Transcripts For CNBC Squawk On The Street 20170621

Travis kalanick is out as investors try to move past scanda scandals jack ma on why globalization is good david will sit down with him Martha Stewart shares her take on the state of retail the media mogul is going to join us live. First up, Travis Kalanick is out as ceo of uber bill gurley this morning, big investor in uber said books will be written about kalanicks entrepreneurship and few have changed industries the way he has. Yeah. Adam lashinski wrote a fantastic book fortune writer that came out four weeks ago about kalanick had he to break billions of eggs to make a couple of really fabulous omelets its almost as if i dont want to say his job was done, but i would say that you got in there and it wouldnt be so bad to have a more a lesser addict story. Personal tragedy you have to weigh this i think obviously the people got an image of what the company was like inside that was a little bit distressing. Listen, this guy did it. And i dont think theres enough good being said. I know theres tons bad, but i use it, you use it and it doesnt matter where you are in the world, we all use it yeah. This didnt exist six years ago. Can we give this guy a few minutes of credit because even though he had to be who he had to be to get it done is what im saying there was an undercurrent in the book how bad a guy is he . The answer is, bad enough to do the job. Uber did put out a statement. Travis has always put uber first. This is a Bold Decision and a sign of his devotion and love for uber by stepping away hes taking time to heal from his own personal tragedy by giving the company time to heal we look forward to continuing to serve with him on the board. This morning, david, esquire has a piece saying travis was at war with everyone in a business that is famous for dealing with your frenemy you disagree with them, you collide on one issue, you cooperate on another. Yeah. You know, carl, whats come up to me and has been discussed by a number of people who have invested in uber, have chosen not to, not necessarily a war that you described but maybe also with their customers. This is a consumer facing company that has not always had at least what seemed the best relationship with the people who use the Service Although of course they do continue to use it in droves think of pricing and how much hostility that creates you have to wonder when i think about the future of this company, is it going to be led by somebody who perhaps is more focused on treating the customer better having been with jack ma, spent a lot of time here, remember him . Well hear from him later. Customer first, right . Is that the case at uber i dont know maybe it will be now. Mike isaac at the New York Times broke the story in the middle of the night. Yeah, i saw this. Was on squawk this morning. Talked about whether or not the board was really looking to a new round of fundraising, an ipo in which a public face of the company needed to be a little more less extreme, less aggressive. Look, i think that in theen he wasnt made for primetime he sure was made to fight every country that was against him you had to have a brashness and a belief in yourself now his confidence bored on overconfidence his insulance boarded on being broughty ive met him a couple of times i like the guy he told me he could buy me and sell me. Thats fabulous. I didnt know i was for sale terrific what price hes one of those guys hey, i can buy you and sell you. How are you . Then he was very charming to my wife i dont know the guy can be charming. I mention that only metaphorically he can be charming and he can be without a doubt im not going to use a word because theres a word that comes to mind, but well, that word he was selfaware. Thats whats so funny. Yes. Heres a brief sound of travis in 2015 i realize that i can i can come off as somewhat fierce advocate for uber. People have said that. I also realize that some have used a different a word to describe me. Well, ill be the first to admit that im not perfect and neither is this company. Like everyone else, we make mistakes, but at uber we are passionate about learning from them now lets not talk about him in the past tense because he remains on the board. Right. And we dont know what involvement he may have at uber operationally or at some other company. People are now tossing around other names. People who are free agents, people like adam bain, people like marissa meyer. Like a secret agent from lyft that would be interesting, right . What is that, like thrush . The Empire Strikes back. Kalanick ii . No can we just not have that. All right im floating that and shooting it down immediately the a word is extraordinary. When the book came, all they wanted to talk about was ive never seen someone so universally reviled but at the same time recognizing that when you go to china to get a deal done or did you go to miami. Yes. And take on the taxing commission. I dont think you want to be a sweet guy. There wasnt a lot of sweetness. There isnt a lot of sweetness to kalanick. Yeah. No one thinks about the s word, but i do think that that job would be a great job and im not putting john scoli in it, fabulous