Facebook implements livestream restrictions, some say it’s not enough


TIGHTENING LIVE STREAMING RULES SOCIAL MEDIA GIANT ANNOUNCING ONE STRIKE POLICY, VOWING TO TEMPORARILY RESTRICT USERS BREAKING COMPANY GUIDELINES IN RESPONSE, TO — THE LIVE STREAMING OF THE CHRIST CHURCH MASSACRE IN NEW ZEALAND AUTHOR OF WAKING UP TO THE FACEBOOK ABOUT CATASTROPHIC ROGER McNAMEE EARLY INVESTOR IN FACEBOOK BECOME LAST TWO YEARS MUCH MORE ACTIVE, AND CAUTIOUS ON THIS IF ANY GREAT TO SEE YOU.>>MARIA ALWAYS GOOD TO SEE YOU.>>THANK YOU VERY MUCH FOR JOINING US WHAT ABOUT THIS TIGHTENING OF THE RULES AT FACEBOOK IS THIS ENOUGH DOES THIS ADDRESS YOUR CONCERNS.>>IT DOES NOT. WHAT I LOVE AND I REALLY I REALLY SUPPORT MARK IN HIS ENGAGEMENT IN THE ISSUES REALLY DOES UNDERSTAND THERE IS NO PLACE TO HIDE ANY LONGER. BUT THEY ARE DOING CLASSIC PUBLIC RELATIONS CONCEDING THINGS THAT DON’T MATTER THAT WOULDN’T CHANGE THE OUTCOME TO TRY TO PROTECT THE BUSINESS MODEL THAT IS REALLY WHAT IS AT THE HEART OF THE PROBLEM. MARIA: WHAT ARE THEY GOING TO DO I MEAN HOW — THAT IS THE BUSINESS MODEL RIGHT.>>I MEAN THE BUSINESS MODEL DEPENDENT ON GETTING PEOPLE’S MANY ENGAGEMENT PROMOTING STUFF PEOPLE GAGE WITH NATURALLY PROMOTING HATE SPEECH DISINFORMATION CONSPIRACY THEORIES THEY MAKE A LOT OF MONEY BECAUSE OF PROMOTING THAT STUFF. SO WHAT THEY WANT TO DO IS FIND A WAY TO MAKE THE PR PROBABLO PROBLEM GO AWAY WITHOUT ACTUALLY HAVING TO GET RID OF THE CONTENT THAT CAUSES THE PROBLEM IN THE FIRST PLACE, IN THIS CASE, YOU KNOW, THE NOTION THAT PEOPLE ARE GOING TO BE ABLE ABLE TO POLICE THIS GET IT DONE BEFORE HARM DONE IS RIGHTS YOU HAV HARM DONE IS RIDITS YOU HAV HARM DONE IS RIDICU YOU HAV HARM DONE IS RIDICULOOU HAV HARM DONE IS RIDICULOUS HAV HARM DONE IS RIDICULOUS IAV HARM DONE IS RIDICULOUS ITV HARM DONE IS RIDICULOUS IT IS ALL ABOUT STATUS WHAT PEOPLE ARE LOOKING FOR, SO EXTREMISTS TERRORISTS LOOKING TO USE FACEBOOK TO GET STATUS BY PROMOTING THEIR ACT OF TERROR ONLINE IT IS THE FACT THAT YOU CAN DO IT THAT IS THE PROBLEM. MARIA: THE BIGGER ISSUE I GUESS COMPANY HAS NORMAL AMOUNT OF POWER MORE THAN AT A LOT OF PEOPLE UNDERSTOOD, SAME WITH GOOGLE, THIS IS WHY CHRIS HUGHES ONE OF THE FOUNDERS OF THE COMPANY WRITES A PIECE IN THE “NEW YORK TIMES” LASTLY WEEK GOT A LOT OF PLAY CONVERSATION ABOUT IT, THAT IT IS TIME TO BREAK UP FACEBOOK.>>CHRIS MAKES AN ABSOLUTELY ESSENTIALLY POINT ABOUT THE POWER SITUATION BECAUSE FACEBOOK AND GOOGLE ARE NOT ELECTED THEY HAVE MORE IMPACT ON OUR DEMOCRACY THAN ANYTHING HAS EVER HAD IN THE PAST, THEY HAVE MORE IMPACT ON PUBLIC HEALTH ON PRIVACY FRANKLY ON THE ECONOMY, AND THE CORE ISSUE HERE IS WHAT ARE THE BEST WAYS TO HANDLE THAT, I WANT TO USE ANTITRUST TO CREATE OPPORTUNITY FOR COMPETITIVE MODELS BACK TO ENTREPRENEURSHIP YOU AND I HAVE KNOWN EACH OTHER A LONGTIME WITH SILICON VALLEY WAS SMALL COMPANIONS DOING AMAZING THINGS NOW TOTALLY DEPENDENT ON MONOPOLISTS, YOU HAVE TO GO AFTER THAT MODEL GET COMPANIES OUT OF THE WORLD OF BASICALLY USING SURVEILLANCE PURCHASING DATA TRADING DATA TO GET TO KNOW EVERYTHING ABOUT US MAKE DIGITAL VOODOO DOLLS OF EACH EVERY ONE OF US WE HAVE NO IDEA HOW MUCH DATA THEY HAVE WE HAVE NO IDEA WHAT THEY ARE DOING WITH IT, AND, WE ARE SO DEPENDENT ON PRODUCTS WITHOUT REVISING THAT THEY ARE MINUTEIN MINUTE N MANIPULATING OUR BEHAVIOR THAT IS NOT AMERICAN THAT IS CHINESE WAY OF DOING THINGS I DON’T WANT TO SEE US GOING DOWN THAT PATH.>>WHAT HAVE YOU HEARD BACK IN RESPONSE TO HE CRITICISM YOU WROTE A BOOK ABOUT IT ZUC.K. INCREDIBLE PLAY.>>I GIVE MARK A LOT OF CREDIT HE IS ENGAGING IN THE CONVERSATION BUT HE HAS REALLY GOOD PR HANDLERS SAYING MARK, MAKE THIS LITTLE CONCESSION HERE IT WILL GO AWAY MAKE THAT LITTLE CONCESSION THERE IT WILL GO AWAY THE FLOW OF NEWS SO INTENSE THAT PEOPLE HAVE NOT BEEN SATISFIED WITH A LITTLE MOVES THEY’VE MADE UNLIKE GOOGLE AT LEAST IN THE CONVERSATION GOOGLE TRYING TO PRETENDED NONE OF THIS HAS ANYTHING TO DO WITH US COMPLETE NONSENSE I LOOK AT THIS AS — AS — YOU KNOW, IN THEIR SHOES, PROBABLY A LOT OF CEOS WOULD HANDLE THE SAME WAY THEY ARE DOING IT BUT I WITH A WILL NOT THEM TO SIT THERE REALIZE, THEY SUCCEEDED BEYOND WILDEST DREAMS OPPORTUNITY FOR MARK TO BE HERO OF HIS STORE.>>YOU HAVE BEEN SORT OF CAUTIOUS NEGATIVE SPEAKING OUT ABOUT ISSUES AROUND THE COMPANY YOU HAVE NOT SOLD MUCH IS TO BEING.>>I CONTINUE TO HAVE CONTINUES FARL BY FAR LARGEST POSITION THE KEY THING I DON’T THINK THIS IS ABOUT, THE PEOPLE, I AM NOT CRITICAL OF MARK NOT CRITICAL OF CHERYL OR LARRY –>>IT IS ABOUT THE CULTURE ABOUT NOTION THAT SOMEHOW THEY ARE ENTITLED TO ESSENTIALLY CONVERT EVERYBODY’S HUMAN EXPERIENCING INTO DATA USE THAT TO MANAGE OUR LIVES WE GO TO THEM FOR INFORMATION WHAT WE DON’T REALIZE THEY ARE USING THEIR CONTROL OF THE MENU, TO CONTROL THE CHOICES AVAILABLE THOUS, THAT IS NOT A GOOD TO US.>>WE TALK CHINA HOW CHINA IS TRACKING CITIZENS, FACIAL TECHNOLOGY, ALL THIS DATA ON EVERYBODY, THE CLOSEST THING TO CHINA IN THIS COUNTRY –>>IS GOOGLE AND FACEBOOK MY POINT IS THEY SAY YOU CAN’T REGULATE US WE HAVE TO COMPLETE WITH CHINA I GO WHY DO WE WANT TO XOO EITHER WITH CHAIN IN BEHAVIORAL MANIPULATION WE DON’T WE WANT A.I. TECHNOLOGY TO MAKE HUMANITY BETTER OFF.>>WHAT IS FARE AROUND A.I.>>LEGITIMATE FARES COMING TWO DIFFERENT AREAS ONE IS THAT — YOU TRAIN ARTIFICIAL INTELLIGENCE WITH DEDICATE FROM REAL WORLD IF YOU ARE NOT REALLY CAREFUL, YOU REPRODUCE ALL PROBLEMS OF THE REAL WORLD WITHOUT A HUMAN BEING TO COMPLAIN TO, SO IF YOU SIT THERE THINK ABOUT THIS WE’VE HAD HUGE ISSUES IN — IN ARE CORPORATIONS FOR RECRUITING WITH RECESS MAY APPLICATIONS, THAT RETAIN THE REAL WORLD BIASES AGAINST WOMEN OLDER.>>BIAS RIGHT IN THERE.>>EXACTLY MY POINT IS YOU HAVE OCTOBER REALLY CAREFUL THE OTHER PROBLEM WITH A.I., THEY ARE ALMOST INSCRUTABLE IMPOSSIBLE TO TELL WHEN YOU START AT BEGINNING WHAT IS COMING OUT AT END YOU CAN SAY WE CAN GET A.I. DRIVE A CAR I AM SAYING HANG ON DRIVING CARS WITH HUMANS ON ROAD IS COMPLICATED, WE CANNOT COUNT ON THESE THINGS TO GET IT RIGHT, WITHOUT AN AWFUL LOT OF TESTS.>>I DON’T THINK WE ARE GOING TO SEE DRIVERLESS CAR ON ROAD FOR A DECADE I KNOW WHAT ELON MUSK IS SAYING I AM NOT BUYING IT.>>I HOPE WE DON’T IF WE DO IT WILL BE VERY, VERY DANGEROUS.>>MICROSOFT SOUNDING ARM WARNING OF A MONSTER COMPUTER BUG WOULD BE USED AS CYBERWEAPON WHAT DO YOU KNOW ABOUT THIS HOW DO THESE PROPS KEEP POPPING UP.>>THE ISSUE WITH MICROSOFT WEBBING PLAVMDZ THEY ARE SO HUGE HAVE SO MUCH OUT THERE INEVITABLY THINGS FALL THROUGH CRACKS MICROSOFT PATCHING UPGRADING BUSINESSES FOREVER THIS IS ABOUT OLDER VERSIONS OF WINDOWS THE SAD PART GOVERNMENT AGENCIES, AND CORPORATIONS THAT DON’T UPGRADE REGULARLY ARE THE ONES VICTIMIZED BY THIS IT IS IN THE WORST POSSIBLE PLACES, AND NOW THAT EVERYBODY KNOWS THE BUG IS THERE, THERE IS A REAL RISK WITH SUPER IMPORTANT, THAT ANYONE WHO HAS THOSE OLD VERSIONS OF BUSINESSES UP AID IMMEDIATELY BUT PATCH IN PLACE, AND, YOU KNOW, THE THING WITH COMPUTER TECHNOLOGY IS IT IS FAR MORE RISKY THAN WE’VE ALLOWED FOR WE HAVE TO BUDGET BOTH EXPENSE, AND THE ENERGY TO KEEP THESE THINGS CURRENT AND PROTECT.>>WE REPORTED ON THIS A LOT STEVE BALLMER CAME ON THE SHOW TOLD ME CONFIRMED TO ME THAT 90% OF THE CAMPAIGNS IN CHINA USE THE MICROSOFT OPERATING SYSTEM ONE PERCENT PAY FOR IT, IT IS A LOSS OF TEN BILLION DOLLARS A YEAR FOR MICROSOFT WHEN IT COMES TO CHINA IP THEFT, YOU KNOW THIS IS THE BIG ISSUE.>>IT IS A HUGE ISSUE. MARIA: THE PRESIDENT PUSHING BACK USING — SORT OF POINT OUT THAT APRIL RETAIL SALES WORSE THAN EXPECTED WAS DOWN 2/10 OF A PERCENT EXPECTING SALES UP 2/10 OF A PERCENT CHINA FIGHT ONE THING PEOPLE ARE WALKING ABOUT WHETHER OR NOT GOING TO IMPACT THE ECONOMY KEY DON’T KNOW APRIL RETAIL SALES DOWN 2/10 OF A PERCENT FOR MONTH THAT IS A WORST THAN EXPECTED NUMBER MARKETS ARE DOWN THIS MORNING THEY WERE DOWN GOING INTO IT THE BIG ISSUE HERE, THE PRESIDENT USING TARIFFS, THE REAL ELEPHANT IN THE ROOM AS YOU KNOW IP THEFT FORCED TRANSFER TECHNOLOGY? MY MIND NOT JUST IP THEFT THE FORWARD LOOKING RISK IS NOTION THEY BRING THEIR BEHAVIORAL MANIPULATION THEIR WHAT THEY CALL SOCIAL CREDIT APPLICATION INTO OTHER COUNTRIES AROUND THE WORLD INCLUDING UNITED STATES I DON’T THINK WE WANT TO ALLOW THAT SO I BELIEVE, THAT HAVING A BETTER RECIPROCAL RELATIONSHIP WITH CHINA REQUIRES HOLDING TO MUCH HIGHER STANDARD ON INTELLECTUAL PROPERTY, AND KT REALISTICALLY WE HAVE BUILT OUR ECONOMY AROUND BUYING STUFF FROM CHINA WE NEED TO GET BACK TO I CAN MAKING A LOT MORE STUFF THEY ARE GET BACK TO INVESTING IN MORE CONSUMING LESS I DON’T KNOW COUNTRY IS EMOTIONALLY PREPARED TO CONSUME LESS BUT IF YOU WORRIED ABOUT CHINA THAT HAS GOT TO BE A BIG PART OF THE ANSWER RIGHT NOW YOU GO INTO A RETAIL STORE WHAT IS IT WALMART 90% WHAT IS THERE — IS MADE IN CHINA?>>CHINA’S ECONOMY GETS IMPACTED MORE THAN U.S. ECONOMY FROM THIS FIGHT.>>80 DOES WE BOTH GET HURT NEEDLESS. MARIA: AGAIN, RETAIL SALES ARE DOWN TWO-TENTHS OF A %

