tv Squawk Alley CNBC February 16, 2021 11:00am-12:00pm EST
lisa, how big is too big >> two big tech names, we will talk mark zuckerberg's plan to inflict pain on apple and semi conductors, qualcomm and microsoft have issues to get bigger by buying arm and we will take you inside facebook's oversight board as some people think the discourse has gotten too big we will continue with tech, state regulators close in from the outside, introducing new measures that might have an impact on their businesses but at least so far, little impact on their stock prices, north dakota wants to stop apple from taking developer's revenue in the app store meanwhile, maryland wants to take a chunk of digital dollars in taxes charm, this is interesting on one side, big tech is taking too much is the argument then on the other side, you know, tax implications is saying government isn't getting enough from the success that these businesses are having.
>> yeah. john, you can do it easily on the other hand on this one but it's interesting, too, to talk about db fractureing of tech in general. whether it's on privacy between apple and facebook, publishing between microsoft/google, mna on this nvidia arm, digital advertising between the states it's a much more dis par rat policy view within a sector we normally talked about as being somewhat homogenous. >> yeah, the one word i think of when it comes to all the stories we are talking about today and the last two weeks is chaotic. we talked about this before. maybe it's not this big bang of regulation, maybe it's more like death by a thousand cuts if that wasn't enough, as you mentioned at the top, now they are fighting each other so distraction upon distraction upon chaos i will do an "on the other hand" john knows, it's my favorite
segment. you touched on this, too, apple and amazon having their first 100 billion plus revenue quarter. you got google thought to be the big tech company facing regulatory consequences. that stock is up 20% year-to-date, catching up with the other big tech names, so it does feel like we talk about this day in/day out. but the markets aren't seeing that, yet, john. >> yeah, i can't help but think, though, there are plenty of companies piling on microsoft, apple and google battling over maps big tech has never been totally nice let's move on and talk more about these state aspect of this maryland becoming the first u.s. state to approve a tax on big tech's ad revenue. the tax impacting companies that bring in more than $100 million a year in global revenues. joining us is the president
of the maryland state senate bill ferguson welcome. bill, so, tell us how this would work does it have to do with
maryland's specific transactions and how much revenue do you intend to raise? >> zoe good afternoon eighth pleasure to be here with you. and i think as you all have been discussing, you know, the world is in this moment of significant technological reform i think states are now asking the question of, have we captured the -- what has been created. it's wonderful what's been launched here in the united states, the beauty of capitalism and innovation the challenge is we're not seeing the contribution we would traditionally expect from companies who are benefiting from the public investments that we have made over time in public education, public health and public safety. so states are now forced with this question of -- how in this new economy with these new marker entities that have been built in the
last 20 years, how do they participate? so what this piece of legislation does, say the nexus between the state of maryland
and this large platform are the digital ads that are being placed in maryland on devices in the state of maryland. and so, what we have done instead of a sales tax transactions, we've said we are aggregating the estimated amount of advertising revenue that would be derived from the state of maryland based on advertisements promoted and shown in the state of maryland and then we put a gross receipts tax on that amount, ranging in a progressive way from 2.5% up to 10% based on global ad revenues. >> how does this compare with the way that maryland taxes other advertising transactions, whether they be billboards, television, print and so forth >> so this is really focused on the platform-based 5ds this is something that didn't exist 20 years ago and so maryland is a looking at other examples if you look at what happened in south dakota, with the wayfair
case, sales tax wasn't applied for out of state sellers the supreme court after a decade stepped in after south dakota moved forward and now almost every state in the union is using the benefit that has been created by online sales and there are now aggregate marketplaces where there are sales tax from out-of-state sellers would have been benefitted in the state is now going to that state. this is a novel question because these are brand-new industries when it comes to state taxation amounts >> senator, good morning, it's deidre we've seen billions in penalties and taxes on the tax giants over in europe. but it basically amounted to speeding tickets they haven't led to any real structural change. how might your tax be different? >> well, i think at the end of the day, all of these platforms have benefitted from the public investments that have been made in states across the country but i can only speak from my perspective here in the state of
