tv Maria Bartiromos Wall Street FOX Business May 19, 2019 11:00am-11:31am EDT
remember, if you have your own hit or miss tweet us. that is it for this week. thank you to my panel. thank you all for watching. i am paul gigot. i hope to see you all here next week.a representative that will be with us to talk about it. maria bartiromo 's "wall street" starts now. maria: happy weekend! welcome to the weekend the analyst is the week that was. and helps position you for the week ahead.i'm maria bartiromo. this week we are coming to you from washington d.c.. the elevation founder and early facebook founder will be here to talk about close to break up facebook. we will hear what he says. then later founder and ceo of the newly formed long-term stock exchange eric reese is with us talking about silicon valley and why he developed a new stock exchange for startups. the first volatile week for the markets as china and the u.s.
are pushing further into trade fights. the white house say the implement a six-month delay on tariffs on imported cars and parts. this comes as president trump signed an executive order barring u.s. companies from using telecom gear from sources that the administration considers a national security threat. an action many see as a direct attack on chinese telecom giant huawei. the next guest now reacts, a senior fellow and author of the new book, the hundred year marathon mike pillsbury is here. congratulations on the book. number one national bestseller. it is great to have you. >> thank you. maria: thank you for joining us let's talk about developments we saw this week on china. first the huawei ban . >> is significant as a signal to china that the president is willing to take very concrete majors that will cause issues
for this company. their largest telecommunications company in the world. another example of what president trump is doing trying to send messages to his friend, president xi jinping that he is serious. maria: and this company, you have to argue an arm of the chinese government discussed communist members on its board. the founder still very much involved, communist member of the party. so let's talk about for a moment, the risk around huawei. >> the main thing is 5g infrastructure being installed around the world. including in our partners in the intelligence sharing agreement. it goes back to world war ii. if we let huawei dominate the 5g infrastructure sales which is what they are doing now, there are tens of thousands of stations already sold. then they are going to be able to spy on basically every communication system in the world. that's what's at stake. maria: and they've already
convinced the europeans they can create this infrastructure and be in europe. they've also done this in many african countries. where the african countries have huawei infrastructure. and all the information all of their data goes right back to the chinese government.>> yes, in our own small towns as well. we are said to mike $12 billion of huawei sales have been successful. huawei is not a totally evil company. but if the dominate 5g, it's really turning over the information and the big data analysis which is a huge product in the future. to china. maria: we had an agreement in place despite that about huawei. it was 100+ pages. 150 pages actually, seven chapters and we had the reformer leo huff during the negotiating back-and-forth in beijing. we have this document that leo agreed to pretty came back to the hardliners and reformers in china and they fundamentally
change it and basically reneged on everything. what do you think happened? >> i think they were misinformed in beijing that president trump wasn't all that serious. this is a 150 page document as a compromise of their sovereignty. because for the first time the enforcement, they been treated so much in the past part of the system. i like president trumps how he said that obama let them get away with everything. he said this won't happen on my watch.in that context the chinese wanted to test the presidents commitment. andy made a number of changes that ambassador lighthizer has characterized as fundamentally changing the deal. so they found out from presidentmaria bartiromo very - very quick reaction, they said how can this be announced in a tweet on a sunday.
but it's for real. i think there could be tests ahead. hope is in the coming month we will return and have around 12 ideally here again washington. but the momentum is to have it in beijing. try to get the chinese to undo what they reneged on. and also make more progress on what they had not even agreed to so far. i remain optimistic. maria: there is an expectation that president xi jinping meets with president trump at the g 20 meeting. do you think that we can deal china? >> will be a test of how strong they are in beijing. if there are strong as in my book the do will be difficult. unless we are weak on enforcement which case we will have more friction in the next year or two. as they are caught cheating. we get a really good deal now which i think is what the president wants, then there will be less friction in the future. perhaps in the coming months additional steps like the
huawei executive order, i think it can be expected so president trump can communicate his determination to get a good deal. maria: in the meantime have an impact on the economy. china economy is doing worse than the u.s. obviously pay that auto sales down the double digits. and we continue to see data that is suggesting it has had the china economy hard. you were able to also hit the u.s. economy? >> i think it will affect our economy but the relative pain in a sort of exquisite quantitative weight is difficult to look like psychologically will depend on how the media covers a story. if we have stories saying american farmers angry. psychologically, we think the pain is greater than it is.on the chinese side they can control the news. a number of stories the last two days saying don't worry about this, it is small, it is headwind, nothing more. so we can be our own worst enemy as the media tries to cover every farmer who is
upset. maria: we'll see how much pain the chinese can take. in terms of the economy. bottom line sound like you to think a deal can happen. >> he talks about the chemistry that they have. it's really the two presidents that need to work this out. and of xi jinping begins to think is hardliners have misled him, and return to the reformers, it will be good news for both sides. maria: we watch it, mike, thank you so much. michael pillsbury joining us. don't go anywhere, my 101 coming up next. -- my one on one coming up next. all money managers might seem the same,
