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tv   Squawk Alley  CNBC  April 29, 2019 11:00am-12:00pm EDT

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constructive the u.s. economy is doing well china has responded bettory stimulus i was in china and spent a little bit of time there europe and japan are lagging a little bit the global economy is moving along well >> what about client activity? >> it's been better. after the fourth quarter speedbump and with the government shutdown we had a very slow start to the year. we saw pickup particularly in march, and activity has been more constructive in april particularly capital markets activity you see ipo activity and that's start to go gain some momentum i would say more constructive, better, more constructive. >> got it. we'll leave it there thank you. >> it was great to see you, david. >> david solomon the chairman and ceo of goldman sachs back to you. >> david, thank you very much. good morning, everybody. it's 10:00 a.m. at boeing headquarters in chicago. 11:00 a.m. on wall street and "squawk alley" is live
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♪ ♪ ♪ good monday morning. welcome to "squawk alley." i'm carl quintanilla with deirdre bosa for the hour. jon fortt will join us and morgan brennan live in miami at the emerge conference. a lot more there this hour a quick check of boeing today. the company holding its annual meeting today. dennis mullenberg will take questions, as if the company needed more negative headlines this new report that the company, they say, did not notify southwest that a key
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safety feature to warn pilots about a malfunctioning sensor had been deactivated leslie picker is on uber for us >> reporter: uber executives are in london today and will head back to meet with investors in new york tomorrow. uber is trying to derisk the investment to get more money in the door uber is trying to make investors think they're getting a discount uber is seeking a valuation of $86 billion on a fully diluted basis. well below the target banks had pitched the company six months ago. uber is seeking a more conciliatory governance structure and is emphasizing reformed culture and relationships with regulators. operating losses amounted to about $1 billion in the first three months of the year alone
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and top line growth continues to slow >> on top of billions of losses in previous years, let's turn to air bnb making a huge leap into hotels converting some city commercial properties into what are hotel room suites. with us now here at post nine we have the ceo and airbnb co-founder and ceo thanks for coming in less than a day after you announced this partnership "the wall street journal" is report that go marriott is going into home sharing do you see them as a threat particularly when they have things like loyalty programs and experience managing? >> ten years ago i remember the idea of airbnb
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they said, brian, i hope that's not the only idea you're working on it would be a niche. so to tell me that the largest hospitality company in the world is looking at this space is a huge testament to what we've done, to the market we're in we've had half a billion guest arrivals i think it's more a validation than anything. >> do they present a threat especially when you are trying to boost market share, bring more listings on to the platform, do you see them as competition? >> i think the market is so huge we're going into the space as well and this is an industry the size of oil. there is an insatiable demand for travel i don't think anyone will be so large to meet the demand any time to come >> part of you must wonder why it's taken so long having been at this for a decade >> we're a technology company. technology companies are in the change industry.
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we have to be able to change and adapt very, very quickly we've gotten into hotels a robust business in china and it continues we think it's all about moving into industries, adding a little bit more people power, communities and we're doing with scott as well. >> when you were thinking about this project, why did you decide to partner with a airbnb, why not a traditional hotel operator >> they have validated the way people live, work and stay has changed. it used to be 9:00 to 5:00 and now it's a merger of home life and work life and the glue that brings that together is community. the one common thread for everything airbnb is about is about creating a sense of community, opening up people's
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homes for guests to come creating that sense of community. >> it was the culture important to you >> and the sense of community. >> brian, you mentioned the hotel tonight acquisition. you are looking more like more than a platform in terms of this project. these are hotel rooms. are you still a marketplace? how did we think of you going forward when you're making these major plays into traditional hotel space? >> i would say two things. the first is these spaces aren't just traditional hotel rooms scott and i are taking 20th century iconic buildings and bringing them into the 21st century. they're going to feel like homes and will have the best, each room will be distinctly designed, even have full kitchens and amenities i think it's a completely new model, a 21st century hospitality model. the second thing we are still a
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platform but we are starting to learn that the customer expects a higher quality experience. we want to do more to help our hosts uplevel their experience a 200-point inspection a 300-point inspection so more and more into that design we're not competing. >> what would you say for them is different in terms of length of stay, right, nightly rate, and the targeted customer. who is that person >> i think this is someone that really wants to have the best of home and services of a hotel and someone who wants to get outside and get a true, authentic new york city experience you're at rock center. and we're not just about having guests come and stay, we're going to be activating their
