he can change i was still in the committee room but when you have got someone who is frankly as kind of out there as this mr. jones is, who i would argue when some of his conspiracy theories are causing for example, the parents of the sandy hook victims to have to change their identities, move out of their houses, i would argue that some of those arguments are the kind of incenting violence that need to be examined. i don't think mr. jones is part of a productive part of the discussion it is part of the kind of dark underbelly of the ecosystem that's been created. >> do you see a line between for example, samberg's comment on myanmar and jones in the u.s.? >> i'm not going to jump all the way there. but i am going to jump that if
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there is both moral and legal obligations to take down sites that incent violence, and clearly she acknowledged circumstances in miramar -- unites' all a gradation but i think that's a healthy didn't to have the fact is that the town square you had at to be able to have all voices but there ought to be some counter when people are just making thing up. that doesn't mean to have to necessarily remove them but there ought to be couldn't. >> reporter: what are you looking for specifically from these companies? >> i want to continue to hear, one, that they are working with our intelligence community and with third party operators for example, it was i think third party validator, third party cyber company that found some of the things that that shirl had taken down, facebook had taken down in terms of the
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sites. this is going to be an iterative process. the russians are getting better as well. when we marry a cyber intrusion and then a foreign entity taking that hacked information, the personal information, contacting carl when you have information and you have a figure that's not that figure you have the marrying frankly it will probably have a first order effect on the business world before the political world. >> senator thank you for your time a really informational hearing today. mark warner of virginia. back to you. the q and a pouring of the hearings have begun. let's listen in as twitter's ceo jack dorsey sits in the hot seat. >> now recognize the gentleman from new jersey. >> thank you mr. chairman. twitter's effect on american society raises genuine and serious issues that's not why the republican
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majority has called youhere today, mr. dorsey. i think it's the height of hypocrisy that president trump and congressional republicans criticize twitter for supposed liberal bias when president trump uses the platform every day for his juvenile tweets and spreading lies and misinformation to the whole country and to the world in my opinion, you have an obligation to ensure your platform at a minimum does no harm to our country, our democracy, and the american public as i noted in my opening one persistent critique of twitter by civil rights advocates and victims of abuse and others is that your policies are uneventually enforced. the research and powerful get special treatment. others get little recourse unless the company gets bad press. you have admitted twitter needs to do a better job explaining how decisions are made especially those by human content moderators who handle the most difficult and sensitive questions. let me just ask you, how many human content moderators does
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twitter employ in the u.s. and how much do they get paid? >> we -- we want to think about this problem not in terms of the number of people but how we make decisions to invest in building new technologies. >> let me issue three questions on this point. if you can answer it i would appreciate it. if you can't, through the chairman, if you could get back to us. the first one was how many human content moderators does twitter employ in the u.s. and how much do they get paid second, how many hours of training is given to them to ensure consistency on their decisions? last, are they given specific strucks to ensure that celebrities and politicians are treated the same as everyone if you can answer, otherwise i am going to get back to us in writing. >> we will follow up with you on specific numbers but on the last point, this is a very important distinction i do believe that we need to do more around protecting private individuals than public figures.
