Transcripts For CNBC Squawk Alley 20170516

Good tuesday morning. Welcome to squawk alley. Joining us this morning, elie wiehl is on set and mike isaac. We will get to you in a couple of minutes. We start with mixed signals from washington over the president s reported conversation with Russian Foreign minister lavrov inside the oval office. National security adviser h. R. Mcmaster now set to hold an oncamera press briefing in about 30 minutes. We will bring it to you when it happens. John harwood is in washington to set the scene. Clearly the white house is taking this seriously, as it should. What do we expect to hear from mcmaster . Well, i think this is the most significant damage control this white house has had to do so far, because what we have been seeing is an erosion of republican support. Its not an outright jailbreak in terms of people fleeing him but you do hear more serious criticism of him because this does involve National Security, not just involving russia, but also involving isis and i would expect that general mcmaster is going to try to explain that what President Trump did did not seriously compromise National Security. His comments last night said that the president had not discussed sources and methods which is something that the post story that kicked off this frenzy did not allege, and i expect him to go further, especially in commenting on the tweets the president had this morning which seemed to cut against what mcmaster said last night. The president said i had the absolute right to do this and i did it for humanitarian reasons. Do we expect that to work, john . Will that quiet republicans . Will that do the trick . Reporter well, Henry Mcmaster has a high level of credibility. The Trump White House is not President Trump himself mcmaster has broad support in both Political Parties so hes about the most potent spokesman that the white house could put out on this. But i do think that given the comments we saw yesterday from bob corker, the republican chairman of the Senate Foreign Relations Committee that this white house is in a downward spiral and has to get a grip, that is an indication that republican patience is wearing very very thin with this white house. We will see what mcmaster says in a few minutes and what the reaction to that briefing is after that. John harwood in washington, thanks. Of course, market largely ignoring the turmoil out of washington. The nasdaq hits another record high today. Pairs some of the gains this hour, dow has fallen in the red. The nasdaq up better than 18 since the election, as we hear more detail from berkshire confirming that 2. 4 stake in apple. Apple is now the companys Third Largest holding, even more than its holding in coke. Amazon, alphabit hitting alltime highs. Lot of discussion about a new era in computing, new era of data, a secular shift, acceleration in technology. Buffett is the icing on that cake. It is. This season in particular we are looking forward to google io, the developer conference google holds every year in san francisco. Apples wwdc, amazon has just gotten done. Theres a new era potentially in search arising with voicecontrolled search. Microsoft with cortana, of course, they were talking about that. Im wondering, is there a real potential for disruption here as we get new end points, new devices in homes bllike the ech as people do searches not through google but through bing and apple . Is there potential for significant shift in the way people are interacting . I think there is potential for a shift in how they are interacting. Im not sure it would be tremendously disruptive. It is just the same thing through a different interface. Something that would be more disruptive is going to have to be a new platform of sorts. Going deeper into ar, vr actually getting traction, watching Autonomous Vehicles really hit commercial realm. Thats going to be more actually disruptive. I think theres a lot thats pretty interesting in how alexa and other platforms as well but alexa is the one that has the most play right now. I think its very interesting and very very early. Mike, as you look forward to some of these developer conferences you Cover Services and software writ large in Silicon Valley. Is there a Single Technology or platform or possibility that you think is going to push one of these ecosystems ahead of the others . Well, i think that you actually really hit the nail on the head earlier which is the way people should be thinking about alexa and google home and even a lot of these sort of chat bots and ai powered services which is what is the next frontier for search. For years google had this sort of dominance of the desktop search. You would go into the website, put something in a box and it serves it up and its easy. We dont really know as ellie was saying whats the next interface going to be. You see stuff with amazon and alexa early on right now but thats only in the one or two million unit sales, probably, in the estimates. We are still sort of waiting for that. I do think the big question is how are people going to search in the future and whats the device going to be to do that. We were told last hour that the new wave would also bring a lot of winners of private companies. We talk so much about the fabulous five that are driving the nasdaq. But who else should we be watching . Just generally or specific to voice . Specific to voice and some of these other trends we are talking about. Oh, sure. Well, i can go on for hours. Thats going to be give us three. We have an hour. Ai machine learning, what we are hearing, people are talking about it as though its a vertical. Its not. Its like