guy, marissa meyer. Adam bain, wow, hey, im the nicest guy in the world. Im ready. Adam bain is adam bain is like nice. Yes. I remember continuing with the wife analogy my wife says, that guys the nicest guy in the world. Could be good for them change of pace change of pace. Speaking of disrupters, jack ma of course has been the focus of david faber for the past 12, 18 hours that exclusive, david. Walk us through it yeah. You know, carl, of course were here at gateway 17 this is an event that was put together by alibaba sometime back and hats been attended or will be attended by 3,000 small and mediumsized businesses here in detroit not all of them from detroit, i should say the event is in detroit. Theyre being drawn from all over the country, but particularly sort of the heartland to give them a sense as to the power of the alibaba platform to allow them to reach the consumer in china. Its all part of, of course, jack mas globalization, he being a key evangelist for globalization in a time when really is t would seem to be in retreat. That was an area that he and i talked a good deal about in our interview. Take a listen. My belief is a globalization is good but it need to be improved globalization should be inclusive to everybody we should not, you know, throw out the baby because the babys crying too much. Its a good thing, but how can you improve it globalization only in the past three years so what if we can improve next three years im a believer, strong believer of globalization, how to create jobs, especially Small Business. Next 30 years the technology is going to challenge a lot of Job Opportunities so if we cannot help the local business going global, its going to be a big problem. Today i see so many Small Business, theyre buying from this country, manufacturing there, designing u. S. A. , sell to china. Right. This is called all over the place. Thats right. There is absolutely globalization, many would argue, has been a benefit to the World Economy as youve just said. However, you seem to be swimming against the current tide i know youre talking about replacement or Different Organization than World Trade Organization that youre sort of thinking about that would empower Small Business when you have governments that are not embracing it the way they once did, isnt that a threat in the past 18 years when i do internet in china, we got criticism every day. You know, something we believe it, a lot of people criticize it but if you really believe it, continue to do it, improve it. I think doing like a crazy man last year i fly in the air 870 hours and this year i will fly maybe over 1,000 hours. Why are you doing that . Why are you spending 1,000 hours in an airplane visiting with world leaders. Whats the point convincing people globalization is good. Convincing people free trade is good convincing them Small Business should be the driver of the globalization, the driving force. You cannot stop globalization. The world is getting so small, right . Internet plane ticket people traveling around the world. How can you stop it . You cant. You cannot stop it. If you cannot stop it, improve it. All right so you go and you talk to various world leaders. Yes. Including the president of the United States earlier this year did he embrace what youre talking about . Because certainly has platform has not been one that has necessarily embraced the ideas youre espousing. I think he supported Small Business, young people when i say were going to have Small Business summit in the midwest, detroit, he was so excited. He said, jack, this is a great idea please do it and if there anything i can help, let meknow and as you guys know, it was the million jobs that came along with that promise that certainly attracted the president who is focused on job creation as one of his key responsibilities and platforms. Well, you know, david, we were talking about Travis Kalanick earlier you can dominate the world or try to dominate the world and still be a kind of a gentleman and a statesman and a guy you root for isnt that how you feel when you talk to jack ma . Yes and hes an inspiring figure i mean, we certainly listen. Were getting exposed to him here in the u. S. Theyve made an effort to do that in alibaba. Their Investor Base is here and so few of them used the product. Its a very difficult thing they face in the sense of so many people who invest but dont really understand it the way we understand amazon or google or uber and he is the face of that he is not running the company day to day making every single decision in terms of where are we allocating this, where are we allocating that. He is the broad thinker about the vision for this company, jim, and to your point, he has an inspiring story that weve heard a number of times and now is really being shared with a lot of people in this country, and he has a very, very definitive vision of where he sees the world going, not necessarily all of it good, but he certainly is very confident in where he sees things going and how alibaba will benefit from it. Yeah. I like his point that if youre going to change the narrative on globalization, its not going to be with political ads, hitting people over the head, its