Good Tuesday Morning i am Carl Quintanilla with Morgan Brennan at post nine of the new york stock exchange. Jon fortt is in los angeles at the adobe max conference his sit down is a few moments away with Shantanu Narayen we start with uber shares down, despite the beat as losses for the quarter top a billion. Guys, good to see you. Dan, how much is this downward trajectory in price driven by model complexity relative to competitors . It is a small piece here, no doubt this is a black eye quarter for dara and uber, missing ridesharing metrics. You combine that with what theyre spending on eats, thats the one, two punch sending the stock down, could be an avalanche with lock up expiration. Do you buy the target of adjusted profitability by 2021 i do. I think it is not as much stretch as it would appear to be you look at the core ride share business, they came out with segment margins this quarter, 22 , a four percentage point improvement from a year ago. If they continue on that pace of improvement, get to 30 segment margin, take uber eats business from the meaningful losses produced this quarter down to say a negative 20 margin, we can get to break even in 2021, just on those assumptions. You look at the pace of improvement in the take rates, competitive environment, what they said about latin america this quarter, also seeing improvement, to us, it is not a stretch. We think theres a lot of profit power in this business thats just starting to move the right direction competitively. Dan, economics for food delivery has been tough. Seeing it play out in earnings season, including uber numbers yesterday. How do you think longer term uber addresses that part of the business, what do you think it means for the profitability story . Great point it is atale of two cities when you think of earnings. Ridesharing, some core business looks to be heading the right direction. If you look at eats, theyre spending more money than 1980s rock star. That money continues to bleed on the bottom line. Look at grub hub, last week, a lot of investors are looking at that business, figuring does it make sense for them to scale it down this continues to really be the overhang on the stock. This is something dara and uber need to steer through. You can see with today, i can tell you about my conversations with investors, the credibility is lacking in terms of how theyre hand holding through the story. Lloyd, looking at this quarter from uber, i was reminded of that indigo girls lyric, twice as cloudy as i have been the night before and i went in seeking clarity seems like massive amounts of capital in the delivery space, transportation space are clouding the underlying Business Model. I know they gave that profitability, but i dont understand how the model works is that a problem as you project what the company should be worth to investors now look, i think thats something that i think has been part of the challenge with the shares since the ipo theres just a lot of moving parts. You have a business like lyft thats strictly u. S. Ride share, uber youve got ride share globally, a lot of competition globally, then you have the eats business same thing but at an earlier stage with more private capital coming into the space. The magnitude of the complexity has been an issue. I think the company has done a good job, starting to spell it out in more detail with segment margins, providing a little more hand Holding Around the trajectory of the business towards profitability, but thats part of why the stock has struggled. Dan, we have seen this paradigm shift for a lot of the companies from growth at all costs to becoming more efficient to finding paths to profitability. Seeing it play out with uber and lyft also seeing it play out with Companies Like Virgin Galactic that hasnt started its service. Last week when the company went public they were stressing gross margins. Peloton, trading lower on the heels of earnings today. Given the facts that there seems to be a shift, is profitability the main thing to hone in on or are other metrics just as important, especially with uber with five divisions to dig into. It creates a quagmire for uber and a lot of companies. Theyre trying to change the Business Model on the fly. The worry is profitability in 2021 if you look at that relative to street expectations, at what cost what happens to growth the thing investors put the white flag in terms of names not showing profitability. For uber it is a balancing act you look at 100 million plus consumers, monetizing that install base, thats why this is a unique asset i think theyre less confident to get through it. Thats why the next few quarters, it is a fork in the road situation this becomes a massive speed bump, post ipo or sign of broader issues thats why going to lock up this week, i think that continues to weigh on shares. Lloyd, what are expectations for expiration of this stock lock up . I ask that because you look beyond may, saw major selling in the name when the expiration happened, but the company, the stock had jumped triple digits not the same for uber, it is trading below the ipo price. Do you expect the same activity on price of shares i think were seeing that as we speak i think were getting closer to the end of that. As you noted, i think a lot of investors privately in uber were buying at higher valuations privately, we may not get as much selling pressure as people fear we talked to a lot of investors who are interested in buying the stock, but waiting to get this passed once we get this absorbed, it may take some time to absorb the new supply we think it is level and the stock can