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i don't know yet exactly how that will manifest but i believe it is important that we extend the protection of our rules more to private individuals necessarily than public figures. >> i appreciate that because i think everyone should be treated the same and you seem to be saying that but we have to make sure that the enforcement mechanism is there, so that's true. then let me ask if you could report back to the committee within one month of what steps twitter is taking to improve the consistency of its enforcement and the metrics that demonstrate improvement, if you could, within a month >> absolutely. >> is that okay? all right. now let me turn to another issue. i only have a men. other technology companies like airbnb and facebook committed to conducting civil rights audits amid concerned raise by the black hawk caucus and others these audits seek to uncover how platforms and their policies have been used to stoke racial
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or religious regentment and violence given the generous approach of your platform and the haphazard approach toward evers inning policies i think your policy should sake similar action let me ask you these three questions. again, if you can answer them. if not, get back to us within the monday will you be willing to work with a third party auditor to conduct a civil rights audit of twitter, yes or no? >> we will, and we do do that on a regular basis with our trust and safety council. >> auto i am asking for an independent third party institution to conduct it? >> let me follow up with you on that. >> second, will you which it to making the results of all such audits available to the public including all recommendations and finding. yes, we believe we need more transparticipatesy around our actions and our decisions. >> the third one mr. chairman with your permission, will you commit base on the findings of all such orders to change
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twitter' programs, policies, processes to address these areas of concern, yes or no? >> we are always looking to evolve our policies based on what we find so yes. >> again, if you could get a response to the chairman in one month i would appreciate it. >> now turn to mr. upton. >> thank you mr. chairman. mr. dorsey i think it is fair to say even looking at my twitter feed there are some fairly ugly things on twitter that come every now and then my fred up ton and i have a bet that my initials are used more than just about any other. might even think it is bipartisan, on both sides of the aisle. but i would like to see civility brought back into the public discourse. in a july post, twitter acknowledged that tweets from
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bad faith actors who intend to manipulator divide the conversations should be ranked lower. so the question is, how do you determine whether a user is tweeting to manipulator divide the conversation >> this is a great question. and one that we have struggled with in the past we recently determined that we needed something much more tangible and cohesive in order to think about this work and we've come across health as a concept. and we have all had experiences where we felt we have been in a conversation that felt a little bit more toxic and we wanted to walk away from it. we have all been in conversations that felt empowering and something that we are learning from. and we want to stay in them. right now we are trying to determine what the indicators of conversational health are. and we are starting with four indicators one is what is the amount of shared attention that a conversation has what percentage of the conversation is focused on the
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same things? what is a percentage of shared facts that the conversation is having not whether the facts are true or false but are we sharing the same facts what percentage of the conversation is receptive? and finally, is there a variety of perspective within the conversation or is it a filter bubble or echo chamber of the same sort of ideas so we are currently trying to figure out what those indicators of health are and measure them and we intend not only to share what those indicators are that we have found will yous about to measure ourselves against it and make that public so we can show progress because we don't believe we can really fix anything unless we can measure it and we are working with external parties to help us do that. we know we can't do this alone. >> do you believe that twitter's rules are clear on what's allowed and what's not allowed on the platform? >> i believe if you were to go to our rules today and sit down with a cup of coffee you would not be able to understand them
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i believe we need to do a much better job not only with those rules but with our terms of service. we need to make them a whole lot more approachable. we would love the lead in this area and we are working on this but i think there is a lot of -- i think there is a lot of confusion around our rules and also our enforcement and we intend to fix it. >> last question is, can a twitter user's friend or someone that they follow grant permission to access to that user's personal information to a third party? >> no. we -- -- if you are sharing your password of your account with another then they have the rights that you would have to take on with that account. >> yield back. >> chair now recognizes the gentleman from new york, mr. engle -- he's not here
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the chair now recognizes the gentleman from colorado, ms. due get. we are going by the order we were given. >> thank you mr. chairman. mr. dorsey thank you for joining us here today. these are important issues even though the democrats have highlighted really some of the reasons why you came, we think our political and wrong, nonetheless there are some real issues with twitter that i think we can discuss today and as you said, twitter really has become a tool for engagement across society and recently we saw some of its positive social change with the role it has played in the me too movement but nonetheless, twitter has also experienced its own sexual harassment problem to confront i just wanted to ask you some questions about how twitter is dealing with these issues.