Inflation will be a global phenomenon: Kyle Bass


NASDAQ FINISHED MIXED. MARIA, BACK TO YOU. MARIA: STOCKS CAPPED OFF WITH THE LATEST JOBS REPORT ON FRIDAY. THE PRESIDENT’S ECONOMIC TEAM VISIT TO CHINA TO DISCUSS THE TRADE IMBALANCE AND THE THREAT OF INTELLECTUAL PROPERTY BY CHINA. JOINING ME RIGHT NOW, ONE OF THE MOST RESPECTED INVESTORS IN THE WORLD, KYLE BASS, THE CHIEF EXECUTIVE OFFICER OF HAYMAN CAPITAL COMPANY. GOOD TO SEE YOU, KYLE. THANKS FOR JOINING US.>>YOU TOO. MARIA: LET ME GET THE MACRO STORY FROM YOU AND YOUR REACTION TO THE JOBS NUMBERS OUT ON FRIDAY. THE NUMBER OF JOBS IT WAS WEAKER THAN EXPECTED, WE KNOW, EVEN THE UNEMPLOYMENT RATE FALLS BELOW 4%. WHAT WAS YOUR TAKE?>>WELL, YOU KNOW, MY VIEW ON JOBS IS YOU HAVE TO THINK ABOUT WHAT OUR GOVERNMENT IS DOING. WITH THE TAX CUTS WE’RE GOING TO STIMULATE OUR ECONOMY BY $350 BILLION OVER THE NEXT 12 MONTHS. IT’S BACK-END LOADED TOWARD 2019. BUT WE’RE STIMULATING WHILE WE’RE AT FULL EMPLOYMENT. SO WE, AT OUR FIRM, BELIEVE THAT IS GOING TO LEADS TOWARDS INFLATION AND IT’S GOING TO LEAD TOWARDS WAGE INFLATION. IF YOU LOOK AROUND THE WORLD AND LOOK AT HOW MUCH MONEY THE GLOBAL CENTRAL BANKS HAVE PRINTED. WE LOOK AT THE WORLD AS GLOBAL M-2, MONEY AROUND THE WORLD DIVIDED BY GLOBAL GDP. THAT RATIO IS THE HIGHEST IT’S EVER BEEN. 110% OF GLOBAL GDP IS WHERE M-2 SITS. AND HISTORICALLY THROUGHOUT THE LAST 100 YEARS, THAT RATIO IS SOMEWHERE BETWEEN 30% AND 50%. MARIA: WOW.>>WE SEE SO MUCH MONEY AROUND THE WORLD AS AN UNINTENDED COINS CONSEQUENCE OF QE. WE SEE WEALTH GAPS WIDENING, FULL EMPLOYMENT IN THE SKILL LEVEL SECTOR AND PERMANENT UNEMPLOYMENT FROM THE DISPLACEMENT OF FACTORY WORKERS BY CHINA AND SOUTHEAST ASIA. SO IT’S A FASCINATING WORLD THAT WE’RE LIVING IN TODAY THAT THEY SAY TEXTBOOKS DON’T HAVE AN ANSWER FOR. MARIA: YOU WOULD THINK THAT THE DOLLAR WOULD BE TRADING BETTER BUT THAT’S NOT THE CASE. SO WHAT DO YOU WANT TO DO BASED ON ALL OF THESE SINGLE NAS. YOU WANT TO SHORT THE MARKET OR BE ALL IN?>>I WANT TO BE RIGHT IN BETWEEN THERE. NO. I THINK THAT, I THINK THAT — SO WHAT I’M TRYING TO SAY IS, YOU’RE GOING TO SEE — YOU’RE GOING TO SEE REAL INFLATION HAPPENING. THIS TIME IT’S GOING TO BE A GLOBAL PHENOMENON. IT’S NOT GOING TO BE, LET’S SAY, CONTAINED BY A SOVEREIGN WALL OR ONE DOWN TRI’S POLICY. IT’S GOING TO BE GLOBAL IN ITS NATURE AND THAT’S SOMETHING WE HAVEN’T EXPERIENCED AS A WORLD IN A VERY LONG TIME. AND SO WHEN YOU ASK DO I WANT TO BE ALL IN THE STOCKS OR DO I WANT TO BE SHORT, YOU KNOW, I THINK THAT THERE’S SO MUCH MONEY AROUND THE WORLD THAT, YOU KNOW — I’LL GIVE YOU AN EXAMPLE OF THE RIDICULOUSNESS THAT WE’RE SEEING. WE JUST HAD A PAINTING AUCTION THAT WAS MAYBE LEONARDO DA DaVINCI, WE’RE NOT SURE, THAT WAS RESTORED, IT TRADED FOR 450 $450 MILLION. A PICTURE OF JESUS BOUGHT BY AN ARAB. YOU CAN’T MAKE THIS STUFF UP, WHAT’S GOING ON OUT THERE THESE DAYS. I THINK YOU’RE GOING TO SEE — IN PERIODS OF INFLATION AND MAYBE WE’LL SEE STAG SB FLATION. AND IN THOSE SPEAR IDEAS, STOCKS, YOU KNOW, IN INFLATIONARY PERIODS STOCKS KEEP UP WITH 75% OF THE NUMBERS. SO I’M NOT SAYING BE SHORT STOCKS. I’M JUST SAYING THAT THIS MACRO ENVIRONMENT THAT WE’RE KINDING HEADING INTO, GIVEN ALL OF THE CENTRAL BANK’S ACTIONS, THE FED PULLING BACK, CHINA STAYING ON THE GAS PEDAL AND THE ECB MIGHT BE PULLING BACK, I THINK YOU JUST NEED TO BE — I KNOW THIS SOUNDS LIKE A WEATHERMAN. YOU NEEDS TO BE SELECTIVE ABOUT WHAT YOU BUY BUT YOU DON’T WANT TO BE SHORT THE WHOLE MARKET. THAT’S MY VIEW. MARIA: WHERE DO YOU SEE GROWTH RIGHT NOW? WHERE ARE THE OPPORTUNITIES FROM YOUR STANDPOINT?>>WE LOOK AROUND THE GLOBE. WE OWN OM THINGS HERE WE OWN SM THINGS HERE WE OWN SOMTHINGS HERE WE OWN SOMEHINGS HERE WE OWN SOME TNGS HERE WE OWN SOME THIS HERE WE OWN SOME THINGHERE WE OWN SOME THINGSERE WE OWN SOME THINGS IE WE OWN SOME THINGS IN THE U.S. BUT. THE MAJORITY OF CAP L IS FOCUSED ON WHERE WE SEE OPPORTUNITY IN SOUTHERN EUROPE AND PRIMARILY GREECE. YOU THINK ABOUT THE U.S. GREAT DEPRESSION, WE HAD A REFLECTIVE SNAP BARBING IN TWO OR THREE YEARS. THEY’VE HAD EIGHT YEARS OF A COMPLETE DISASTER IN THEIR ECONOMY. AND YOU’RE SEEING EVERY MACRO INDICATOR IN SOUTHERN EUROPE IS HEADING HIGHER. WE THINK THERE’S TREMENDOUS OPPORTUNITY IN A SMALL COUNTRY IN SOUTHERN EUROPE AND THAT SEGUES INTO LATIN AMERICA. ARGENTINA HAS HAD TO ABSOLUTELY MOVE THEIR SHORT-END RATES IN EMERGENCY FASHION MULTIPLE TIMES. THEY’VE MOVED IT ALMOST 900 BASIS POINTS IN ABOUT A WEEK. IMAGINE IF THE U.S. RAISED THE FRONT END 9% IN A WEEK.