start to grind up from here, but i think we have to get to wednesday, see how much supply comes to market finally, dan, on eats, to put a period on it, i wonder if you think post grub whether or not we should expect any pivot in strategy overall in food delivery from these guys yeah, grub hub was having a moment i think what youre seeing with uber, i think theres a strategic shift. They have to really decide where the line in the sand is in terms of investments and profitability. If you include ride share, it is profitable theres a 10 to 12 overhang because of eats and business thats bleeding money. Right now this is really for the board, for dara, for uber, this is big question for them Going Forward in terms of how they handle eats, especially in light of everything with grub hub and others guys, well watch it. Quite a print. Well talk more about it all day. Dan, lloyd, see you later. Sure will after the break. The exclusive with Shantanu Narayen. Dont go anywhere. Squawk alley returns in two minutes. With every attempt to free itself, it only becomes more entangled. Unaware that an exhilarating escape is just within reach. Defy the laws of human nature. At the season of audi sales event. Im happy to give you the tour, i lohey jay. It. Jay . Charlotte oh hi. He helped me set up my watch lists. Oh, hes terrific. Excellent tennis player. Byebye. I recognize that voice. Annie . Yeah she helped me find the right bonds for my income strategy. Youre very popular around here. Theres a birthday going on. Karl he took care of my 401k rollover. Wow, you call a lot. Yeah, well its my money were talking about here. Joining us for karaoke later . Ah, id love to, but people get really emotional when i sing. Help from a team that will exceed your expectations. Welcome back to squawk alley. I am jon fortt, here in l. A. At the Los Angeles Convention center with Shantanu Narayen, ceo of adobe how many years have you been doing this in l. A. We have been doing it i think almost a decade now, jon. Long time 15,000 people, a million going to stream it want to talk about announcements you have here. First, i want to ask about guidance a lot of people like it. Digital experience, subscription bookings you say up 20 plus, some people were worried about that a month and a half ago after earnings put into context what you were explaining about bookings when you talked about the quarter versus what you gave yesterday. Thank you for being here, it means a lot to us. As relates to what we talk about at the financial Analyst Meeting yesterday, first we reiterate macro trends are driving growth across all growth initiatives, unleashing creativity, accelerating document productivity, empowering Digital Businesses, specifically as relates with digital experience business, we introduced we think a revolutionary product, adobe experience platform. Every Business Needs to become a Digital Business we think of bookings in that area will continue to do exceedingly well. Take me 30,000 foot view. Where does the creative part of the business, where are the creatives fitting into the adobe engine you built out marketing, now building out experience. Tell investors how it fits with everything else. I think in our core we are a content company. We think that content is fueling the digital economy. On the creative side specifically, everybody has a story to tell. I think the theme of the conference is creative for all, whether k to 12 student or largest enterprise in the world, you need to create content across every digital device, new media types that emerge. That business continues to fuel incredible growth we have seen as a company a lot of Companies Use content for engagement, it is a go to thing. Apple has a streaming thing going, amazon has been doing it a long time, netflix, disney, et cetera, google thats all stuff that adobe in some way touches what does that say about engagement and the role you play in what all of these Massive Companies are trying to get . Well, at the end of the day when you are consuming any piece of content on any screen, we want to play a role in making it happen whether it is in the car you drive, whether it is in the airport, whether you go in and check into a terminal, all of the video youre consuming on the internet, retail stores, in las vegas, you look at whats happening with digital displays, everything is content which is digital, needs to be personalized, engaged. Adobe is playing a massive role to create content, manage content, and deliver content, jon. You told analysts here not to expect big m and a in 2020 given the guide, otherwise i thought maybe they have to digest some of the experience stuff and thats why, but looks like youexpectto digest fine why not dig m and a in 2020 sfwl you followed us a long time. Were thoughtful how we do m and a. Try to make sure technology, that we can accelerate the business did two large deals, ma general tow Commerce Business allows you to address the last mile, doing well, market to help companies with consumer orchestration is doing well really good portfolio of products we announce a great product yesterday, we feel good about the portfolio, jon, and it is about execution at this point. I want to ask you about tablets because your chief product officer saw him at the microsoft event a few weeks ago with the surface prox and adobe running photo shop and other things on that, then you announce photo shop for ipad here tablets have been around such a long time, there was a sort of extraordinary promise that arguably on the unit side they havent lived up to. Now at this point i feel like youre leaning hard into