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i don't know if you are aware, mr. dorsey, of the amnesty international report called toxic twitter, a toxic place for women. are you aware of that? >> i am aware of it. >> mr. chairman, i would like to ask nanoconsent to put that in the record. >> without objection. >> now, in in a report, it describes the issues women face on twitter and how twitter could change to be more friendly to women. i assume you have talked to amnesty international about this report and about some of their recommendations? >> i am not sure in -- i haven't personally but i imagine folks on your team have. but we can follow up with you. >> thank you the report goes into great and frankly graphic detail of the types of abuses that have been used -- experienced on twitter, including threats of rape, bodily harm and death. now some were found to have violated twitter's guidelines, but others were not. i think probably you and your staff agree that twitter needs to do a better job of addressing instances where some of the
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users are using the platform to harass and threaten others and so i'm wondering if you can tell me, does twitter currently have data on reports of abusive conduct including on the basis of race, religion, gender orring sexual orientation targeting threatened violence. secondly does twitter have records on the actions it has taken to address these complaints >> a few thing first and foremost, we don't believe that we can create a digital public square for people if they don't feel safe to participate in the first place and that is our number one and singular objective as a company is to increase the health of this public space. we do have data on all violations that we have seen across the platform. and the context of those violations and we do intend, and this will be an initiative this year, to
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create a transparticipatesy report that will make that data more public so that all can learn from it and we can also be -- held publicly accountable to it. >> that's good news. you say you will have that this year >> we are working on it as an initiative this year we have a lot of work to do toing a rate all the data into a report that will be meaningful. >> is twitter also taking actions to address some of the deficiencies that have been identified in that report and in other places >> we are. we are definitely -- we are focusing -- one other point i wanted to make is that we don't feel it is fair that the victims of abuse and harassment have to do the work to report it. >> yes. >> today our system does work on reports, especially when it has to take content down so abuse reports is a metric that we would look at, not as something that we want to go up because it's easier to report things but as something we want to go down, not only because we think that we can reduce the
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amount of abuse, but we can actually create technology to recognize it before people have to do the reporting themselves. >> recognize it and take it down before a report has to be made >> yes any series of enforcement actions all the way to the extreme of it, which is removing content. >> thank you mr. chairman, i just want to say for example, i don't think these issues are unique to twitter unlike so many of the invented borderline conspiracy theories, i believe this is a real threat, and i appreciate you, mr. dorsey, taking this seriously, and your entire organization, so that we can really reduce these threats on line. thank you. and i yield back. >> thank you yields back. chair recognizes gentleman from illinois for questions. >> thank you mr. chairman. mr. dorsey, first of all, go cards. i am from the st. louis metropolitan area. be careful of collin behind you who has been known to be in this committee room a couple of times. we are glad to have him back. >> we are going to go to the white house and see some remarks by the president, who is meeting
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with the amir of kuwait moments ago in the oval office we will get back to mr. dorsey later. >> incredible answers to very complex questions. he's an outstanding intellect. he's an outstanding judge. he was born for the position i heard as long as ten years ago people were saying he should be a supreme court judge. i didn't know him at the time but i was hearing from a lot of people, friends of mine from washington and other places saying that brett kavanaugh should be a supreme court judge some day i'm honored that i gave him the chance i have watched his remarks i have watched his performance, i have watched his statements. and honestly, they have been totally brilliant. i think that the other side is grasping at straws and really, the other side should embrace him because you are never going to find better in terms of talent or intellect than what you have in brett kavanaugh. [ overlapping speakers ]
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>> bob -- the book you mean on the book the book means nothing it is a work of fiction. already general mattis has come out very, very strongly. and i think you know general mattis he does what he wants to do. he is a very independent guy he was insulted by the remarks that were attributed him and he came out with a very strong statement i assume you read it i hope you read it last night general john kelly the very same thing. he felt insulted by what they said he's right here. he's insulted by -- he couldn't believe what they said he put out a very strong statement. and many others. many others statements are coming outr out. the book is a work of fiction. if you look at woodward's past he has done this with other administration we have done more than any other administration in less than two years. it is incredible weir we will soon be approaching two years.
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there is no other administration that has done more work. when you look at tax cuts, regulation cuts. supreme court justices, the court system generally and so much more even if you look at the health care pramts that we are passing. -- pams that we a -- programs that we are passing. we are saving social security. democrats were destroying social security we are saving medicare democrats want to destroy medicare we will save it. we will keep it going. we are making it stronger. we are making social security stronger we are making our whole country stronger all you have to do is look at the achievements but i was very honored when without my even knowing about it statements were put out by generalcaly, by general mattis, highly respected people by everybody, including yourselves and the book is a work of fiction. it is a -- really, if you look at it, it was put out to interfere in my opinion at this time with the catch hearings,
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which i don't think it has done because so many people have come out against it so many people who have been written about said i never said that rudy giuliani is another one. he is very insulted by the book and what was stated in the book. we run -- we do run a strong white house. there is no question about it. and we are doing thing that nobody else has ever been able to do. and our country is stronger now than it has ever been. and in a very short period of time $700 billion being spent on the military the next year, 716 -- $716 billion. we will be far stronger than we have ever been and that's where we needed to be. thank you very much. [ overlapping speakers ] >> bilateral relations between the two countries. >> we have a great relationship. first of all i have a great personal relationship with amir, and kuwait is a place i have known for a long time.
