First to our lead. In other wild ride in the markets for u. S. Markets erasing gains made earlier in the day. Tech stocks faring better than the rest. Straight to matt miller for the latest action at the close. Apple, netflix, facebook, amazon, best buy, these were the addingners on the s p fractions of index points at the close. We were up 3 on the s p after the huge drops weve seen in the last five trading days in the stocks out rally after the close. Old Economy Companies like gm, merck, johnson johnson, those companies along with microsoft, which some would think it is an old economy as well, way down on the embe index. Now we are in in a situation where today is the sixth trading day. The Dow Jones Industrial average was up 540 points. Slowly chipped away at that gain until we finished down at a loss of 200. It is anybodys guess as to what happens tomorrow. Maybe they think we are too pricey. We would have to wait and see how asia opens up tomorrow night. We will be watching that. I want to bring in my roundtable. Here kalman will be thre throughout the show. I want to start with you, you know a lot about what is going on in china. Netflix Holding Onto Gains made earlier in the day. Facebook, all ending in the green. Google ending slightly down. Why is tech doing well but not as well as the Broader Market . Isst the situation in china something that is just coming to the forefront with liberalization of the currency. There has been a tinderbox brewing. The length of the dollar has been a juggernaut. With the economy slowing and moving to liberalize the currency, it has created a huge imbalance. The backdrop of the falling stock market and slowing route has been underling for the markets emily . You say now it markets. Emily you say now is the time to buy. Why . Guest the fundamentals are disrupted from the markets. There is no single news item that is jolting that should be having this kind of a jolt. ,hen you see other periods where you have this massive spike in volatility and quick selling, the market tends to snap back relatively quickly. What is important is those companies that have lead going into the downturn do well in the one week, one month. For six months after the market turns around, even if you miss the bottom, investing in those previous winners tends to be a winning strategy. If you look today that is what happened. Emily i love that you are here. You see the big picture in the Real Estate Market but you know what is going on in the private tech community. How is volatility affecting you . There are two dimensions. The first is the Housing Market, volatility scares people. They worry they should put off this big purchase. A lot of them are selling stocks to afford houses. We saw over the past four months demand starting to falter. The Housing Market has been the mainstay of the u. S. Economy and has topped off over the past four months. In the tech markets, we have seen people seeing month after month this is crazy. This is crazy. Private valuations have been so far from public violations valuations. With some money coming from asia driving the valuations higher, youre going to see rationalization with unicorns in particular are going to be affected. Lets talk about that. Week,morning earlier last he came on the show and talk to more. Guest i think were seeing a sentiment shift. We have been for 12 months if you were to judge the internet investors, have they been optimistic or pessimistic, i would argue they have been tagged to the right rails. Whenever you are there there is only one way to go, which is down. Whether it is the chinese economy or the fed is going to rates, they causes the sentiment to drift back to center. Do you agree the Investor Sentiment is starting to shift . Guest absolutely. You talk to investors today doing more paying more for the private markets, the same investor would pay less if that company were public. They dont have to mark the offset to its current valuation. That creates that mentality of why are we doing this . When you see volatility in the market everything starts to take a step back and think about who is going to be the winners, who is going to generate profits . That is the dictator of what is going to be valued. Emily what does this mean for public tech stock . Guest the appetite for growth is in normans right now. The big issue is if we are in a slower Economic Growth environment, whether it is othere of china or issues, the amount you pay for a company able to deliver faster Revenue Growth should be substantially higher. , new teche companies stocks that we could argue whether microsoft is new or old Tech Companies, even innovative consumer brands, these stocks are undervalued even if the trading expenses and a lot of names are trading at a discount. Even though they have substantially faster growth. Emily all right. Down 7 yesterday. What is going to happen with the markets there . Guest weve had a break in the chinese stock market. It was consolidating. It looks a lot like the cracks in chinese stocks 10 years ago. Steps totrying to take aggressively, cutting Interest Rates last night, cutting the reserve requirements. It is not clear the fire