Biggest wins for AI will be in health care: Former Google CEO


CASES THEM TO WORK HARDER. MARIA: I LIKE THE IDEA OF REALLY LOOKING AT THE PEOPLE BRINGING OUT AS MUCH AS YOU CAN FROM PEOPLE GIVING PEOPLE, THAT LEADERSHIP, AND THAT COMPOSUREMENT PEOPLE REPRESENT IDEAS AT GOING IS THERE A WAY YOU NEED TO HARNESS THAT STRENGTH, BUT NOT FOLLOW ALL THE DECISIONS OF THE PEOPLE BECAUSE A LOT OF PEOPLE QUESTION WHETHER OR NOT IT ITSELF TOO MUCH NOW THERE HAVE BEEN BIG DECISIONS, IN A MANAGEMENT HAS MADE AT GOOGLE BECAUSE THE PEOPLE WERE UPSET ABOUT WHETHER, PENTAGON CONTRACT OR WHETHER A.I., ETHICAL UNIT, IS IT TOO MUCH?>>IN THE GOOGLE CONTEXT ONE OF OUR VALUES IS THIS KIND OF INTERNAL CONVERSATION. WHERE BILL WOULD SAY I’M SORRY STICKING TO VALUES STAY VERY FOCUSED WHAT YOU WANT AS A BUSINESS THE REALITY IS TODAY, THESE MANAGEMENT JOBS ARE HARDER AND HARDER AND HARDER BECAUSE OF SOCIAL MEDIA AND SO FORTH YOU’VE GOT TO LISTEN, EVEN MORE CAREFULLY TO YOUR EMPLOYEES. BUT AT THE END OF THE DAY, THE OLD PLAYBOOK WHICH IS LEADERSHIP, COACHING, GETTING PEOPLE WHO ARE AVEN YOUNG AND RELATIVELY EXPERIENCED HUGE POTENTIAL TO ACHIEVE THEIR GREATNESS WHATEVER IT IS, THAT IS A UNIVERSAL HUMAN VALUE OUR ARGUMENT IN THE BOOK IS THAT THESE ARE APPLICABLE TODAY IN THE FUTURE THESE ARE UNIVERSAL VALUES OF MANAGEMENT ON LEADERSHIP.>>SOME POINT THE LEADERSHIP HAS TO SAY OKAY. I HEAR YOU, BUT WHAT DO I STAND FOR WHAT DO WE STAND FOR.>>THAT IS THE VALUES.>>IN BOOK YOU GO THROUGH MANY LESSONS BILL TAUGHT INCLUDING PEOPLE BILLED TRUST CREATING A WORKPLACE BASED ON LOVE, WHAT DOES THAT MEAN? GIVE ME A PRACTICAL IDEA BASED ON LOVE.>>YOU SHOW LOVE SHOW UP A MANAGER, COACH SHOW UP FOR YOUR PEOPLE, BREATHE CONFIDENCE INTO THEM, WHEN TIME GETS UP SHOW UP.>>ALSO MEANS CHEER. BILL WOULD CLAP LIKE THAT IN BOARD MEETINGS.>>IN THE MIDDLE OF THE MEETING NO GOOD REASON, MARIA I LOVE YOUR SHOW, [CLAPPING], FEELS GOOD.>>IN A MEETING, BY AUDIBLY CLAPPING LET YOU YOU KNOW WHAT A GREAT JOB YOU HAVE DONE.>>FANTASTIC.>>MOMENTUM TOWARDS THE DECISION.>>GETS EVERYBODY BUYING IN.>>HAVEN’T YOU SAID SAT IN MEETINGS AIRFARE KIND OF BORED OKAY. LET’S GET GOING IT IS THE SAME THING AS WINNING IN THE GAME.>>FUNNY HOW LITTLE THINGS MAKE A BIG DIFFERENCE LET ME ASK YOU ABOUT A.I. GOOGLE AMONG SENIOR COMPANIES OUT THERE WORKING ON ARTIFICIAL INTELLIGENCE WE HAVE BEEN LOOKING AT IT HERE AS WELL. IT IS EVERYWHERE IS IT JUST GOING TO GET BIGGER MORE PREVALENT.>>A LOT AHEAD GETTING EXERCISERS TO ABOUT SMARTER I THINK BIGGEST WINS IN HEALTH CARE I THINK THIS IS LARGELY UNDER REPORTED.>>YOU SAID A LONG TIME.>>I AM CONVINCED HERE IS WHY, AS MUCH AS WE THINK OF OURSELVES AS INDIVIDUALS BIOLOGICALLY WE ARE SIMILAR TO EACH OTHER COMPUTERS CAN WATCH WHAT HAPPENS NOW THE ALGORITHMS ARE SO GOOD WHEN YOU GO INTO A HOSPITAL IF WE KNOW ROUGHLY, YOU GIVE US YOUR PERMISSION ABOUT INFORMATION THIS IS THE HOSPITAL NOW NOT GOOGLE, THE HOSPITAL CAN SAY, HEY WE THINK THIS IS THE NEXT AILMENT THAT IS GOING TO HAPPEN, THAT IS HOW GOOD THE ALGORITHMS ARE GETTING THE WHOLE YEAR OF PRECISION MEDICINE THE ABILITY TO HAVE MEDICINE DIRECTED DIRECTLY AT YOU DIRECTLY REVOLTED TO ALGORITHMS, DIAGNOSTIC THE COMPUTER THE MAKE A RECOMMENDATION MORE ACCURATE THAN DOCTOR’S ICE.>>A LOT OF BABE DEBATE IN A LOT OF DEBATE IN TERMS OF EMPLOYMENT SOME JOBS WILL GO AWAY ARE YOU ON LARRY PAGE THEY ARE THEORY OF THINGS ORELONLON WHERE THIS COULD BE DESTRUCTIVE CAN YOU EXECUTE ARTIFICIAL INTELLIGENCE IN AN ETHICAL WAY NOT TO HARM TOO MANY PEOPLE.>>ABSOLUTELY IN ETHICAL WAY WHOLE INDUSTRY IS FOCUSED ON THAT I AM CONVINCED THERE IS HE GOING TO BE A HUGE JOB SHORTAGE BY THAT I MEAN, NOT ENOUGH PEOPLE TO FILL THE JOBS THAT ARE OPEN BECAUSE OF THIS. AND THE REASON IS, THAT THE A.I. SYSTEMS WILL MAKE THINGS SO MUCH MORE EFFICIENT SUCH ECONOMIC GROWTH WE LITERALLY ARE GOING TO NEED MORE PEOPLE MORE EDUCATION, TO FILL THESE JOBS, THERE IS NO QUESTION THAT DESTRUCTIVE THAT DISTRUCTIVE THAT DISRUUCTIVE THAT DISRUPTTIVE THAT DISRUPTIVVE THAT DISRUPTIVE.>>SOMEBODY SAID WHEN WE LEARNED NUCLEAR TECHNOLOGY WE DID NOT GIVE NEVER BEEN NUKE NUCLEAR BOMBS THIS IS NOT NUCLEAR THIS IS CAPABLE OF MAKING EVERYTHING WE DO MORE EFFICIENT, CLEARER, BETTER GRIMZ MORE PRODUCTIVE IN THE SAME WAY THE PERSONAL CPR DID THIS IS TAKEN OVER OUR WE’LL INDUSTRY IN TERMS OF MACHINE LEARNING, BETTER BUSINESS ALGORITHMS IF YOU ARE RUNNING A BUSINESS NOT USING A.I. MACHINE LEARNING YOU ARE COMPETITOR CAN BEAT YOU –>>I AGREE WITH THAT THAT IS WHERE WE ARE SEEING IT IN EVERY SINGLE INDUSTRY FASCINATING ABOUT DATA RIGHT DATA, INSERTED INTO THE COMPUTER MAKING THE COMPUTER SMARTER.>>TODAY, THE SYSTEMS ARE COMPLETELY DEPENDENT UPON LARGE SOURCES OF DATA SO COMPANIES THAT HAVE MOST DATA WHETHER IN MAPS BUSINESS OR WHAT HAVE YOU TYPICALLY ARE WINNING. IN THE FUTURE WE THINK ACTUALLY POSSIBLE FOR KRRZ TO GENERATE THEIR OWN TRAINING DATA SO THERE IS A HUGE NEW FIELD COMING OUT, WILL MAKE THAT EVEN MORE EFFICIENTLY.>>BILL CAMPBELL WOULD SAY?>>THAT’S TERRIFIC AS YOU CHEER] CLAPPING].>>THANK YOU FOR WONDERFUL