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i have many friends who live in kuwait they live frankly in washington and new york mostly that i know and i have known them for a long time very, very fine people relationship, our bilateral relationship is very, very powerful, very strong. and they view us as a place where they have done very well and they like to invest their money in the united states so we like that. [ overlapping speakers ] >> canada is meeting with us right now as we speak. we have the make a fair deal with canada. as you know, they charge tariffs of 300% on dairy products which a lot of people never understood they have walls up against us doing business in canada yet they come and do business with us. and we can't let that happen look, we have a very strong position and we are the one that people want to come in and take advantage of they have been taking advantage along with it. i love canada. i love the people of canada. but they and other countries
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have been takingadvantage of the united states for many years. and this is a president that has stopped it we have made a deal with mexico. and mexico has been terrific to deal with, including their new president who i spoke with and i think we are going to have a very good relationship with mexico going forward and the deal is a much more fair deal between the united states and mexico because nafta goes down as one of the worst trade deals in the history of our country it emptied out millions of jobs. it emptied out factories and plants all over the united states and it was a very unfair deal. and a very foolish deal. in fact, you could say a very stupid deal for the united states to make we are straightening out these horrible trade deals as you know we had 4.1 gdp it was just raised to 4.2. nobody thought that was possible when the trade deals are fixed and made fair, gdp will go even higher and potentially, much higher than that. if you go back to election, and
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go back to campaigning, nobody ever would have said that was possible except me and maybe a few others that believe in me. thank you all very much. [ overlapping speakers ] >> it's possible anything's possible. anything's possible. we'll see. [ overlapping speakers ] >> say it -- what? what north korea? >> no. syria. >> did you say syria yes. inaudible question. >> i think it is a sad situation in i had little bit, the prorchs, what's going on there, they are surrounded and they feel they have 35,000 of their enemy there and yet you have 3 million people living there. and i just tell you that they
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will hopefully be very, very judicious and careful. because the world is watching. that cannot be a slaughter if it is a slaughter, the world is going to get very, very angry. and the united states is going to get very angry, too >> you are not going to allow it to happen? >> i am watching that very closely. it's surrounded right now. and -- the province. and it's surrounded by a lot of people with a lot of weapons and these are innocent people. you have 3 million at least innocent people there. and you have to be very, very careful. and the world is watching. and the united states is watching very closely. thank you very much, everybody [ overlapping speakers ] >> press, let's go you are finished press, let's go. >> not at all. the book is fiction. i heard somewhere where they said the assassination of
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president assad by the united states never even discussed the book is total fiction. just like he wrote in the past about other presidents you look at what he said about president bush, what he said about president obama. big scandalous thing big -- it lasts for about a day. no that was never even contemplated nor would it be contemplated and it should not have been written about in the book. it's just more fiction the book is total fiction. okay >> all right, guys, let's go guys, let's go. >> thank you very much >> come on make your way out. let's go >> thank you very much >> and we have been listening to president trump answering questions from the white house pool in the back of a meeting with the amir of kuwait. let's bring in eamon javers. certainly a wide range of questions. but the president did make some bold predictions when it comes to gdp if there are trade deals that could be met. >> that's right.
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the president continuing to underscore his hard line in terms of the negotiations with canada not offering really any specific observations on the details of what's being hashed out over at the u.s. trade representative's office right now between the canadians and the united states side but pointing out that he had come to a deal with mexico and he's ready to move forward with mexico if the canadians don't get on board with this negotiation. so the president continuing to hold the line there in terms of his public rhetoric on those negotiations and then obviously you saw the press wrangelsers there trying to shrks oo the reporters out of the room the president clearly wanting to take more questions, responding again and again the reporters continuing to ask him more questions and continuing to come back to his criticism of the bob woodward book "fear" saying it is a total work of fiction and saying it never should have been written. >> thank you for wrapping that up should mention the fighter jets that the u.s. is selling to kuwait rye now, a $175 billion
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deal for the f-15. eamon javers in dc coming up, serve a legends in the world of tennis, an dre agassi joins us feftiscuss the sport, building a li aer tennis and why he says he wakes up with more purpose now than ever. after the break. imagine traveling hassle-free with your golf clubs. now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com
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>> andre agassi played professional tennis for 20 years and spent 101 weeks as the number one player in the world but he says all of that was just a warmup for life after sports eric chemmy joins us now with legendary tennis player andre agassi eric >> that's right. we are here watching the match going on here at ashe stadium. imhere with andre agassi i want to got right into nike, one of your big sponsors the ad campaign with colin kaepernick and high-profile celebrity athletes some people love it. some people hate it. what are your thoughts on nike maybe taking a political stand right now. >> i think nike has had an incredible history of being on the cutting age, shaking the