saying mobile is interesting. What we are actually seeing is within specific verticals so having those different techniques applied and then actually have some outcome of some commercial outcome, like where investors in a small company, chyron medical which is focused on mammography and taking the scans, applying ai and ml, right now more ml, then actually being a doctors helper. But a very specific use case to start. Thats where we are seeing innovation right now. Very specific use case and develop that expertise and ultimately be able to expand that end market. Mike, you said Something Interesting a couple moments ago about what device people would be using in the future, at least in search. Are you alluding to the sort of plateau in innovation, people say we have hit with the phone . Yeah. Well, its really funny because theres a lot of different bets on what the phone is going to continue to do for us and i think look at facebook, they just had their recent developer conference, right . For zuckerberg maybe a few years ago, oculus and the vr headset was kind of this big bet, then we realized, he realized after the ecosystem wasnt really getting off the ground as fast as he would like, that theres going to be some sort of middle step in innovation there or middle step for people to get there, and thats where i think the phone is still going to play a big part. Like they have a big augmented reality platform, snapchat is doing stuff in ar. I think devicewise, the phone is not necessarily going away. I think a lot of companies are just looking for okay, after we get past the phone, whats going to be the next sort of thing. The living room is obviously something folks tackled for awhile. Whether thats a head set, wearables, glasses, something zuckerberg talked about in the past is glasses maybe somewhere way down the line. I think thats going to be the long term. Speaking of both of those things, facebook did unveil new filters for instagram today. The companys latest effort to steal thunder from snap. The filters allow users to add live graphics to share selfies. A number of hedge funds, all reporting stakes in the company in the First Quarter. This is turning into a really interesting battle in terms of the near term trade, whether these guys, whether theres optionality of them getting bought, whether they can go up against this behemoth called facebook. What do you think . It will be really interesting to watch. Headtohead battle, what you are finding right now is you have this outsourced product, organization thats essentially coming up with all the new features and innovation and they are on the edge. You have facebook with the best engineers in the world copying them, then throwing them out to an audience thats actually ten times larger. Its very interesting to watch and its going to be something that snap has to continue to deal with but there are fundamental differences within the platform, the demographic, how people are using it. But early days for snap as a Public Company so its difficult to take too much meaning. Know what i find fascinating in the context of this . I dont think face filters themselves matter really at all. We love to talk about instagrams copying snapchat but really, face filters are not rocket science. Its not as if nobody had thought of putting something over your face while youre looking at a device. Apple was doing this with make your face look funny. I have to disagree. I disagree. If you want to watch handmaids tale you have to subscribe to hulu and i think for snaps audience it matters. Yes, but writ large in the world of technology, i dont think its that important. I think one of the things that is important is for the first time in 17 years, in q 1, u. S. Wireless data revenues actually declined. So we have this sort of period of stasis where Tech Companies are looking to old stuff like face filters and content. Oh, my goodness. Media company content, in order to drive engagement. I wonder whats going to be the next thing. Will it be this voice interaction, will it be some leap in iot, Virtual Reality doesnt seem to have done it. Mike, is there anything on the horizon you think is going to drive demand perhaps from Silicon Valley instead of them having to reach to new york or l. A. To get engagement up . I think i would not want to play against Mark Zuckerberg in a board game because hes clearly willing to destroy your company if it means winning in this case and that meant he will look at your cards. Yeah, exactly. He knows exactly where my cards are. Im probably not holding the best cards. That said, its interesting to watch facebook do this sort of i guess copying, if you want to say they are riffing on a format that snapchat created, the thing is, though, i kind of agree in certain respects with john because like at one point its like okay, these things are out there. If you look at the evolution of the feed and what the news feed has sort of become and how that evolved from different products over time, i think companies sort of tend to take from one another a lot and eventually something becomes a standard. I do agree, though, carl, with what you were saying. What is unique to the platform thats going to keep people coming in. I still think snap has a lot of young users sort of hooked in there anecdotally and from what they say. So i just wonder what that next thing inside of snapchat or snap is going to be to keep those people there rather than go to instagram which by the way, instagram is the biggest threat far and away to snapchat than facebook will ever be. Face filters are very flattering. They make you look great. I dont know if