going to be about the numbers, right its going to be about delivering the jobs. Yes. Sort of bottom up process. David, one of the things i think thats incredible, there are a lot of people who talk with trump this guy clearly talked with trump, comes here. Hes hell bent on creating jobs. Theres a seriousness to what hes trying to do, isnt there there is. Were going to share some of our back and forth about a million jobs and whether you really can get there, but the idea is to the extent you can actually get Small Businesses here in the United States, even farmers and the like to use the alibaba platform, to use the logistics and all the Different Things they say address the pain points of actually trying to sell into china and do that, then maybe youre going to hire another person or another two people certainly something they are happy to hear about. No doubt so he walked out of that meeting. We know what was back in early january. Right before the president took office with trump being happy and him following through with this very conference or more than that, this big meeting here were having in detroit today. You know, david, i had wix on people dont know this company theyre signing up 2 million Small Business people on next month where they can do a website. If you want to sell internationally, you use us. I have adobe, champion, orion. International. A global attempt for Small Businesses to be able to sell their ares i listen to jack ma and i think to myself, you know what, there are people in this country who are going to have a billion people that are part of their market that you never thought you could touch and its because of ma and the technology does he ever talk about how there is a virtuous circle coming together of the technology being able to make it so that we could have Chinese People buying our stuff . Without a doubt in fact, we have a long discourse about the future of employment you heard him refer to it briefly in that exchange in terms of the potential pain over the next 30 years. Thats something we talk about where you guys are in terms of whats going to happen with automation, robotics, machines, ai and the replacement that thats going to involve in terms of jobs. We talk a lot about that he does seem to embrace the idea that were at a point where people are going to be their own Small Business, be able to sell whatever it is they have around the world. Well see whether that can actually happen. Even speaking to the merchants here, many of whom are going to embrace this idea of trying to get into the Chinese Market, its not the easiest thing to do it takes time and a great deal of effort and its not necessarily still ensuring success even if you do get access to all of those consumers. Well see where it all ends up but it is an interesting effort on the part of alibaba. Its a bit of a sell if you look at whats happening be with jobs at large companies. Axios today points out in 1990 the big three in detroit employed about a Million People. In 14 the three Biggest Companies in Silicon Valley, 137,000 people and roughly the same revenue nominally. I come back and i say that you use the apple app and 2 Million People have been developing things on that. You take a look at the Small Businesses and what theyre capable of doing using alphabet, using Youtube Video to sell things, using wix to sell things you look at the Federal Express Conference Call there last night. You can ship it there. The globalization of individual and individual skill sets not equal to what big business can do i totally agree. I just feel like jack ma says, you know what, if you have something good, dont think you have to sell it in the United States i like that because the more customers you have, the better youre doing, period end of story david, a lot more to come from you in detroit. Great stuff. Really great. Still to come, nikes getting a lift were going to tell you what amazon has to do with that david will interview Martha Stewart this morning shell offer her take on the retail landscape a lot of questions for her nasdaqs gone negative for the month and down four out of five. Well see what happens when the nus. Gsn ou14 rin iabt mite 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. And at 4. 95, you can trade with a clear advantage. [ gasp ] if you fire him, youre agent gonna have to fire me. Do you really wanna do that . Uh, do ya . [ screaming ] well, i guess she did. Were going to be fine. I want to help since you dont have a job. I got two whole dollars. Awww. Minions were going back to villainy. [ cheering ] [ evil chuckles ] so, youre villains now . [ shrieking and chuckling ] i mean hello sweetie. Despicable me 3. Rated pg. Nikes up in the premarket citing some channel checks goldman has a note saying the dow is considering selling products directly through amazon of course, they do sell through third parties now. This would have better control over how the brand is presented. They argue direct economic exposure to amazons users, implications for footlocker, dicks and others. This market is so negative on retail that when that note came out, the first i saw footlocker down a couple of bucks. I said, oh, my god, who downgraded