Raytheon CEO: Merger with United Technologies will create 70K jobs


MORNING. FIRST TOP STORY THIS HOUR, FIRST TOP STORY THIS HOU , UNITED TECHNOLOGIES RAYTHEON MERGE IN AEROSPACE INDUSTRY 8 BILLION DOLLARS COMBINED RESEARCH AND DEVELOPMENT INVESTMENT, ONE HEDGE FUND CERTAINLY IS PUSHING BACK HOWEVER BILL ACKMAN SAYING IT MAKES NO SENSE, HE IS READY TO PUBLICLY DENOUNCE IT JOINING ME RIGHT NOW CEO OF RAYTHEONCOM KENNEDY WITH CEO CHAIRMAN OF UNITED TECHNOLOGIES GREGG HAYS HAVE YOU GOTTEN BACK TO BILL FOR LETTER HE SET ON.>>YOU I WILL BE TALKING TO BILL NEXT DAY OR SO I HAVE NOT HAD A CHANCE TO PERSONALLY SEE HIM BUT I WILL DO THAT.>>WHAT IS YOUR RESPONSE TO THE DELUSION OUT OF THIS DEAL SAYING THAT EXISTING SHAREHOLDERS LIKE HIMSELF WILL BE DILUTED WHY IT MAKES NO SENSE.>>I THINK YOU GOT TO STEP BACK THINK ABOUT THIS AS LONG-TERM WHY ARE WE DOING THIS MERGER, CLEARLY, BRINGING THESE TWO GREAT COMPANIES TOGETHER WITH TECHNOLOGY, WITH THE CASH FLOWS WITH THE INVESTMENTS, AND THE PEOPLE, WE ARE GOING IS TO HAVE UNPRECEDENTED OOBLT TO MEET CUSTOMERS DEMANDS LONG TERM INVEST HIRE A LOT OF PEOPLE, AND I THINK IMPORTANTLY WE ARE GOING TO GENERATE A LOT OF CASH. IF YOU THINK ABOUT THE FIRST YEAR TOGETHER WITH RAYTHEON, I WOULD EXPECT 8 BILLION FREE-CASH FLOW ON BILLION EBITDA CONTINUING TO GROW DOUBLE-DIGIT RATES AT LEAST NEAR FUTURE IMPORTANTLY, WHAT YOU HAVE TO KEEP THAT IN MIND THIS IS NOT A DEFENSIVE A CHARACTERIZING IT WE BELIEVER TECHNOLOGY THAT TOM HAS TECHNOLOGY WE HAVE AT UTS ABLE US TO DO THINGS NOBODY ELSE CAN DO, I THINK THAT STORY IS RESONATED WITH INVESTORS PEOPLE WONDER IS THAT GOOD DEAL I CAN’T MAGIC A BETTER DEAL THAN COMING TOGETHER A MERGER OF EQUALS TWO GREAT COMPANIES NOT JUST GREAT FINANCIAL PERFORMANCES BUT ENFORCING AT FOREFRONT WHAT WITH A CUSTOMERS WANT AND NEED.>>MANY ANALYSTS ON WALL STREET UPGRADED OR TALKED POSITIVELY ABOUT IT ONE I AM LOOKING AT RIGHT HERE, OFFERING COMPELLING COMBINATION IN LARGE DEFENSE GROWTH VERTICALS HYPE SONIC IFR, ENERGY RELATED AS WELL AS COMMERCIAL AEROSPACE LET’S TALK YOUR TECHNOLOGY WHERE YOU THINK IT CAN GO GIVE US A SENSE WHAT HAVE YOU DO WITH ALL THAT CASH ONCE EMERGENCY DECLARATION.>>RIGHT OFF THE BAT, THE COMBINED COMPANIES WILL HAVE 8 BILLION DOLLARS A YEAR IN RESEARCH AND DEVELOPMENT. AND THAT IS KEY BECAUSE IT ALLOWS US TO TAKE THAT TO UNDERLYING TECHNOLOGY, BY THE WAY, SUPPORTS DEFENSE PART OF THE BUSINESS ALSO HE COMMERCIAL PART I THINK WHAT WE RECOGNIZE, AND WHEN I GOT TOGETHER WITH GREG WE LOOKED AT THIS, A OVER A YEAR AGO LOOKED AT COMBINED TECHNOLOGY CAN DO FOR BOTH THE COMMERCIAL FRONT, AND ALSO FOR THE DEFENSE FRONT. FOR EXAMPLE, ON DEFENSE FRONT, THE TECHNOLOGY, THAT PRATT & WHITNEY HAS RELATIVE TO ETRANSFER MATERIAL SIGNS IN TERMS OF HIGH TERM MATERIALS CAN BE APPLIED DIRECTLY TO HYPERSONIC SOLUTIONS FOR NEXT GENERATION MISSILES ON THE OTHER SIDE WE HAVE GREAT AIR TRAFFIC CONTROL TECHNOLOGY WITHIN RAYTHEON COMBINED WITH TECHNOLOGY THE COMMERCIAL SAID OF PRATT & WHITNEY HAS ALSO, COLLINS HAS ALLOWS TO US DO THINGS IN THE AIR TRAFFIC CONTROL DOMAIN TO UPGRADE A WHOLE AIR TRAFFIC CONTROL SYSTEM VERY ANTIQUATED FIANCEE ANYONE WHO FLIES UP NORTHEAST CORRIDOR FINDS OUT NUMBER OF DELAYS AIRPLANES ON TARMACS COMBINED CAN PROVIDE SOLUTIONS WITH TECHNOLOGIES WE HAVE OF COMPLIMENTARY CROSS ALL BOARDS DON’T COMPETE ONE VERY INTERESTING THING I WAS ASKED WHY NOW HERE IS OPPORTUNITY TO MIRAGE WITH ANOTHER PLAT FORGE LIKE RATHEON COMPLIMENTARY HARDLY ANY OVERLAP 1% OVER LAP BETWEEN TWO BUSINESSES THE SYNERGY WITHIN TECHNOLOGY TECHNOLOGY TWO COMPANIES HAVE, COMBINED, YOU KNOW ALLOWS US TO ADDRESS BOTH THE — THE DEFENSE BUSINESS, AND THEN ALSO THE COMMERCIAL SIDE OF THE BUSINESS.>>SAME QUESTIONIS FOR YOU, WHEN LOOKING AT WHAT HOW COMPOSUREING TO ALLOCATE CASH, BECAUSE I I GUESS YOU HAVE ALSO ACKNOWLEDGED THAT YOU FOREGONE SOME POTENTIAL INVESTMENTS, IN COMMERCIAL BUSINESS WHILE CASH FLOWS OF OTIS CARRIER HAVE BEEN NECESSARY, TO SUPPORT YOUR BUILDUP OF INVENTORY; IS THAT RIGHT? ?>>WELL, LOOK I DON’T THINK WE HAVE PASSED UP ANY INVESTMENT THAT WE THOUGHT MADE ACCEPTANCE FOR THE BUSINESS ON LONG-TERM BASIS KEEP THAT IN MIND WE ARE SPENDING 5 BILLION DOLLARS ON OUR OWN THIS YEAR ON R AND D, THAT IS A BIG NUT FOR A BUSINESS THAT IS ESSENTIALLY 75 BILLION DOLLARS IN SALES. MOST OF THAT OF COURSE ON AEROSPACE SIDE. WE ARE GOING TO CONTINUE TO INVEST, AND THERE IS THE BUSINESS GROWS IT GIVES US MIRROR ABILITY TO INVEST IN IF YOU THINK ABOUT I WILL GIVE YOU PRATT & WHITNEY AS EXAMPLE 20 BILLION REVENUE OVER A BILLION DOLLARS IN R AND D, THAT IS 5% OF SALES, IF SALES GROW INVESTMENTS GOING TO GROW I THINK, YOU KNOW THAT TREND IS ONLY GOING TO CONTINUE AS WE AS WE GROW THESE BUSINESSES. MARIA: SO UNITED TECHNOLOGIES YOUR SAYING MERGE WILL MOVE HEADQUARTERS TO CONNECTICUT I’M SORRY FROM CONNECTICUT TO BOSTON OF COURSE MARKING ALTHOUGH COMPANY EXODUS FROM HIGH TAXING STATE DID THAT HAVE ANYTHING TO DO WITH — A NUMBER OF REPUBLICANS HAVE BEEN SAYING LOOK ANOTHER EXAMPLE OF CONNECTICUT HIGH TAXES DRIVING ANOTHER MAJOR COMPANY OUT TO BOSTON WITH THIS MERGER, GREG.>>MARIA THAT IS I WOULD JUST SAY PATENTLY FALSE THE RATIONALE FOR THIS AS A MERGER HE EQUALS WE MAKE COMPROMISES, WE MAKE COMPROMISES ON THE NAME ON THE BOARD COMPOSITION WE MAKE COMPROMISES ON HEADQUARTERS LOCATION, CONNECTICUT A BIG BASE GREAT PEOPLE GREAT TECHNOLOGY OTIS HEADQUARTERS THERE PRATT & WHITNEY HEADQUARTERS THERE FROM CONNECTICUT TO MASSACHUSETTS NOT GOING FROM HIGH COST TO LOW COST. THE FACT IS WE THINK THAT IS A HUGE TALENT BASE UP IN THE — IN THE BOSTON AREA IT WILL HELP US LONG TERM IN TERMS OF RECRUITING TALENT BUT THIS IS NOT ABOUT CONNECTICUT BEING A BAD PLACE TO INVEST OR BAD PLACE TO BE. AGAIN I THINK IT IS IT HAS GOT GREAT, GREAT PEOPLE HAS GREAT ATRIBUTE UNIVERSITIES FALL HOURS IN ORDER KEY TO LONG-TERM SUCCESS IN CONNECTICUT.>>I AM NOT CRITICIZING IT FOR THAT WE HAVE TALKED ABOUT WHAT GE HAS DONE ALL FOR LOWER TAXES GIVEN THE FACT WE’VE SEEN THE IMPACT ON BROAD ECONOMIC GROWTH LET’S TALK MANUFACTURING JOBS FOR A MOMENT, TOM, BECAUSE THIS TECHNOLOGY THIS COMBINATION OF TECHNOLOGY YOU’VE SAID WILL CREATE JOBS A LOT OF TIMES TWO COMPANIES MERGE THEY HAVE TO CUT JOBS YOU THINK YOU ARE ABLE TO ABOUT CREATE HIGH-PAYING JOBS?>>WE HAVE FORECAST COMBINED MERGE CAMPAIGN WILL PROVIDE OVER 70,000 JOBS, OVER THE NEXT FIVE YEARS. AND THOSE JOBS ARE — WE CALL THEM OVER MINIMUM WAGE CAN BUY A HOME SEND KIDS TO SCHOOL THEY CAN SAVE UP FOR RETIREMENT, THE GREAT HEALTH BENEFITS THEY SEE ARE JOBS YOU WANT IN UNITED STATES OF AMERICA TO MAKE AMERICA GREAT I REALLY BELIEVE THAT THE I REALLY BELIEVE THAT MEE I REALLY BELIEVE THAT MERGE OF EQUALS WILL ALLOW TECHNOLOGY WE NEED TO ESSENTIALLY DRIVE THIS COMPANY TO NEXT LEVEL WILL ALLOW TO US HIRE MORE NOBLE JOBS FOLKS MAKE AMERICA GREAT. MARIA: DO YOU WANT TO ADD TO THAT GREG I WANT YOUR TAKE ON WHAT KIND OF BUSINESS OPPORTUNITIES, TOGETHER, YOU MIGHT SEE, FROM THE PENTAGON, FROM OTHER GOVERNMENTS IN TERMS OF DEFENSE.>>LET ME GO BACK TO THE JOBS PIECE BECAUSE I THINK IT IS — IT IS IS VITALLY IMPORTANT AS PART OF THE STORY WE WILL BE CREATING JOBS WE ARE CREATING JOBS TODAY ALL INVESTMENT IN TECHNOLOGY, TRANSLATES INTO JOBS NOT JUST IN ENGINEERING JOBS BUT ALSO IN I WOULD CALL THE HIGH-PAYING JOBS ON OUR SHOP FLOOR. AND I WILL GIVE YOU AN EXAMPLE, WE HAVE HIRED ABOUT 3,000 PEOPLE IN CONNECTICUT IN THE LAST — FROM 16,000 TO 19,000 ADD ANOTHER THOUSAND NEXT YEAR, AND THAT IS JUST IT IS — IT IS A GREAT STORY, I THINK, TERM OF WHAT WE CAN DO TO HELP JOB GROWTH. THE PROBLEM WE’VE GOT RIGHT NOW, OF COURSE, IS THERE IS JUST NOT ENOUGH PEOPLE TO FILL UL THE JOBS WE HAVE I ALSO SAY YOU REMEMBER MARIA IT WASN’T THAT LONG AGO PRESIDENT TRUMP AND I WERE HAVING A DISCUSSION AROUND CARRIER INDIANAPOLIS FACILITY A COMMITMENT 10000 IN NOONS TODAY I THINK 1365, WE ARE ABOUT 25% ABOVE THAT THE FACT IS BUSINESSES GENERATE GROWTH JOBS GOING TO CONTINUE TO DO THAT. AS FAR AS TECHNOLOGY TOM HIT ON HEAD NOT JUST ONE SINGLE TECHNOLOGY PENTAGON IS LOOK ARING FOR THERE ARE 10 DIFFERENT DEFENSE PRIORITIES WE HAVE INTELLIGENT TO ADDRESS ALL 10 HAVINGS WHETHER HYPER SONICS TOM TALKED ABOUT DIRECTED ENERGY WEAPONS WHETHER IT IS SOMETHING TO DO WITH SUSTAINMENT INSURED XHOOKSZ WE CAN RUN GAMUT ALL THINGS DoD NEEDS SAVE DoD MONEY BRINGING THIS COMPANY TOGETHER.>>BEE WE HAVE NO PROBLEM SHARING TECHNOLOGY WITH DEPARTMENT OF DEFENSE, AND MAKING OUR COUNTRY STRONG. MARIA: OKAY LET ME ASK YOU THIS GUYS, BECAUSE, YOU KNOW, THE HEDGE FUND MANAGERS WHO ARE WORRIED ABOUT GETTING DILUTED AS BILL ACKMAN AND ALSO DAN LOEB FROM THIRD POINT THEY SAY LOOK, THEY ARE GOING TO BE PUBLIC ABOUT THIS. WE ARE OPPOSING THIS GOING PUBLIC IF NECESSARY, THIS 120-BILLION-DOLLAR AEROSPACE MERGER IS ALL STOCK, WOULD YOU CONSIDER CHANGING THIS AND GOING SOME PARTLY CASH TO APPEASE THESE INVESTORS?>>HE LOOK MARIA THE BUTTE OF THIS DEAL IS A BEAUTY IS MERGE OF EQUALS ZBER PREMIUM FOR BOTH COMPANIES WE BOTH GET PREMIER PROPERTIES WITHOUT HAVING TO PAY A PREMIUM AND BRINGING THESE COMPANIES TOGETHER ONE OF THE THINGS WE DON’T TALK ABOUT VPG OVER LAST TWO YEARS UT.C. INVESTED A LOT IN ACQUISITIONS WHETHER GOODRICH COUPLE YEARS AGO OR ROCKWELL COLLINS BY BRINGING TWO COMPANIES TOGETHER WE GET HE ACCESS TO TOM’S PRISTINE BALANCE SHEET, AND AN RATING ON DEBT, AND WITH THAT FLEXIBILITY WE CAN RETURN 18 TO 20 BILLION DOLLARS TO OUR SHAREHOLDERS NEXT THREE YEARS DOUBLE WHAT THEY WOULD HAVE GOTTEN WITH US AS STAND ALONE SO THERE IS NO NEED TO — TO LEVER UP WORRY THIS IS A CASH MACHINE NOTIFICATION ISSUE WHERE HAVE YOU BE PRIORTIZING DIVIDEND GIVEN CASH MACHINE SHOULD WE SUSPECT TO YOU RAISE DIVIDEND MANY YEARS.>>WE HAVE DONE A GREAT JOB ON DIVIDEND OVER MANY, MANY YEARS CONTINUE TO IS HE THAT MOVING FORWARD IF MERGE OF EQUALS GIVES THE OPPORTUNITIES WITH GREAT BALANCE SHEET POWDER THAT IS DRY YEAR-OVER-YEAR SUBMITTING A BENEFIT TO SHAREHOLDERS DIVIDENDS OTHER CAPITAL EMPLOYMENT.>>LET ME SAY MARIA I KNOW BILL AND CAN ARE NOT PERHAPS HAPPY WITH THIS BECAUSE OF SHORT TERM DELUSION THE FACT IS YOU HAVE TO TAKE THE LONG VIEW HERE, AND I THINK AS TOM AND I HAVE TALKED OVER LAST SIX MONTHS, WE HAVE UNLIMITED POTENTIAL TO GROW THIS BUSINESS, THROUGH AT THE O INNOVATION AGENDA THROUGH ALL 60,000 ENGINEERS THAT WE HAVE, WE HAVE 8 BILLION OF R AND D, THIS IS GOING TO BE A POWERHOUSE OF A COMPANY WILL MEET ALL CUSTOMERS NEEDS AND PROVIDED BIG VAL TO CUSTOMERS OVER TIME.>>ANY ANTITRUST PUSHBACK ARE YOU EXPECTING.>>WE DON’T EXPECT ANY WE HAVE BEEN THROUGH THAT LOT OF DETAIL LOOKED AT BOTH COMPANIES LOOKING AT ANY CROSSOVER BETWEEN TWO COMPANIES WIND UP WITH ABOUT A LESS THAN 1% REVENUE IN TERMS OF OVERLAP IN FACT ONE OF THE THINGS I TALKED TO GREG ABOUT WHEN WE FIRST STARTEDOFF GREG I DON’T REMEMBER LAST TIME TWO COMPANIES COMPETED AGAINST EACH OTHER WE ARE ARE COMPLIMENTARY IN AREAS WE ARE NOT IN HERE IN WHEN YOU COMBINE TWO ONE PLUS ONE EQUALS THREE ACROSS THE BOARD I THINK THIS IS A WIN-WIN FOR ALL A WIN-WIN FOR SHAREHOLDERS A WIN-WIN FOR OUR EMPLOYEES, AND IT IS A WIN-WIN FOR THE COUNTRY ITSELF, AND DEFINITELY A WIN FOR OUR CONSUMERS WE ARE GOING TO GENERATOR ABOUT A BILLION DOLLARS IN IMPOVERISH SYNERGIES NEAR FOUR HALF GOES BACK TO THE DEPARTMENT OF DEFENSE BECAUSE WE HAVE TO ESSENTIALLY DISCLOSE ALL COSTS THEY WILL GET THAT REDUCTION RIGHT UP, 500 MILLION DOLLARS A YEAR U.S. GOVERNMENT WILL BE GETTING OUT OF THIS, EVERYBODY WINS, ENDGAME BUILD A STRONGER COMPANY THAT HAS SOLID TECHNOLOGY BASE TECHNOLOGY BASE THIS COMPANY IS WILLING TO JUICE STORE SECURITY OF NATION WE KNOW SOME COMPANIES ARE NOT WILLING TO DO THAT.