instagram can copy that. But i was actually going to ask about the 13f filings. Carl mentioned some of the hedge funds that own snap. Its also a lot of Institutional Investors like bank of america, merrill lynch, mellon, fidelity, you name it. What does that say, the fact they have a stake . We should qualify by this is 13f, it could be old. We dont know if they still hold this stake. The fact they were early investors in this company, what does that tell you . Yeah. I think so its really interesting because snap comes after obviously facebook and twitter ipos over the past few years. I think folks were looking for that next sort of facebook to get in on early. The problem with snapchat for me is that it has a lot more corollaries to twitter and their brand advertising model isnt as scaleable, especially with a small user base than facebooks which has enormous use. I think they have to realize what is that Growth Potential going to be in the long term. Im not sure they fully probably understood that in the beginning. Maybe they have more positive outlook on snapchat than i do. I still think they are in the same boat as twitter. They have to figure out maybe its selfserve ad system which they recently rolled out that can hopefully scale their revenue a lot faster than oneoff brand advertising deals they are doing that get a lot of attention. Thats assuming any of these hedge funds are in there for the long term. Thats another big if. Guys, good discussion. Mike, good to see you as always. Ellie, thanks for coming in. When we come back, hackers reportedly holding one of hollywoods biggest studios hostage over its summer blockbusters. We have an exclusive first look at apples new headquarters. Later, the cnbc disruptor list is out. Airbnb at number one. We will hear from the companys cofounder, plus National Security adviser h. R. Mcmaster set to hold an oncamera press briefing in 15 minutes. We will bring it to you live. Insights from the data wer in real time . Wait, our data center and our clouds cant connect . Michael, can we get this data to. . Look at me. Look at me. Look at me. You used to be the yes guy. What happened to that guy . Legacy technology can handcuff any company. But yes is here. So, youre saying we can cut delivery time . Yeah. With help from hpe, we can finally work the way we want to. With the right mix of hybrid it, everything computes. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. The fallout from the cyberattack from the weekend continues as cybersecurity experts try to get to the bottom of what happened. Joining us are grady summers from fireeye and drew delmato from forknet. Welcome to both of you. Grady, looking at a stock chart, fire eye was at about 85 a little over three years ago. 51 two years ago. Around 16 today. Security stocks tend to pop when we get incidents like this but they dont really matter that much, do they, when it comes to the overall trajectory of a company . No, not really. When you are building a billion dollar company, these kind of outbreaks dont matter too much. What it shows is a lot of Retail Investment interest in a stock. We see that driving some of the volatility. The new ceo came in about a year ago and we are taking the company in a direction toward profitability this year. A lot more focused on building a good Solid Company for the long haul than we are daytoday stock price. Tell me about this particular attack, this wannacry attack. How does fireeye really help with Something Like this . It seems like security basics, blocking and tackling, do your windows updates. Was fireeye email security able to stop eternal blue, stop the phishing attack element of this before it got going . Yeah. The interesting thing is our email Security Product does and would protect against this but thats probably one of the most interesting things we are finding in our investigation here. We have yet to find a patient zero and havent seen spearfishing used in this attack like we normally do. We are used to hearing this starting with wellcrafted phishing email. People are getting infected at home, bringing a computer into a Clean Network where theres a misc misconfigured firewall. Lot of blocking and tackling. Is there something new about this particular wannacry attack that you and your company are paying attention to or is it just a conglomeration of different types of attacks we have seen in the past retro fitted for this era . The attacks seem to continue so i dont really see anything new about this. I think the key message really for people is to continue to think endtoend about security because really, at the end of the day, a lot of companies have been breached and i think thats going to continue to happen. Companies really have an opportunity here to create Digital Trust. One way to do that is think architecturally, strategically, to create Digital Trust about your environment. If you go endtoend, all the way from iot which is the new threat factor, the aai es a threat factor and all the way into the cloud, that will be really key. So consolidating on a platform where we can go into the cloud all the way from iot is a great way to think about security and create Digital Trust. So what happens when an attack like this hits the wires in such a big way as it did yesterday . Your stock popped along with fireeyes. Is there actually a surge in business . Is there new orders . Are Companies Really not prioritizing their spending on your products as they should be . Well, i think it creates a lot of interest, if you will. You know, if you think about the market as a whole, gardner predicts the market in 2017 Cybersecurity Spending will be about 90 billion. Thats up 7. 