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cage, rattling the boats they have done it for a long time to sit here and understand why kaepernick is doing it, i love being with nike. as far as the executives, i don't have the luxury of being in their board room so i can't speak to their end game but they are one heck of a company. >> when you were playing in the '90s, i don't think people were asking you your thoughts on politics now it seems like athletes are needing to take a stand one way or another >> it is a heck of a platform. you are in front of a lot of eyeballs we have the right to opinions. you can choose to communicate your feelings and exercise that right. that's your choice for me, i do my opinions in the poll booth >> you do your opinions in the poll booth, not publicly when you think about nike or other big companies, are you concerned that maybe just more companies in general are going to try to pick sides lieu their marketing, through their athletes, and the way they brand
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themselves. >> i done mind myself concerned with how companies run their businesses i find myself concerned with how i conduct myself i try to find overlapping values i think nike has done that as well we see the headlines of doing this or that and we don't see all the headlines of athletes doing wonderful things as well i try to keep my eyes on the ball. >> do you think athletes should play a bigger role in social change >> i think athletes are people and they have the privilege of growing up in a great country and playing their sport for a living god bless them if they want to focus on something besides their craft, i didn't have the energy to do that. >> you grew up in las vegas, you live there now, raising your kids the home of gambling, gambling on sports is sped spreading across the country now we have heard of people tanking matches in tennis, and combining gambling and tennis can be
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tricky what do you think about that being a-2is legend and living in las vegas, both sides of that. >> i'm not sure what you are referring to if people have made decisions out there on the court at the cost of the integrity of the game there should be serious governance over that las vegas doesn't make a living out of ripping people off. it gives people the chance to enjoy sports the way they wouldn't the knights are in vegas now, the raiders are coming to vegas now. i don't think there is any conflict. >> tyler mathisen has a question. >> i remember watching you and sampras play it was maybe a peak time for american men's tennis. what will it take to get american male players back to the level of competitiveness that was there when you and sampras were so dominant it is not to say there is not good ones. icener is a good one, if i pronounced his name correctly.
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generally there are non-u.s. players dominating on the men's side and also in many ways on the women's side. >> first of all, if you are not sweating with all of us, you are not allowed to ask questions you make a great point i think you can blame three of the greatest players to ever play on the face of the earth playing in the same seasons. novak and raja and federer i would love the see more clay courts it translates more into the overall year and shot selection and discipline and just basic work ethic i think growing up in europe on the red clay is a big deal south america, growing up on the red clay is a big deal i think there are little things that that can be done. in the end all of the countries go through their cycles. we saw australia, sweden,
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germany, and becker and steek in spain do it with who knows how many players i think it does come couldn't of in flows it would be niece to see an american at the top i know it would scant rate is our attention and be better for the game. >> to the optics of the game you have been known for crazy outfits. the jean shorts that were famous you pushed the envelope. serena williams was criticized by officials for the cat suit. does tennis need to evolve in terms of that? >> that's a great question to ask. i mean i personally liked serena wearing a cat suit that's just me personally. i remember when i was wearing certain thing and in paris they wanted to implement wimbledon rules. and i responded by basically saying, well then get rid of all your sponsorships on the court like wimbledon does. it is a business at the end of the day. every business sort of has that
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right to make the best decision on behalf of themselves and the sport at large would i pick that battle to fight if i was running a business that wanted to fill up stands, no, i wouldn't i think serena wearing a cat suit helps, quite frmpg frankly. if she wants to more power to her. she gets it done with the racket. >> andre, final question back here where the people are sweating in the heat i thought sports drinks is what people would want if they are out here competing i am not a coffee drinker myself convince me why you are ink doctoring so much coffee and you want to convince everything else to do the same thing explain that for an athlete like you. >> i am not an athlete anymore, secondly i am not competing. coffee is a part of a lot of people's lives i find there is overlap with how
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we have gone go what we care about and what we do that the collateral damage is all great everyone kind of wins from this relationship and it gives me a heck of an excuse to come back here and have a flood of memories just coming rushing through. >> andre we appreciate you coming on to cbs with us and talking to us. >> thank you. >> back to the studio. >> thank you eric chemmy and andring asy. trade war fallout. we will talk to the founder of one u.s. company that could suffer big from the chinese tavares. he says his business is being swept up in this war for no good reason we have got that and more ahead.
