Into u. S. Equities. Joining me is the ceo of partners. Your firm is a boutique Investors Bank and you own dozens of stakes in didnt unicorns. Well take a position and advice like harrys did. Rather than waiting for an let me get your take in the Public Market before we go to private. A recordsetting week, good backdrop in terms of the economy, do you think this continues . Would you buy in . I dont see what will end, your very low rates were people piling and also structural issues where the Companies Issue out of debt, they use the wuppercaseletter back stock that inflate share prices, but the economy is good as well. I dont see a negative that you can point out too, so i think the market will continue to go up despite the geopolitical risk, where else will you go, the u. S. Is the good market to invest and also the positive news out of the china trade deal and usmca, im waiting for somebody to point out what will stop the momentum. The consumer has been the strongest indicator for strong economy. We have a 50 year low and unemployment, wage is up, a strong stock Market Making the consumer feel richer. Is there any upset or worry on the horizon that you can see in terms of something upsetting the backdrops. Has to be geopolitical or the election that might hurt the market. But to be fair all the indicators are quite strong as you pointed out, an appointment at alltime low, its hard preyed on not saying i agree academically but if your investor and you have to make an irr, this is where youre going to go, try to hit the bogey in the Public Market. With that said, there are Asset Managers that need to do more than five or 6 . That is fueling the interest in the private market that youre talking about. First Michael Bloomberg was the big news of the week we heard hes going to enter the field, tell me how you see the lineup for the 2020 election, can bloomberg become the nominee on the democratic side . If it was made up of people like you and i guess the answer would be yes where we like to say were socially liberal but fiscally conservative. I think the american electorate is just the opposite where they now become socially liberal or socially conservative and fiscally liberal. I see the opposite happening. There is a huge strand of populism in the midwest and south to help get trumped elected and im not sure Michael Bloomberg will play very well in that segment of society. I think there is a need for authenticity of populism and you have to get against things that hes four. And that is not going to play well in the midwest or the sou south. Hold onto your soda can. Lets move on to the issues of the day in terms of investing. Where is the growth in the private sector, i should also point out the evaluation in the private sector in some cases has been excessive if you look at the wework situation which plummeted from 47 billion and softbank had to redo it and call in a billiondollar investment. The evaluation assessment and private market . No doubt. I totally concur that and i think wework is that perfect example. With that said, i think wework is encouraging. The Capital Markets work. When you had to get to the work around Corporate Governance in the financials, it stopped. Retail investors were not hurt and it did not get to the Public Market for the private market is supposed to be shaken out. I believe if somebody takes a risk on a company and does not do diligence they should lose their money. What this is done in the consequent of wework is not as a much bigger emphasis on the path to profitability, that was not the case in the private market prior to the. Real quick on the trade situation, the president faces a deadline, november 13 is the deadline he has to decide whether or not to put tariffs on european autos, a lot of people worried about this going into the Holiday Season seen european products that go up in price. Is equity be disruptive in terms of the backdrop . It certainly will. The European Union says the president will not do it. That is from europe. Yeah europe is telling us whats going happen in our country. I dont know how any battles we can take on it once. I have a lot of empathy for this position. I think what he is doing particular with china, but we need to get usmc done which will help a lot of the farmers, help the market and that gives us leverage with china. Why were at this could go face with the chinese, i dont think we want to have increasing rights of europe. One thing through europe is if brexit finally happens we might get a bilateral trade deal with the uk. That will also help. Theres a lot of interesting things that can happen. It could go one way or another. Unlike to not pick with a fight with allies what were taken on a very important geopolitical issue. Well see about that to get done before year end. It was great to have you. Thank you so much. Stay with us, the ceo into stephenson coming up next. Do you recall, not long ago we would walk on the sidewalk all around the wind blows we would only hold on to let go blow a kiss into the sun we need someone to lean on blow a kiss into the sun we needed somebody to lean on all we need is someone to lean on i get it all the time. Have you lost weight . Of course i have ever since i started renting from national. Because national lets me lose the wait at the counter. And choose any car in the aisle. And i dont wait when i return, thanks to drop go. At national, i can lose the wait. And keep it off. Looking good, patrick. I know. vo go national. Go like a pro. Welcome back sonder is trying to shake up the Hotel Industry by offering flexible dprk it says it does not exist in traditional hotels. The sleep temporary housing that feels like a home away from home. Francis davidson about his plans. Sunder is effectively redefining the hospitality industry. We think great designs and have a wide range of apartments, hotels that can be offered at a really reasonable price point with really interesting experience that focuses on spaces b the phone