them. Why now . Whats different about that market at this point versus five years ago. Couple things that happened the first is desire by adobe to help people wherever inspiration strikes to being able to do whatever content creation they need to do tablets have become incredibly more powerful. Far more intuitive, some cases we introduced a product is it a churn reducer you have people subscribing, does it add that much value to do that on the go, that it is worth it for you there it is both engagement and return user to use your terminology. There are a number of people for whom the tablet will be the only Computing Device they have the fact that we have photo shop, all of its glory, tremendous engineering feat. Showed illustrator for ipad yesterday as well. In terms of multiple devices being used in content creation process, even more, taking advantage of benefits of some devices, you can take a quick picture, when you take a picture with a tablet device, you can edit it. Announced photo shop cameras i think were rethinking the role of mobile and tablet devices in the creation process. I want to ask you about the macro a bit. The markets are at or near alltime highs, vix is low, yet were talking so much about uncertainty. Waiting for the next tweet, trade tiffs and wars will go how are you feeling in terms of certainty to run your business based on some of the macro factors that you have little control over youre right. Anything as relates to fed actions or trade issues are i think dominating the narrative now in terms of the conversation when we take a step back, think about whats happening fundamentally with businesses, individuals are investing in themselves with skills as far as relates to creative. Documents, accelerating document productivity, automating, inefficient paper based processes continues to be important. Every enterprise realizes they have to be a Digital Business and engage i think macro trends are in our favor and i hope we dont talk ourselves into a slowdown globally. Youre seeing your customers continue to be confident enough to invest in efficiency and growth we are seeing strength continue to be the case at least in the u. S. Market and other major Global Markets in which we participate. Shantanu narayen, thanks for being with us. Thank you so much back to you guys. Thanks, jon. After the break, Lessons Learned from the failed wework ipo, what jamie dimon told us in the last hour. Were back in a minute ladies an, your attention please. Geico would like to take a moment to say thank you to our military Service Members at home and abroad for all their hard work and sacrifice. We all sleep easier knowing youre out there keeping us safe. And on a personal note. Sfx jet engines. I just needed to get that off my chest. Thank you. Geico proudly supporting the military for over 75 years. Woi felt completely helpless. Hed online. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. Wilfred frost talked to Jpmorgan Ceo Jamie Dimon in an exclusive interview last hour. He spoke about adam neumann and the leadup to the scrapped ipo take a listen. There are lessons to be learned about the valuations, how you go public, how you treat the public shareholder, et cetera those lessons should be learned by everybody that wants to go public. Do you feel sorry for adam neumann in all this . Im not going there, i dont know but he was advised by some, including your bank, that a high valuation that has currently been achieved was possible so is there some level to which he was mislead by some advisers like jpmorgan and morgan sacks. You dont know the private advice we gave him or the company. When it became a problem, we got a letter, being criticized, no, you rolled up your sleeves, tried to find a solution at the end of the day, you offered them a fully financed deal that can get them to the next stage of life i think theyll have a future life want them to do that only 14,000 a lot of Lessons Learned by everybody involved. I learned a few myself trying to get him to pledge that jpmorgan wouldnt work with companies with similar problems in corporate governance, he wouldnt go there. He said if i had my druthers, i wouldnt have a buy back, i would be building my business. If i had my druthers, wouldnt have a dividend. Dynamic interview to say the least. On the we stuff, you have to ask about that one of the wework biggest lenders, third biggest outside investor, 100 million in mortgages and other loans to newman, shopped around, theres credit facility, underrighter f underwriter, jpm had egg on its face in the midst of wework draum a. A comprehensive interview you can watch the whole thing at cnbc. Com. Meantime, european markets are set to close in a few minutes. Seema mody has todays breakdown over the Market Action overseas. Following a positive session in china overnight, in europe, higher across the board. The stock is trading around four year highs european financials are the stand out sector, trading nearly 20 off the lows hit back in mid august european banks are outperforming large cap peers in the u. S. Over the time frame part of the reason, rising yields the yield on the german 30 year and 20 year bonds, both trading in positive territory. Remember, at the end of august when the talks were on the ropes, 30 year bonds were low. Were seeing the bond mashlrket with implications. Jewelry retailer pandora, tumbling more than 11 , after reporting profits and sales that missed forecasts, same store sales, excluding hong kong, fell 10 last quarter that stock now down 18 . And trivaga, tumbling on lowered outlook for Fourth Quarter as major