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dates, deals, done! tripadvisor. visit tripadvisor.com despite the trade war, the auto make remembers keeping their eyes on the road ahead mercedes-benz is opening a new plant in the united states phil lebeau joins with us more hi, phil. >> hello this is actually an expansion of an existing plant. the plant was a finishing plant. so what is mercedes doing? why is it important, especially today, given everything that's been focused on trade and international automakers, foreign automakers this plant is going from 900 jobs they are adding another 400 jobs and turning it into a final
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assembly plant for the sprinter commercial vans that mercedes-benz sells here in the united states. by the way, today in announcing this, they also announced that amazon is ordering 20,000 of those sprinter vans. that's an order placed today they will be filling that order all the way through the end of 2019 originally, sprinter vans -- that's still going on now until the final assembly plant is up and rolling. they are built in germany. they are completely assembled, then taken apart, then shipped over here where they are put together finished here in the u.s. that's so they can get around the chicken tax and not pay a 25% tariff while that makes sense for avoiding the 25% tariff it is not cost effective nor is it efficient. here is the man who runs mercedes-benz vans talking about what they can accomplish by converting this plant. >> it is more efficiency more efficient because the lead time is shortened from six
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months to some weeks that is very good for our customers because they can order what they would like to have and we can deliver on a very short-term notice. >> reporter: by the way as you look at shares of daimler there is an interesting story here in the sense, guys, that they are, for skilled labor. as you know, there are so many manufacturers coming in here to south carolina they are going to be working hard to be able to fill those 400 jobs. >> phil lebeau reporting the president is having an expanded bilateral meeting with the amir of the state of kuwait. let's listen to what transpired. >> we are discussing that along with many other situations we are talking very much about syria, yemen we are talking about iran and the fact that they have not behaved well over the last number of years. no matter where i go in the middle east i see iran is behind it so we just can't let that
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happen but we have had some very good discussions. right now we are going to be talking about terrorism. we are going to be talking about trade. and please be very, very careful. we have the amir sitting here. and you have a lot of media right behind you so you don't have to look at them but i do you are very lucky you are very lucky i would rather be in your position but it is an honor to have you, and thank you very much for being with us. thank you. thank you, everybody thank you very much for being here okay thank you very much, everybody. thank you very much. thank you. >> let's go. >> any comment on the trade deal >> i think we are going to have a very big trade deal. we have many trade deals are you talking about with canada what trade deal are you talking about? we are dealing on many trade deals. one of the trade deals we caulk talk about constantly is with kuwait and generally the middle east right now we are in very intense
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negotiations i would say would be the word, intense, with canada we will see if it works out. if it doesn't work out that's going to be fine for our country. it won't befine for canada but we love canada they are our next door neighbor. we have had a great relationship for them for many, many years. but look, canada has done very well with this relationship and the united states, from an economic standpoint, you look at the tariffs that were put on our dairy products, and you look at the walls that were built up in terms of barriers. we have tremendous trade barriers and we have not been treated fairly i think they will treat us fairly we have come a long way toward them eat ego treating us fairly. we are meeting right now with canada we will see over the next day or two what happens we have already met with mexico. we are doing other things with mexico i think that will be very interesting. but relationship is very good. i spoke with the new president and i think that relationship is going to be really, really very good thank you all very much.