5 from last year. If you go to 2020 they are looking at about 113 billion. So the spending continues. I think really what you have to think about is the right type of spending and a lot of the customers that we talk to are trying to consolidate because they have 40 or 50 vendors in their environment. Thats too much to manage. Its a lot of complexity. You are really trying to solve what they are doing is trying to solve a Technology Issue with more technology. What you have to do is think strategically. Ways to do that are consolidate on a single platform and segment the daeta. If you think about some of the breaches, one coming into this perhaps intellectual property was stolen in a movie, if you segment the data, once they get in the customers cant get to, if they get to the finance, they cant get to the intellectual property or hr server which creates a lot of data. Yeah. Yeah. Thanks to both of you. Grady, ever under any circumstances a good idea, yes or no, if you can, to pay the ransom in these attacks . If its Critical Data you have to get it back, unfortunately thats often the quickest way. Sometimes you do. All right. Thank you both very much. Thank you. That surprised me. Straight ahead, airbnb topping 2017 cnbc disruptors list. We talk to the companys cofounder live from airbnb hq. And we are moments away from the oncamera White House Press briefing with National Security adviser h. R. Mcmaster. We will take you there live. Squawk alley will be right back. Little back and forth today. Dow has lost about a 40 point gain, now back to the flat line. The dollar continues to be weak. We will talk about that and await the press briefing at the white house. At fidelity, trades are now just 4. 95. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. Some build walls to keep people out. But these are walls that welcome you in. Within these walls, californias educators create safe places for every student to learn and grow. Where teachers open minds to history. Unleash creativity. And show our kids the future. Some build walls to divide us. But the California Teachers Association knows these are walls that bring us together. Because quality Public Schools build a better california for all of us. Standing by for an earlier than normal White House Briefing with National Security adviser h. R. Mcmaster responding to reports that the president disclosed some classified information to the russians in the oval office. Something mcmaster worked to deny last night after reports came out from the washington post. We will see what the briefing brings us today. As soon as it begins we will take you there live. Meantime, the 2017 cnbc disruptor 50 list is out. Big interview now. Lets send it to julia borsten with the number one name. Thanks, jon. Im here at airbnbs headquarters. Airbnb is number one on the list, one of the few companies thats been on the list five years in a row. Im joined by airbnbs cofounder and chief strategy officer, nathan blecharczyk. Thank you for joining us. Really appreciate it. Airbnb is now valued at over 30 billion. Well more than ten times more where you were valued when you were first on the list five years ago. Do you feel like you are under pressure to disrupt other industries beyond just the Hotel Business where you have been focused to maintain this pace of growth . Travel and tourism is a huge, huge industry. Its 7. 2 trillion. Within a combination, we are number one for what we do in every country of the world, including china. 70 of our revenue comes from outside of the u. S. We see a lot of opportunities in specific verticals of Family Travel and Business Travel and luxury. These are all kind of Growth Opportunities that we are just beginning to tap. But beyond accommodation we are thinking about the travel experience endtoend. Our most recent launch has been something called experiences, basically allowing travelers to connect with local people to do activities when visiting. How big a piece of your business, a chunk of your revenue in the next two years do you expect this new experiences category to be . This is really on a three to five year time track. Its now live in 20 different cities. We plan to take it to 51 cities this year. We have about 1100 experiences being offered. The real focus is on doing something different. These are not offering get on, get off bus tours and things like that. These are experiences offered by local people. Its a totally new kind of product that we are incubating. We do think three to five years from now, that this will be a big part of everybodys travel on airbnb. Your quarterly turned a profit for the first time haft year. Profitability is rare among fellow unicorns. This seems like a good time to look at the Public Markets. We dont have any plans for ipo. We have been saying that consistently. Its definitely not a nearterm focus. Are you concerned an ipo and the scrutiny of the Public Markets would put a hamper on your disruptive potential . I think the reality is we dont have a need for that capital right now. We have raised a lot of private capital. We have a few billion dollars in the bank. So it would need to serve a purpose when it comes time to do that. Airbnb has been growing so fast and certainly created a new category of accommodation but the Hotel Business has been surprisingly thriving. Marriott stock is over 50 year over year. Do you still want to take a share of that Hotel Business from Companies Like marriott . We offer very different things. I think its great to point out we dont necessarily have to lose. Thats because they are such different products. I think when you offer