footlocker. Amazon brushed up against it you brush up against amazon, then whoever youre against is just immediately saying i surrender. Whats really interesting is foot locker is a good company. Stocks have been straight down since last quarter its almost as if everybody says im no longer going to fight tell me what to do youre jeff bezos. Youre in charge im a puppet this is how people are when he comes after. Its like, hes got the strings. Hes got the strings they dont even try. Its like, yeah, i surrender. Lets say he wanted to go up against a company like carmax. Carmax reported a great quarter today. If they say we have someone from amazon, third cousin, brother that might come in the whole game would be erased immediately. Were going to watch nike in the premarket and foot locker is down 5 before the bell. Well get cramers mad dash, take another look at the premarket. Back in a minute in these turbulent times, do you focus on todays headwinds . Or plan for tomorrow . At kpmg, we believe success requires both. With our broad range of services and industry expertise, kpmg can help you anticipate tomorrow and deliver today. Kpmg. upbeat dance music dance music abruptly stopping dance music starting then stopping you are loved lets get cramers mad dash. A couple of big earnings today. We had adobe which was a blowout, red hat and fedex trying to figure out how good it was. I thought it was great, but i think its the Deutsche Bank note says not bad but good enough the stocks up 12 for the year. They are going to have to spend more money in order to be able to capture growth. I like what they had to say about international and ive got to tell you, carl, its only because we have this negative feel to the market that i think this stock is not up that doesnt mean im saying buy it because the market has this negative drag. I am saying that if the market turns around at all, the s p turns around, this one deserves to be higher, not lower because they told a great story. Youre referring to internals yesterday. Trans ports all day long. Transports are really kind of a horror show. I felt that fedex, wow theyre top of their game. Theyre expanding everywhere we heard from jack ma and david in that great interview. This is ecommerce. They have the best technology for ecommerce. The stock does this, then people give up, then people give up, then it keeps going. Notice, theyre going to give up and then youre going to have to end up buying it again i say stay long fedex. The numbers are rather amazing theyre going to be able to do 12, 13 without a problem. I think this is a better way the obvious softer ecommerce way, international paper, fedex. Does someone come into united pa parcel i dont know its down indicative of sentiments. We havent touched oil yet. Well get to that. Oh, god. After this commercial break the opening bell is just about four minutes away. Trade trader offices. Steve, other than making me move stuff, what are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. See options data like never before. With thinkorswim only at Td Ameritrade. 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Youre watching cnbc squawk on the street live from the Financial Capital of the world opening bell in 1 30 talked about oil a moment ago, jim. Today the saudis make news as they oust the crown prince the deputy crown prince, crown prince oustinghis cousin which basically means the country is barrelling ahead of this plan to reduce reliance on oil yeah. And i think that this is the plan that says that, you know what, just because we have great Natural Resources were going to go beyond it its the kind of plan that i would think that i would think that they have to do because there is a notion were seeing it in the world today that we will all be off fossil fuels by 2050, 2060 to a level where oil will be like coal. So if youre reliant on coal, its going to hurt you the equivalent of coal wind is more than 20 of texas power right now. People are overlooking the alternative energy came down so much that its so over boutique, so over touchy feeley. Its just economical. Chevron gets a downgrade over the quarry and along with that they cut their brent forecast by 6 for this year, 12 for next year and 13 for i mean, its a long term. I just was reading that during the break yeah, that does matter morg Morgan Stanley with a very contrary note saying that oil has come down somewhat the United States is going to bruise a lot less next year. Its messy right here. Bottom end of the race lets get to the opening bell and the s p. At the bottom of your screen, it is msci celebrating the tenth app very sari of the global investable markets methodology over to the naas deck. Natus, newborncare products an Services Henry fernandez, ceo, making a bold move there. I think that chinas going to be the most heartened by that the big bear case you hear about is china the ceo of goldman is not as concerned about china. Msdi, henry fern thn fernandez, guy, blesses china less of a worry. Do want to talk some chips this morning well talk to david about toshiba. But intel gets caught at b of a. Chevron, intel and target but the intel call is basically been nvidia and amd. Invidia