maryland we have a great public education system but we are trying to make it better so we launched a three-year plan to review public education but we have to fund the investments, pre-k and making sure teachers are professional and we have true pathways to and through college. that costs money these platforms have benefitted from our prior investments in those public systems and we think that they should also contribute to the ongoing building of our civic society. that's not only in our interest here in the state of maryland, it's in the platform's interests as well. so their platforms can continue to be consumed by people in the state of maryland effectively. >> right i understand that part of it is there another aspect, though, where you are getting, you are trying to get the tech giants to change their behavior? i think you said before that you were inspired by an op-ed that argued that taxing targeted ads is actually a way to incentivize them to change their business
models >> yeah. in the initial path of this, one of the big recognitions. i'm not limited in saying that all of the data, the personal data, where we go and shop, what prescriptions we have, when we go to the doctor, all of that data, our personal private data, is the basis, is commoditized by platforms that were more of the highly targeted ads to consumers. that's a policy choice that we made, that is fine when we first started, we were going to disincentivize the collection of personal information. but it will add as an escape that was a difficult endeavor. rather than focusing on that, i think what we thought would be more important is that we capture these personalities created. the uncertainty and civic breakdown we have seen by one access to information. what we need to do is invest in a public system like our public schools to know that our students know how to discriminate and understand what is good information from bad
that is where this policy ended up landing was using the free access of do you that that's happened, that is the basis of the growth of many of these technology companies and really pound some of those investments back into the public system so that everyone benefits >> now, i wonder here, as you set that up, do you set maryland up, programs, with a perverse incentive to continue the ad-targeting methods that these digital giants already have? if you get maryland schools relying on $250 million in revenue from google and facebook, then all of a sudden apple in ios-14 slaps on limits that reduce the amount of renew that these ad networks are able to derive, all of a sudden you can't fund pre-k, right? >> that's a very fair question i this i the reality is i don't think any of us should reasonably expect these platforms are going away
i don't think everything that has happened the reason they have seen such dramatic growth is they had connected in different ways. there are abuses that have to be adjusted i sort of believe myself as somebody that understands and believes in the adam smith capitalism where extra -- are captured and we incentive ice fair marketplaces. we have unfair globally large companies that really don't have a basis of any clear reg racing. i -- regulation this is a conversation over the next ten years we will be having with a society more and more >> let's talk adam smith would it be useful for there to be federal legislation that covers this because right now we're starting to see is this patchwork emerging of different states with different political agendas and economic agendas trying to slap taxes or kind of keep tech companies from
charging for various things. >> it makes a lot of sense to have a uniform standard across the country. but as we seen in our over 200 years in history, the states are the laboratories of experimentation when it comes to policy so i think you will continue to see states take these types of steps until there is a clearer framework for how this new economy addresses these, the information flow that happens through social media platforms and other similarly situated technological entities >> all right bill ferguson, president of the maryland state senate. thank you. >> thank you. in the meantime, bitcoin hits another record high, surpracticess 50k for the first time ever. our kay rooney is tracking that move hey, kate. >> reporter: hey, another day the crypto currency gains in the past six weeks comes to 70% as
far as what's driving that, analysts are pointing to momentum-building after tesla said it was adding bitcoin to its balance sheet. this morning prior strategies, which was one of the trail blazers here, as one of the first companies to buy bitcoin with corporate cash says it is doubling down. that software company plans to offer $600 million of convertible notes and use those proceeds to buy more bitcoin analysts tell me these new corporate buyers are adding to some of that bitcoin demand and may be helping to boost prices there is bitcoin interest on wall street. cnbc reported that j.p. morgan was looking seriously at that asset class. today there are some more reports out that one of morgan stanley's investment arms is considering adding bitcoin to its list of possible bets. we also had mastercard and bny mellon showing new support for crypto currencies. according to fund check, the
