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tv   Risk and Reward With Deidre Bolton  FOX Business  September 22, 2015 5:00pm-6:01pm EDT

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he will speak in front of the u.n. sunday he goes back to rome. a very busy trip for the pope. >> very busy trip. if you missed the fiat he rode away in, that was quite a sight. david: never seen anything like it. that does it for us. >> "risk & reward" starts right now. [cheering] >> those are cheers, you can see. pope francis landing there on u.s. soil, for the first time. launching a six-day visit that will highlight his outreach to the poor, his willingness to tackle significant political, social, economic problems. president obama, you see there, first lady michelle obama. vice president joe biden. they traveled to greet the pointtive who arouse from cuba. papal motorcade traveling to a
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church nearby at the washington national cathedral. we have very latest on markets to give you. stocks down sharply across the board. lack of clarity on the fed's next move. some investors are selling. other investors concerned about effect of china's slow down in u.s. markets. that is one of the topics that china's president will be discussing during his first official trip to the u.s. which started today. on that theme, xi jinping, is meeting leaders of u.s. tech firms. peter barnes with the latest. peter, we know amazon, microsoft, boeing, just a few on the list. >> reporter: that's right. microsoft's ceo, satya nadella, was one of the official greeters at the seattle airport when xi arrived couple hours ago. the talk with tech leaders appear to be an attempt, deirdre, at peace talks if you will between the chinese leader and u.s. tech companies.
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there is a big dinner tonight honoring president xi. he will make a big speech on u.s.-china relations. a lot of these tech leaders will be there. she will have the meeting tomorrow with him. there has been some bad blood here, right? u.s. internet companies are fighting censorship in china. in china, beijing was upset with disclosures of edward snowden and u.s. data spying. china charging u.s. tech companies with helping the u.s. government to spy. and then banning some of them from doing business with the government itself. the administration and many tech and non-tech companies also worried about chinese hacking, theft of intellectual property which administration threatened china with sanctions over. and then there are chinese business practices that demand for one thing, intellectual property in exchange for access to the chinese market. >> when china forces firms to hand over their technology as a condition for market access it
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discourages innovation. when american businesses increasely question whether the cost of doing business in china is worth it, that reduces trade and investment for everyone. and undercuts support for the u.s. china relationship here at home. >> reporter: so there could be a lot of tensions in the meetings in seattle and here in washington with president obama. you mentioned, deirdre, here are some executives that will meet with president xi in seattle. tim cook of apple, jeffrey, jeff bezos of amazon, nadella of microsoft, ibm and john chambers of cisco, just to name five. deirdre: thank you so much, peter barnes. we'll talk about this quite a bit next few days. fox peter barnes with us from d.c. as peter mentioned there is fraught relationship between
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china and u.s. on flume russ issues. hot topics peter talked about cybersecurity, china's island-building in the south china sea and interconnected economic issues. signer security person is with me, with retired lieutenant colonel bill cowan. jonathan i would like to start with you. the obama administration is considering using sanctions to deter china from cyber theft of trade secrets. these in theory benefit chinese companies. the chinese president said earlier chinese government does not engage in theft of commercial secrets in any form. nor does it encourage or support chinese companies to engage in such practices in any way. we want to strengthen cooperation with the u.s. does the chinese president really mean this? or does he just not want sanctions? >> yeah i think this is a nice flowery speech to basically to give the community what they want to hear but let's be realistic.
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we know china is the biggest intellectual vacuum out there. they have hooks into all of their data communications, cell phone communications. businesses that are based here in the u.s., doing business in china know this. the big ones already protect themselves as much as they can with protecting data through vpn tunnels. we just found out two weeks ago that the chinese president indicated that he was putting forth some direction that he is going to disallow vpn technology. which means all of your communications will be in the clear which means they can siphon all of the information off. also indicated that if banks that want to do business in china, their source code technology has to be given over to the government. so, what happens when not only government but cyber criminals get access to the source code? you could have anything happen in terms of monitoring transactions, manipulating money and manipulating transactions and we're concerned about impact on critical infrastructure, power plant, pipelines. these are things that are
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required for our nation's economy. what if that technology gets into the hands of the government and into these cyber criminals? deirdre: you're not only person to voice concern about these big infrastructure projects. there are a lot of people who say they are extremely vulnerable in the u.s. so speaking about physical vulnerabilities, colonel cowan, i would like to bring you in here from a military point of view. china is building these islands in the south china sea. the president says china is not militarily adventurous. just how secure that part of the world? what do you make of his comments so far seem to be gearing towards pass pacifism. >> they want to establish bases rich with minerals. well-known a lot of oil down there. these are island they're literally building, deirdre. these are shoals they're coming in and dredging. putting in naval of some sort. we know they're putting in aircraft facilities, airbases.