comfortable in service in a modern way. So everyday homeowners even build Small Businesses and propelling a handful of companies into the space. We know airbnb is going to go public in 2020 and airbnb has been incredibly successful. How do you differentiate yourself from airbnb. Perhaps one major difference wework with developers primarily. As a business or product that is appealing that they have their own home that they want to rent. This is a modern hotel company. But where are hotels look nothing like hotels and feel nothing like hotels and operate differently. We partner with developers and 26 cities and build properties for sonder and the majority of the time we operate the entire building. Cushman says shortterm rentals could be the next hot real estate investment, is it a shortterm rental . Is that how you would characterize it . In some instances yes, or more modern approach to operating hotel and with the flexible d of having small seven room hotel and much greater proportion than her actual apartments or suites. What will you do with the latest money raids, how to use that money to grow . Over the last five and half years it works from a business perspective, hundreds of thousands of guest in which we operate. We really love it and its really about scaling to more countries and cities and have more inventory within the market in which we currently operate. You can do hotels or apartments, because you also work with hotels. Tell me how that works. The business started off with operating exclusively apartments but the last six month we started renovating and working with hotel owners to make the assets far more beautiful and we plug in the technology to make it more effectively. The revenue of these properties go up in the experience is better and the cost structure goes down. Thats a lot of good for the hotel owners and growing the business extremely rapidly in the u. S. And across europe with 20 hotels under management. What is the price range, does it differ depending on the market years customer. Absolutely. The market, the time of year, weekday or weekend. One thing thats the case, we are on average 20 cheaper than a fourstar hotel nearby. So we have a bigger nicer place with Great Service and quality but the price point is affordable. I know Alex Rodriguez is an investor in your company and we had him on recently and he was telling us about his real estate holdings. From a real estate perspective its been fantastic to have him on board. How did that happen, did you reach out to him or did he find you . I think it mustve been one of our investors that reached out to him. There was a lot of really great folks in the last round, nick who was the ceo of the Development Also in that round of the financing in jeff bezos is another investor. A lot of great people that believe in the business. Theres also Capital Partners his family built the hyatt hotel chain. Are you tapping into his experience in terms of the growth . Most definitely. Its really important for us to study the Hotel Industry to understand how it works and also understanding what opportunities to make a better mostly by using technology to redefine how the properties are offered. Tell me about the most recent criticism in terms of the private market. You have wework obviously on his heels, they have to change leadership, and some people worry that their that wework issue is in sonder. Certainly, its no surprise to anyone that the business that does not have good economics and is not discipline and one that will struggle in the face of public scrutiny, that is totally different. We pay back our investment in the properties in 12 months, 100 irr that we generate. Weve been extremely careful from the start to build a business that can be self sustaining and profitable. The markets will love it. You told me in her interview on the morning show that youre talking 36 months out, what do you do to get ready for that, you need to scale up before you go to the Public Market . 18 36 months at the time i. Was necessary is to concentrate on growth, and building more technology and more brand but already we have significant points that demonstrate our business is operating profitably at the unit level and is just a matter of focusing on growth. What your sense of evaluations, theres been a lot of criticism about valuations in the private market, he said it doesnt make sense when you look at some of the valuations of wework, over, et cetera. You think the valuations are excessive in the private market . There are some companies that are overvalued, some that are at the right and some value to laprade its true theres been not enough of a focus on a great Business Model and i think we will see a comeback of financial discipline and thankfully sonder has built out to the core from the start. Thank you differences vo the flock blindly falls into formation. Flying south for the winter. They never stray from their predetermined path. But this season, a more thrilling journey is calling. Defy the laws of human nature. At the season of audi sales event. Thbecause with nband after thleague pass on xfinityr. You can watch the out of market games you want all season long. And with the allnew xfinity sports zone, you get everything nba all in one place even notifications about your favorite teams. Watch the dropped dimes, monster blocks, and showstopping dunks. Plus get instant access to your teams with the power of your voice. Thats simple, easy, awesome. Say Nba League Pass into your voice remote to upgrade for a great low price or go online today. Welcome back, the direct to consumer sales venture into the omni channel brand where Beauty Products have become a major disruptor in the shaving industry. The ownership acquired startup or 1. 