greed index is about a 95 out of 100. that's what they call extreme greed levels it's been over 92 for the past seven days there are still plenty of skeptics for bitcoin a recent deutsche bank survey show investors see bitcoin as the most extreme bubble right now in financial markets and the author of "the black swann," tweeting the past couple of days he is getting right of bitcoin, one reason is any currency is never supposed to be more volatile than what you buy and sell it. the volatility, he says, hasn't dropped as prices continue to climb higher deidre, back to you. >> yeah. you can't ignore that volatility crypto kate, thank you for that. after the break, qualcomm, microsoft and alphabet all raising concerns over nvidia $40 billion arm. we will discuss one of the founders, that's up next so don't go anywhere
. more shares of oracle today. tiktok parent's byte dance walking away from oracle now that president trump has left office and i guess potentially, john, theoretically, the idea of the whole mna transaction being shelved under a new administration makes sense to some although, cramer warned us on air to be careful about making broad assumptions of what happens next >> yeah, this was always a weird concept for a transaction to me, carl just the fact that something is
owned by a u.s. company doesn't make it secure and if the issue is data security of u.s. citizens, boy, that should really be tackled at a fundamental level. as we saw with solar wind, deidre, that's a u.s. company, boy, the compromise there apparently by the russians, you can't assume just because something is owned by the u.s. means it's secure. >> yeah. plus, that's a good point and you have to look to what's happened with biyte dance, the parent of tiktok a pitchbook in december said it was valued at $180 billion i don't know what price oracle had discussed with them, but it is mighty excessive. then you take a look at walmart, right, continuing with partnerships programs they will get out of tiktok what they wanted in a strategyic investment, anyways, carl we're going to break, but after the break, go ahead, carl.
>> no, i was just going to say, it does fit with the overall thesis that walmart is evolving from a strict retailer into more of a marketing even advertising-like company so we'll see where that goes. >> right and with oracle, it's kind of supposed to be this magic bullet, the insert into the company to update nit some ws.ay after the break, don't miss one of the co-founders of arm holdings we will be wrike back so stay with us. get the food you love with perks from- - [crowd] grubhub.
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stocks hit an all-time high as we said earlier in the session led by energy and technology as well as we mentioned some issues for facebook as well as we pay more attention to their oversight board, joining us is keith terry the equity analyst, it is always great to welcome you back. >> thanks, carl. really great to join you >> we're in sort of an interesting period economically and i guess from a market perspective, too, i wonder, is there a 30,000-foot view for you now on tech and does it sort of pivot around binary issues, like either returning to work or something else >> look, i think it piff other around a lot of issues, from a
30,000-foot level, obviously, we're looking at the you know massive period of acceleration in the adoption of technology so we're talking about cloud computing. at-home fitness, ecommerce, social media all of those things have seen a huge benefit over the past year. and i think we're all sort of asking ourselves how much of this holds up as life, hopefully, goes back to normal here over the course of this year and i think the piece of that, you know, that we're seeing behind sit all of just the incredible market activity from venture capital perspective, from a public market perspective and the valuations those companies are getting that hinge on that, clearly, the world is falling on the optimistic side at the moment. >> right i think you just did a very large report, right, on venture capital and where it stands and some of the other pipelines rapidly growing to compete with
it how should investors think about that particular line of business relative to the valuations of these companies? >> yeah, look, venture has always been an area that we've focused on, because it gives us a sense of what's coming next and you know we've just gone through year-to-date the fastest growth that we've ever seen over a period like that, we're up 150%, over 150% year over year just in this first part of the year $50 billion. it's being driven by the incredible liquidity that you are seeing with, you know, spacs and ipos and, you know, the fourth quarter having been the busiest fourth quarter that we've seen or really the busiest quarter than we've seen since the record that we set in the third quarter. so it just gives you a sense of sort of where that money's coming from and at the same time you still got $200 billion worth of dry powder sitting in funds
waiting to be invested we're not about to slow down, at least not any time soon. >> good morning, it's john ford. are you looking any differently at the legal and regulatory risks to some of these companies? we were just talking with the state senate president of maryland about their move to tax digital advertising at the same time in north dakota, they want to stop apple from taxing or you know charging developers at the rate that they have been for the app store? you got all these different patchwork legal things coming at these companies at the federal level, fractured agendas, tend to mean nuggets done at the state level, it can mean a lot of things get done, right? >> absolutely. we were in this period for so long where the federal government provided cover for these companies, you couldn't regulate on a state-by-state level. you know, we've seen some of this before. the city of chicago applying an