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chinese above and beyond what jonathan is talking about, all the cyber attacks relentlessly put against the united states militarily. they're building much stronger military. this basing adds to influence of activities throughout the south pacific region. deirdre: we'll certainly be discussing that, be listening for clues in the two leaders statements. cybersecurity expert, jonathan pollet thank you very much. retired lieutenant colonel bill cowan with us as well. speaking of an interconnected global community, german carmaker volkswagen admitted to cheating on car emissions data. 11 million cars have systems that show the cars are greener than they really are. ceo of company has publicly apologized but all sorts of numbers are moving higher, right? rot. >> reporter: the thing continues to grow in many ways.
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we start with the apology from martin winterkorn. hear as big board meeting tonight going on we believe as we speak in wolves burke. here is -- wolvesburg, what he said in trying to save his job. i would like to make apology for so-called misconduct. we do everything to rye verse the damage. what is the damage? this scandal affects 11 million cars worldwide. we thought it was half a million in the u.s. now 11 million with the technology on board. the company announces it will set aside $7 billion to cover cost of this thing. they made $15 billion by the way last year. the stock in the last two days alone lost a third of its value. so a third of its market cap lost. we talked earlier today on fox business network, carlos ghosn, the ceo of renault and nissan. he says he thinks this is one-off peculiar to vw.
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>> the whole industry has been down because there is, suspicion that the problem is much bigger than what you're seeing so far. but so far the facts are pointing to a specific isolated incident. >> reporter: yes, but, i add to this to you, deirdre, we learned at fox business network this is not the first time major automakers have been sanctioned this way. back in 1998, both ford and honda paid multimillion dollar settlements for installing same sort of defeat devices on their cars. in '95 gm paid out 45 million-dollar settlement doing it to half a million cadillacs. also big truckmakers also charged with doing same sort of thing. this may not be as new and crazy as we think. deirdre. deirdre: jeff flock, thank you so much, joining us there from fox business. well as a result of alleged lying, volkswagen now subject to epa probe and a u.s. criminal investigation. the government paying out as many as $51 million in green
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subsidies for clean vw vehicles. ashley pratt with me now. so, ashley, will taxpayers get that money back? >> nope. and we shouldn't expect to this was a colossal waste of money by the federal government. the problem here, deirdre is the fact that the epa is behind all of these clean regulations and what not. and they're causing things like this to happen pause cars have to comply with them. they have cheating fang tore to comply with these standards. ends up being ineffective and huge waste of money on the taxpayer dime. deirdre: so there are some reports that the u.s. government was duped alongwith consumers. >> yeah, well -- deirdre: what is latest on that? >> you know, at this point i just think that we're constantly duped by the federal government. and it is not necessarily the federal government being duped. and in this situation, for example, maybe it was a situation where you know, their
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monitors were not reading things because they were able to skirt the admissions -- emissions tests here in the united states which is a problem but at the same time this is something that seems to be happening. it seems to be a huge problem. if we're going to actually be testing for emissions outside, why are we doing it in factory setting where it can be manipulated? i believe coverage earlier had showed that. that, when they were testing for outside in the real world, it showed, you know, astronomical differences between that and actual testing they were doing indoors. deirdre: ashley, let me ask you, vw could face as much as $18 billion in fines according to some sources. is that enough to set an example? >> i don't know that it will be but at this point in time it is important to look at regulations we have in place and are they too burdensome. at the same time we need to slap on penalties when there is cheating involved because i also don't think that is fair either, but again, federal government has to maybe cracking down on