is out. There has been continued pressure on the currency in the longer data. No clear sign of a change yet. Emily all right. I do want to drill down a little bit more into what is going on with netflix because it has been one of the most volatile stocks this week. At one point sinking 18 . What is going on . In the middle of yesterdays market meltdown netflix announced a deal with the Japanese Mobile network softbank, a partnership to help netflix launch in japan. Users will sign up for the service at Retail Locations and pay for it in willful in monthly mobile bills. Still to come, my exclusive conversation with mark benioff. The Global Market selloff. That is next. Emily now to salesforce. Marc benioff says startups may struggle in these tougher market conditions. I set down with him for an exclusive interview. Mark the devaluation of the yuan and the currency, you have a six year bull market. It has been an unbelievable market run. There has been slight shifts in our gdp in the United States downward the last two quarters. Those three things said it is time for a normal market correction. I am a longterm believer in the stock market. You have to look at the long view. What does it mean for salesforce . Mark we didnt have a good quarter. We had the best quarter we have ever had. It was amazing. I cant believe salesforce performance. We are the Fastest Growing in Software Company ever. We made it to 6 billion. We can see 7 billion by the end of the year. I have a shortterm horizon to get to 10 billion in revenue. Were what to do it faster than microsoft. The funny thing is, next year we will be the fourth largest Software Company in the world. Is bigger than selfs force at that point. Our job is to be number three by market cap and then by revenue. Emily no plans to sell . Mark ive never been more excited about salesforce. After that quarter you can see why. Everyone looks at what is happening. Emily you tweeted all my friends want to be a unicorn, many are just not ready. How worried are you about everybody else . Salesforce is doing well. Mark i dont like the unicorn mantra. Doors gerous for on entrepreneurs. It gets very dangerous. Startups. N a lot of when i see them all of a sudden get more focused on being a unicorn than being a company with a high level of customer satisfaction, employee satisfaction, giving back to the community, i knew it is a problem. At salesforce we have never been focused on market cap. We have a healthy market cap. We have been focused on making sure were doing it the right thing to build a great business. The unicorn mantra is dangerous. I tweeted that we are going to start to see a lot of dead unicorns because what i see is businesses raising money at high market capitalizations who are not focused on fundamentals. When you see a big market shift, you saw one today, the people who are going to have to get ready for this, the Smaller Companies and startups who arent a strong Public Company like salesforce. I remember those days. It was long ago we started our company in 1999. There is a correction and i was nervous. I remember what that was like. We had to make a lot of changes in our business and double down on customers. Spoke to benioff at a middle school in San Francisco where salesforce announced a donation to the cities k12 program. I talked to him more about salesforces commitment to education. We have not valued our k12 schools in the United States as highly as our Higher Education system. Everyone knows we have the best Higher Education system in the world that we should have the best k12 Education System in the world as well. That is very easily, all the stakeholders have to get involved read the government has to be involved. The School District has to be involved. The kids out be involved. Businesses have to be involved. The model is happening in San Francisco. The rest ofabout businesses that are at salesforce. Is the rest of Silicon Valley being generous enough . Mark Silicon Valley has an incredible history of stinginess. We are fighting the tide there. We have seen more generosity from San Franciscobased Tech Companies than we have ever seen from Silicon Valleybased Tech Companies. The board. T across the Largest Companies in San Francisco giving more than ever before. Were encouraging not just to give money, technology, get employees out there and work in schools, hospitals, homeless shelters, given the community and lets build a community, not just a tech community. You have everyone trying to reform education in their own way. How would you describe your approach . Mark our approach, it looks like it is a handsoff approach, which is interesting. I dont think of it as handsoff because we work hand in hand. We offer a full package. Money alone isnt going to solve anybodys problems. It is about the money, technology, and people. Emily apple unveiled plans to give 100 million to Public Schools. What do you think of apples plan . Mark it is great apple is going to give 100 million. Apple should be giving billions of dollars to Public Schools. Apple has reaped a huge harvest from Public Schools. If you go through these Public School classrooms and open up their closets you find old ipad3 apple has built a lot of this history on the k12 market and it should be giving back in a massive way to the Public Schools. 