37 billion this year end the cofounder. So harrys was born out of a purchase experience i had going to drugstores and products were overpriced, overdesigned and jeff and i set out to create a brand that is different and provided a better overall customer experience, better value and more thoughtful design. In its evolved over time in our personal care, direct to consumer online, were now in retail, weve launched a womans brand and flamingo, the compan y had the expense in 2013. So in terms of shaving and the pole in the market, how do you take that idea to what you have done in terms of raising capital, getting this company and customers and resonating with so many customer. And he called me in his experience resonated with me and we felt we can make it better for ourselves and there were millions of other guys who felt the same. Guys wanted products that they would love to use that were really fairly priced in brands that spoke to them in normal guys that like them. First we evaluated that and talked about friends and asked how we thought, and they thought i paid too much, i dont like the design and want something that is fairly priced in a brand that is there for me. And then we said, we think we can go a different way and start to get to know our customers and learn from them and do better for them. So you put together a plan and without the opportunity was super compelling. We were ready to buy our own lives in our own careers and thankfully there was enough investors who wanted to invest alongside a. Was the initial money your own money or how did you get that going and getting people involved. How much money did you need initially to start . We funded nights and weekends out of the gate but because we were making a physical product that required manufacturing and design and inventory we needed to raise capital early on and it was friends and family, some professional investors, we raised 4 million out of the gate. 4 million was to get off the ground. There after we launched the business it was growing well and customer said we like your products better than the products we have been using. We still have the highest Customer Satisfaction in the entire industry. We said we have a product that works but we want to expand capacity, make it better, make it more products and managed care and to do that we had to buy our factory. Razor blades having high quality is so important. Sharp, durable and give you a smooth shaved, so we were working with a factory in germany and we ended up buying the factor, that was a crazy move as a company, only 30 people in new york bought a 9yearold manufacture had 420 people and generated 1 million to do that. That was selling a bigger visi vision, and having a brand that the people love and the path to make the product better to reach more people. So you sell a razors for 2 each. So we sell an eight pack of blades were 16, so 2 each exactly. So we kept the price the same, simple, easy, our competitors charge more and charging different amounts in different places. Thats not what we do, you get the same great value day in and day out from harrys and hopefully that builds trust. Hes banded into womens product. We launched a womans brand called flamingo and for the entire history of harrys we said this is awesome but we need women customers of the harrys brand but it felt like we wanted to build a brand for woman that is a slightly different product but certainly different proposition and actually women on our team who incubated and launched the brand. There we felt like all the brands were telling, and they said no i just want to take care of the hair on my body. Women have hair everywhere. So we launched razors and waxes and we dont charge more than the mens products, theyre the exact same price so theres no pain tax. And you had backing, the personal care, and other brands acquiring harrys, tell me about that. How is that going from your startup to being an arm of a Larger Company . We have launched harrys, we were walmart and target, we expanded the line in the personal care and womens and i think our mission is to try to have more impact on more peoples lives to make our products better and have them reach more people and to expand as a new brand. What it does it gives us a couple of opportunities, they have incredible product analogy that we can leverage to make your products better. Obviously we care about that. Second were only in the u. S. , canada and the uk so theres an opportunity to reach around the world is super exciting. Third, as part of this andy and i will run the entire u. S. Business, will take over all the other products that you mentioned in super exciting because you can think about what you can do with the brands, the iconic brands, where awareness, products and theres opportunity to modernize and exciting ways and itll be great for customers in the world. Thank you for joining me. More wall street right after this. 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And our stylists helped millions of other americans get dressed for millions of other personal moments big and small. At stitch fix we dont just see your size or style. We see you. Stitch fix. Personal styling for everybody. Welcome back dont forget to join us next weekend, a big show next week. My special guest, Robert Kaplan the president of the fed and what the fed will do with interest rates. Also the owner of the mba Dallas Mavericks is here. Dont miss it. This weekend on fox news, sunday morning future on the fox news channel. House minority leader Kevin Mccarthy, my special guest, 10 00 a. M. Eastern on fox news on sunday. Every weekend starts smart with me, the couch. Thanks for tuning everyone. Bye. Maria good sunday morning, thank you so much for joining us, im maria bartiromo, joining me on sunday morning futures, Committee Chairman lindsey graham, Senate Republican are preparing for inevitable impeachment trial, Kevin Mccarthy on what to expect when democrats make impeachment public this week. House republicans have their own witness wish list that includes the whistleblower, will they get a chance to get questions answered and how is leader of the gop reforming the Intel Committee ahead of all of this, also with us this morning