Toyota recruiting hundreds of US workers


LOOKING TO STAFRN A MID-WESTERN PLANT LIVE IN A INDIANA WITH DETAILS.>>GOOD MORNING IF YOU LIKE THAT NEW CAR SMELL NEVER GETS FRESHER THAN RIGHT HERE THIS IS QUITE LITERALLY THE END OF THE LINE THIS IS WHERE THE FINISHED PRODUCT COMES OFF-LINE AT THIS MASSIVE PLANT AND THAT MEANS IT IS DONE READY TO DRIVE OFF I BRING IN PRESIDENT OF TOYOTA IN INDIANA MILLY MARSHALL UNDER A PUSH TO GET WORKERS HERE IF YOU HAVE A PREPONDERANCE MINUTES MAKE PICK.>>GOOD MORNING, IT IS A PLEASURE TO HAVE YOU HERE IN SOUTHWEST INDIANA A 600-MILLION-DOLLAR EXPANSION WITH ADDITION 40,000 HI LANDERS TRYING TO HAVE 400 TEAM MEMBERS.>>OPENINGS IN INDIANA AS WELL AS OTHER PARTS SPECIFICALLY IN ALABAMA, YOU ARE NOT GOING TO BE ABLE TO FIND JUST QUALIFIED WORKERS IN INDIANA YOU NEED TO CONVINCE PEOPLE TO MOVE HERE.>>ABSOLUTELY WE’VE HAD, HISTORIC UNEMPLOYMENT AND THIS IS A LARGE MANUFACTURING STATE ONE OF THE BIGGEST THINGS THAT WE NEED TO — WE NEED TO KIND OF — DISMISS MANUFACTURING NOT LIKE 60S JOBS GRVR WORKED IT WAS DIRTY UNSAFE DARK. AS YOU CAN SEE, WE HAVE LATEST TECHNOLOGY VERY SAFE, AND OUR TEAM MEMBERS LOVE WORKING HERE.>>I WANT TO POINT OUT WE HAVE ANOTHER MAP OF ALL THE OTHER MANUFACTURING CAR MANUFACTURING COMPANIES IN INDIANA, THEY SEE ARE A MAJORITY JAPANESE AUTO MAISHTHS HIRING AMERICANS EXACTLY WHAT PRESIDENT ASKED FOR.>>ABSOLUTELY, WE WANT TO BUILD WHERE WE SELL, IMPORTANT NOT ONLY THE INVESTMENT HERE BUT WE HIRE PEOPLE WITHIN COMMUNITY WHERE WE BUILD AND SELL.>>– TOUGH TASK I THINK YOU ARE UP FOR IT THEY HAVE GOT 400 OPENINGS PRODUCING UP TO 40,000 NEW CARS IN THE COMING YEARS, SO A LOT OF WORK TO BE DONE HERE AND WE’RE GETTING BEHIND P SCENES LOOK ALL DAY TODAY DAGEN: TELL MILLIE I LOVE OUR ACCENT YOU CAN TELL HER FOR

Impossible Foods COO says meat eaters are target consumer


STUART: I THINK THIS IS THE BEST STORY OF THE DAY. BIG INFUSION OF CASH FOR THE MEATLESS COMPANY, IMPOSSIBLE FOODS. THEY BROUGHT IN $300 MILLION. THEY’VE GOT A TOTAL NOW OF $750 MILLION. A MEATLESS COMPANY. DAVID LEE IS THE CHIEF MONEY GUY AT THIS COMPANY, WHICH IS CALLED IMPOSSIBLE FOODS. DID I GET THAT IN?>>YOU GOT THAT EXACTLY RIGHT. STUART: YOU’VE GOT A REMARKABLE AMOUNT OF PUBLICITY HERE. IP LOOKIN I’M LOOKING AT THE FRONT PAGE OF THE “FINANCIAL TIMES” AND IT SAYS IMPOSSIBLE FOODS’ MISSION TO BRING VEGANISM TO THE MEAT-EATING MASSES. ARE YOU VEGAN?>>I’M A HARDCORE MEAT EATER. I’M EXACTLY THE TARGET OF IMPOSSIBLE FOODS. 90% PLUS OF THE PEOPLE WHO KEEP COMING BACK FOR THIS IMPOSSIBLE BURGER, THEY ARE COMING BECAUSE THEY ARE MEAT EATERS WHO WANT THAT CRAVABILITY THAT HITS THE SPOT BUT THEY WANT TO FEEL BETTER ABOUT THEIR HEALTH, THEY WANT TO FEEL BETTER ABOUT THE IMPACT THEY’RE HAVING ON THE WORLD. STUART: WHAT IS IN THIS MEATLESS BURGER?>>THE IMPOSSIBLE BURGER IS MADE ENTIRELY OUT OF PLANTS WHICH MEANS IT USES A FRACTION OF THE WORLD’S RESOURCES, A FRACTION OF THE AMOUNT OF WATER. IT PRODUCES I THINK AN EIGHTH OF THE GREENHOUSE GASES YOU WOULD GET FROM A BURGER FROM A COW. BUT IT HAS THAT SAME MAGIC MOLECULE. THE ONLY MOLECULE THAT MAKES CRAVABILITY HAPPEN. IT’S CALLED HEME. HEME IS WHAT A COW NEEDS TO TURN ITSELF INTO DELICIOUS BEEF. WE FOUND IT IN A PLANT. WE ARE THE ONLY ONES WITH THE PATENTS AND THE KNOW-HOW TO PRODUCE IT AT SCALE TO MAKE DELICIOUS CRAVABLE MEAT ENTIRELY OUT OF PLANTS. STUART: YOU ARE VERY FASHIONABLE. I MEAN –>>WELL, I DON’T KNOW. STUART: BEYOND MEAT WENT PUBLIC, BIG SPLASH, MADE A LOT OF MONEY, THE STOCK WENT STRAIGHT UP. SO ARE YOU GOING TO GO PUBLIC?>>WE ARE IN NO RUSH TO GO PUBLIC. STUART: WHY NOT? YOU’VE GOT A PIECE OF THE ACTION, DAVID. YOU COULD CASH OUT AND BECOME AN EVEN MORE WEALTHY GUY THAN YOU ARE ALREADY.>>WE ARE IN A RUSH TO MAKE SURE WE CAN SERVE OR MISSION BY INCREASING OUR SUPPLY FOR MEAT EATERS BUT WE HAVE HAD THE BENEFIT, THIS IS A GREAT EXAMPLE. $300 MILLION RAISED OUT OF 750 FROM GREAT LONG-TERM INVESTORS LIKE HE RIS LIKE HORIZON. MANY OF US CAME FROM LARGE COMPANY BACKGROUNDS. DENNIS WOODSIDE, WHO TOOK DROPBOX PUBLIC. I HAVE PREDOMINANTLY A PUBLIC COMPANY BACKGROUND. WE KNOW HOW TO OPERATE AS IF WE ARE PUBLIC. STUART: YOU DON’T NEED TO CASH OUT. I’VE GOT IT.>>WE ARE IN NO RUSH. STUART: IF I GO TO WHITE CASTLE, CAN I GET A MEATLESS BURGER FOR LESS THAN TWO BUCKS?>>AT EVERY WHITE CASTLE, YOU CAN GET AN IMPOSSIBLE SLIDER FOR LESS THAN TWO BUCKS. STUART: GET THE NAME OUT THERE.>>ABSOLUTELY. YOU KNOW WHAT, YOU SHOULD TRY IT AND TELL ME WHAT YOU THINK. I THINK YOU’LL LIKE IT. STUART: WE WOULD LIKE YOU TO COME BACK TO THE SHOW AND BRING SOME SAMPLES WITH YOU.>>I SHOULD HAVE DONE THAT. STUART: I WOULD HAVE EATEN THEM ON CAMERA. I WOULD DO THAT FOR YOU.>>NEXT TIME I WILL BRING YOU A BEVY OF IMPOSSIBLE BURGERS.

Abigail Disney not happy with workers’ conditions at theme park


INVOLVED, THERE’S A LOT OF SPECULATIVE ACTIVITY THAT IS JUMPY. NEIL: LET ME SWITCH GEARS TO DISNEY. ABIGAIL DISNEY, PART OF THE FOUNDING FAMILY, I GUESS SHE WENT UNDERCOVER AT DISNEYLAND TO SEE HOW WORKERS WERE BEING TREATED. NOT WELL, TO HER. IT’S A BAD REFLECTION ON THE COMPANY SHE SAYS DISPROPORTIONATELY PAYS ITS HONCHOS, INCLUDING BOB IGER, TOO MUCH.>>SHE REALLY BEAT UP ON BOB IGER. HE’S PAID MORE THAN $65 MILLION, MORE THAN 1,000 TIMES WHAT THE AVERAGE WORKER AT A THEME PARK, FOR EXAMPLE, IS GETTING PAID. ABIGAIL DISNEY IS REALLY SAYING THIS SHOULD BE ABOUT SORT OF THE HUMAN RIGHTS AND GOOD CONDITIONS. WE ARE HEARING THE SAME KIND OF STORIES FROM WORKERS AT AMAZON AS WELL. THIS IS A CONVERSATION THAT’S ONGOING. WE DO STEP UP TO THE PLATE AND SAY THIS IS THE BEST COUNTRY IN THE WORLD TO LIVE IN, YET THERE DEFINITELY COULD BE MORE THAT IS DONE WHEN IT COMES TO CORPORATIONS — NEIL: THEY ARE ALREADY PAYING $15.>>THEY ARE PAYING IT.>>THEY SAID THEY ARE PAYING THEIR WORKERS $15 AND THEY HAVE PROGRAMS WHERE PEOPLE CAN HAVE CONTINUING EDUCATION AND REALLY GET INVOLVED, YOU KNOW, MOVE TOWARDS, YOU KNOW, HAVE MULTIPLE PROMOTIONS TOWARDS UPPER MANAGEMENT. THINK ABOUT WHERE DISNEY’S STOCK IS NOW. UNDER IGER’S TENURE, IT’S GONE UP FIVE TIMES. NEIL: IT’S MADE ABIGAIL RICH.>>WAS THAT IGER OR THE MARKET?>>HE WAS THE FIRST ONE TO HAVE ALL THAT CONTENT ON, YOU KNOW, NETFLIX AND HULU. HE DID A STRATEGIC DEAL WITH LUCAS FILMS, A STRATEGIC DEAL WITH FOX, WHICH IS THIS NETWORK, OWNED BY THIS NETWORK.

