tv Maria Bartiromos Wall Street FOX Business July 5, 2019 6:00pm-6:31pm EDT
that. i thought the higher prices of avocados would get to them first, but at least there's something worse than climate change -- david: that's true. by the way, good news,i think the company that carol didn't want to mention, chipotle, it has all the tortillas you need. that does it for bulls and bears. see you next time. >> from the fox studios in new york city, this is maria bartiromo's "wall street." maria: happy inbegins day weekend, everybody -- independence day weekend, everybody, thanks for joining us. i'm maria bartiromo. coming up in just a few moments, long-term stock exchange ceo and founder eric reese is joining us this morning along with, later, my one-on-one with park mark's ceo. then more of my exclusive interview president trump as we talked about the economy and trade. president trump coming up. but first, america's newest stock exchange, the long-term
stock exchange looking to shake things up in the stock market by making investors and managers focus on companies' long-term interests. joining me is the founder and ceo, eric reese. eric, it's good to have you on the program. thanks so much for being here. >> thanks, happy fourth. maria: i want to talk about the long-term nature, but first, you've got some news. tell us about the filing that the company made. >> yes. so we were approved as a national securities exchange on may 10th, and now we're making our first in a series of filings that are the actual standards, the principles that companies have to comply with in order to be on our exchange. maria: let's talk about that in terms of the ownership structure of the company, which is what a lot of people want to better understand. >> sure. so at this stage we're talking about the disclosures that companies will be required to make that show how they're in compliance with these principles. the principles are things that are aligned with what a 21st century company, a founder and employees really want, things
like diversity, sustainability, giving everybody a fair shot. so in order to be compliant on our exchange, companies will have to publish what are the policies that they're going to enact at the board level, at the compensation level, at the voting level that bring them into compliance with those principles. maria: how do you get people to think long term? how do you get people to actually hold onto stocks longer, not have these knee-jerk reactions that have been really the story of investing, certainly in the '90s? >> yeah. certainly for the last 20 or 30 years the markets have become ever more about trading, trading volume andly quid fit and less about building great companies. so to reverse that, it's going to be a long-term process. this is not going to be fixed overnight, so this is the first step. it's a two-way street. we have to get investors to be incentivized to hold longer, to be more consider rate in their decision making process, but we also need to get managers not to be using the instruments that
have investments out of control. the more we have mutual alignment, the more we can plan for the future. more and it's a group of companies, certainly, if you get the companies that you're targeting in california, silicon valley, technology names, they've been, you know, really the subject for investors who are quick thinkers. they want satisfaction immediately. >> sure. maria: what kind of a company are you expecting to list on the long-term stock exchange? >> well, we certainly are engaged with the kind of companies you've named, elite silicon valley technology companies, but there's great companies across this country that in any other era would already be public, and they don't have access to capital market. we have a company in wisconsin i think we talked about before, in salt lake are city, companies across the south where they need access to capital that the public can give. and, you know, we used to fund growth in this country using the savings of ordinary americans,
and all of a sudden we've changed, you know? now it's only oligarchs and what are called accredited investors and a lot of foreign sovereign wealth funds, they're funding growth even in silicon valley. ing i don't think we consciously made that choice, it'd be hard to defend, hey, let's not allow ordinary people to participate in our growth. let's bar them from participating. and yet that's the reality of how we finance it today. maria: what's your business model, eric? and also how are you -- what's the sales pitch for a company to go on the long-term stock exchange and not the nasdaq or the new york stock exchange? we have enough stock exchanges in this country, don't we? >> you know, we sit down with companies, and we can look them in the eye and say one thing no other exchange can say. we say you are the customer, not traders. we're not anti-trading. of course, liquidity is good. but we're the one financial institution. we make our money by selling you services that allow you to build a great company, not just treat