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experience while they're here. this week, for example, the tribeca film festival is in new york if you are a guest at 75 rock you would be offered the opportunity to go to the film premiere, you'd be given a taste of new york that would come here to travel. >> experiences, trips launched in 2016, is that going to be incorporated into this project and why not go full into it and help with the day-to-day operations >> we will take experiences and over 1,000 cities around the world. these are three-hour activities hosted by local experts and they're pretty different we want to create experiences travelers and locals want to do. we want to make sure the buildings feel alive, that these buildings are communities and we
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want to put unique experiences into the buildings that's a big opportunity for us. as far as the management of the building, that's a collaboration we'll do with scott and we're here to be good partners so scott and reality developers will tell us here is where we need help and we're here to fill in but not to compete with them. >> were users begging for this concierge level of service >> airbnb, our typical product is $100 a night and it's pretty big. we have had a half a billion guest arrivals, 6 million listings as we've gotten more popular, many of our users -- i started coming i was 26. many of our original users were people like me in our mid-20s. in our 30s, you make more money, have families. people want to use it for business, for families our classical millennial young travel base is the older, more affluent traveler base, kids are telling their parents about it now it's for everyone at all price points twhach
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what do they want? they want the rooms clean, concierges, and offer more for the audience. >> and they want hotels, right that's why you're expanding your listing. >> they want the best of a hotel and the best of an airbnb and they still love unique designs they still love to feel like they live like a local, each room to feel distinct and different, and i think we can offer all that's in the building >> would you ever offer a big chain hotel, a hyatt or marriott >> we're starting with independent hotels we welcome partnerships, the large players, how that actually works we'll have to figure out so we haven't determined that. >> can this expand to how many other cities >> we're working on a number of projects in new york new york is the great 24/7 city. >> it could work in miami, right? >> miami, vancouver, in montreal there's lots of places where this could work with a tremendous amount of demand for those types of guests. the other thing i want to point
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out the same services and experiences we're providing to the guests we're going to provide to the people working in the building the people working in the building will be given unprecedented level of hospitality, amenity and services you're taking a building that today is only open five days a week, seven or eight hours a day, and now will be open 24/7 and activated with all those types of amenities >> we know how some local regulatory agencies view airbnb. don't you expect more scrutiny because of this? >> this is fully compliant we're actually compliant -- >> i don't mean noncompliance but seeing your tentacles reach out to other areas >> we are now, for example -- we have partnerships at 500 jurisdictions. we're one of the largest collectors of hotel tax in the world. so i think we're moving into a new phase. the question first was, would airbnb exist and now it's how. it's moving into a strong
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partnership with a lot of cities partnerships that will move us to the next phase. >> it feels like you're putting in the extra stool legs, i mean, an s1 would be much more rounded, right, when it came along. is that intentional? >> i think once -- most companies start with a single product and then you look at amazon, you look at apple. to build a truly multigenerational company you have to offer multiple products. we want to offer the end-to-end trip this is all part of that i think the sooner you get your vision out before going public, the more investors know what they're buying >> when you see uber this week and lyft and pinterest going public, how are you thinking about that are you thinking of it in terms of this window you want to change your time line? >> no. i think that somebody once said great companies, infinite window can go in an up market and down market and want tobuild a grea company so robust. >> does that mean we can see it next year then
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>> we will be ready a little bit late they are year and then any point from then on you can see us >> thank you both. we appreciate it >> good seeing you jon fortt is with michael dell let's get to jon carl, a huge theme this year across enterprise tech when it comes to cloud is flexibility. if you look at google cloud, if you look at ibm and watson, here with dell, it's a massive technology company and has a bigger stake in that flexibility than anybody arguably because on the one hand dell's got its legacy business selling servers, selling hardware, big hardware provider, has vmware which is all about that in the cloud software flexibility so i talked to michael dell about that and about 5g, how it's going to power more of the demand for these data services here is what he said >> i'm giddy with excitement about 5g because 5g is all about