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this week facebook announced new rules to limit live streaming in an effort to crack down on terrorist content. the company announced a one strike policy for those that violate guidelines. i spoke with a investor, former investor turned critic of mark zuckerberg. >> i applaud mark zuckerberg search engaging in the political conversation. it is really poor for facebook and frankly for google which is resistant in engaging to be part of the discussion because we live in a world with very few rules in business. smart people take advantage of that and grab what they can grab. in this context the success of facebook and google has enabled and empowered bad people to do
terrible things in reducing this with terrorism, extremism, we've seen with political manipulation around the world. getting ahead of that will require really substantive changes. unfortunately so far, facebook and making cosmetic changes. >> you been so great on this. people surprised you took such an activist role, a cautious negative role on the transfer of you know, basic business that facebook runs. because you were an early investor in the company. >> i was a huge fan. truthfully, i still have enormous respect and admiration for broke mark zuckerberg and sheryl sandberg but i believe the business is in a terrible place, google is well-paid fundamentally the success has been based on this notion of converting peoples experience into data and then using that to essentially control and manipulate outcomes. essentially taking choices away from us. i am a big believer in liberty and the notion of each one of
us is entitled to self-determination.i don't think corporations should be allowed to impose their way on us without our permission. i'm trying to cause a conversation. with the country to sit there and say is it okay for companies to do surveillance and take your picture and capture your movements and convert that to data and then change the choices available to you based on what they know. is that something we are okay with or not okay with? maria: this is a business model, thus the issue. this is what they do, to sell our data to advertisers. the conversation is much broader than just facebook and what we are talking about today. these companies are more powerful today than they ever have been. many of us expect it, they are in fact media companies. a big portion of the public gets their news from twitter. from facebook. and then there is criticism that they censor conservative conversations. this is going to be increasingly poor according to the 2020 election. president trump talked about
it. if there is a sensor of conservative conversation out there, what should be done? >> here's a thing. the issue with all of these guys, is we don't want them in the censoring business at all. right? we don't want terrorism or extremism or violence, what you really want to do is get them out of the business of amplifying inappropriate content. so hate speech, conspiracy theories and disinformation. the problem with the model is that they are in the behavioral prediction business. they really want to sell advertisers, not just an ad, they want certainty, they want to sell you and add at the moment the person is about to buy something. they want to suggest to you. you have people say i think it is listening to me? maria: yeah. >> is about that they created a digital voodoo doll of you. they know everything. maria: they know where you are
at all times. >> anticipate what you are thinking the problem with all of that is that fundamentally it's a human being , your immediate reaction is, they are biased against what i really want to do. they are taking my choices away. whether you are conservative or liberal it turns out everyone feels that way and they are right. spill chris hughes wrote a piece in the new york times and got a lot of conversation on a peak is a cofounder of facebook. he says it's time to break up the company, you agree?>> absolutely! let me tell you about what is dead on. no one elected mark zuckerberg. no one elected the founders of google.and yet they dominate the public square in every country they operate in. there's no, billy pete and chris's focus is we have to get rid of that. the reason we want antitrust law is monopolies have the ability to block startups from creating new ideas.google, facebook, microsoft and amazon are blocking any startup that threatens their business. we have to change that. maria: the make you take though, san francisco becomes the first city to ban the use
of facial recognition technology. your reaction? >> we do have a conversation nationally about where the lines are going to be relative to private spaces. are we going to have any place that we can go where people are not looking and are not listening? product like alexa, with facial recognition built into pokcmon go in all of these other things, you're having your life invaded. without your awareness. and what the city of san francisco is doing in my opinion is starting the conversation. they are saying, our city will not have it. there will be other cities that wanted but that's fine. we need a debate, where are the lines? i was a line should definitely not allow corporations to capture your face without your permission. maria: don't forget, if you have an iphone 10 and it is facial recognition that allows you to open the phone, it means the camera is always on. >> here's the thing, the image
never leaves the phone. if you have an android google get that and puts it in the database. apple is actually protecting your privacy. apple is not a perfect company but there's a huge difference in the way they treat their customers relative to giving a space where there is nobody watching or listening. the question is, do you have any time to let your hair down? maria: by the way, china is using facial recognition to track -- >> why do we want to be like that? maria: we don't! >> we do not need to compete with china and ai if your definition of ai is behavioral modification. maria: my thanks to roger mcnamee. stay with us, we are joined by roger next with the new stock exchange.next. i can't believe it.