entertainment tax to netflix never at the level we're seeing it now it will be incredibly difficult for these companies that operate as globally as these do because it's one thing to talk about 50 states here, then you apply that at a global level and the level of complexity is just unbelievable that said, what we always see with regulation is regulation tends to favor the incumbents. because if it's difficult for alphabet or facebook or amazon to deal with that kind of regulation imagine what it's like for a company starting to try to compete with those companies on a global level to deal with that so in a lot of cases, we certainly saw this with gpr in europe, the intended consequences are rarely the ones that we get. >> heath, it's deidre. good morning silicon valley tech at large is talking a lot about the social audio space and clubhouses success. so i wonder how you guys are
thinking about it for the opportunities for start-ups like tech giants like facebook that wants to copy that formula >> i mean, we also had jack dorsey at our tech conference last week. he spent time talking about the social audio after what they are calling spaces and they see it as a big opportunity. we think about audio, in general, you look at the growth of podcasts or the growth of spotify and the other platforms or even j you the growth that amazon has seen with audible there's clearly a lot of demand here we are moving beyond the text world, think of twitter and 2 vote40 or 280 characters around we are trying to engage with something more rich. audio is the next step there is a lot of work around video. the live social audio and being able to connect with people that you care about or you know people that you find interesting, live in realtime,
instead of waiting until something has been recorded and edited, just for allows so much more engagement and interest, you know, it's the difference between live tv and recorded tv. there is always something more interesting that could potentially happen i think that's a big part of what you are seeing in that environment now. clearly, we're getting started we are only a few months into it >> heath, i remember last summer, we tried to get you on some of the travel-related names, trip and expedia. you have been net cautious is fair to say. which is i guess direction ally correct. but if we are are real i in for an explosion of demand and except-up savings and vaccinated seniors that want to travel. why not get more positive on those gains? >> sure, it is a relative basis for us, are you right, the underlying environment for travel as we get later into this year and clearly, we're all, you
know, just waiting for that opportunity when we can take those trips that have been postponed, there is going to be a lot of underlying demand there. everyone in the travel category will benefit on a relative basis, though, the online travel companies are in a difficult position the amount of competition that they're seeing from google, from airbnb, from the suppliers, themselves, are going to make them relative underperformers in that environment there are just things about the elimination of last room night availability requirements, the elimination of pricing parody requirements that put them at a disadvantage that we saw prior to the pandemic. we were having to deal, we were an incredibly great environment for travel prior to the pandemic and these stocks were significant under performers we suspect that's going on the to be the case here as well. particularly when you factor in the fact these companies are now having to compete with billions of dollars more of debt on their
balance sheet that they've had to add during this pandemic just to keep their heads afloat zblop tha zblop. >> thanks, great stuff much more to cover hopefully with more frequency. see you soon >> all right. time now for news update over to you. >> all right in fact, here is your cnbc news update at this hour. let's begin with severe weather. subfreezing temperatures continue to blanket much of the country. in fact, official, reporting little progress towards restoring power for more than 4 million commerce across texas. the brutally cold weather has also frozen gas lines to mexico. and that's triggering blackouts for hundreds of thousands along the boarder with the u.s. and in oregon, heavy ice there collapsing roofs and taking down power lines. more than 200,000 customers
there are without electricity. and a tornado has killed at least three and injured 10 in north china. in a community left of wilmington, across the southeast, 27 storm deaths have been confirmed. and a democratic congressman is suing former president donald trump for his role in the capitol hill riots the lawsuit accuses trump of inciting the deadly riot also named in the suit are trump's lawyer, rudy guiliani and the proud boys and you are now up to date i'll send it back to you >> thank you meanwhile, launch palantir with shares sliding after reporting resultths is morning we will take a closer look coming up in a couple minutes. about a month's worth of gains so far don't go away. yeah! ...then ould be able to get a bank account that helps with your budget. (laughs) we created virtual wallet® to help people save and spend smarter. easily see the big picture of your finances... ...and set up alerts to help avoid overdrafts.