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data and moving data hundreds or thousands of times faster and i think this is going to unlock a wave of innovation and new business models across all sorts of industries that will be very powerful and, of course, the amount of data created, the amount of infrastructure required, and then the need to be able to analyze that data in real time and turn it into useful insights and actions is a tremendous opportunity the last several decades have been interesting and exciting. to me it's just the pregame show and 5g, you know, is really the beginning of a whole new wave of technology led investment cycle. >> and a lot of that has to do with dell remaining in front of the customer amidst all this competition from across the enterprise ecosystem to be that
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main point of contact, a lot of what the conversation here is at dell technologies. they have developers, executives, salespeople, technical sessions more from michael dell on that strategy coming up in just a bit. >> that's a good one, jon. great stuff. we'll see you in a bit jon fortt is in vegas with michael dell david muilenburg holding a press conference as boeing continues to face backlash they rejected to split the chairman and ceo roles we'll monitor the news out of the press conference today let's take a listen to muilenburg >> i would like to share a few brief opening comments all of us at boeing are deemly sorry for the loss of life in the ethopenian airlines flight 302 and lion air flight 610 accidents. we feel the immense gravity of these events, and we recognize the devastation to the families
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and friends and loved ones who have perished. there is nothing more important to us than the safety of the people who fly on our airplanes. every day 5.3 million people fly safely on boeing airplanes on average more than 2,900 737 airplanes are in the air with nearly half a million passengers onboard at any given time. and a 737 takes off around the world or lands roughly every 1.5 seconds. through the work we are doing now in partnership with customers and regulators to implement the update the max will be one of the safest airplanes ever to fly. we've been in constant contact with our customers and listening to their needs to ensure the fleet is maintained appropriately and positioned for an efficient return to service once cleared for passenger flights.
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our teams will take an entry into service approach with every plane returning to service deploying teams to all of our max operators and providing dedicated real-time operational support. we also will be providing enhanced training and supplemental education materials for our pilots boeing has an important role to play in advancing training efforts that support safe operations in addition to the upgrades we're working on we're committed to going above and beyond on training while we focus on the safe return to the max, the fundamentals of our market and business remain strong i want to thank our team for their ongoing focus on safety, quality, and integrity with that i'll be happy to take your questions >> you said a couple times we own it what mistakes do you own you've also mentioned that you
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will earn and reearn trust there are a lot of passengers who are afraid of the max. why should they trust boeing that it will be safe with this upgrade? >> david, again, our commitment to safety is unwavering and we do regret the impact that has had to passengers. we have work to do to earn and reearn that trust and we will. to the first part of your question as we've been part of both investigations, we've been diligent about the process throughout providing technical support. we know that in both accidents there was a chain of events that occurred one of the links was the activation of the mcast system because of the data that was a common link in both accidents. we know we can break that link in the chain
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the software update does that. we're going to be working closely with our customers and the faa and with regulatory authorities around the world as we finish up the certification process on the software update and have safe re-entry we'll do that airplane by airplane getting it back up and flying is a key step in rebuilding confidence and we'll work to ensure they have the support they need and we rebuild public confidence as the fleet gets back up and operating. >> was that a mistake, a design mistake? >> we've looked at the mcast activation, the erroneous information that came in to the airplane we've gone back and taken a look at the system itself, the original design. certified per our standards and
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we're confident in the process it operated according to those designed certification standards. we haven't seen a slip or gap in terms of the design and certification of the approach. that said this is a link in both accidents that we can break. that's a software update we own it and will make that update this will make the airplane even safer going forward. i'm confident it will be one of the safest ever to fly >> hello >> hi. >> in the light of the crisis facing your company and in the interests of reearning the trust of the flying public, have you considered resigning >> i think the important thing here, again, is we're focused on safety i can tell you both these accidents weigh heavily on us as a company. i've had the privilege of working for the boeing company for 34 years and we know that lives depend on what we do we take that very, very
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seriously. i've had the privilege of doing that my entire career. our boeing employees as well take that very seriously and so i'm focused on safety going forward. it's important that as a company we have those clear priorities, that we're taking the right actions, that we have the right culture. i am strongly vested in that and my clear intent is to continue to lead on the front of safety and quality and integrity. that's who we are as a company and i think it's really important to continue to stress that we deeply regret what happened with these accidents it gets to the core of our company. i've had the chance to walk the factory floors where we built the max airplanes over the last few weeks. they care about this business and the safety of our airplanes. that's what i'm focused on