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something, hey, maybe we have to switch up testing process if so many things are flying through the cracks. maybe we don't spend as much money from federal government standpoint to actually continue this testing. deirdre: ashley, i assume wv not alone as far as now being reexamined? >> probably not. deirdre: all right. more to come. ashley pratt, thank you so much for the time. glad to have you with us. >> thank you. deirdre: from one corporate consumer-related scandal to another, stewart parnell, he is the top ranking exec of the peanut corporation of america. he was sentenced yesterday to 28 years behind bars. it is toughest penalty ever for a corporate executive in a food poisoning outbreak. he is 61 years old. unless he wins appeal he will die in prison. fox senior judicial analyst, judge andrew napolitano. judge, it is great to see you. >> likewise. deirdre: seems as if stewart parnell will die in prison for
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all intents and purposes, but he admitted it right? he got the news of salmonella being in the peanuts. just ship it, i can't afford to lose another customer? >> that is what caused him to be convicted here, a combination of emails and testimony of others involved in what the government called was a grand criminal conspiracy, the end result of which, was sickening 20,000 people and killing nine people! deirdre: it is crazy. >> when you look at it that way, i don't believe in very heavy sentences but when you look at it that way, 28 years, he was exposed to 800 years if you separated each of injuries in each of the deaths. you put an a dullter rated product in the stream of commerce that is capable of maiming and killing, and do so knowingly and order people to do it and do it with other people, you have to expect this kind of a kind of consequence. deirdre: he did say i'm sorry.
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i'm sure for those nine families, that lost members they don't really care. >> here is the interesting thing. there have been no civil lawsuits yet. rule of thumb you wait until the criminal case is over now. criminal case ends at the time of sentencing. he can file his appeal but his appeal will not affect civil case. here is what will happen in the civil case, insurance carriers, more than one, are going to say we insures nor negligence. this was not negligence. this was an intentional criminal act. don't look to us. look to the assets of the corporation. which probably would put it out of business if all 22,000 people, plus the estates of the nine who died sue. deirdre, judge, have you ever seen anything like this? i remember the tylenol case back in the late '80s. >> tylenol was interloper. it wasn't the corporation. they may have had faulty caps but it wasn't intentional. no i have never seen one like this.
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my first reaction was, this is some judge, some justice department hates business. i never heard of a 28-year prison sentence for white-collar crime. this is one of the worst examples i have ever seen. now in fairness to him, he does have appealable issues. the judge did do some bizarre things in this case, like meet with the jury alone to explain to them what the evidence meant without the government there and without the defense counsel there. deirdre: highly unusual. >> not only unusual it could be reversible error. i don't want to give him a cause for false hope. most times judges do that, believe it or not they do it, they end up getting reversed. appellate court will look at quantum of evidence, even if we take out the judge's meeting is there enough to convict? in my opinion, yes. deirdre: especially as you rightly point out those emails are pretty damning. just skip it. can't afford to lose another customer. >> at one point, he said roast peanuts a little bit longer, as
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if cooking a little longer would kill salmonella. there is no scientific support for that. no one knows where he came up with the theory. his cavalier attitude about human life is shocking. deirdre: disturbing. >> in the case of someone in the food industry who puts food into the stream of commerce. deirdre: judge, great to see you. thank you for your time. >> next time we'll talk about volkswagen's potential criminal liability. deirdre: i would like that. we need your insight on that because 18 billion is a pretty big number. judge joining me there. thanks, judge as always. when we come back, imagine the price of one of your medications going up by 5,000% overnight. that is exactly what happened for an aids treatment drug. we'll fill you in on the rest. ceo of pharmaceutical company being blamed. he is trying to defend himself on twitter. we'll show you part of his rant and those speaking out against him. there are many.