Fox Business Exclusive: Inside Chinese tech giant Huawei | Part 2


TAKE A LISTEN. NO MATTER WHAT THE SITUATION IS IF THE U.S. GOVERNMENT IS CRACKING DOWN ON HUAWEI, IT IS ESSENTIALLY BLACKLISTED THE COMPANY, THERE IS OBVIOUSLY IMPACT FROM THAT. SO AS LONG AS THIS EXPORT BAN STAYS IN PLACE, IS THERE A REAL THREAT TO HUAWEI’S SURVIVAL AS A COMPANY?>>SO, LIKE ALL COMPANIES YOU KNOW, WE HAVE BUSINESS CONTINUITY PLANS IN PLACE. SO FAR THE COMPANY IS STILL THRIVING. WE’RE STILL RECRUITING AT PREVIOUS RATES. WE’RE STILL GROWING. WE HOPE TO HAVE YOU KNOW, DOUBLE-DIGIT SALES GROWTH THIS YEAR. BUT, YEAH, OF COURSE WE HAVE LOTS OF PLAN Bs IN PLACE. I SUPPOSE ONE OF THE BIG THINGS IN THE MOMENT WE LIVE IN VERY UNSTABLE, UNCERTAIN POLICY ENVIRONMENT AND SO WE’RE WORKING VERY HARD TO COME UP WITH LOTS OF DIFFERENT CONTINGENCY PLANS. CONNELL: ONE OF THEM SURROUNDS OPERATING SYSTEMS, RIGHT? SO YOU’RE ROLLING OUT OR WORKING ON YOUR OWN OPERATING SYSTEM SINCE YOUR PHONES THAT YOU INTRODUCE WON’T BE ABLE TO HAVE THE GOOGLE ANDROID SYSTEM. MAYBE THAT CHANGES AT SOME POINT, IF THAT DOESN’T, YOUR OWN OPERATING SYSTEM WILL BE READY TO ROLL OUT WHEN? WHAT IS THE TIMETABLE?>>UNFORTUNATELY I DON’T REALLY HAVE ANY INFORMATION TO SHARE ON THAT ISSUE. AS I SAY IT IS PART OF A LARGER CONTINGENCY PLAN. CONNELL: THIS YEAR?>>I REALLY DON’T KNOW. CONNELL: THE OTHER BIG ISSUE, MAYBE THE BIGGEST ISSUE AT LEAST FROM ANALYSTS WE SPEAK TO WHAT IS HAPPENING FROM CHIPS AND SEMICONDUCTORS. WHAT IS HAPPENING ON THIS CAMPUS TODAY? ARE PEOPLE WORKING TO DEVELOP HUAWEI’S OWN CHIPS?>>SO I THINK THERE IS LOTS OF INFORMATION IN THE LATEST ANNUAL REPORT BUT OF COURSE WE ARE ALWAYS WORKING ON NEW INNOVATIONS. WE’RE ONE OF THE BIGGEST INVESTORS IN RESEARCH AND DEVELOPMENT IN THE WORLD. ACCORDING TO THE EU, WE’RE THE FIFTH BIGGEST COMPANY IN THE WORLD IN TERMS OF RESEARCH AND DEVELOPMENT. THERE ARE MANY SPHERES OF RESEARCH AND TECHNOLOGICAL AREAS THAT WE’RE PUSHING FORWARD ON, IN TERMS OF DEVELOPMENT. WE DO MAKE OUR OWN CHIPS, SO THERE ARE CHIPS THAT ARE PUT INTO OUR HIGHER END AND SMARTPHONES. BUT YOU KNOW, THAT IS VERY MUCH PART OF THE GLOBAL SUPPLY CHAIN. I THINK IT IS. IT IS A MISNOMER TO THINK THERE IS INDEPENDENCE OF COMPANIES GLOBALLY. ALL THESE PRODUCTS WE USE EVERY DAY LIKE OUR SMARTPHONES, OUR LAPTOPS, OUR PADS, PART OF A MUCH WIDER GLOBAL SUPPLY CHAIN. COMPONENTS FROM MANY DIFFERENT COUNTRIES AROUND THE WORLD. THE ELEMENTS WE PRODUCE ARE ONLY A SMALL PART OF THE SUPPLY CHAIN. CONNELL: FROM A PERSON WATCHING FROM THE UNITED STATES THEY MIGHT SAY, THIS DOESN’T AFFECT ME AT ALL. HUAWEI, I READ ABOUT IT, HEAR ABOUT IT, THEY DON’T HAVE A HUGE FOOTPRINT IN THE UNITED STATES. YOU’RE SAYING THERE COULD BE IMPACT OF WHAT THE U.S. GOVERNMENT IS DOING ON AMERICANS? WHAT IS THAT IMPACT? WHAT DOES IT LOOK LIKE?>>THE IMPACT HUAWEI IS ACTUALLY A BIG CONSUMER OF AMERICAN TECHNOLOGY PRODUCTS. SO WE ARE, OUR PROCUREMENT BUDGET IN THE U.S. ALONE IS $11 BILLION A YEAR. STOPPING WALL WAY TO INTERACT WITH TECHNOLOGY PARTNERS, BUILDING RELATIONSHIPS FOR A COUPLE DECADES WHICH MEANS THEY’RE EXPORT SALES THAT CAN’T BE PICKED UP BY OTHER COMPANIES. THAT ESTIMATE IS 56 BILLION. THAT 5BILLION INCLUDES 74,000 JOBS. THAT MIGHT BE IN THE TECHNOLOGY SECTORS. A FALL IN EXPORT SALES IN THE USA WILL HAVE MULTIPLIER EFFECTS ON THE U.S. COMPANY. CONNELL: IF ALL OF THAT IS TRUE, PRESIDENT TRUMP LOOKS AT IT, I’M WILLING TO SACRIFICE THOSE NEAR TERM LOSSES FOR AMERICAN COMPANIES BECAUSE HE BELIEVES THIS EFFORT AGAINST HUAWEI IS FOR THE GREATER GOOD, THEN WHAT? WHAT HAPPENS TO HUAWEI?>>BELL, YOU KNOW, HUAWEI WILL INVEST ITS RESEARCH AND DEVELOPMENT FUNDS AND ITS ACTIVITIES IN THOSE COUNTRIES WHERE IT IS MORE WELCOME. RESTRICTING COMPETITION IN ANY MARKET ULTIMATELY AS YOU MEANS THAT THE CUSTOMERS SUFFER. CONNELL: RIGHT.>>SO THE USA IN CONSTRAINING COMPETITION, IN SEVERAL MARKETS, IF IT GOES DOWN THAT ROAD IS A STRATEGY THAT WILL BACKFIRE ON CONSUMERS. CONSUMER PRICES WILL RISE. CONNELL: MY QUESTION IS WHAT IF THE UNITED STATES GOVERNMENT AND PRESIDENT OF THE UNITED STATES IS WILLING TO MAKE THAT SACRIFICE? MANY ARTICLES ARE WRITTEN ABOUT ZTE, WHEN SIMILAR BAN WAS IN PLACE, IF THAT BAN WASN’T LIFTED ZTE WOULD HAVE BEEN PUT OUT OF BUSINESS. ISN’T THE SAME TRUE FOR HUAWEI?>>THE SITUATION WITH HUAWEI IS VERY DIFFERENT BECAUSE IT IS NOT SO DEPENDENT ON THOSE KIND OF, ON THOSE KIND OF, THOSE ISSUES, OKAY, IN TERMS OF THE MARKET PRESENCE, MARKET PRESENCE IN THE USA WAS MUCH BIGGER. OUR INTERNATIONAL OPERATIONS ARE MUCH MORE EXPANSIVE THAN ZTE. SO A VERY DIFFERENT KIND OF PLAY. IN TERMS OF SACRIFICE, IF THE U.S. IS WILLING TO MAKE, IT IS SOMETHING THAT IS NOT BEING COPIED OR PICKED UP BY OTHER COUNTRIES AROUND THE WORLD. SO CLEARLY THE UK, GERMANY, THE EUROPEAN UNION, HAVE LOOKED AT THE COSTS AGAINST THESE OTHER TYPES OF ISSUES AND HAVE DECIDED THEY WANT TO KEEP WORKING WITH HUAWEI. CONNELL: FINAL THING ON 5G ROLLOUT, WE TALKED ABOUT IT A LITTLE BIT, WHAT IS HAPPENING TO THE TIMETABLE OF THE GLOBAL ROLLOUT OF 5G TECHNOLOGY, BECAUSE OF I GUESS THE DISPUTE BETWEEN HUAWEI AND THE UNITED STATES GOVERNMENT OR CRACKDOWN ON HUAWEI BY THE UNITED STATES GOVERNMENT? WHAT IS THE ACTUAL IMPACT BEEN ON 5G’S ROLLOUT GLOBALLY?>>SO FAR THERE SEEMS TO BE LITTLE IMPACT IN TERMS OF ROLLOUT. SO LOTS OF COUNTRIES AROUND THE WORLD ARE TESTING THEIR 5G NETWORKS. THERE IS A NATIONAL NETWORK THAT IS LIVE NOW IN KOREA. I BELIEVE IN SWITZERLAND AS WELL. THE UK. SO MANY COUNTRIES ARE DEVELOPING THEIR NETWORKS WILL REALLY SEE THE, THE FULL GLOBAL DEVELOPMENT IN 2020. WE’LL START GOING LIVE. A LOT DEPENDS ON HAND-SETS AND OTHER DEVICES IN TERMS OF THEIR 5G CAPABILITY. WE’RE PUSHING AHEAD, WORKING WITH MANY PARTNERS AROUND THE WORLD. CONNELL: NOT IN THE UNITED STATES THOUGH?>>NOT IN THE UNITED STATES. CONNELL: SO IS THE UNITED STATES, HAS THE UNITED STATES FALLEN BEHIND?>>TO MY KNOWLEDGE IT HASN’T FALLEN BEHIND BUT I THINK THE RISK IS, IF THERE IS A COMPLETE CONSTRAINT IN MANY MARKETS ON 5G, FROM CHINESE EQUIPMENT MANUFACTURERS, THEN THERE ARE ESTIMATES THAT THIS WILL LEAD TO A LAG IN THE ROLLOUT OF 5G BETWEEN 18 MONTHS AND TWO YEARS. SO THERE IS A REAL RISK ALL THE BENEFITS WE EXPECT TO GAIN, ALL THE ECONOMIC ADVANTAGES OF 5G