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ah, they're getting so smart. choose the app that fits your investing style. ♪♪ qualcomm are protesting chip designer arm we have for more let's bring in dr. her man hauser, co-founder of arm holdings. good morning and thanks for being with us, so early, your time in new zealand. previously i know you called this deal is a disaster and said nvidia couldn't guarantee that arm would keep us independent. now having some of arm's biggest customers. i just named a few of them opposing the deal s. that the final nail in the coffin or were regulators going to shoot it down anyway >> well, i very much hope so because the regulators in the
u.s., in many ways, the most important country to object and there are also objections in the uk and in europe and also china. >> it's certainly notable who we have heard from, google, microsoft, qualcomm. perhaps just as notable who we haven't heard from, apple, amazon, hauwei why do you think they are say other, does that lead you to believe at all that there are, you know, some important players in this industry that think this deal could be a good thing, perhaps not for europe, but for the chip industry at large that is facing an incoming threat from chinese chip makers >> no no the big problem is that arm is the switzerland of the semi conductor industry. arm is even handedly dealing with over 500 licensees all over the world. all the major semi conductor companies have farm licenses and it would destroy the business model if one of the licensees actually owned arm
so all the licensees are really objecting to this deal it's just that some of the licensees are more pro siferrou than others. >> you call at this time switzerland of the chip industry but you know, it also argues that perhaps arm would be more powerful and i just, you know, alluded to the fact that the western chip industry is facing a potential threat over the next few years from china's industry. so is bigger better here can, you know, the western chip industry present a better fight against threats if they are combined and we are seeing a lot of consolidation in the industry. it's not just artillery and nvidia >> no, quite the contrary. it would be the disaster it would create a monopoly because arm has a 95% market share in smartphones, which is fine as long as there are lots
of suppliers in the smartphone market if arm is now owned by a single supplier and, indeed, the most valuable semi conductor industry in the world, it would cut out the other competition, in the west as well as china. and be a very bad thing for the industry >> her man, good morning here's what i don't get. i went out and visited arm headquarters in cambridge around 12 years ago for a story i was really blown away by the way the company had maintained its culture and the way it stand out in europe as a technology leader and innovator look across the various different technology areas that are important. there hasn't been really another arm. how are regulators even entertaining letting this happen to a company that has been so successful over such a period of time we just saw the trump administration kind of defending qualcomm from a takeover not too
long ago, but you know, arm seems to change hands, ha ha with nary a wimper >> it was a mistake to let the transaction for softbank happen. however, softbank has preserved as the switzerland industry. softbank has been a good owner because over 500 licensees of arm had equal access, even-handed access to the arm technology and as you say, arm doesn't just have 95% smartphone market it has had the majority of the processes in iot and now with apple changing from intel to arm for its process cells in the iphone, not just in the also in the imac, not just the iphone. and microsoft and amazon using it in the data center.