100 million is great but i hope it is a start. Salesforce ceo marc benioff. Saying focus on San Francisco, new data shows homeowners are moving to other tech hubs. Now, there is a lot of stuff going on. Lets go to what is going on in the Real Estate Market. San francisco in particular. You have run out of room. There are these Great Companies and great ideas. Cost of living is out of control. People are leaving. The fact they can build software anywhere in the world because of all these other technologies has opened up the rest of the United States and the world to technology workers. Emily seattle, portland. What is data telling you . Guest 13 started their search in the bay area. 6 of people who are buying homes in seattle started search in the bay area. People who live here are moving. We looked at this and thought maybe they are just daydreaming of a different home. Now we see they are actually moving. Emily what is happening in San Francisco . Guest demand is still strong, there is just not enough homes. They are not able to build singlefamily homes in the city anymore and yet you keep having more money come into the city, more starting and flourishing here. The city has a plan for it. To some extent we put our head in the sand we could have been building more developments. We have been antigrowth. We want to keep this city the way that it is and it isnt going to work. Emily what about prices . Can they continue to rise . Guest i think they have to as long as the market keeps roaring along. Youre going to see prices go up. Emily last time you said it is a bubble. What do you say now . Guest if i was nervous last time i am more nervous this time. It is still a bubble in valuations. When you see those come down i think are going to see prices flatten. They can still go up. Emily housing prices. Guest they can still go up. They are not going down. Emily always great to have you on the show. Thank you for stopping by. Coming up, we talk about immigration. For word u. S. Taking on donald trump. Emily time for the daily by. Todays number is 27 million. A las vegas man, known as the spam king, has pleaded guilty to fraud and criminal content. He admitted to accessing half a million accounts in 2008. He is annoying consumers since the 1990s, sending junk faxes which violated laws in 1991. He is racked up lawsuits for spyware scams and myspace phishing. He faces three years in jail and a fine when he is sentenced. On trump. E taking u. S. Zuckerberg forward attacked donald trump that called mass deportation absurd. The president of the organization joins me now with more. Why now . With Immigration Reform in the news and false information out there we thought it is a great time to remind people of the role immigrants play in why we need to fix a broken immigration system. Sensible security provisions, having a system that works for today, and for the 11 Million Immigrants who are here, giving them the ability to go through a background check and come out and get legal status and a pathway to citizenship. Emily to you have said trump and scott walker dont have the best stance on immigration. What candidates do you like . Lets say exactly what it is. When you talk about rounding up and forcibly deporting 12 million people, that is creating a police state. 600 billion. G that is not just not being good on immigration, that is against american values. It is important to put a pin in that inside this is not about arguing at the margins. We believe we are not going to go into this horrible thing being proposed. Emily what candidates do you like . Who was closest to what you like . Guest there are a number of candidates who on this basic question, are we really going to roundup 11 million people, are we going to say we think we should radically restrict the ability of the United States to have the best and brightest come here. You will see people doing great in the polls. They are in favor of that. , it isaseline questions an important one. Secretary clinton, you look on the public inside, someone like lindsey graham, governor bush. These are people who are willing to say the obvious to us, the idea we are going to round up these people is wrong. Emily quickly, how involved is Mark Zuckerberg at this point . How often does he check in with you . Is one of our really high profile founders. He is passionate about this issue. We exit just crossed over having 4005000 different people speak out in favor of Immigration Reform, to contact their immigratio congressman. It is hurting the Technology Industry and families. Every day we go along it is we are getting stronger. Emily all right. The issue will continue to divide the campaigns. Thank you. Thank you all for watching. Do not miss donald trump on bloomberg tomorrow on all due respect. John im john heilemann. Mark i mark halperin. With all due respect in the writing team, you missed the ball on this one. Biding his time. Biding his time. En his seems to be bid time. His time . Ust biden thank you, thank you very much. [laughter] mark