choice, let them vote with their wallets. The Hotel Industry still has a lock on Business Travelers. Do you have a shot at going after some of that Business Travel . We think so, yes. Its about 11 of our Business Today is Business Travel. Its particularly good for Business Travel if you are doing a week or longer, on an extended business trip, or if you are bringing a significant other, where you dont want to be stuck in a hotel for that extended period of time. The Hotel Industry accuses you of dodging taxes and driving up rents. Can you convince lawmakers that you are actually beneficial for the economy . We have actually in partnership collewith cities collected over a quarter billion dollars for taxes and we are signing new agreements to make that easier to do. I think with respect to hotels, listen, i would say that some hotels are trying to dig their feet in and try to say that airbnb shouldnt exist, that Illegal Hotels shouldnt exist. Of course, Illegal Hotels shouldnt exist. But when they say Illegal Hotels they mean anything thats not a hotel. This is the 21st century. Consumers have spoken. 160 Million People have used airbnb and found it to be a positive experience. So i think hotels should recognize what are the lessons that can be learned from our success and some of them are applying it to their businesses. You talk about lessons, is there a risk that a hotel could copy some of your features and create a kind of airbnblike offering . Are you worried about them becoming more direct competition to airbnb . I think theres a lot of lessons that could be applied but i dont worry about the competition necessarily. I think what we do is very different and we are number one for what we do. The Hotel Industry has been working very hard to put up regulatory roadblocks in cities and states and they have had some success. How problematic is the Hotel Industrys lobbying power . Our growth continues. I think these at most are speed bumps. I think its not a Winning Strategy to try to limit Consumer Choice which is what most of this regulation tries to do. On the other hand, we have very good partnerships now with hundreds of different cities. Just a quick final question because we are almost out of time. You have been very focused on your positive xhek impaceconomi. Have you been following uber, trying to take management lessons from them and trying to go in a different direction to avoid their management mishaps . We always thought its important to have positive relationships with local government so rather than taking a confrontational kind of stance, we have always been very clear that we are willing to draw compromises, we want to be a longterm partner. So its a little bit of a different strategy. I believe we are out of time. Nathan blecharczyk, cofounder of airbnb, thank you for having us here. Beautiful headquarters. Guys . Rare look inside airbnb. Thank you. Great interview with the number one disruptor on our list. Want to mention coming up in Halftime Report on the next hour, the cofounder of robin hood making its first appearance on that disruptor 50 list. More of these interviews to come throughout the day. As we await general h. R. Mcmaster to brief the press room at the white house, lets get the european close. A volatile ride for the german dax as it hovers around its alltime closing high in wake of data showing that German Economic Sentiment came in below forecasts. A different story for the london, another record high close hitting 7500 for the first time ever. The big catalyst, the uk exporters getting a lift after the pound fell below 129 earlier in the session, even when data actually showed uk inflation is rising to levels not seen since september of 2013. Pound holding on to 129. Vodafone, another big gainer, the uk Telecom Giants full year profit forecast overshadowing a 6. 7 billion loss for the fiscal year that ended the march. Shares up nearly 4 . Meantime, a new trade, record trade surplus for the yur ooceu. Eu exports to the u. S. Increasing in the First Quarter by 11 compared to with a year ago. The euro rising to its highest levels in a year at 110 against the greenback. Lastly, turkish president erdogan meeting trump today at the white house. A discussion will likely focus on security. One point of contention is trumps strategy in syria. Turkey regards a Militia Group that washington is backing in syria as an extension of a terrorist group, pkk, which has been allegedly responsible for a lot of destruction in Southern Turkey so be sure to watch to see what the two leaders discuss in terms of security, nato and also the extradition of the cleric. As we wrap up this Global Markets report, lets take a look at the turkish stock index. Its in fact trading in record high territory. Such a comeback from what we saw in 2016. Shares up or the stock market in turkey up 23 so far this year. Seema, thank you for that. Lets get to sue herera for a news update. Heres the news update at this hour, everyone. Secretary of state Rex Tillerson and japans foreign minister spoke by phone this morning in the wake of north koreas latest missile launch. Both men agreed to exert more pressure on pyongyang arguing action is needed, not just dialogue. Syrias opposition says a number of rockets struck an oppositioncontrolled suburb of damascus, killing at least six people. They blame progovernment forces for that attack. Rescue workers helping to evacuate people from a building that appeared to be damaged by that attack. Palestinian president Mahmoud Abbas meeting with the indian Prime Minister modi in new delhi. Abbas is on a fourday visit to india to boost bilateral ties with