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smart bed, now only $1,799. only for a limited time. sleep number. proven, quality sleep. maria: welcome back. last week the security and exchange commission gave the green light for the first stock exchange in california in over a decade. it is called the long-term stock exchange. this was started to address concerns over the focus of near-term and short-term results for capitol markets passbook to the founder, eric ries, the founder to see white a new stock exchange is even needed. >> fundamentally think the legacy exchanges they have had their place. in our society and we have nothing against them. but the next generation of companies want something different. if you talk to anyone that works in a public company, i worked with many of them over the years. they will talk about the
experience of working in those companies, give a constant pressure to play and focus on the short term. the next generation of companies want to be able to build and think over decades and generations. we want to build a capital market system that is aligned with their values. maria: tell me how you do that because you're trying to learn hot startups, committees that may not need to worry about making a profit quarter over quarter. and can look over the long term, go through the ups and downs of being hot start of for profitability. how will you lure them into your exchange?>> the community of companies knows me very well. i wrote a book if used to go there a lot of people in silicon valley have used to build those companies. partly it is a matter of trust in relationships but partly about new standards that give the companies permission to do just what you said. we can't reveal the specific standards now, we are working with regulators to get those improved. but in general we have a variety of standards we are working with the try to align
the interest of all the different stakeholders in a company so that employees are taking care of so the communities are taking care of so founders able to share the power and prosperity while still maintaining the integrity of their vision. maria: my sources tell me one of your approaches to governance and voting rights is that an investor will have a better voting right if they held the stock long term. the longer you hold the stock, the more voting rights you have. is not right in and of itself given all the power to the founders who of course will be having held the stocks the longest?>> first of all, it is one standard under consideration but only one of several ideas. in general for that kind of idea it is certainly better than the trend today which is most founders and technology companies have what is dual control over the company where they are basically dictators in perpetuity. we've seen very recently the kind of problems that can drive. the much better idea to have the long-term investors be able to join the founders and
cooperatively governing the company. maria: are you looking at competing with the new york stock exchange, is that your competition? >> in some ways, yes. we are in your exchange. we are still in the same regulatory category but we are also diplomatic and we think it is fine if companies want to dual list. we have no problem with that. our main focus is simply to have a different philosophy and frankly, a different business model than the legacy exchanges we want to build a state of companies and long-term investors, you are the customer, not the traders . maria: the maskabout the median age of a tech startup has now stretched to 12 years. by the time they list , have achieved a lot of growth already in that 12 yearperiod. we look at a company like lyft , we had such high expectations. finally, the deals get priced
below expectations. and uber shares dropped right out of the gate. what do you make of what happened there? >> let's be real for a second, evaluating the success of these companies after a few days and weeks i think is premature. i think they should be given time to see how it all turns out. it's like the first day of school, you cannot say what college you will graduate from. one step at a time. that said, your point about making them waiting so much longer think about this, and any other era it would've been public many years ago. the mass of appreciation, a $60 billion company is quite an accomplishment. but the public is ligated to participate in the growth now. i do not want to say the end of the growth but much later than before. 20 years ago amazon went public after only three years. there was a time when the growth in our economy was sealed by the savings of everyday people. we have changed i think inadvertently frankly to a policy regime where the growth is being powered to oligarchs and foreign governments and all kinds of people that you know, i have nothing against him but why would you want to finance
growth with them rather than the savings of ordinary americans? it doesn't make sense to me. maria: my thanks to eric ries. don't go anywhere, more "wall street" after this. ♪ i think i found my dream car. it turns out they want me to start next month. she can stay with you to finish her senior year? of course she can! [ laughter ] [ groaning ] hey! want to drive? really? [ engine revs ] do you think we can do this, rob?
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"sunday morning futures". this began my special guests are republican councilman collins house minority leader kevin mccarthy and senate homeland security chairman republican ron johnson. cash or show it to name eastern live sunday morning on fox news. right here on fox business ever 6 to 9 name eastern for mornings with maria right here on fox business. that will do it for us for this weekend, thank you for joining me. i will see you next time. have a great weekend.♪ ♪ [music] ♪ gerry: hello, welcome to the "wall street journal at large". have you got election fever yet?this weekend we are a mere 37 weeks away from the casting of the first votes in the 2020 presidential election. the iowa caucus traditional kickoff to the party primaries. the general election itself is less than 18 months away. next month a couple of dozen almost democratic hopefuls will square off in the first debate of the election season. before you know it summer will be over in primary campaign