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deirdre: the pope has landed. it is his first stop in six-day tour of the u.s. he is now inside the appoe toll i can nuncio church in d.c. he greeted at andrews air force base by the president and first lady and vice president joe biden. as soon as he comes out we'll update you where he is. it is action-packed six-day tour. d.c. is stop one. pharmaceutical ceo martin screlly defending his company decision to raise isprice of a 62-year-old medication used by aids patients. he raised the price by 5,000%. he had purchased in fact the patent. the drug, daraprim acquired by his firm, sheering
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pharmaceuticals, once sold for 13.50. it is now going for $750 per tablet. tallist pig asset management jonathan hoenig saying this is not capitalism. jason rotman from lido isle advisors does not see a problem. jason, how is this okay? >> well, listen, first of all i'm a human being as well so i do see short-term problems from a human standpoint maybe there will be some people who will have less access to the drug from a price hike, from a business, this is capitalism, okay? this is the dark side of capitalism, okay? the pot line you can not make argument this is not capitalism. capitalism is private ownership of means of production. private free market, free enterprise, fair market sets the prices okay? so this is not china. this is not communism. deirdre: not that don't like a rant, let's go through the math. what did this guy have to pay for the patent, what was his risk? >> listen the risk is that there
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is going to be greatly increased competition immediately which will diminish the immediate sales of the drug. he is calculating that is not going to be the case. so that is why i'm calling this from a business standpoint it is, listen this, is short-term win. he will make a lot of money in the short term. long term it will be horrible decision because he will price himself out of the mark there will be increased competition. i don't agree with the move but it is capitalism. deirdre: jonathan? >> well, i disagree fundamentally it is capitalism. pharmaceuticals are anything but a free market. where isn't government involved in the manufacture, regulation, and the sales, specifically the pricing of pharmaceuticals? i mean most notably you have medicare and medicaid. those are not functions of a free market. the deirdre, they're basically like the freddie and fannie of the health care world. and one of the reasons why we need more private real free market investment in health care. so with that i will agree with james.
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there needs to be an inplugs of investment in biotech across the board. essentially less regulation and more investment. so a weaker fda and stronger patent law would not let things like this essentially happen. deirdre: we'll take good advice. jonathan hoenig. thank you so much. capitalist pig and jason rotman, lido isle advisors. glad to have you both with us. >> thank you. >> speaking of contention, former hp ceo carly fiorina latest debate performance appears to be giving her a huge boost in the polls. >> you know what a leader does? they challenge the status quo. i dare hillary clinton, barack obama, to watch these tapes. watch a fully-formed fetus on the table. its heart beating. its legs kicking. women all over this country heard very clearly what mr. trump said. unlike mrs. clinton i know flying is an activity, it is not accomplishment. having met vladmir putin i would
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not talk to him at all. what i would do is begin rebuilding sixth fleet. vladmir putin would get the message. deirdre: fiorina rocketing to second place right behind donald trump. trump of course responding yesterday morning on "fox & friends." >> i think that she has got a good line of pitter-patter. when you listen more than five minutes you develop a tremendous headache. i don't see it as being something that is going to last because her performance has been terrible. deirdre: with me now, liz macdonald on whether voter are starting to warm up to business people turned would-be presidents. what is interesting one comment i got off twitter this morning, which is, both trump and fiorina tout their business capabilities. neither one has best of all track records in business. >> that's a good point the yeah, under carly fiorina, hp's shares were dead money for about 10 years and they dropped lower than what -- deirdre: compaq understood to be a mistake.
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>> they wrote off 14 1/2 billion dollars of that $24 billion value of the compaq merger. eventually revenues went up and profits did go infor hp. carly fiorina had to make tough decisions in tech bust and dot-com bubble bursting. the question can a business person run the government? can they be in the white house? harry truman was. mike bloomberg, both sides of the aisle mayor of new york city applauded for doing a decent job there. donald trump's companies have filed for bankruptcy too. so, you know, both of them have issues right now. the broad thing, issue for gop is economic growth. we had scott walker who started out his campaign about economic growth. beating back the unions. getting wisconsin turned around. he is now stepping out of the race. if the markets go haywire with recession hillary clinton likely could see some trouble next year. deirdre: you mentioned walker. he really encouraged rest of the
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gop contenders to go after trump, right? >> yeah, that's right. he is pushing them to fight back fence donald trump. that is another campaign strategy. but i think, you know, the burdensome issue, how do you get economic growth back in the country. carly fiorina, donald trump both are talking about that. whether that message starts to stick, whether that is primary issue for campaign for both democrats and republicans it likely will. deirdre: liz macdonald, i know you are hosting making money in one-half hour. i'm watching you here. watch you in half an hour. thanks in the meantime for dropping by. >> sure. deirdre: liz macdonald joining me there. just moments after scott walker dropped out one of his ex-staffers went on i told you so twitter rant. stuff like this may be good for business but a couple business coaches are with us next. ♪ >> i believe that i am being called to lead by helping to clear the field with this in mind, i will suspend my
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campaign. hi my name is tom. i'm raph. my name is anne. i'm one of the real live attorneys you can talk to through legalzoom. don't let unanswered legal questions hold you up, because we're here, we're here, and we've got your back. legalzoom. legal help is here.