the country. Several deals were signed in the field of health, technology and agriculture. Back here at home, high winds and dry soil created quite a dust storm in parts of northcentral iowa last night. It lasted for a couple of hours, stopping traffic because there was no visibility. Thats the news update this hour. Back downtown to you guys. Carl . Sue, thank you very much. We will continue to watch the markets here. Dow is down five. When we return, National Security adviser general mcmaster set to brief reporters at the white house. We will get that after a break. Coming up today on the Halftime Report bank of america sounding the alarm on what it calls the most crowded trade in the world. Plus a big call on nike today, the second worst performer on the dow in the past year. The analyst defends her call. Thats here on set. The shocker for the most Successful Hedge Fund managers in the world. We talk about that and more. See you in about 20 minutes or so. Sounds good, scott, thank you very much. Lets get to the cme group, get the santelli exchange. Morning, reick. Like to welcome my guest. Biedermann, charles, thank you for taking the time. Good to be with you again. Listen, lets look up at all the news stories of the day. The biggest story that continues to be a big story for good reason is how the heck can the stock market still be up here, various indices, you heard scott wapners tease, i know what the answer is. Do you have any technical or fundamental observations to back up the moves and the lack of volatility at these lofty levels for equities . Its called the Central Banks of japan and europe keep pumping money in, in essence theres someone underneath the markets called the Central Banks who are giving enough money to investors to keep stock prices elevated. Add to that a u. S. Economy thats doing better in realtime. The data i see, than i had expected and it seems like trumps presidency has recreated a bullish atmosphere amongst Small Business people who are doing more and we are seeing it in our Realtime Data on withholding and other trim tabs, Macro Economic indexes doing quite well this year which says that things are better than i had thought would happen. You know, charles, this is an important point on Small Business. I want our viewers to know, okay, you are not a huge trump guy. As a matter of fact, in the article you wrote stating what you just stated, you called his administration the gang that couldnt shoot straight. Im not saying i agree or disagree but i wanted to put that out there. Are you not looking to see magic because you like trump. You are just looking at your indicators. Im surprised that Business People still have confidence in the trump administration. To me, Jimmy Breslin wrote a great book, the gang that couldnt shoot straight about new york mobsters, how horrible they were. And this administration seems to be following in that same path. All right. Lets dig a little deeper. You talked about all the money. I xlocompletely agree. Take it to another level. What are you seeing on the International Front specifically in corporate insider buying specifically, or selling, that will give us any more clues . Anything there . Huge inflows into europe. With the election behind, the French Election and with merkel making nice with everybody, it seems like a lot of moneys going back to europe. Maybe the rise in the euro and the decline in the dollar might be more of a rebound than a new uptrend, because without euro land buying bonds for new money, printing paper to buy bonds, who knows where the euro market bond prices go. I like your point on the dollar. Anybody looks at the dollar weakness and tries to tie it to current issues, i will tell them this. The dollar index been in positive territory like four or five sessions all year. And those were in early january. Okay. Charles, thank you for taking the time. Lot of factors moving the dollar. Cloud messaging Service Symphony announcing a new round of funding this morning. They are backed by most major banks including jpmorgan and Morgan Stanley and others. Joining us is the founder, david gurley. Welcome. Thank you for having me. Good morning. So you have raised another 63 million on top of the 170 million. Is this round also coming from big wall street firms . It is. We have also had some as well as google who reinvested. We decided in this round to accentuate our growth and the investor who led the round and joined our board, meant for us our mission is very valid. We are connecting companies in a secure and compliant way so they can interact with each other and have peace of mind. And this additional fundraising is really giving us opportunity to boost our growth. We figured out a formula that works and now its applying the resources to achieve even greater success. Can you quickly review what your formula is . When you first launched, a lot of the media appraised it as the bloomberg killer. You wanted to be the alternative to the instant messaging service all street banks use on bloomberg which is 20,000 a month and offers a lot more analytics. What have you become . Whats working . I think whats working is the Industry Needs a calibration platform that expands across their firewall inside and outside the organization. Bloomberg has really focused on the front of this work flow while symphony is focusing on the entire ecosystem work flow. We have kind of become the social operating system of our customers who are enabled to back up communications through our capabilities and than they can talk to other back Office Operations for trade reconciliations and Research Analyst and Portfolio Managers can