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>> why did you put an mcast in place without notifying the airlines or the pilots and why did you not tell the pilots that the angle of attack warning light was deactivated? >> when we look at the original design, in some cases in the media it's been reported or described as an anti-stall system, which it is not. it's a system that's designed to provide handling qualities for the pilot that meet pilot prevens preferences. we want it to behave in the air like previous generations of 737s, how it feels as they fly it m cast is to provide those qualities at high angle of attack it's a purposeful design, it's something designed to be part of how the airplanes fly so as part of the certification process it's not something that is a separate procedure or something that needs to be trained on
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separately it is fundamentally embedded in the handling qualities so when we train on the airplane you're being trained on mcast. it's not a separate system to be trained on to your second question on angle of attack sensor information, certainly we've been taking a look at some of the reports out even again today, taking a look at the design of that original system again, i can confirm for you that going forward that angle of attack disagree signal is something that will be standard on all of the 737 maxs we'll be looking at retrofitting that and that will be provided at no cost i think that's an important step forward. it's also important to understand that that angle of attack disagree signal in the cockpit is not something that drives pilot action. it's not something we design as a primary flight display in the flight deck of a commercial airplane what pilots care about are things like altitude, air speed, heading, pitch and roll that's what they fly
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those indicators are in the flight deck today. air speed and altitude in particular are the relevant items around these two cases those are signals that are in the cockpit today. those are things that provide audible warnings to the pilot as well including things like stick shaker and so that's where we focus on the training effort going forward. >> sir, if i can, you have said that the mcast system, the angle of attack connecting it to one sensor met your process and yet the fact that it's only plugged into one sensor and could fail seems really like something that should have been foreseen. when you talk about re-establishing credibility with flyers, they are reading about reports that whistleblower after whistleblower to come forward and there were problems with the certification process, concerns
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about mcast. you have stopped short of saying that there was a mistake made in the process. how do you win back trust when there are some that feel you have a real credibility issue when boeing has not come out and said we department idn't do thi? >> we've probed the same questions ourselves, we've gone back and looked at both accidents. we've done deep assessments in the design and we've confirmed that the mcast system as originally designed did meet our design and safety analysis criteria and our certification criteria, standard process that is have worked for decades and will continue to work. now, that said, when we design a system, understand these airplanes are flown in the hands of pilots and in some cases our system safety analysis includes not only the engineering design but the action that is pilots would take as part of a failure scenario that's all baked into a system end to end analysis.
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now that all said going forward, we've identified a way to improve this is to make it a dual sensor feed that is a change we're making with the software update and i'm confident that, again, will create an airplane that's one of the safest in the air to fly. >> you said that it's operated as designed, you couldn't have possibly designed a system that would activate 21 times pushing the nose of the plane down to the point of an unrecoverable dive >> again, if you take a look at the end-to-end system procedure that's assigned with this, so in the case of an mcast failure scenario, there's something called a runway stabilizer, which is a memory item in the cockpit, if that scenario occurs and you go through the check list, and that check list was published as the recent ethiopian preliminary report, if you look through tshg calls out actions that would be taken around power management and pitch management of the airplane it also refers to the cutout switches that after an activation that was not pilot induced that you would hit the
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cutoff switches. and in some cases those procedures were not completely followed >> the pilot struggled with that process either recognizing what was happening or implementing those steps. the first lion air flight was a jump seat captain who told the flight crew what to do in the second one it doesn't appear they did that at all. the ethiopian folks generally followed the check list, were not able to recover. does that mean -- were you overly confident in pilots' abilities given the circumstances particularly when they didn't know it was there in the first place? >> again, i'll go back to my previous comment we look at both accidents, and this is common to both that have occurred over history, there's a chain of events, multiple contributing factors there are factors that we can control in the design and in this case that common link related to the mcast situation, we'll break that link and this will prevent accidents from this -- like this from happening again.