JPMorgan Chase CEO not seeing a recession coming


WE HAVE BREAKING NEWS RIGHT NOW. MY EXCLUSIVE INTERVIEW WITH JAMIE DIMON, TELLING ME ABOUT THE BEGINNINGS OF A SUCCESSION PLAN, INCLUDING CHANGES AT THE TOP OF THE COMPANY, INCLUDING TWO WOMEN GETTING BIG PROMOTIONS. WE PREVIOUSLY DISCUSSED A SKILLS TRAINING PROGRAM THAT HE IS SPEARHEADING AND HOW TECHNOLOGY IS AFFECTING JOBS ACROSS INDUSTRIES. HERE’S PART TWO OF MY INTERVIEW. WE’VE GOT SO MUCH TECHNOLOGY IN AUTOMATION, IN BUSINESS. YOU’RE PUTTING SOME 350 EMPTIED$ YOU’RE PUTTING SOME 350 EMPTIEDI YOU’RE PUTTING SOME 350 EMPTIEDL YOU’RE PUTTING SOME 350 EMPTIEDO YOU’RE PUTTING SOME 350 EMPTIEDN INTO THE PROGRAM. WHERE ARE THE MOST IMPORTANT ISSUES IN TERMS OF MACHINES TAKING OVER JOBS?>>THE WAY THE AMERICAN PUBLIC SHOULD LOOK AT IT, MACHINES HAVE ALWAYS BEEN TAKING OVER JOBS. WE WENT FROM 40 MILLION PEOPLE WORKING IN FARMS TO 1 MILLION, TOOK 30 OR 40 YEARS. THOSE PEOPLE GOT OTHER, PROBABLY BETTER JOBS. A LOT OF THESE THINGS ARE REPLACING BACK-BREAKING WORK. THERE ARE JOBS AVAILABLE IN CODING, NURSING, MEDICAL, THE TRADES, WHICH SOME PEOPLE — WE NEED TO BUILD MORE HOMES IN DONE COUNTRY. THERE’S TONS OF JOBS. WE NEED A CONTINUOUS PROGRAM OF RETRAINING PEOPLE AND ADJUST TO THE NEW WORLD. THE GDP WILL BE GROWING. WE HAVE TO SHARE THE WEALTH A LITTLE BIT. WE HAVE TO HAVE PROGRAMS TO MAKE SURE THE ADJUSTMENT TAKES PLACE PROPERLY. MARIA: AND IT INCREASES PRODUCTIVITY WHICH ADDS TO GROWTH.>>MORE THAN THAT, WAGES, PEOPLE LIKE TO WORK. THEY HAVE BETTER HOUSEHOLD FORMATION, BETTER SOCIAL OUTCOME, THERE’S DIGNITY TO A JOB. ALL OF THESE EVEN STARTER JOBS LEAD TO A SECOND JOB AND THIRD JOB AND FOURTH JOB AND THE OPIOID PROBLEM, ALL THESE PROBLEMS GET BETTER WHEN SOCIETY’S HEALTHIER AND THE ECONOMY’S SHARING IT WITH EVERYBODY A LITTLE BIT MORE. MARIA: YOU MENTIONED WAGES. THEY’RE TALKING ABOUT $20 AN HOUR IN THE NEXT COUPLE YEARS. DO YOU WORRY ABOUT THE IMPACT OF THAT ON SMALL BUSINESS? A LOT OF SMALL BUSINESS OWNERS SAY IF I HAVE TO RAISE THE MINIMUM WAGE TO 18 AND $20, I’VE GOT TO CUT JOBS.>>I UNDERSTAND THAT. THOSE OF US WHO CAN AFFORD IT, IT’S NOT TERRIBLE. IT MAY DRIVE CERTAIN SMALL BUSINESSES OUT OF BUSINESS. LOCALLY YOU CAN RAISE THE MINIMUM WAGE, IT WON’T BE THE SAME NUMBERS IN NEW YORK. I THINK FOR COMPANIES TO COMPETE, IT’S GOOD. TODAY FOR THE FIRST TIME IN A LONG TIME, LOW END WAGES HAVE GONE UP LIKE 20% OVER THE LAST TWO YEARS. THAT’S WHAT WE WANTED. NOW WE’RE COMPLAINING ABOUT THAT A LITTLE BIT. DONE PROPERLY, IT WILL BE FINE. I BELIEVE IN EXPANDING THINGS LIKE THE EARNED INCOME TAX CREDIT. WE HAVE TO MAKE LOW SKILLED JOBS PAY MORE AND YOU’LL HAVE BETTER SOCIAL OUTCOMES. WE HAVE THE EARNED INCOME TAX CREDIT WHICH PAYS A SINGLE MOTHER WITH TWO CHILDREN MAKING $14,000 A YEAR CAN GET A $6,000$ $14,000 A YEAR CAN GET A $6,000, $14,000 A YEAR CAN GET A $6,0000 CREDIT. I THINK THAT’S A GOOD PROBLEM. IT LEADS TO DIGNITY, ET CETERA. A LOT OF THINGS TO DO. I WORRY ABOUT THAT A LITTLE BIT, I GET A LOT OF COMPLAINTS. THAT’S WHAT WE ALL WANTED. MARIA: YOU REPORTED EARNINGS LAST WEEK, A LOT OF TALK ABOUT YOU WERE MORE OPTIMISTIC THAN IN THE FOURTH QUARTER. WHEN WE SPOKE LAST WE WERE TALKING ABOUT THE FACT THERE WASN’T HIGH YIELD ISSUANCE, DEBT ISSUANCE IN THE MONTH OF DECEMBER. CHARACTERIZE THE ECONOMY AND WHAT WAS TAKE-AWAY FROM FIRST QUARTER EARNINGS.>>WE SPOKE IN FIRST OR SECOND WEEK IN JANUARY. THE SEPTEMBERMENT FROM THE SENTEMBERMENT FROM THE SENTIMBERMENT FROM THE SENTIMEERMENT FROM THE SENTIMENTMENT FROM THE SENTIMENT HNT FROM THE SENTIMENT HAD FROM THE SENTIMENT HAD GROM THE SENTIMENT HAD GONM THE SENTIMENT HAD GONE FROM POSITIVE TO NEGATIVE. THERE WAS SLOWDOWN IN GROWTH, WE WERE WORRIED ABOUT TRADE, THE GOVERNMENT SHUTDOWN. IT WAS A HUGE OVERREACTION. I THINK I WENT HOME THAT DAY, I GOT THE CALL, THE FIRST HIGH YIELD BOND DEAL WAS BEING DONE. I SAID ONCE THE FIRST ONE IS DONE, IT WILL OPEN THINGS UP AND I THINK THAT REACTION WAS A MASSIVE OVERREA ACTION. WHAT WE SEE IN THE U.S. IS THAT THE AMERICAN CONSUMER, THEIR BALANCE SHEET, THEY INCOMES ARE STRONG, NOT WEAK, MORE PEOPLE GOING BACK TO THE WORKFORCE WHICH IS A GOOD THING. COMPANIES ARE IN VERY GOOD SHAPE. PROFITS ARE GOOD. CAPITAL EXPENDITURES ARE GOING UP. BUSINESS AND CONSUMER CONFIDENCE IS IN HIGH LEVELS. HOUSING IS IN SHORT SUPPLY. THE FED IS ON PAUSE. I THINK THEY DID THE RIGHT THING. IT WILL GIVE PEOPLE TIME TO ADJUST TO A LITTLE BIT A SLOWDOWN. OTHER THAN TRADE, I’M NOT SURE IT’S GOING TO STOP IT IN THE NEXT YEAR OR TWO. GEO POLITICS, SOME GEOPOLITICAL TRAUMA OR SOME TERRIBLE EVENT SOMEWHERE, MAYBE TOO MUCH GROWTH AND INFLATION, MAYBE, BUT YOU DON’T SEE THAT TODAY. THERE’S NO LAW THAT SAYS WE WON’T HAVE GROWTH FOR ANOTHER COUPLE YEARS. I’M PREPARED FOR IT TO GET BAD BUT I’M NOT PREDICT IT. THERE PRERE PREDE PREDICTING IT.MARIA: YOU DON’TS PREDICTING IT.MARIA: YOU DON’TE PREDICTING IT.MARIA: YOU DON’TA RECESSION IN THE NEXT COUPLE YEARS?>>I DON’T. MARIA: WHERE’S THE GROWTH, THE CONSUMER OR THE CORPORATION? I KNOW THAT CAP EXPENDING I KNOW THAT CAP EX NDING I KNOW THAT CAP EX SING I KNOW THAT CAP EX SPEG I KNOW THAT CAP EX SPENDING CAME UP A LITTLE BIT. PEOPLE WERE WORRIED IT WAS STALLING OUT. IS IT THE CORPORATE SECTOR OR THE CONSUMER THAT IS MOST STRONG?>>THE CONSUMER BALANCE SHEET, DEBT SERVICE LEVELS, ASSET LEVELS IS EXCELLENT. OKAY. AS GOOD AS IT’S BEEN FOR 30 YEARS OR SOMETHING LIKE THAT. WITH WAGES GOING UP AT THE LOW END, THEIR CREDIT IS GETTING BETTER, NOT WEAKER AND MORE PEOPLE GOING BACK TO THE WORKFORCE, I THINK THERE MIGHT BE A MILLION OR TWO OR THREE MILLION LEFT. WE HAVE TO FIX THE OPIOID PROBLEM. THE CONSUMER’S IN VERY GOOD SHAPE. CONFIDENCE IS GOOD. BUSINESS CONFIDENCE IS GOOD CAPITAL EXPENDITURES WENT WAY UP AFTER TAX REFORM. THEY’RE YEAR OVER YEAR HIGHER. THE COMPANIES ARE DOING STOCK BUYBACKS, DOING MORE CAPITAL EXPENDITURES. CAPITAL IS NOT WHAT THEY DID IN THAT QUARTER, THE FIRST QUARTER, SECOND QUARTER. IT’S CAPITAL IS BEING RETAINED HERE. YOU’RE TALKING ABOUT TRILLIONS OF DOLLARS OVER YEARS THAT WILL BE RETAINED, RETRAINED AND REINVESTED IN THE UNITED STATES. EVEN THE MONEY THAT’S GOING IN STOCK BUYBACKS, IT’S CAPITAL HERE THAT’S BEING DEPLOYED. YOU MAY HAVE A HIGHER YOU MAY HAVE A HIGH DIFFICULT HG YOU MAY HAVE A HIGH DIFFICULT HE YOU MAY HAVE A HIGH DIFFICULT HR YOU MAY HAVE A HIGH DIFFICULT HD YOU MAY HAVE A HIGH DIFFICULT HV YOU MAY HAVE A HIGH DIFFICULT HD YOU MAY HAVE A HIGH DIFFICULT HN YOU MAY HAVE A HIGH DIFFICULT H. YOU MAY INVEST IN SOMETHING ELSE. THAT’S REDEPLOYMENT OF CAPITAL. IT’S ALMOST IMPOSSIBLE TO MODEL IT. YOU’RE SEEING THAT EFFECT AND COMPANIES ARE SPENDING. IT’S NOT LIKE CAPITAL EXPENDITURES ARE GOING DOWN. THE NOTION THAT COMPANIES SPENT