interact with their counterparts in a seamless way. This isnt only about information. Its about the Financial Services system. Thats the formula for success. How are you going to handle security . Because not only im sure will hackers try to get attachments somehow into your system but they will be bound to try to use it for social engineering since you will span across organizations, it would be the perfect way to spread a threat. How are you going to stop it . That is our utmost priority. David, let me take you to the white house. Sean spicer. His arrival, as i promised, general mcmaster will give an update on the president s trip that starts this friday and i know there are some additional questions regarding some news of the day. Without further ado, general mcmaster. Good morning, everybody. Last week we discussed the president s upcoming trip. I promised i would come back and go through the schedule in more detail. Im happy to do that today. Sean tells me theres another topic you might want to talk about as well. So im happy to answer any questions about that after we go through the schedule here. First of all, secretary tillerson will accompany the president for most of the trip, breaking off just before the g7 meeting and as you know t trip will begin in saudi arabia. Its a historic trip. After an arrival ceremony in riyadh the president will have coffee with the king, attend a royal banquet and hold bilateral meetings with the king, the crown prince and the deputy crown prince. He will also participate in a signing ceremony of several agreements that will further solidify u. S. Saudi Security and economic cooperation. That evening, the president and the first lady will join members of the saudi royal family for an official dinner. The next day, the president will hold bilateral meetings with Gulf Cooperation Council leaders as well as broader meetings with all the gulf state leaders. In the afternoon, he will meet and have lunch with leaders of more than 50 muslim countries, where he will deliver an inspiring yet direct speech on the need to confront radical ideology and his hopes, the president s hopes, for a peaceful vision of islam to dominate across the world. The speech is intended to unite the broader muslim world against common enemies of all civilization and to demonstrate americas commitment to our muslim partners. The president will then participate in the participate in the inauguration of a new center intended to fight radicalism and promote moderation. By establishing and operating this center, our muslim friends including saudi arabia are taking a firm stand against extremism and those who use a perverted interpretation of relation to advance their criminal and political agendas. The president also looks forward to participating in a twit ter forum with young people who will be able to live tweet his remarks to people all over the world. The president will continue on to jerusalem. The president will then deliver remarks at the israeli, the Israel Museum and celebrate the unique history of israel and of the jewish people. While reaffirming americas unshakable bond with our closest ally in the middle east. Later that day, hell meet with Prime Minister netanyahu. Then the president and first lady will join mr. Netanyahu for a private dirn. The following morning, the president will meet president abbas in bethlehem, where he will convey the administrations eagerness to facilitate an agreement that ends the conflict and urge palestinian leaders that will take steps to help lead to peace and he will visit the church of the holy and say a prayer at the western wall. In rome the next day, the president will have an audience with the pope at the vatican. He looks forward to celebrating the the rich contributions of catholics to america and to the world and to discussing range of issues of mutual concern, some of which i summarized last time. Before leaving the vatican, the president will meet the cardinal secretary of state and will tour st. Peters. Later that afternoon, the president will meet with the king and Prime Minister of belgium. And the heads of state and government of the host country to the nato alliance. Hell also though meet the president before parting to departing rome for brussels. The next morning, the president will travel to the eu headquarters to meet with the president s of the European Union and council. Hell then hold a working lunch with the newly elected president of france, whom he will meet in person for the first time. That afternoon, the president will deliver remarks at the unveiling of natos memorial to our shared struggle in front of a peace of the berlin wall at a segment of the world trade center. He will reaffirm americas commitment to the alliance and repeat his insistence that for the good of the alliance, all members must share responsibility and share burden. Joined by secretary mattis, he will participate in the natos leaders meeting and dinner before traveling to sicily. He will meet bilaterally with leaders, including the italian Prime Minister. In the formal meetings, hell press americas agenda and call for greater security cooperation. On the first night, he will attend a concert performed by the phil harmonic orchestra followed by a leaders dinner hosted by the president of italy. Before departing italy for home, the president will speak to american and allied servicemen and women and their families. He will thank them for their sacrifices they all make to keep us safe and hell recap the highlights and accomplishments of the trip, so i ask sean to call on any who have questions. Thanks. Sean you came out to the area yesterday