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that's an important state. >> you call it a link. >> it's a chain of events. there is no singular item. it's a chain of events i think it's really important that we all focus on letting the investigation process run its due course our job is to focus on safety not on speculation we're going to continue to support the investigation process, and i would suggest that that is the right way to handle this in the long run. this industry is safe because of the integrity of the safety process and the way these investigations are done. it's a continuous improvement process that over the last couple of decades has continued to dramatically improve air safety it is the safest form of transportation in the world because of the integrity of the process, and we're going to support the integrity that have process and make sure the max is the safest out there to fly. >> a lot of airlines have lost money because of the grounding of the max can you say how you're going to compensate them for that >> we're actively engaged with
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our airline customers. we deeply regret the impact to their operations and customers i know it's difficult. i personally talked to many of our customers and i can tell you our team is out deployed on a daily basis. i won't comment on individual discussions by airline we understand the difficulty this has caused. our partnerships are strong and we'll be working together on recovery efforts the first focus here is safely getting the max back up and flying and then we'll address the follow-on questions. >> dennis, today, again, you've repeated this message that the certification process and the design process for m cast was followed as per usual, consistent with what you've done, but forget about the process, the final design of mcast was deeply flawed and your engineers are fixing it and testing the fix today, fixing
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very specific flaws which are clear in the flights so can you admit that the design was flawed never mind the processes you went through it and you did the best you could, but what you came up with in the end was flawed, was it not >> getting back to what i said earlier. we've designed the max to have the flying qualities that were desired in the hands of the pilots the mcast system is part of that design effort. we have gone back and confirmed, again, as we do the safety analysis, the engineering analysis that we followed exactly the steps in our design and certification process that is produce safe airplanes. now in this case, again, as in most accidents, there are a chain of events that occurred. it's not correct to attribute that to any single item. we know there are some improvements that we can make to mcast and will make tohose imprompts. we never stop on making safety
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improvements we never claim we have reached the end point. we are continuously, across all of our airplane programs, improving safety every day, we always look for opportunities to improve. that culture that's unafraid to go make safety improvements over time, that culture is what has driven this to be an incredibly safe industry. that is our commitment we're not going to waver from that or step back from that. we will look for opportunities to improve safety. that's our responsibility, and that's part of re-earning the trust i talked about earlier >> thank you all very much >> sir, can we have a few more questions? >> that's dennis muilenburg of boeing, obviously facing some tough questions from reporters about the mcast system, about the design of the system, the ability of the manufacturer to train the pilots to use it in the words of muilenburg, this is a link in both accidents we know we can break. boeing definitely wants to frame
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this as a chain of events, something he said repeatedly >> i don't know how many times but at least three different reporters asked him very directly would he admit there was some kind of flaw, some kind of technical flaw, and he refused to say that. he kept going back to his talking points saying this was a chain of events, something was broken here but no flaw on the technical side of things >> you can see the figures boeing has given us earlier today. 136 test flights, spanning about 246 hours. they say 90% of the max pilots have been through simulator sessions one thing we didn't get clarity on here, though, was the timing of some carriers getting the planes off the ground again. >> absolutely. you saw "the wall street journal" article this morning talking about the fact that some faa officials or inspectors saw there may be some reason to ground the fleet and that never happened when he keeps talking about the chain of events it's important to look at the whole process, boeing's role, the faa's role.
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we're starting to get answers but we didn't get a lot from that press conference yet. >> i assume more to come from boeing in the days ahead the stock has been pretty steady the dow is up only about eight points we continue to hold on to a record interday high on the s&p, up 29, almost 2944 global markets,eat of the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow. oh, sir. that was my grandma's. don't worry, ma'am. all of your stuff is in ok hands. just ok? they don't give two and a half stars to just anybody. here you go. what's this? it's your piano. hold this for a sec.
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it's the first day of school. yeah, he's so nervous. tom is letting him know it will be alright. i know, it's a big day. i'm so proud of him. gotta go. ♪ good luck on your first day. just as we help companies advance in the digital era, cognizant is helping people do the same, by investing in skills training in communities nationwide. ♪ facebook opening for trade >> the first 30 seconds of
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trading, 82 million shares of facebook they don't know if their orders have actually been filled at this point >> it's an embarrassment >> ipo of the year >> ipo has broken the record >> insiders own it at $1.11. >> a lot of millionaires and billionaires were minted today welcome back to "squawk alley. jon fortt is in las vegas where he sat down with michael dell for an exclusive interview jon? carl, it's about flexibility in this cloud enterprise area. we covered a lot of ground in our conversation in the broader tech landscape is founder controlled airbnb to come to markets, at least two classes.
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lift in the market, michael dell has control in the public iteration of dell, makes no apologies. here is what he had to say about it >> a few days before the 35th birthday of our company, i think having a long-term horizon one approaches the development of a company can be very helpful. the company with $1,000 in my dorm room. i'm the ultimate long-term investor >> we also talk m/a
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dell owns 81% of vmware. the market cap is bigger through some odd math. i asked whether history is repeating itself we might see big tech companies buying other big tech companies now that the cloud is maturing take a listen. >> i think there is this explosion of innovation going on cloud, mobility, ai and these are just causing so many new companies, investment of capital. i think with each wave of these innovative cycles there's an explosion of new companies but then there's also a consolidation of existing companies. the layers reform.