it is a very uniform architecture across the entire industry and the reason why this works is because there are so many licensees completing in the industry if it was owned by a single company, that would create the monopoly i think is unacceptable to most people >> herman, i think there is a lot of metrix where you can see arm has been hugely successful, but critics do argue that it's soft flattening revenue growth to softbanks, what do you say to them that arm is achieving more? >> well, it's just wrong the results have just come out a week ago arm is growing 10% a year at the moment we are selling almost 30 billion arms a year. so cumulatively, we've now sold over $160 billion, since there are 7 billion people on earth, every one of you has about 30 arms now
so you might ask, well, where are my 30? well, there are 30 in your smartphone people know the main processor is an arm. there is an arm in the usb, in the b blu-tooth and touch controller there are lots of arms in every pc now there are arms also in the data center. so, an arm has been, by far, the most successful microprocessor country in the world we are outselling intel 20-to-1 at the moment. >> yeah, which speaks to how important this deal is and will be to the future of the chip landscape. dr. hauser, thank you so much for being with us this morning from new zealand >> not at all. thank you. meantime, palantir is under pressure on that unexpected quarterly loss josh lipton has more on it hi, josh >> so, carl, remember headed into this print, we are still up a whopping 260% from its october lows, shortly after making its
public debut now this morning as you mentioned, it is sharply lower here, afterreporting result, palantir reporting a loss of 8 cents per share, an adjusted basis of 6 cents per share, either number is comparable to the profit the street was expected the revenue clock at 322 million. looking ahead, they expect revenue growth with a mid-point of 332 million in 2021 it's forecasting revenue growth of more than 30% speaking in a prerecorded video, emphasizing opportunities for his company in the quarters and years ahead. >> reporter: we believe that the transfer, transformation which is happening in the world now will accelerate. and that the way in which we're providing software, both in foundry, gotham and our ability to scale this to apololo will be the way that everyone at some
point will actually try to build software and the way in which computers will prepare software. >> i cut off brent at jefferies. i want his take. this is a strong beat, the company offered an unusually long-term outlook. it says it is expecting greater than $4 billion revenue in 2025, as implies growth for the next several years. why is the stock, though, selling often here he said he would chalk it town a skyrocketing stock rise, in other words, it was due for a breather also, dig nook the results he says q4 commercial segment up just 4%, perhaps brent says that looked disappointing to some and importantly, brent knows a lockup on the sale of stock is lifting soon some analysts think shareholders could take advantage of that release and sell shares. carl, back to you. >> all right something to keep an eye on, josh, thank you very much, josh lipton on palantir we got a bunch of all time
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year-and-a-half to the access of facebook's oversight board she joins us now great to have you. from what you can tell us so far, you think this is going to work >> well, it sure better. i hope so. i mean, it is the future of kind of what we are looking at for online speech in a global economy and global world right now. so i think it's our best bet for some of the transparency and accountability we want to eventually see out of these platforms. >> it strikes me this is sort of either the best kind of balanced government, where mark zuckerberg gets to be the executive and legislative branch, but he's appointed a judicial branch as a check on him or i mean he has appointed the judicial branch. , is that good >> yeah, there's a lot of things that went into creating independence for the board it has financial independence. there was an irrevocable gift of $100 million that went into a trust to start as a bubble to insure that facebook isn't the
one that has its hands on the purse strings of the board and how the board is funded. but they were selected by the first four co-chairs were selected by mark zuckerberg and the rest of the team people that they were in consultation with. but the after that, the remaining board members were all done with consultation when that facebook and the former co-chairs. so there was kind of a washing of hands so-to-speak over time and the next 20 members app appointed been done totally by the board, themselves. >> arguably, the decision that matters here is not only what they do about former president donald trump on facebook but also how they word and explain their decision how much insight do you have into how they're going to handle that because no matter what decision they make, there is going to be intense criticism. are they going to adopt a supreme court-style, you know,
explanation of the decision? is there going to be any kind of dissension allowed and are they going to print, perhaps, alternate perspectives that didn't end up winning out? >> oh, these are great questions. and absolutely, that is one of the best parts about this is we are this is that we're finally getting reasoning and understanding about these rules that have been enforcing our speech for years are getting applied and used against us or used for us. the board has issued a number of decisions so far and those were all around ten pages relating to various types of speech, and they all have overturned facebook, incidentally it will be interesting if that trend continues. it does look like the reasoning that the board has given so far that they're concerned about impartiality and that facebook is building into something more sophisticated than keep it up or take it down and putting nuance into some of these decisions and