has target, amd they have faster chip for data centers and theres a huge individual retail element that people are buying. It is a chip for bitcoin so i think people should recognize why that stock, amd, is flying is not just a very positive note from meryl were with a Data Collection point. People love bitcoin. People love block change look, amd is such a Better Company than it used to be that i think it deserves our respect. They did a refinancing between five and seven that was brilliant. At the same time, it has a lot of hot money in it, just like my dog. Right . My dog is invested in nvidia. You have the hot money in it. I get a little concerned about hot money. People on twitter despise me im supposed to love hot money, im supposed to love speculation, the juice but in the end i would rather have slow and steady win the race yeah. David, one of my favorite tweets was from george perks of the spoke. Even if you believe bitcoins in a bubble, bubbles require fixed investments and thats a lot of what the nvidia story is about. Indeed, it is i you know, jim, i mean, i thought you changed your name to nvidia i didnt think it was the dog. I did, but it didnt resonate, david. You cant put your picture on twitter and say my name is nvidia when i put everetts picture up, people in nvidia, theyre trying to figure out whether its a dogs name or semiconductor. David, this thing is so hot that it just makes me feel like some other stocks that weve seen over time. Now this is well run hes brilliant but david nvidia is picking up nvidia is not amazon it cant take over the world it can do very well. Its in the switch, with i is the hottest games. Its in Autonomous Cars but, you know, you can only make so many chips. And i do think that it can be the next intel which has had a remarkable run as you know its not going to be the next intel this afternoon. No, its not. So do you think its over done i mean, do you compare it in some way then to a qualcomm in the late 90s, into the 2000s . That run up to the dotcom boom even though the business is doing extraordinarily well, to your point, it can only go so far . Well, i think that i would give it its like on the jersey turnpike, its going 78 i would give it a speeding ticket it could slow down its faster than all the other cars my big issue here, david, is not necessarily that it wont get much higher eventually i just dont want the speed with which this thing is going and how much faster it is than every other stock reminds me, you know, it still its featuring who its end markets are. Its end markets are strong we know that from adobe, we know that from speaking to alphabet and to facebook. I just get concerned that stocks get too hot in an environment where we might have a selloff and then everybody runs away thats all im talking about you buy this one on a dip, not when its climbing and i make the analogy to my dog. Why do i do that i just dont want people to get hurt i think nvaidia is fabulous. Stocks can shoot up and shoot down fast even if theyre great, and thats what im saying. No doubt about it its funny i took a look at a chart at sis does given that announcement i was covering yesterday ushering in the new era of networking remember, cisco has been an Incredible Company that stock had over 500 billion market value back in, what, 2000 or somewhere around there. Right to your point, things can sometimes exceed at least on a multiple basis the expectations in terms of the addressable market, i guess, at certain times. Right i mean, cisco and markets were a lot of these companies that you covered that ended up not being successful some of them got obliterated again, i reiterate i think nvidia is the best Semiconductor Company in the world but it is up more than every other stock in the market and its attracted a lot of hot money. I would like to see the hot money come out of it and you get right back in. Recognize a longTerm Investor can stay in and have a great run and a short Term Investor trying to catch yesterday it was at 160, it reversed im trying to get it so that people dont get hurt. I feel the same way about amd. I dont want anyone to get hurt. Thats interpreted as i hate them just the opposite. Amd is doing a fabulous job. Nvidia has the best semiconductors now everybody is relying on them, but i also dont want people to say, hays, listen, im going to go buy it and i cant go wrong cisco is the lone survivor i dont think its going to have that meet teoric rise and stock. I hate cramer. Hate my dog. Kick my dog. David, you do have some stuff on toshiba, right . Yes you know, guys, as you know, carl, jim and i have been talking about this very important sale of the flash business for toshiba i want to do a faber report on that we do have some things to add. This morning we got the news that a consortium that includes the Innovation Network corporation of japan, Bain Capital Private Equity and the Development Bank of japan, sort of the incountry consortium, if you will, has been at least deemed preferred bidder for that sale of the flash business very important sale. Of course, weve discussed this in terms of toshibas financial wherewithal and its ability to continue outside of any bankruptcy