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. >> today, i believe that i'm being called to lead by helping to clear the field in this race so that a positive, conservative message can rise to the top of the field. sadly, the debate take place in the republican party today is not focused on that optimistic view of america. instead, it has drifted into personal attacks. deirdre: that was wisconsin governor scott walker yesterday announcing he's suspending his campaign. one former staffer didn't waste any time criticizing it tweeting about her employment with him in about 20 tweets. here's a few things he got wrong --
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grant is with me now, a business coach, ross schaeffer is a leadership consultant. grant, as a potential employer, what would some of these tweets say to you? >> it would say i am a high-risk employee. never touch her, never hire her, don't waste time on the resume. when you lose a job, your job is to get another job, not to make sense of why somebody just fired you. what she did is completely ludicrous. it is idiodacy at its highest level. deirdre: it is public and can't be taken back. ross, i'm not condoning her actions at all does. this is a or reflect something about the governor? >> well, i think, you can have opinions about the governor, and i met the governor, he's a nice guy. but she's coming off with this unearned arrogance. she got fired after one day, by the way, and in telling us this
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is the things he got wrong? he had 1% of the ratings out there. he's up against a giant with donald trump who may not get elected but at least has his finger on the pulse of what america is thinking and he's got attention, like carly fiorina. what she got wrong is exactly what grant said. she's relegated to the no hire pile with this outrage. is she look for a job in politics with the other 12 candidates? not likely. deirdre: i think we should follow her, pick up where she lands next. >> you shouldn't follow her, stay as far away as you possibly can. deirdre: grant, business coach with us there. ross, leadership consultant. speaking of twitter and politics, celebrities taking to twitter to show their support for the self-proclaimed democratic socialist bernie sanders. read some of the tweets for yourself, after this. nagement, we believe active management can protect capital long term.
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. deirdre: the pope has landed. it is his first stop in a six day u.s. tour. he is inside the apostolic nuncio in d.c. near our national cathedral. he was met at andrews air force base by the president, the first lady and the vice president. we will let you know when he leaves the cathedral. celebrities are feeling the
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burn, tweeting out support for 2016 presidential hopeful bernie sanders. danny devito tweeting out -- suzanne sarandon posting -- mark ruffalo tweeting -- fp 1 strategies communications expert ashley pratt says if sanders gets elected we will feel the burn in our wallets. on the other side, basil franco associates says sanders can and should win. ashley, what is the latest price tag for taxpayers on the programs that sanders is proposing? >> well, it's somewhere close to what our national debt is right now, $18 trillion. and if we think that's fiscally responsible to do, for our nation's young people, for our nation in general, i think that's a very, very, very terrible idea.
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i just don't see how anyone can support this. i'm sorry, basil, i just don't. not only that, but the fact is if liberal hollywood loves this so much, why don't they pool all of their money together and pay for it. right now, i don't think doubling our national debt to pay for socialistic ideas is a great proposal at all. deirdre: basil, it is easy to be generous if you're not trying to figure out how to pay your bills every month? >> think about where the debt is coming from. if you're thinking about student loan debt -- >> president obama? >> if you think about student loan debt which outpaced credit card debt, what's wrong with saying we're not going to put these people into so much debt, they can go to public universities and give back as opposed to incurring debt. that has a record of default. so i think what bernie sanders is saying is look, we're going
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to pay this money one way or the other. give people opportunity as opposed to take it away. and create more debt. deirdre: what is the concern, for example, we saw this in france where, the rich were taxed very heavily. >> and they left. deirdre: and some people did leave, and with them, their businesses and enterprises. >> i don't think bernie sanders is talking about huge taxation, he's talking about particularly with the public colleges, small tax on some investment income that would pay for public universities for everybody. that's not a huge burden in my opinion. deirdre: ashley, you want to say something? >> not a huge burden to impose $18 trillion into a federal government system that owes a ton of money? not only that, that's burdening the young people who are suffering, because of the terrible job market and terrible economy. and for example, people like bernie sanders support the fight for 15 movement which is
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an arbitrary movement to arbitrarily impose a new minimum wage. for those who want jobs, don't lose them. deirdre: i want to bring in breaking news, after years of seeming to dodge the question, presidential hopeful hillary clinton coming out with a position, a clear one on the keystone xl pipeline saying she opposes it. she said this on tape at an event in des moines, iowa saying, quote, keystone pipeline as i believe what it is, is a distraction from important work we have to do on climate change. therefore i oppose it. what is your take, ashley first and foremost is this hillary clinton moving further to the left to appeal to maybe some people that she doesn't appeal to right now? >> of course, this is the most transparent she's ever been, right? now she comes out with the statement as soon as she decides what her position is? but this will end up costing a lot of jobs that could be newly created by the creation of the pipeline.