you as ad commodity to be traded by others. maria: i see. do you think it will be largely california-related companies, silicon valley, these sharing economy type companies? i'm sure you'd like to get uber. >> you know, those are the companies that know me personally, they me my work, and any of these company, the founders group on those ideas, and that helped them build the company in the first place. so that's certainly our power base. but we don't expect this to be only silicon valley's exchange. in fact, we think these problems are affecting every company. maria: we will leave it there. thank you very much for joining us. eric ries. stay with us, we'll be right back. back in a minute. ♪ >> still to come on maria bartiromo's "wall street," a fashion empire on the rise. maria's can't-miss interview with the ceo of posh mark is
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♪woo ♪where did we all, where did we all go wrong?♪ ♪love, love, love, love ♪love, love, love ♪ maria: welcome back. with 50 million users, about 5 million sellers on its app and web site, poshmark is revolutionizing retail. poshmark has now expanded into home decor with hopes of making your living room as stiecial as your wardrobe. i recently spoke with manish chandra to get his take on how online shopping has changed the game. >> we have very simply been able to buy and sell stuff from your home, from your closet for fashion, but the thing that's different is we are very social. people follow, people connect, and we provide that human
element that most other sites lack. maria: so you can be talking to someone who might be wanting to buy your sweater and say, well, is it a true medium, a true large and just have a chat. >> exactly right. and if you find your style to it. somebody who loves your style, and you can shop from each other's closet, and that's how you build these connections. we also have a way in which people can share the items, and that helps build a community. we're probably one of the only marketplaces where every seller spends 30-40 of their time promoting other sellers. maria: wow. this is an industry now. i mean, you're one of a couple of companies. how do you think that has evolved, and why such popularity? consumers have so much choice in retail. >> so to be the honest, i'm, like, pretty surprised how big this whole industry has become -- [laughter] i knew we'd be big, but i didn't know there'd be a whole industry. a lot of it has to do with two things. one is, i think, an increased sense of the value of what everyone has, and second, i
think, a different relationship people have with their products. we're not buying cars anymore, we sort of taking lyfts, we're not staying in hotels, and we're sort of changing our relationships and buying and selling them on poshmark. it's very much a sign of the times. maria: yeah. the shared economy has done really well because it's enabled people who otherwise would not have access to certain things like black cars or, you know, home chefs to actually have access to this kind of stuff. so poshmark is free to join, right? >> yep. maria: for sales under $15 you take a flat commission of $2.95, over $15, you take 20%, and the person who's selling the item keeps 80%, which is a great deal. is it largely used stuff or new and used? >> 70% used, about 30% new stuff, and we also have sellers who have started selling from their closet, and thousands of them today have created their
own fashion label. so we have fashion labels like bella and blue which are all prominent on the platform, and then we created a wholesale market where they're able to sell it to other sellers. maria: that is very cool, that people is have come up with their own design brands. you know, it's interesting when you look at how it's done, why would a company sell on your site? like, let's say i'm a small business and i want to have more eyeballs, i might put it on poshmark just for that reason, right? >> yeah, absolutely. and you can create a following. so there's no cost of marketing. you can cure rate and ultimately what happens to our sellers is 70-80% of their customers are repeat customers. maria: give us a sense of the broad economic backdrop. >> sure. so we are growing fast. we're tackling almost a trillion, trillion-and-a-half dollar market. we just launched home decor this week, and what's exciting is that people are really engaging at a very deep level. we've got a community of 50 million users, 5 million
seller/stylists. any given day you have about 75 million items for sale and roughly $100 million of inventory being uploaded every week. maria: i can imagine home decor really lends itself, it's something you probably had in your that has been untouched. >> absolutely. stuff on your walls, stuff in your closet that's been untouched, stuff in your kitchen, so we see a lot of opportunities. but more importantly, i think the inspiration that our platform provides is missing. at least with fashion you can see people. it's hard to look inside everyone's home. maria: you had mentioned to my producer about an indicator that is shoe sales. tell me about that. >> oh, yeah. so one of the things, you know, that we talk about is the velocity of shoe sales equals the velocity of the economy, particularly the fondness of shoes we all have. women in particular, but recently women. we launched a sneakers market recently, and it's doing very well.