filing. Of course, it affects the bankruptcy filing of its west g westinghouse subsidiary. The flash business is a huge business ive been reporting for some time that broadcom has had Significant Interest i wanted to update people. What happened there . A couple of weeks ago broadcom thought it could be the preferred bidder and that did not happen what did happen i can tell you is that broadcom had indicated a bid of some 20 billion for this business it was fully financed. It would also have included interim financing for this flash business it would be some time before things closed. Things are advancing in flash and they need money right now to invest and toshiba doesnt have the money to put into the flash business it importantly included that interim financing. It was the expectation was that it was going to be the preferred bidder given the indication of 20 billion which is above, we believe, the bid from the consortium, which was roughly 18 billion however, on june 15th Western Digital filed a lawsuit in california seeking injunktive relief to prevent them from transferring the jv industry and injunctive relief for the transfer broadcom stopped in their tracks they felt the potential liability could even end be up in some sort of tortious interference claim theyve backed away. It doesnt necessarily mean they wont come into this process at some point if a deal isnt signed the expectation is given that lawsuit from Western Digital, what they believe at least is their claim for the ability to ask for an injunction if they dont get what they want as a result of that joint venture, they say it gives them the right to be part of any deal, theyre backed away right now. You may not see a deal with the consortium that gets signed. July 14th is when theyve asked the judge, Western Digital has asked the judge in california to give them some sense in terms of the ruling they also have a separate arbitration thats been placed guys, i want to update people on that jim, i know you followed it closely as well. Bro broadcom was there their guys were ready to more or less get on a plane and make it happen, but they did not follow through due to that lawsuit from western dig which you would have figured out a way to settle before they moved away from the entire deal which could have the impact of delaying, delaying, delaying which is one thing toshiba doesnt want. Boy, david, that ruled out a bid. That was before the ceo broke up that was before the injunction when i went over the injunction, david, it was very clear that anyone who went be in against them, i think they would have gone tortious interference they would have absolutely made life hell for broadcom whats really interesting about this, david, is theyre going to make life hell for anybody even though its the superior court. Western digital, theyre not going to get that money. Western digital wants to be in on that. Its been very noisy i think this is one of the uglier ideas i think that toshiba screwed up here i think that they just screwed up like theyve screwed up Everything Else and they should have made a deal with Western Digital because this is going to make it so they dont get the money from that consortium theyre just not were going to be hearing about this forever it was such a dumb move. Who is running that place . Who is running toshiba, david . Well, i dont know, but you raised a key point now, listen, the japanese government would prefer to have it stay in country given intellectual property and a lot of other things. Your point is a valid one, salient one here if it was enough to say to broadcom to say, you know what, were not going to move ahead at this point you have to wonder if the consortium, sophisticated buyers, are also going to feel that way well see. We have to monitor the Western Digital lawsuit here in california in i mean, in the states very closely to see how this progresses. And, again, jim, as weve said so many times, this has implications for toshiba, for westing house, and utilities for which westing house is building. This is a big story. Use bankruptcy to affect everyone from southern chicago vision iron. There isnt anybody. The ripples here are incredible. I think toshiba should have sat down with milligans and say, look, lets cut some sort of deal no no it got really nasty. Its going to get nastier. Toshiba is off the rails guys, nike is leading the dow. Intel the lager this morning lets get to bob pa pasani msci is including Mainland China. Heres the guy in charge of it, sebastian liebwicz for those of us who invest in international markets, what does this mean for the International Investor quite simple. You will be owning more stocks you say asia. These are China Mainland stocks. Right now hong kong and Chinese Companies down here like alibaba are included, but theres hundreds of Mainland China stocks, 6 trillion worth that arent in these indexes. Why do we want them in its given the opportunity for investors to tap into a whole new market Mainland China market. Youve been doing it in a very carrot and stick approach there are 400 stocks but youre only including 200 looks like you want something from the chinese authorities what do you want to see from them