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appreciate it. [ overlapping speakers ] >> we have a deal with south korea. i read another phony thing in the book about a trade deal that certain people didn't want me to look at. we made a deal with south korea. it may be signed during the united nations conference in a couple of weeks. the deal is done it's been done with south korea for a long time. it is a been done for about two months and we'll do a ceremonial signing over the next very short period of time but that was another thing in the book that was just totally false. i mean, there was no -- it was actually a very reasonable deal and a fairly easy deal to make it was a horrible deal to start off with for the united states it was made by somebody that i happen to be running against at the time and she made a deal that took a lot of jobs out of the united states and we are making a deal that's going to bring a lot of jobs to the united states. but i have concluded the deal in
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south korea, which is the deal that was referred to and i think it is going to be a great development. hopefully it is a great deal for them but it is going to be a fair deal for us, a very, very big improvement over what we had because what we had was unacceptable thank you very much, everybody [ all talking at once thank you. >> let's go. >> i think what's happening on that subject and other subjects, it's very interesting to watch and i look forward to listening to judge kavanaugh discuss it. i really think that, as i just said a little while ago, i think brett kavanaugh has really conducted himself in an incredibly positive manner great intellect. great talent a great judge. i would suspect he will be approved very quickly after we're finished with the hearing. thank you very much, everybody thank you. >> all right, guys, let's go let's go >> thank you
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thank you, everybody all right, the president concluding the pool spray portion with his meeting of the amir of kuwait the recently concluded trade deal with mexico, the outstanding negotiations with canada and the south korean trade deal, which he says is basically completed, and they will have a ceremonial signing of that one. and he spared no moment to take a shot at the bob woodward book saying reports he didn't want to sign it or was going to cancel it were, in his words, fiction let's move on and talk a little more about trade, the impact of tariffs have been different, of course, for many different companies in the united states. china is one of the largest leather and leather goods producing countries in the world and the largest market for u.s. hide and skin products leather miracles is a furniture leather wholesaler and disi distributo
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distributor. they source from all over the world including asia, italy, india, south america, and china. the co-founder says tariffs would dramatically reduce the number of hides because the end product would not be affordable. his name is mathison, david mathison, co-founder mr. mathison, welcome. i haven't had an opportunity to say that very often. so explain to me the nature of the trading relationship particularly between the u.s. and china with respect to the hides you then sell to be made into furniture is it that china is taxing american cow hides that would otherwise get over there at a lower price, or that we're taxing the return product? >> it's the potential of the 25% tariff and the u.s. has a unique and unusual trade position and
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advantage in this case because the chinese do not have any standing herd and the u.s. has a very large herd similar to brazil and argentina so our exports to china each year are pretty close to 10 million hides raw and probably another 4 million in wet blue, which is a semiprocessed state so the 25% tariff on these returning the goods back to the united states because in large part that's where they come, has certainly slowed the trade >> so we would, in effect, be putting a tariff on an american-originated product? >> correct correct. >> that's a little odd >> to say the least. >> it's more than that because our unique selling proposition when we opened leather miracles 19 years ago, august 15th, this
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past august 15th, was to use u.s. raw material because for the type of products that we make it was far better and better quality, and that's why people do buy u.s. hides >> could they be finished elsewhere, that are harvested from the united states could they be sent to another country to be finished >> yes, they could, but each -- and that's why we source from so many different parts of the world. each country has a specialty of one kind or another. when we got to china and started our relationship with a tannery in the north, we taught them to do the hand-crafted leathers these were leathers i learned all about for 20 years working with the largest u.s. supplier, and we just exported the idea
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and brought it back on u.s. material and it's made a success. >> is the finishing skill, the tanning and preparation, is it here in the united states or we don't have it? >> it doesn't exist anymore. there is no furniture leather tanning or finishing in the united states anymore. >> it left it went offshore >> it's gone it's been gone for almost 20 years. that's why when we got swept up in this mess we were like, this must be the administration's scorch the earth policy with china. there's really no -- >> would a 25% tariff effectively put you out of business >> i don't want to say something like that. >> it would damage you >> undeniably there is lurking serious ramifications. >> we'll have to leave it there. u.. mathison, thank yo
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while we were taking care of other business, some action broke out at the dorsey hearing on capitol hill. there were protesters yesterday at the kavanaugh hearing who knew they would be there for mr. dorsey as well different topic but protesters >> please help us, mr. president, before it is too late because jack dorsey is trying to influence the election to sway
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the election -- >> what is she saying? i can't understand her [ auctioneer call >> officer, will you escort this young lady out, please [ auctioneer call we're selling the cell phone i yield back >> well, he yields back. that was avirtuoso by billy long, he must be an auctioneer
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>> he received the designation >> he's good at it >> he earned that certification >> that is a low price for the iphone >> that's right. >> thanks for watching "power lunch. >> "closing bell" right now. it's time for "the closest bell." a showdown on capitol hill between lawmakers and social media companies. we'll break down what it means for the share prices of google, twitter, facebook coming up. i'm jackie deangelis in gulfport, mississippi, where we are monitoring former tropical storm gordon and its impact on the gulf coast and big oil >> i'm steve liesman a huge surge in the july trade deficit. i'll break down the numbers and what it means for the u.s. economy. >> i'm sarah eisner in theranos is set to officially dissolve the company "the

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