put friction into how they're shared and not as to whether they just exist or not. >> overall, the outsourcing of decision making on some of your most fraught issues, is that, do you think long term mostly a facebook story or does that extend to other big tech companies who have similar social dilemmas, i guess you could say? >> yeah. so this is fascinating one of the things that they did when they built trust is the delaware trust that basically holds all, as i said before, the funding and is managed by trustees that are independent from facebook that basically, that they created that trust and one of the things that was imagined is basically that other companies could, perhaps, join the trust. put their own money into the trust to create and fund their own oversight board to do something issimilar or they can all lob into facebook and i don't know how that's imagined
right now, but those are all possibilities for the future. >> kate, there's this idea that this is the future and this has to work, but on the flipside, i couldn't help but wonder as i read your piece if this needs to be abandoned altogether. the picture you painted was so chaotic and a group that looks very limited and looks nothing like the supreme court how do we go from that to something that's really effective and are there things that facebook should be doing and spending money or time on that aren't this >> that was a very common critique as i followed this for two years from stakeholders outside the company and even since the piece has come out there's been a lot of pushback on that. i want to be super clear that the idea that this is a supreme court is rhetorical. this is not a supreme court. this is not what we have it is not the same thing and the new yorker picked the headlines. y "the new york times" picked the
headlines and it's like read the room easily into the idea that this is the supreme court. there are lots of distinguishing factors that make this a different type of body with that being said, it is a body that you're right, it looks nothing like the supreme court it is a lot more diverse than the supreme court. it is 20 people who are global leaders around the world and it's -- which is so crucial when you think that only 5% of people and facebook's market share are in market, and so you really have to think about how this is not a platform for just the u.s. even though we have trump and the decision, but these are facing decisions like at this scale every day in countries that are around the world so that's really what we're grappling with >> i'm glad you clarified that and the book was nothing like that headline, but still, is this the most effective use of time and money i mean, critics say that this
all comes down to the business model. if you don't change the way that facebook makes money, how can you change the way that it can monitor content if you do away with targeting ads, does this help solve some of their problems >> that's such a great question. i think that basically, we're in a stage right now where we're norm setting and what i mean by that is that's not a word that you're allowed to say on cable tv because people's eyes glaze over there is a period where we're just trying to understand how this matters and it's been a wild ride for the last 15 years that facebook has existed. i don't think we'd ever would have thought that we'd even be getting to a point, 15 years ago or five years ago where zuckerberg would be making decisions to keep on or take out a democratically elected world leader basically, we're at this point that i believe that yes, this could be a distraction, but also it could end up being just
another lever and we should be pulling all of the levers at this point to try to figure out what will work. >> quickly, if you can could this judicial body end up making changes by default? will they have free rein to publish their opinions and facebook should have done it this way and the managers of facebook would have to consider building it that way. >> yes absolutely maybe it's a signal of where facebook finally needs where it should be landing on policy instead of this emorphous cloud of bad negative press and feedback that they're getting. here you have 20 people who will write a very well thought-out decision and saying we surveyed the world and we talked to experts at the u.n. and human rights experts and this is where you should be taking your policy and product next and that's something that would absolutely benefit facebook and the rest of us. >> we'll see how the management team responds to that kind of
as you head to noon. i am watching shares of intel up 1% and pat gelsinger's first trading day as ceo he's put out a memo to the staff with four priorities, be a leader in every category we compete, passionately innovate with boldness and speed and reignite our culture to attract and motivate the best engineers and technologists on the planet. deidre, the ambition is there. >> the ambition is there big job, though. can't wait to see what he does i am looking at bitcoin. i know we started the show with it and backing back from the 50,000 level we hit earlier today and 48,000 and the interest from institutional investors and adding confidence to the rally and is anything
like the last one we saw >> some of the warnings of the likes of sheila baer and it's hard not to end the hour with one more peek at the ten-year as we're around 127 and actually above 128 now. jeffrey's point was you get close to 1.5 and that's the s&p yield and that will be the first major test for high p-e names. the judge is back. let's get to the half. carl, thanks so much welcome to "the halftime report." i'm scott wapner the stocks and your mono ey hav milestone. joining me for the hour is stevely link, jon najarian and jim lebenthal and let's go to the wall and let's show you where the markets are and we are up for the most part the s&p is going negative and the nasdaq is down