to have the entire Investment Opportunity included, investors and ourselves are expecting to see more activity in the Mainland China market. Thats why we are moving slowly and in sequential steps to make sure that the activity is good enough. I know youve had issues with the trading laws there youre trying to make sure its easier to get money into and out of the country are you sure chinese authorities are going to do what you need. Obviously if they dont, youre not going to put more money in. It shows a huge commitment in opening up the market. If the momentum continues, we are quite sure its going to work. Right now china is 27 of the emerging market index. At inclusion its going 47 something . Thats right. Bottom line, you own International Indexes youre going to own a lot more in china. Heres the guys in charge. Sebastian, thank you very much back to ou. Important story, bob. Thank you very much. Rick santelli and the cme group in chicago rick good morning, carl. You know, when i look up at the treasury complex we always get a nice little move coming into our time zone. Looking to our 10 year note. Were up a basis point or two. If you look at the week chart, we are just basically hovering at what is below yield close from last year, the 14, at two twelve two twelve and a half if you want a sharp pencil. By the nature its holding doesnt mean it cant bounce and leave the 2. 12 in half when you take the sovereign and fixed income and all the spreads, it really defies the notion that were not going to slowly drift and test that time will tell look at one week of boons. You see that drift im talking about. Open the chart up to november for 30year bonds. They are kind of a lazy maturity on the curve its he have department by fives to 30s even flatter in terms of this historical comp, the 2s, the 10s. Todays no exception all the other maturities are up, highly unchanged switch gears to Foreign Exchange the dollar index, it popped a little bitfor our time zone as well one week of that chart certainly reveals it is a much steeper angle trying to get a nice bounce off those low 96 handle moves. Were getting close to 98. Timely open the chart up, pound versus dollar before brexit, a lot of people talk about the influence, brexit. I certainly dont see anything out at me on the calm trading range of the pound especially after that june 16th brexit move carl, jim, david in motown, back to you. Rick, thank you very much speaking of calm, overall markets basically unchanged although barbell by intel and nike on the dow. Well get more exclusive with jack ma in a moment. 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Were here at the gateway 17 conference alibabas effort to entice u. S. Businesses to sell into china using the alibaba platform all of this a promise that jack ma made to President Trump to create as many as a million jobs you can imagine that that, of course, got the attention of the president and potentially shines a positive light on alibaba even though, of course, some people believe given its china that it might be more of a contentious relationship i did ask mr. Ma in an interview that we conducted a short time ago how he actually plans to really get to that million job number we created more than 33 million jobs for china, and we believe that even one online shop can create at least 1 million jobs. Its an enormous number how would that work . We already did a lot of things for american creating jobs in the past 18 years when we do the b2b. Even in california the more than 20,000 Small Business using alibaba platform to sell their product across the board, to buy product from all sides and assembling them, packaging them, already create a lot of jobs we prove the model we prove this model in the other countries, too apples grown in Washington State but it has to be more than apples and cherries. June 18th we had a small promotion. In less than 15 minutes we sold 2 million lipsticks. We think this is the demand. By the way, after 30 years the domestic consumptions of the United States drive the Global Economy and drive supported so many Small Business in america in china to sell things globally. Today the next 30 years the domestic demanding power of china is going to drive millions and millions of Small Business globally it has turned, but that economy were waiting for is still in process the chinese process is still an export driven economy, not a consumption driven economy. No, china is changing china is going to import 8 trillion in the next five years. China knows very well china has to buy because, as i said, 300 million middle class they need high quality products. High quality services. Thats the pitch from jack ma, of course, as he sees again relating to our earlier conversation that we shared, a globalized world in which Small Businesses benefit, guys. Wow ive got to tell you, im a believer count me as a believer i cannot believe how many people that put in the work, david. Thats the government. Hes right thats the government. Other than china, that would be the biggest works in Progress Administration in history, wouldnt it be yeah. I mean, listen, theyre talking about their 550 billion in gmd that they had over the last