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so again, for people like hillary clinton and bernie sanders who are championing the fight for 15 movement, this is actually something that can provide good-paying and new jobs to people in americ deirdre: basil, as i understand it, she says she opposes it because it is a distraction. that's a little bit of a dissonance going on there. >> she also made the connection to fossil fuels as well. but i think that the climate change issue is a much broader issue she's been talking a lot about. this is in part because o'malley and bernie sanders have come out very early on this. what she says carries a bit more weight because of her position and relation to the obama administration. i don't mind she took her time to make this decision but she is talking about it as part of a larger message on climate change which she's been doing for a few months now. so i don't begrudge the timing of this, and i think for the decision that she made, she's going to get a tremendous amount support for it.
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deirdre: basil, ashley, thank you very much. glad to have you both with me there. forget the cold war. a drone war could be heating up. russia, china and north korea all investing heavily in drone armies. the ceo of a company that may benefit is with us next. so what about that stock? sure thing, right? actually, knowing the kind of risk that you're comfortable with, i'd steer clear. really? really. straight talk. now based on your strategy i do have some other thoughts... multiplied by 13,000 financial advisors it's a big deal. and it's how edward jones makes sense of investing. does your mouth often feel dry? multiple medications, a dry mouth can be a side effect of many medications. but it can also lead to tooth decay and bad breath. that's why there's biotene,
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♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet? . deirdre: russia starting to launch drones over syria, north korea, pakistan and china all increasing their military drones. joseph is with me now, the ceo of momentum aviation group, advises his clients to best utilize unmanned air vehicles. are we on the brink of drone wars? >> i'm going to say no to that. we are, however, already in the situation where almost every circumstance that requires security is going to involve drones. they're very, very effective at
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providing the information that decision-makers need to make decisions and keep their people safe. deirdre: how easily hackable are systems then? >> it depends on the system. you know some of the -- the kid who built the drone in his garage and flies it in the backyard, that system isn't hard. some of the sophisticated systems we see, china, pakistan, those are going to be very, very challenging. in fact, one major component of operations, high-level, complex operations is assurance, making sure information from the operator to the aircraft back down to the operator remains secure. deirdre: i know your primary client is the u.s. government. >> that's correct. deirdre: do we have the best technology, or do you feel that the others are catching up? >> we absolutely have the best technology. there's really no question about it. that said, we're seeing a lot of interesting emerging technologies from particularly israel which has a very heavy emphasis on developing and producing unmanned vehicles.
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seeing some in the united arab emirates, in the u.k., unmanned technology in the sense that technology that accompanies it, the cameras that can do thing, see at night, see through clouds, see through a triple canopy jungle, those are advancing at warped speed. one of the more fascinating areas of technological advancement. we talk about the aircraft, but it's the sensors that are moving very quickly. deirdre: as far as the use now, i'm assuming a lot is for surveillance. we have seen some already used in combat. but if you were to give us an idea of a pie graph, what is the most common use, what's the next most common use. >> for unmanned vehicles? surveillance is overwhelmingly. deirdre: more than 75%? >> i don't know that anyone's looked at that. i can tell you in my experience i could easily say 75% or more. that's going to change over time.