advertisers pull back on spending the Company Announcing a leadership change. Founder, ceo is stepping down by end of the year, we placed by cfo. A troubled booking site in the past one year, ahead of expedia results tomorrow back to you. Thank you very much. Lets get a news update. For that, we turn to sue herera at hq. Good morning, sue. Good morning, carl. Good morning, everyone heres whats happening. At least three women and six children apparently u. S. Citizens were slaughtered by drug Cartel Gunmen in northern mexico a mexican official says the gunman may have mistaken the group suvs for the cartel. Nigerian firefighters trying to extinguish a fire at one of the largest textile markets. Well known as one of the best places to buy colorful fabrics, apparel, shoes. Roger stone arriving for trial over charges related to alleged efforts to exploit Hillary Clintons emails for gain the impeachment inquiry against President Trump proceeds. And a man stabbed to Death Outside a pop eyes in maryland, Police Believe over a chicken sandwich the fight allegedly started when one of the men accused of cutting in line in front of him. Police are searching for the suspect. You are up to date thats the news update this hour morgan, back downtown to you sue, thank you. Sue herera when we return, more trouble ahead for uber shares sinking post earnings, with tomorrows lockup expiration looming, whats next for the stock . Shares are down 7. 5 now and later, look at shares of Virgin Galactic. Not helping the symptom, shares down 4 after debuting last we arnd12 sre stay with us longterm view . It begins by being privately owned. With more than 85 years of experience over multiple market cycles. With Portfolio Managers who are encouraged to do whats right over whats popular. Focused on helping me achieve my investors unique goals. Can i find an Investment Firm that gets long term the way i do . With capital group, i can. Talk to your advisor or consultant for investment risks and information. Its how we care for our Cancer Patients like job. When he was diagnosed with cancer, his team at ctca created a Personalized Care plan to treat his cancer and side effects. So job could continue to work and stay strong for his family. This is how we inspire hope. This is how we heal. We love you, daddy. Good night. I love you guys. Cancer Treatment Centers of america. Appointments available now. We are incredibly diversified, think we can get to profitability with gross tail winds we see in the business, despite regulatory head winds we meet once in a while that was the uber ceo on closing bell yesterday, shrugging off regulatory concerns, predicting profitability for the company. Shares falling sharply after notching another large quarterly loss for more on the challenges they face and ridesharing in general, former chair and ceo of new York City Taxi and Limousine Commission published a report yesterday on regulatory head winds that ride hailing is facing. Great to have you. Thanks for having me. Lets talk about this report that you put out what were you looking for, what did you find really wanted to take a step away from new york city. Spent a lot of time in new york city, wake up, look around, see what other major markets are doing when it comes to regulating we found distinct trends in challenges theyre facing. All around Data Collection for accountability, how to collect revenue to offset infrastructure or to offset Public Transportation costs, theyre around environment and congestion, how do you manage surplus of cars in dense areas on the streets, how do you make the city more sustainable, what emissions standards should we have, and driver pay, which is the emerging one were starting to see, especially in california with passage of ab 5 and new york city which set the precedent. But it doesnt matter where you look, these are the common challenges in some ways it gives a road map for companies to know what kind of regulatory challenges and hurdles they have Going Forward. Sounds like youre saying the cities are no longer trying to stiff arm companies but have gotten savvy you want to come in, you have to let us play in this trend. Yeah. A lot of these are shared goals. If your congestion hurts the business as much as it hurts the city, the passenger is frustrated, theyre not getting anywhere, the savvy company will be sensible about whats in the future, see how they can proactively make business changes that address the citys concerns a big trend that i see in uber and lyft earnings which is that theyre looking to reduce the way theyre subsidizing rides. On one hand, that could mean customers paying more for rides, but it could also mean drivers getting fewer incentives and maybe could effect driver pay. Do you have any sense yet of how that move from uber and lyft to reduce subsidy will effect drivers and their loyalty . It is an interesting topic because it is not just reducing subsidies, theres a lot of costs coming up at the same time how that will pan out is interesting. I think ultimately it will mean that passengers prices will go up you have more cities interested in protecting driver pay you have a city like toronto thats enacted minimum pay, no ride can be less than 3. 