i've purchased about half a dozen sneakers from it. so it's definitely velocity in terms of enthusiasm for where we are as an economy. maria: so shoe sales going up meaning the economy may go up? >> the economy continues to go up. when we start to see shoe sales go down, we should start to think a recession is coming. maria: i like it. [laughter] my thanks to manish chandra. stay with us, a lot more of my exclusive interview coming up next with president trump. stay with us. ♪ >> iran, trade, technology and even the 2020 ticket. nothing is off the table when maria bartiromo goes one-on-one with president trump. that's next right here on fox business. ♪ ♪ it's time for our lowest prices of the season on
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♪ ♪ maria: welcome back. with the next democratic debate just a couple of weeks away, now you can expect one of the main focuses to be the economy. and another part of my exclusive interview with the president, we spoke about the economy, trade as well as iran and the risks the country faces today. listen. are we going to have a war with iran, mr. president? >> well, i hope we don't, but we're in a very strong position if we, if something should happen, we're in a very strong position. it wouldn't last very long, i can tell you that. it would not last very long. i'm not talking boots on the ground, i'm not talking we're going to send a million soldiers. i'm just saying it wouldn't last very long. maria: yeah. >> i've been very nice to them. i decided not to do -- they shot down our drone, i like iranians so much, and that plays into
your decision too. i mean, they're human beings, they're people. i didn't want to kill 150 people when they shot down an unmanned drone, so i didn't do that. maria: the sanctions at this point, the sanctions are enough, in your view, to fight back on iran's provocations? >> well, the sanctions are very biting. when i took over, iran was a terror. we had 14-18 sites of conflict. iran was behind every one of them. they would have taken over thed middle east, and they were going to make it really very bad. they would have taken over saudi arabia. maria: so are you working on a deal with europe? is europe going to be the next tart after you're done with china? ? -- target? >> oh, yeah, europe treats us worse than china. europe is, believe me, you know, look, i come from europe, we come -- you come from europe, okay? maria: yeah. >> you're one of, you're of the european nation. european nations were set up in order to take advantage of the united states. and they have the, you know, they very smartly have.
and they have draghi, who is -- we should have draghi instead of our fed person. draghi, as you know last week, he said lower interest rates, and we're going to stimulate the economy. they're going to put money into the economy. they're e going to force money into the economy because europe is doing, you know, okay, but they're not doing great. and with us, we have a fed that keeps raising interest rates. i mean, you explain that one. and this was not what i thought we had. so we have -- maria: look, if things are so great in the u.s. and the economy is doing as well as it is, hey, we're at a 51-year low at unemployment, 3.1 growth in the first quarter, why do we need interest rates to go lower? why do we need a cut in rates? >> for one thing, we have a lot of debt. i want to get it out, i want to pay it off. but what we really have, we have to stay even with these people. these people are devaluing their currency because they're not doing well against us, and so they devalue, and we can't, we
are no longer on a level are playing field. when they stimulate their economy and we have, we have a tightening, we having quantitative tightening, he was doing $50 billion a month he was tightening. he's taking it out, he's sucking it like from a vacuum clearance, he was taking it out. a lot of people didn't even know that. now it's $25 billion a month. that's a lot of money. that's a lot of money. so not only are we raising -- i've had nine interest rate hikes. obama had nothing. he had cheap money. so my economy is far better than obama's economy. obama's economy was ready to crash. you couldn't do anything -- i have great rules and regulations, but they're the reasonable. obama, under obama you couldn't do anything. you couldn't do a keystone pipeline, you couldn't do anything. maria: right. well, the regulations were -- >> right. but now, but maria, now we're really rocking and rolling. my problem is that as they
reduce their currency in order to take advantage of the united states, we have a man that doesn't, he doesn't do anything for us. maria: yeah. >> we're sitting there, and we stay. he should have never raised the rates to level that he raised them -- maria: he's saying he's not going to get pushed around by political. >> i know, so now he's trying to prove how tough the he is because he's not going to get pushed around. maria: yeah. >> here's a guy, nobody ever heard of him before, and now i made him, and he wants to show how tough he is. let him show how tough he is, he's a -- he's not doing a good job. let me be nice about it. maria: you basically said you wanted to demote him, i know you didn't say that, you were answering a question, but you're suggesting -- >> i have the right to demote him. i have the right to fire him -- maria: is that what you're thinking about doing? are you considering that right now? >> i've never suggested i was going to do that. i do have the right to do it, but let me just tell you, he has to lower interest rates for us