and said that logic and post story came out late yesterday afternoon was false. Do you think every element of that story is false and are you going to correct what yesterday at the podium yesterday morning . I stand by my statement. The premise of the article is false, that the president had a conversation was inappropriate or that resulted in any lapse in National Security. And so i think the real issue and i think what id like to see really debated more is our National Security has been put at risk by those violating tftalty and those releasing information to the press that could be used connected with other Information Available to make american citizens and others more vulnerable. General. Can you tell us if netanyahu will join the president at the western wall and since the president believes that the western wall is part of his im sorry. No israeli leaders will join President Trump to the western wall. Hes going mainly in connection with the theme. To connect with three of the worlds great religions and to advance, to pay homage o each of these sites, but also to highlight the theme that we all have to be united against what are really the enemies of all civilized people and that we have to be joineded together with an agenda of tolerance and moderation. I want too try to get details of this reporting with the russians. Are you denying he revealed information that was given to the u. S. By intelligence part r partner . What we dont do is what is and what isnt classified. In the context of that discussion, what the president discussed with the foreign minister was wholly appropriate to that conversation and is consistent with the routine sharing of information between the president and any leaders with who hes engaged and received from an intelligence partn partner . Im not going to p the one that could confirm. That could jeopardize our security. U. S. Ally that have these types of intelligence sharing relationships with the u. S. Will stop providing that information . Im not concerned at all. That conversation was wholly appropriate to the conversation and wholly appropriate what the expectations are of our intelligence partners. Have you reached out to foreign partners you might have contributed such information to the u. S. And talked to them about it, tried to reassure them. I have not and im not sure what conversations have been b held about that. If there was nothing the president shared that he shouldnt have, why did the counterterrorism adviser contact the cia about what he said . I would say maybe from an overabundance of caution, but im not sure. Ive not tucked to mr. Bosser about that. B t why he reached out. So, you would understand why there was a reason to reach out. I was in the room. The secretary of state was in the room. The deputy assistant, the deputy adviser for National Security for strategy was in the room. And none of us felt in any way that conversation was inappropriate. General, when was the decision made to share that information with the russians . Did the president spontaneously on the spot decide to give that information over or was there a process or some kind of formal Decision Making process of that meet wg the russians last week. The president it is wholly appropriate for the president to share whatever information he thinks is necessary to advance the security of the american people. Thats what he did. As for how it was shared previously, im not sure about that. When did he make the decision . To share the information. In the context of the conversation. Which was wholly appropriate. So lets just, i think its worth recapping one thing here. The president was meeting with the foreign minister about the terrorist threat. He had also raised some difficult issues. What we expected in terms of different behavior from russia in key areas like ukraine and as in syria, but then the president was emphasize, hey, we have some common interests here. We have to work together. We have an area of cooperation with transnational terrorist organizations, isis in particular, an organization that had already taken down a Russian Airliner and murdered over 200 people in october of 2015 and so, this was the context of the conversation in which it was wholly appropriate to share what the threat was as a basis for common action and coordination. And cooperation. In the moment then . During the context of the conversation . I want to follow up to jennifers question you didnt answer about the western wall being part of israel. That sounds like a policy decision. You know, and thats the president s intention. And i did answer the question in terms of what his intention is. The president s intention is to visit these religious sites to highlight the need for unity. Among three of the worlds dpraet religions. Unity in confronting a grave threat to all civilization and embracing an agenda of tolerance. General mcmaster the question that i had, please. Did the president reveal a city . I mean, the spin is president revealed the name of a city and that gave away information that undermined an ally. Okay, so, all of you are very familiar with the threat from isis. Very familiar with the territory it controls. If if you were to say hey, from where do you think a threat might come from territory that isis controls, you would probably be able to name a few cities, i would think. So, it was, it was nothing that you would not know from open source report iing in terms of e source of concern. And it had all to do with operations that are already ongoing, have been made public for months. Sorry. Back to my question, sir. Was this information that was shared with the russians also