25. And you have the emissions restrictions like london whereby 2023, all uber vehicles have to be zero emission capable those are expensive vehicles there are costs attached to it, along with citieslike chicago that added another proposal for congestion fees. I think where this ends up, if you want to take subsidies out, fares will go up probably will likely reflect what the true cost of the service is. It is amazing, we have now got profitability targets from two biggest ride share players in north america, lyft and uber. By the end of 2021 for both. When both companies were going public earlier this year, wall street was saying these are companies not profitability until we get to self driving vehicles thats not even part of the conversation now what does that tell you . I think self driving is coming but far off, especially where there are lots of passengers in dense places, it is hard to put a self driving in the middle of manhattan. But what it tells you is these are popular services, theyre certainly not going away theyre still seeing growth, seeing Larger Consumer draw. And still have even higher price point ones where theres growth as well. People want to pay for the service. Theres some flexibility in pricing. So i do think it will continue to be the core mover of their Business Model is the ride section. I have a twopart question. Do you think ridesharing is a reason why Light Vehicle sales have basically been flat for three years, are people really not buying new cars because they can count on uber, and second, are cities going to start to think about how to reconstitute parking garages, parking lots, big structural changes we talked about for ten years. Yeah. I find the irony is these companies came in as were going to reduce car dependency in the city, they have in turn been the catalyst for pricing because they brought in so many cars, and a city like new york we touted low car ownership and last couple years has gone up. 3 is due to cars licensed to work for Companies Like uber theres been like the reverse that happened, which means regulatory backlash. It is a good thing, were pushing along congestion pricing in a trajectory faster than if we hadnt had the popularity. Talking about ridesharing, but mobility in general has become such a hot topic, you see it with e scooters and bike sharing now, gang buster growth in many cities also some issues and challenges. What do you think happens with that industry, how do you think those players are interacting with regulators versus uber and lyfts when they started out . It is very different. Theres more competition, theres more companies regulators are saying you cant have a permit to use our street unless you give us data, you have specific caps theyre in the position they need to negotiate with the city about can we use this bike lane, are there enough bike lanes to operate. Their business actually has to be very integrated with the infrastructure of the city so i think youll see more compromise, a lot more trying to Work Together to offset Public Transportation costs, support bike lane building, and the like are you keeping an eye on droen drones ups and announced drone delivery of medical prescriptions this is in north carolina. But basically delivery of medical prescriptions to consumer door steps. Seeing more steps after years of almost gridlock. It seems to be coming. Do you see it that way and if so, what does that do to cities like new york city, especially if you have uber eats doing dlif ree res. I havent looked into it, but it certainly would take some cars off the road if things are delivered by drones. Things like amazon prime, fresh direct are huge congestion additives. If thats done by drones, causes traffic upstairs problem, but helps with clearing cars off the streets. All right thank you for joining us thanks for having me. Lets get back to jon fortt in los angeles, sat down with snowflakes Frank Slootman i thought the private cloud versus public was resolved inside enterprises, companies knew what they needed to do, full speed ahead in this conversation with the ceo of snowflake, he said thats not necessarily the case snowflake is an Enterprise Storage in the Cloud Company they have software that helps companies analyze, access data they have in the cloud he says companies are still asking him whether theyll off their software for the private club he says no take a listen. We often get asked do you run in the private cloud, were like no, we do not. By the way, we think youll be in the public cloud before well be in the private cloud. Theyre going to move. Theres a lot of factors, not just what youre capable of doing with the software you can access, also what people are running your system, younger and younger people coming in it will be hard to recruit and retain talent when youre on old systems. It is easier to be closer to the leading edge than sitting at the trolling edge. His argument that a lot of these Companies Operating in hybrid now are eventually going to move more to public because you can just do more, accelerate your business better a lot of the best software will be there interesting take he had. Also talked to him about the market in general. Snowflake is private, looking to be public, perhaps as soon as next year, but probably a bit later than that. It is a unicorn i asked which is having bigger effect, some resetting of expectatio expectations around big Companies Like wework or the fact that overall markets are at alltime highs heres what he said about the feeling among startups. Fundamentally were in a really good place. Theres tons of capital around, tons of ideas around not as many people around to run those companies, thats always the constraint, Capital Markets seem to have huge appetites for new companies. Obviously theres a little rotation on sentiment around growth versus profitability and cash flow, sometimes we have some outliars that cause that sentiment to further rotate. But fundamentally theres huge appetite for Good Companies. Huge appetite