Microsoft President: Definitely the case that people in China cannot access Bing


DAVOS, SWITZERLAND THIS WEEK. NEWS ALERT. MICROSOFT SEARCH ENGINE BING HAS BEEN BLOCKEDDED IN CHINA. IF USERS IN THE COUNTRY TRY TO SEARCH ON THE WEBSITE IT’S DIRECTED TO A PAGE THAT SAYS THE SERVER CANNOT BE REACHED. JOINING ME RIGHT NOW IS THE PRESIDENT OF MICROSOFT AND CHIEF LEGAL OFFICER, BRAD SMITH. BRAD, IT’S GREAT TO SEE YOU THIS MORNING.>>NICE TO SEE YOU. MARIA: WHAT HAPPENED IN CHINA.>>WE’RE STILL WORKING TO FIND OUT. IT’S DEFINITELY THE CASE AS YOU SAID THAT PEOPLE IN CHINA CANNOT ACCESS BING. THIS IS NOT THE FIRST TIME IT’S HAPPENED. IT HAPPENS PERIODICALLY. WE OPERATE IN CHINA PIEWRNT TO P WE OPERATE IN CHINA PIEWRNT TO R WE OPERATE IN CHINA PIEWRNT TO U WE OPERATE IN CHINA PIEWRNT TO N WE OPERATE IN CHINA PIEWRNT TO T WE OPERATE IN CHINA PIEWRNT TO O GLOBAL PRINCIPLES, HOW WE MANAGE CENSOR SHIP DEMANDS AND THE LIKE. THERE ARE TIMES WHERE THERE’S DIFFICULT NEGOTIATION WAS THE CHINESE GOVERNMENT. MARIA: IF YOU WANTED TO SEARCH FOR SOMETHING LIKE TIANANMEN SQUARE, TYPICALLY YOU’RE NOT ABLE TO IF YOU’RE IN CHINA. YOU’RE SAYING SOMETHING HAS COME UP WHERE MAYBE YOU CAN GET INTEREST THERE, THTEREST THERE, THERREST THERE, THERE,ST THERE, THERE, M THERE, THERE, MAYHERE, THERE, MAYBERE, THERE, MAYBE T, THERE, MAYBE THAT’S WHAT THE CHINESE LEADERSHIP IS UPSET ABOUT.>>WE’RE NOT SURE. THERE ARE ISSUES THAT ARISE. THOSE ISSUES LEAD TO OUR SERVICE OR SOME OTHER SERVICES BEING BLOCKED AND IT IS AN AREA WHERE WE UNDERSTAND, WE DON’T HAVE THE SAME LEGAL FREEDOM THAT WE DO IN OTHER COUNTRIES BUT AT THE SAME TIME WE STICK TO OUR GUNS. THERE ARE CERTAIN PRINCIPLES WE THINK IT’S IMPORTANT TO STAND UP FOR AND AT TIMES WE’LL GO INTO THE NEGOTIATING ROOM AND THE NEGOTIATIONS ARE SOMETIMES PRETTY DARN DIRECT. MARIA: GOOD FOR YOU. I THINK VIEWERS WANT TO HEAR YOU SAY THAT, THAT YOU STICK TO YOUR PRINCIPLES. LOOK, YOU HAVE TO OPERATE UNDER THE RULES OF A COUNTRY. WHEN YOU’RE OPERATING IN THAT COUNTRY. WE KNOW THAT. BUT AT THE SAME TIME, THERE ARE THINGS THAT YOU ALSO HAVE TO STICK TO PRINCIPLES LIKE YOU SAID. HAVE THERE BEEN CASES WHERE YOU’VE HAD TO DO THAT?>>I THINK WHAT’S INTERESTING TODAY, TECHNOLOGY AND SORT OF HUMAN RIGHTS, FREE EXPRESSION, THESE ISSUES ARE REALLY INTERSECTING AND ON CERTAIN DAYS COLLIDING MORE THAN IN THE PAST. THERE ARE COUNTRIES WHERE WE’VE SAID WE’RE NOT GOING TO PUT A DATA CENTER BECAUSE WE DON’T THINK WE CAN PROTECT THE DATA FROM POTENTIAL HUMAN RIGHTS ABUSES. THERE’S DEALS THAT WE’VE TURNED DOWN FOR THINGS LIKE FACIAL RECOGNITION TECHNOLOGY BECAUSE WE FELT THAT PEOPLE’S RIGHTS WILL BE PUT AT RISK. AND I THINK MORE THAN EVER, TECH COMPANIES REALLY NEED TO THINK ABOUT THESE THINGS. THEY NEED TO BE PRINCIPLED. YOU HAVE TO HAVE A LITTLE MORAL COURAGE IN MY VIEW IF YOU’RE GOING TO BE IN THIS BUSINESS AND REALLY TAKE CARE OF YOUR CUSTOMERS. MARIA: THAT’S TERRIFIC. IT’S GREAT TO HEAR YOU SAY THAT, BRAD. LET’S GET TO THE TOP 10 TECH ISSUES FOR 2019. PRIVACY OBVIOUSLY IS THE NUMBER ONE SPOT IN YOUR VIEW FOLLOWED BY ISSUES LIKE DISINFORMATION AND A.I. LET’S TALK ABOUT THE LIST.>>SURE. IT WAS AN AMAZING YEAR LAST YEAR. I THINK THE OVERRIDING THEME WAS GROWING SKEPTICISM IN THE PUBLIC, EVEN CAUTIOUSNESS OR CONCERN ABOUT TECHNOLOGY. PART OF IT IS WHAT IT MEANS FOR INDIVIDUALS. OUR PERSONAL INFORMATION, THE SECURITY OF THE DEVICES ON WHICH WE RELY. SOME OF IT IS THE BROADER ECONOMIC IMPACT. AS YOU WERE HEARING, THE IMPACT OF A.I. ON JOBS IN THE MIDWEST OF THE UNITED STATES. THESE ARE NOW FRONT AND CENTER WHEN PEOPLE TURN ON THEIR TELEVISION IN THE MORNING. MARIA: AND TARGETING FAKE NEWS IS ANOTHER ISSUE OUT THERE. I MEAN, MICROSOFT’S EDGE MOBILE APP NOW HAS A SERVICE CALLED NEWS GUARD. TELL US ABOUT THAT. IT DETECTS AND WARNS USERS ABOUT WEB PAGES THAT MAY CONTAIN FAKE NEWS. HOW DO YOU JUDGE WHAT’S FAKE NEWS?>>WELL, YOU DON’T REALLY JUDGE PARTICULAR NEWS STORIES. I THINK YOU REALLY HOPE THAT INDIVIDUALS CAN MAKE THEIR OWN DECISIONS ABOUT WHAT THEY BELIEVE IS TRUE OR NOT. BUT NEWS GUARD IS A BIPARTISAN INITIATIVE. IT’S A THIRD PARTY, IT’S NOT OUR INITIATIVE BUT ONE OF THE TWO FOUNDERS IS GORDON KROVITZ, FORMER PUBLISHER ON THE L WALL STREET JOURNAL. THEY LOOK AT DIFFERENT NEWS SITES AND THEY’LL DO IT ON A NONPARTISAN BASIS, FOX NEWS AND MSNBC BOTH GET A GREEN ICON, BOTH REPUTABLE NEWS OUTLETS EVEN IF YOU HAVE DIFFERENT POINTS OF VIEWS. OTHER SITES, LOOKING AT THE RUSSIAN NEWS PAGE, IT WILL BE A RED ICON BECAUSE THEY CONSISTENT RED ICON BECAUSE THEY CONSISTENC RED ICON BECAUSE THEY CONSISTENN RED ICON BECAUSE THEY CONSISTENL RED ICON BECAUSE THEY CONSISTEND IT’S NOT THE SAME KIND OF REPUTABLE SITE. THE IDEA IS TO GIVE PEOPLE MORE INFORMATION. IT’S AN OPTIONAL THING THAT PEOPLE CAN USE IN ANY BROWSER, WHETHER FROM MICROSOFT OR ANYBODY ELSE. NOBODY HAS TO USE IT IF THEY DON’T WANT TO. MARIA: YOU’VE GOT OUT WITH A LOT OF — COME OUT WITH A LOT OF NEW PRODUCTS. THE SURFACE HAS BEEN POPULAR. WHERE IS THE GROWING COMING AT MICROSOFT TODAY.>>LOOK BACK AT LAST YEAR, TALK ABOUT THE FIRST THREE QUARTERS BECAUSE WE’LL DO OUR EARNINGS NEXT WEEK BUT ONE OF THE THINGS THAT’S EXCITING FOR THOSE OF US AT THE COMPANY IT WAS BROAD-BASED. IT’S CENTERED IN THE CLOUD. YOU LOOK AT THE AZURE BUSINESS, THE GROWTH RATES IN THAT BUSINESS, OTHER CLOUD SERVICE, WHETHER DYNAMICS OR A.I. AND A.I. APPLICATIONS, A ALL OF THAT IS REALLY STRONG. IT WAS ACROSS THE BOARD. SURFACE DEVICES ARE DOING VERY WELL. GAMING IS DOING VERY WELL, WHETHER X-BOXES OR GAMES, THAT’S A VERY HEALTHY AND SUCCESSFUL BUSINESS. MARIA: PEOPLE LOVE GAMING. IT’S BECOME SO POPULAR, IT’S TAKING MARKET SHARE FROM MOVIES.>>WHAT’S INTERESTING, ULTIMATELY THERE’S A LOT OF BUSINESSES THAT ARE BASICALLY ALL COMPETING FOR YOUR TIME. WHETHER IT’S WATCHING A MOVIE, WATCHING A TELEVISION SHOW, WATCHING A YouTUBE VIDEO, PLAYING A GAME OR MAYBE EVEN GOING OUTSIDE AND DOING SOMETHING. MARIA: YOU MENTIONED FACIAL RECOGNITION EARLIER AND PRIVACY CONCERNS WITH THAT AND A.I. WHAT’S THE CONCERN THERE?>>WELL, THERE ARE THREE CONCERNS THAT PEOPLE HAVE ABOUT FACIAL RECOGNITION. EVEN THOUGH AT THE SAME TIME IT’S DOING SOME AMAZING THINGS AROUND THE WORLD. IT’S HELPING POLICE FIND MISSING CHILDREN, HELPING DOCTORS DIAGNOSE DISEASES. THERE’S ISSUES FOR PRIVACY. WE’RE ENTERING A WORLD WHERE YOU CAN WALK INTO A SHOPPING MALL AND IT’S NOW MORE THAN THEORETICALLY POSSIBLE THAT YOU’LL BE FOLLOWED AROUND INTO EVERY STORE. LAW ENFORCEMENT COULD USE IT TO FOLLOW ANY INDIVIDUAL ANYWHERE OR EVERYWHERE. IT’S STILL TECHNOLOGY THAT WHEN NOT USED WELL OR WHEN IT DOESN’T COME FROM A STRONG PROVIDER, THERE’S RISKS OF BIAS. IT DOESN’T WORK AS WELL IN IDENTIFYING WOMEN OR PEOPLE OF COLOR. SO THERE’S A BROAD SET OF ISSUES THAT WE ALSO NEED TO GRAPPLE WITH AS AN INDUSTRY AND AS WE’VE SAID THIS IS TECHNOLOGY THAT SHOULD BE GOVERNED BY LAW, SHOULDN’T BE LEFT TO TECH COMPANIES ALONE. MARIA: THIS IS IMPORTANT TECHNOLOGY THAT’S BEING USED IN ALL SORTS OF WAYS AND IT CAN BE AN ISSUE IN TERMS OF PRIVACY AND YET IT’S VERY EFFECTIVE AND IT MAKES OUR LIVES EASIER.>>IT HAS A LOT OF GOOD USES. SO IT’S A CLASSIC — YOU DON’T WANT TO THROW THE BABY OUT WITH THE BATH WATER. WE ALL BENEFIT FROM IT WHETHER IT’S OUR OWN DEVICE OR JUST GOING THROUGH AN AIRPORT. IT HELPS ADVANCE SECURITY AND THE LIKE. BUT ALSO LIKE MOST TECHNOLOGIES, IT’S A TOOL THAT CAN BECOME A WEAPON. AND WE DON’T WANT IT TO BECOME A WEAPON AND THE BEST WAY TO ENSURE THAT IT DOESN’T IS FOR COMPANIES TO REALLY THINK ABOUT THESE ISSUES IN ADVANCE AND FOR US TO ENSURE THAT THIS IS SUBJECT TO THE RULE OF LAW. MARIA: BRAD, REAL QUICK, WHAT A YEAR YOU’VE HAD, WHAT A COUPLE YEARS MICROSOFT HAS HAD. GREAT PERFORMANCE, HITTING A TRILLION DOLLARS IN MARKET VALUE EARLY THIS YEAR. HOW DO YOU KEEP IT GOING?>>WE’RE FORTUNATE TO BE IN A GREAT INDUSTRY AT A GREAT MOMENT IN TIME. THIS IS A DECADE, THE NEXT DECADE WILL BE A DECADE WHERE THE CLOUD, DATA, A.I. ARE REALLY CHANGING LOTS OF THINGS. I THINK FOR US, THOUGH, IT’S FUNDAMENTALLY HOW DO WE TAKE OUR TECHNOLOGY TO HELP OUR CUSTOMERS DO THEIR BUSINESS BETTER, TO DO THINGS THEY COULDN’T OTHERWISE DO. AT THE END OF THE DAY, WE’RE NOT AS MUCH IN THE CONSUMER BUSINESS, SAY ASIDE FROM GAMING. WE’RE MORE ABOUT HELPING OTHER BUSINESSES BE MORE SUCCESSFUL. SO WHAT WE HAVE TO KEEP IN MIND IS ANY DAY THAT WE HELP THEM GET BETTER, THAT’S A GOOD DAY FOR THEM AND A GOOD DAY FOR. MARIA: BRAD, IT’S GREAT TO SEE YOU.