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there is some level of consolidation. fundamentally the infrastructure layer i believe customers want fewer, more strategic vendors. i want to enable you to have them look up to the application and business differentiating services and we're increasingly going to automate, standardize, cloud deliver those infrastructure layers so you don't have to do it. every one of your resources gets to look up to create business differentiating circumstances. both will be true, could consolidation. >> i assume you agree how long before we see that wave of massive consolidation.
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three years, five years? >> well, certainly the biggest one yet to date. that was a big one billion in revenue, so that was some additional industry consolidation for you there. customers, to pat's point, have told us very clearly they don't want to be systems integrators anymore and are looking for fewer partners and bringing together a broad sense of capabilities across the infrastructure, security, client devices, the cloud, digital transformati transformation, enabling all those capabilities for customers, they would much rather work with one leading company than 20 or 30 smaller ones >> and this is a key theme for investors to really zero in on
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we heard it at microsoft and the way they're trying to work with enterprises to bring their legacy systems into the cloud. we heard it at ibm they're trying to gobble down red hat. that should close in the second half of the year i also talked to michael dell about vmware he's trying to make the case in the cloud era allowing companies to move their work loads, their data back and forth between the public cloud, private cloud, under this hybrid model. he says that's important take a listen. >> i think if you look at the rise you see clearly customers want to have an ability to move work loads around not only among all the public clouds but into their own data centers, out to the edge and customers are concerned
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about sending all their data away to somebody else and then renting it back. and so -- >> not because of security but because of performance and convenience? >> i think it's going to be performance, cost, regulatory concerns, latency for sure so a variety of concerns won't dictate that all your data and all your applications will end up in one place. the debate is over, jon. it's no longer is it the private cloud or the public cloud, it's both >> and that's the story of the next three years that investors are going to be paying attention to can amazon adjust to -- not just amazon, say google, adjust to that legacy enterprise reality of holding customers' hands through regulatory issues, all of that, can they get that together faster than the likes of dell and others can move into the cloud era with flexibility,
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new technology and keep those enterprise customers the battle is on from so many different directions in tech and that's a big theme here at dell technologies world that makes for a lot of competition and interesting alliances, guys. >> jon, i thought your conversation about consolidation was fascinating especially when you think about these new hot cloud companies coming to the public markets they have long been speculated to be acquisition targets but don't want to sell to some of the companies necessarily, so what are your thoughts around that did you talk to them about the idea these tech companies also are becoming so expensive? you saw zoom go public at a valuation 15 fold since the last private valuation. >> yeah, and microsoft tried to buy zoom ahead of time you saw sales force with that private placement in zoom, and i asked zoom's ceo about the possibility of them being taken out and he didn't say absolutely no down the line so i think this is something that's going to remain fluid
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watch for how these companies are aligning with each other back in the fall, remember i sat down with bill mcdermott, microsoft, adoebe, trying to pu together a philosophy on the customer, how the customer keeps their data we'll see some alliances here people will find interesting on the keynote stage. those are the shifts happening in the cloud era and it's not all about the public cloud that much is clear even amazon, remember, is selling servers these days >> that's right, jon thank you for that well, as we were talking, some of the biggest names in public heading to zoom and slack but investors are looking for their next big bet, and that next generation of tech companies could be in latin america. morgan brennan is at the emerge conference in miami. morgan, there is a lot of money and a lot with their eyes on this region.