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you read about the logistical things people are trying to development. i think that technology is a distance away, surveillance is overwhelmingly what people use it for, unmanned vehicles are exceptional at gathering information from the air. aerial surveillance is an exceptional means to gather information. in the end, the decision-makers whether you're a parent, a business owner or president of a country, everyone deals in the world of constrained resources, money, time, people, they have to make hard decisions. how am i best going to deploy the resources to get done what i want to get done? and make the decisions with good information, and the better information i have, the better decisions i can make. deirdre: hope you come back, joe, fascinating. momentum aviation group ceo. >> when we come back, tech bubble warning from goldman's chief operating officer, gary cohen's comments next.
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. deirdre: breaking news on volkswagen. volkswagen canada suspending sales of vehicles named in the u.s. epa emissions notice scandal. we will keep you up to date. but another knock against volkswagen. chief operating officer from goldman sachs gary cohn warning of the tech sectors looking bubblish. here is his quote -- for their take, contentively editor in chief joe lazifakis. did i nail that?
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>> close enough. deirdre: and jack hittery. joe, what is the take on this? he says there's a massive difference between this bubble, the last one and goes onto say there's a bubble. >> no doubt there's a massive difference. in 2000 looking at 400 million internet users, say it's over 3 billion. ad revenue in e-commerce up by a factor of 15. a much different market. deirdre: what is your take jillian? >> private venture capital, last time it was ipos, i think it is bubblish. the last anecdote is great show going in saying what would it take for a company to be denied 10 million, 15 million and people in silicon valley saying this wouldn't happen. deirdre: a great idea to flip it around and say what have to do to be refused money. >> exactly. deirdre: jack? >> the good news is there's a lot of companies with real revenue and real growth, look at pallentier, this is a
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company with $20 billion valuation. deirdre: people have heard of peter thiel. >> exactly. have you domo, slack, companies with thousands of customers, real revenue, annuity revenue. this revenue recurs every single year. have you companies that i would put question marks on. so you look at dji that makes the drones, you talked about drones there. i think they're going to have a tremendous revenue growth but margin pressure on some of the companies. so i think that the valuations of some of the companies may shrink even though the companies may have growth. deirdre: gary cohn refers to the marc andreessen point all of the private companies put together don't add up to apple's valuation which reminds us that apple is all-powerful or there is, in fact, a lot of money in silicon valley. both are true? >> absolutely. if you look at what they call the unicorns, the companies that have a valuation of one billion dollars and there's 62 of those that are private
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venture backed right now, even those add up to facebook's valuation. we're not seeing that level of overvaluation that's going to kill the market. deirdre: and, of course, as we've been saying as well, all of the companies do have at least in the case of uber, et cetera, they have functioning business models, joe, jillian and jack, thank you for joining us. quick break to take. when we come back, more on "risk & reward." we live in a world of mobile technology, but it is not the device that is mobile, it is you.
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>> in a statement released this morning, goldman sachs ceo lloyd announcing he's going to begin treatment for cancer, saying his form of lymphoma is highly curable, doctors expectations is that he will be fine. he says i will be able to work substantially as normal, leading the firm. other notable ceos who under went cancer treatment include former aig ceo, foreman apple
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ceo, steve jobs, and fox news medical a team. so will he be able to keep up the pace of leading goldman sachs. >> you know, i don't know for sure but at least initially i would think he could because lymphoma is usually treatable. 65% five-year survival rate, 70,000, 80,000 new cases a year. you know what's changed, deirdre, that's exciting, we have therapy, a drug that literally targets the lymphoma cell for destruction. and when you combine it with regular chemo, it tends to work very well. now, he may get more fatigued from the chemo, so i can't answer the question how he's going to feel, we don't know the stage or the type, but the chances are pretty good that he will continue to work. >> all right. that is i'm sure very good news for him. >> we wish him the best. >> exactly. pushes him toward good health,
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and thank you very much. >> thank you. >> thank you for watching us here on risk and reward. making money starts shortly. guest host liz macdonald. ♪ ♪ . liz: good evening, everyone, i'mlies macdonald in for charles payne. pope francis touching down in the united states today. millions of people gathering as the pope makes his way from dc to philadelphia and then to new york city. now, security is a top priority, the no fly zone will apply to drones as well for the pope. plus as the dow jones industrial average slide back into correction territory. and hillary clinton finally speaking out after about five, six years on the pipeline. and crushing the biotech industry with less than 140 character tweet. so what will happen if mrs. clinton actually wins the white house.


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