to compete with china. what they're doing is pouring money into their economy, and they're lowering rates. what europe just did with draghi who with, frankly, did a great move, but he's been doing a lot of great moves, what europe did with draghi is they're forcing money in. we're doing the opposite, we're taking money out and raising interest rates. it's insane. maria: so are you -- >> to raise the rates to extent that he did, if would have raised them just half and not done then quantitative tightening, our market would have been up another 10,000 points, and gdp would have been up another point or two points. we potentially could have hit five. maria: how concerned are you that technology companies are censoring conservatives, and they're going to do this right up to 2020 election? >> well, they're doing it to me on twitter. it's incredible. i have, you know, millions and millions of follower, but i will tell you, they make it very hard for people to join me at twitter, and they make it very
much harder for me to get out the message. maria: really? >> it's incredible, yeah. maria: what are you going to do about it? companies have an enormous amount of power if they can even stop the president of the free world in terms of getting his message out. >> what am i going to do about it? these people are all democrats, it's totally biased towards democrats. if i announce tomorrow that i'm going to become a nice liberal democrat, i would pick up five times more followers. i was picking up 100,000 followers every few days. and all of a sudden -- and i'm much hotter now than i was a number of months ago, okay in a number of months ago. then all of a sudden it stopped. and now i pick up a lot, but i don't pick up nearly -- maria: devin nuñes on twitter -- >> maria, who's shoeing twitter? >> congressman nunez. >> that's great. there's the a lot of ways he's great. he's right about it. twitter is just terrible, what they do.
they don't let you get the word -- i've had so many people come to me, sir, i can't join you on twitter. i see what's happening, 100%. maria: so would you rather see competition, or do you want to see legislation coming down to -- >> you may need legislation in order to create competition. maria: there was an op-ed in the journal the other day, mr. president, and it said basically advising you to take nikki haley as your running mate going into 2020. are you locked in on vice president pence for 2020, or would you consider having nikki haley as your running mate? >> i love nikki, she's endorsed me, she's friday mend, a part of my campaign, but mike is 100%, and this was written, actually, by a friend of mine. let me tell you, mike pence has been a great vice president. finish nikki haley represented us so well and our country so well. i love nikki, and there's places for her and her future's great, but mike pence is the person 100%. yeah, we won, we won together. we have tremendous evangelical
support, we have tremendous support from every angle. maria: yes. >> and you can't break up a team like that. maria: my very special thanks to president trump. don't go anywhere, more "wall street" right after this. ♪ ♪ i switched to liberty mutual, because they let me customize my insurance. and as a fitness junkie, i customize everything, like my bike, and my calves. liberty mutual customizes your car insurance, so you only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ who used expedia to book the vacation rental which led to the discovery that sometimes a little down time can lift you right up. expedia.
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♪oh, just think of the time ♪i know that some will say come on man! ♪it matters a little babe. stunned. i believe in magic. it's the experience of waking up and seeing things the way you saw them before they became ordinary. ♪i needed to try (amazement & laughter) ♪i needed to fall that's the goal. i'm looking for that experience of wonder. ♪i need never get old maria: thanks so much for joining me hn "wall street." catch us every friday night at 9 p.m. eastern, and on sunday join me for "sunday morning futures" live at 10 a.m. eastern on fox news. plus, weekdays here on fox business tune in to mornings
with maria from 6-9 a.m. eastern week dies -- weekdays on fox business s. have a great rest of the holiday weekend. i'll see you again next time. ♪ ♪ gerry: hello and welcome to "wall street journal at large." this week americans have been celebrating once again that glorious moment almost 250 years ago when a bunch of bold and courageous rebels rose up and kicked out the representatives of the most powerful empire the earth had seen. people who sounded rather like me back then. sorry about that, america. but it's all turned out really very well for this country and its citizens. information, the