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there absolutely is, deirdre. we talk about the tech unicorns coming to the market now the question, what is next or perhaps, i should say, where softbank is setting sights on latin america launching its innovation fund, news that it broke a few weeks ago, the size is unprecedented the total here is the equivalent of all of the investments for 2018 and 2017 combined i just spoke with the new managing investment partner here at emerge on stage just a short while ago. here is how he says softbank is going to be targeting these investments and how they're thinking about this. >> they have to be in it not for the money. they have to be in it for changing how things are done, to serve customers better that's really what it is about the moment i sense they're in it for the money, it's not interesting anymore. so that kind of passion, that
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kind of commitment has to be really, really strong. and, second, a deep bench of people with you. it's not a single person that will do it >> the moment it's about the money, it's not investing -- it's not interesting anymore this is particularly notable perhaps not surprising given some of softbank's other major investments over the years much less focused on profitability, much more about disruption and that longer term bigger growth in lat-am going to be on e-commerce, education, health care and mobility. softbank is already also heavily invested in ride sharing in the region brazil especially has been a huge source of growth. i did can passoni how softbank is navigating the rivalries. a brazilian startup last year and uber he said whether largest or second largest player in the region, the fact they're invested in both of them, they
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believe they're well positioned to capitalize on the ride sharing trend more broadly now passoni just joined over at softbank also said on stage that softbank is mulling over the possibility of opening a full fledged artificial intelligence center, something they could do here in miami, maybe mexico city, maybe sao paulo in brazil. the idea is to get cities onboard and to develop those deep benches of talent as they look to deploy all of this capital in the region. guys >> some eye popping numbers, morgan amazing. morgan brennan at emerge in miami. when we come back, a quick check on the markets here. dow is up 16 s&p record high. we have bank of america at a 2019 high and the same for jpmorgan at almost 117 hey mercedes,
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i'm scott wapner here. one market in san francisco where we have a great lineup of exclusive interviews for our first day out here altimeter's brad gerstner talking all things tech including the stock he put 20% of his fund in light street's glen kacher with us
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sequoia, the backer of zoom, the hottest parts of venture capital and defy's trae vassallo, talks about the future of early stage investing and what looks to be a record year in the valley for women led ipos all coming up here one market san francisco top of the hour at noon. we'll see you in just a bit. deirdre? >> scott, that is a great lineup you are doing san francisco proud. now boeing ceo just wrapping up a press conference addressing 737 max concerns how is that press conference being received so far? >> reporter: muilenburg said his top priority is getting those 737 max planes up and flying safely as for compensating airlines for any loss of revenue because of this grounding, here is what he had to say >> we're actively engaged with all of our airline customers and, again, we deeply regret the impact to their operations and customers. i know it's difficult.
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i personally talked to many of our customers and i can tell you our team is out deploying with customers on a daily basis i won't comment on individual discussions by airline, but we understand the difficulties this has caused >> reporter: now he did not directly respond to a question about whether he would resign as a result of the crashes and of the controversy, just repeatedly said he is focused on safety however, he did say that he intends to go above and beyond in training pilots on the new system there's an open question, though, whether that should include mandatory simulator training muilenburg said during the shareholder meeting that most of that training will be done online and simulator training would be optional. however, he said that to demonstrate the confidence boeing will have in this updated planes that boeing officials will be on the inaugural flights of the 737 max once it is back online, whatever that date may
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be, guys back over to you >> ylan, thank you very much for that now disney's big bet on franchises certainly paying off. "avengers: endgame" the biggest quk le ctiesftn ever "sawaly"onnu aer a quick break.
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disney's "avenger: endgame" smashing records, the biggest box office open ever the numbers show the superhero
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film took in $1.2 billion globally, the first time the movie topped the $1 billion mark in its opening weekend movie fans across the country lined up to see the film 90% of all tickets sold at the weekend box office went to the latest "avengers" film and it wasn't just a huge hit here in the u.s. it's a smash overseas, taking in $159 million internationally a lot of that coming from china and just one reason, deirdre, disney stock at a record high today with targets as high as $168 across the street >> and you're seeing this new strategy of releasing the movie in china first, how big that market is that used to be a lot more closed to us. i know you saw it, carl. you liked it, right? >> it's worth seeing, not atth anybody needs to be talked into it
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it's another day of record highs for the s&p, this time on an interday basis and a tight range for the dow as financials outperform kudlow on tape saying the us mca is in good shape for passage and there will be a much clearer picture on china trade, deirdre, at the end of the next two-week period as of these trade talks >> we can only hope those kick
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off tomorrow in beijing. we'll see more headlines get through. i'm not holding my breath on that we've been waiting a long time but it's amazing how far the markets have come since christmas eve and we're now close to or at record highs, right? >> interday on the s&p for sure. a busy few days here as we get the fed meeting and the jobs number at the end of the week. that does it for "squawk alley." let's get to the "the halftime report." it starts now. since it came into being silicon valley has always been a step ahead ideas from the valley have created trillion of dollars in wealth and massive opportunity for investors. now with a new wave of ipos hitting the market uber, lyft, pinterest, slack, zoom and more on the way we are bringing together some of the biggest names in the business. leaders in the venture capital world in the game. social capital

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