still for Good Companies he said. Well see how it plays out, where the markets settle out, if theres another leg higher, what happens with the ipo window. Seems for him and a number of others at the at work event in san francisco, the mood is still good, carl. Important insight in a huge discussion now all around the country and the world. Jon, thanks, good stuff. When we come back, the latest in the fight between airbnb and jersey city first, Rick Santelli, what are you watching Interest Rates certainly arent in a range, were seeing rates across the globe move higher the big number today, 84 billion. Well talk about it after the break. If youre on medicare, remember, the annual Enrollment Period is here. The time to choose your medicare coverage. Begins october 15th and ends december 7th. So call unitedhealthcare and take advantage of a wide range of plans with a variety of benefits. Including an aarp Medicare Advantage plan from unitedhealthcare. It can combine medicare parts a and b, which is your hospital and doctor coverage. With part d Prescription Drug coverage, and more, all in one simple plan. For a low monthly premium or in some areas, no plan premium at all. Take advantage of primary care doctor visits. 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We can also help you schedule appointments or find a specialist. Annual enrollment ends december 7th. Start taking advantage of all the benefits. Of the only Medicare Advantage plans with the aarp name. We make it easy to enroll, too. So call unitedhealthcare or go online today. [sfx mnemonic] rowithout the Commission Fees and account minimums. So, you can start investing today, wherever you are even on the bus. Ooh, like this guy. Yeah, i bet hes investing right now. Hes taking charge. Hes grabbing the bull by the horns and he just missed his stop, yeah. Its time to do money, so what are you waiting for. Download now and get your first stock on us. Robinhood. Lets get to the cme, get the santelli exchange. Hi again, rick. Good morning, carl. One of the big conversations has been all of the supply we definitely dont talk about debt as much as we need to and at some point, some of the real issues underpinning the virgining debt need to be addressed like entitlements. Now not much is going to happen, but no matter how you slice it, 84 billion of coupon supply will begin today in the november refunding. Today will be three year notes, 38 billion, 27 billion tens and 19,000,000,030 year bonds for a package of 84 billion. Today, we had ism services nonmanufacturing the last read we had was lowest since august of 16. Call it three years. We had a nice lift off that, and it was well warranted, the number lifted off that so we saw pop in Interest Rates, a pop in equities. Pop in Interest Rates couldnt be at a better time. Remember, there was a period of time, volatility, think vix, treasury vix versus equity vix, think of them in this regard when you see the vix pick up, i bet you know which way stocks are going. Of course you do, theyre going down it used to be when Interest Rates went up, volatility picked up but not any more when rates go down, volatility picks up rates moving down makes markets nervous, whether it is funding, pushing all of the paper we need to sell to fund our debt this isnt just domestic, this is global as well. Nonetheless, as the rise comes, moving to november refunding, that should be one of the key factors bringing in ample demand for the next three days. As far as yields in europe, we could argue why theyre going up theyre starting to get in flows into the equity markets. Where is the money coming from my guess part of it from the notion that ecb previous policy, quantitative easing or negative rates, has kind of run its course Christine Lagarde will be surrounded by protesting finance ministers all over the eu. It is already starting were now getting close to minus 30 in bund yields, and those are 10 year and 30 year bund yields we talked about for trades have been trading positive for almost four weeks finally, the dollar, weakening to the weakest level since early august look at the chart against chinese currency this is reflecting some of the better news regarding a trade signed phase one outcome we will wait and see, but at the end of the day, this rate increase may be the real deal, may not happen quickly, but certainly seems to be happening back to back, pushing towards key levels like 1990 and u. S. 10s. Morgan, back to you. Great to get your take, rick. Thank you. Rick santelli. Still to come. Big vote taking place in jersey city with implications nationwide restrictions on home sharing Companies Like airbnb are on the line the mayor of jersey city joins us at post nine on the other side of the break. Mixed picture for ocstks dow up 28, stay with us. Woman my reputation was trashed online. I felt completely helpless. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. Jersey City Residents heading to the poll to vote on a measure to implement tighter regulations on Companies Like air bnb. Joining us now to discuss mayor Steven Philip here at post nine. Thanks for joining us. This is incredible. This has turned into quite a battle. And its the way its really been framed is air bnb versus the city and Hotel Industry. Its actually become the most expensive local referendum in the states history. You were actually in favor of legalizing home sharing back in 2015. Whats changed this will be the first time in the country that voters will have a direct vote on whether they like or they dont like or they want to regulate it or dont want to. I was a supporter. It was very small. It was mostly home sharing at the time which is somebody sharing a bedroom or an apartment. Thats changed to about 3,500 listings a night growing. Most of it is commercial operators changing entire neighborhoods from the home sharing concept into unregulated hotels. Is this a ban air bnb is spending millions of dollars to say that its a ban. There are rules. So its going to be owner occupied. You have to register. So there are restrictions around it. Its definitely not a ban. What are constituents saying . There must be a split one way or the other . Going into today, most voters were undecided, slightly leaning towards yes on rules. Air bnb has put a lot of dollars on it because it is the market. The narrative around whether the politicians in each city are right around restrictive regulations or voters want to have more of a free market here. So there are some people who would be hurt here if the new rules go into place, investors, landlords who have bought places under the expectation that the 2015 rules would remain in place. Its been there for about four years. I saw one landlered from jersey city quoted as saying if jersey city would just enforce the regulations from 2015 dealing with multiple Housing Units and absentee landlords that that would address this problem. Why is he wrong . Hes wrong because the rules from 2015 are virtually nonexistent. There are no requirements for registration, difficult to enforce, not a lot of transparency to it. He is being honest in the fact that it would have changed to the Business Model. He can still rent it on the normal yearly lease and change it from the short term hotel model. We know air bnb has been spending to lobby against these regulations in jersey city. Booking. Com, vrbo, home away, have they been, as well . What has the conversation been like air bnb has been carrying most of the burden here. They spent about 5 million on the referendum. We havent seen a lot of ads from bvrbo. Would we be having this conversation if officials in new york city hadnt cracked down as hard as they did probably not. You have seen growth with tightening rules in new york. That will probably get more tighter which will probably force places in like new jersey to be more restrictive. What do you say to critics out there New York Times reported on this, that you would approach for contribution, that delays contribution from them in 2017, they say according to the New York Times that that contributed to the frayed relationship with you. You started collecting taking money from the Hotel Industry. What do you say in response to the critics out there that say that you are basically linked to or working on behalf of the Hotel Industry air bnb hasnt been one of my biggest financial contributors as have the Hotel Industry. Im thankful for both. Air bnbs belief is that because they are a contributor that they dont need to have rules or regulations. That sort of nonsense that air bnb is putting out there is at the end of a campaign and putting anything out there to kind of move the public. I didnt draft the rules. It was done by a committee of jersey City Residents. I didnt sit on the committee. I didnt partake in it which kind of under mines their entire argument. Have you been having conversations with other officials in other markets in other cities yeah. Other cities. A lot of them are watching what the voters will say. If the voters say yes we want more rules, youll see more cities going directly to being more restrictive. What happens if they dont say yes . I will cross the bridge when it comes. Thanks for joining us. Keeping our eye on the markets, session high on the dow is up 98. We are up by 19, which we did cool off a bit after that ism number even though it was quite good, best in a few months. Back in a moment. You can be sure of. Theyre changing by the nanosecond. Thats why cognizant created a unique engineering approach to design and build new digital products. Learn how cognizant softvision designs experiences and engineers outcomes. Cool. Jack dorsey taking another shot at facebook and mark zuckerburg. Take a look at this from a tweet says twitter from twitter in all caps. That was unveiled yesterday. Someone pointed out its interesting to watch jacks evolution into fullblown troll. Thats one way to look at it for sure. I also think its kind of interesting that this is the new branding of facebook. Theyre going to add this to all Different Services from facebook with upper case letters which are certainly a discussion weve been having. Guys, i enjoy good shade just as much as anybody. I think jack unintentionally reminded me that stuff like per scope, im not using that app anymore. Im using functionality in twitter. The highlight of today was having you quote indigo girls. The bar is set for higher. Its not just puns. I got more. Were going to keep our eye on the markets. Its been an interesting day. Jolts came in fairly strong, although the third drop in about four months. And then the curve as Rick Santelli has pointed out. Lets get to the judge in the half. Thanks. Front and center this hour, the growing number of stocks making a run towards new highs. Is that the most bullish sign yet for the long awaited breakout it is 12 00 noon. This is halftime report. The stocks that are primed to lead the way. Boeing fuelling the dow to record levels today. The companys chairman on cnbc to discuss the 737 max crisis, where the stock goes from here. Why it may be time to get back into growth again. Ten names for your portfolio. The Investment Committee is
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