year, jim, comparing it to i think the argentinian economy, 21st in the world, but their hope is that within i guess, what, 20 years or so that they will be number five in the world. Thats what jack is talking about, that their gmd will be at a level that places them just after the u. S. , china, europe and japan in terms of the total size of what he calls, its interesting you use that word, an economy thats how he refers to his company now, as an economy well, it could be instead of the United States and china, it could be amazon and alibaba. Its a battle of giants. Wouldnt it be great for commerce jim, lets get to stop trading. No ones even focused anymore about adobe. Thats last nights news i have champion and or rye on. Adobe had 27 growth this is a multibillion dollar company. The all encompassing 60 billion total adjustable mobile is incredible the world is using their products, germany and japan in particular i think this is a company that when the smoke clears and we stop being so negative is going much higher because adobe is the ecommerce way. Its the most pure ecommerce play out there now. We didnt get a chance to hear what jimmy told you last night on mad money from ibm. En jie she feels the company is on a course to reinvent the cloud, do great Artificial Intelligence. The problem here is unlike all of the pure cloud companies, she has a gigantic incumbent business that she has to transition theyre moving forward but they have a little manacle to her leg. Shes much more positive i mention. Jim with rometty last night. We traded publicly 100 years out there and the trick to being a company in tech, which is a viciously competitive environment, thats actually right, is youve got to keep reinventing what ibm is for is for someone who values high value as a company. Can you speak to us about that thats to me, you had almost 4 yield nkts yes. Fabulous balance sheet. Yes. Generating gigantic cash. I dont understand why he did so i let every investor speak for themselves im very appreciative of all of our investors there. Well, warren is still an investor he talked about the competition like she did ibm has reinvented itself multiple times its doing it again. With that yield and that growth path, its going to be successful it sure hasnt yet, to be candid, because the stock is not up since she took office. How about tonight tonight ive got adobe which is one of the hottest stocks its on the nasdaq i have red hat which is the stock that is up the most right now and i have suntrust which is a fantastic bank doing so much on the web, doing great things, but nobody cares because my dog is where the hot money is. Nvidia and amd, people at home, nvidia, amd, there are other stocks in the market so just real quick, if you were running your farm would you be shorting here no. No short the market short nvidia . No. Its too great im just saying that people have to recognize that adobe just reported a great quarter red hat was great. They should spread the love over more than just two stocks. Theres a lot of love. Come on, theres some love show love to other stocks. Jim, well see you tonight. Mad money, 6 00 p. M. Eastern time got a lot of good work done. David will continue in the next hour more reaction to Travis Kalanick stepping down as the ceo of uber well go bacto drok etit where david will talk to Martha Stewart. Dow is down 9 points to start this wednesday dont go away. Good wednesday morning welcome back to squawk on the street with sara eisen at post 9. David faber is with us from alibabas gateway 17 event in detroit. Take a look at the markets pretty muted action. Dow is basically unchanged big movers in nike, intel and were watching the ceo transition over at uber as well. Our roadmap starts with Travis Kalanick out at uber. The ceo stepping down. Well have the details and whats in store for the company next straight ahead. Man versus machine alibabas founder jack ma sitting down what he has to say about the future of the work force and Artificial Intelligence. Renewed push for tax reform. Will it happen before the end of the year how will it affect investors. Time forexisting home sales. Lets get to diana olick. Existing home sales up 1. 1 thats a slightly upwardly revised figure of 5. 56 sales are now up 2. 7 year over year thats a beat. The street was looking for a very slight drop, but the real headline here is the median existing home price in may, 252,800, up 5. 8 year over year that is an all time high on the realtors report it is easily double the growth of wage growth why are prices so high inventory. Its down 8. 4 year over year to a 4. 2 month supply 6 months is considered a balanced market between buyer and seller were not seeing any letup in the inventory. In some markets we are seeing a housing crisis due to the shortage of homes for sale because of that shortage, youre seeing homes fly off the shelves. Days on market, 27 days to sell a home in some of the hotter markets youre looking at barely a week to sell a home Single Family sales up 1 . Condo sales up 1. 6 . The firsttime buyer that we continue to look for should be between 40 and 45 of the market down to 33 . Again, high prices keeping buyers on the sidelines. Back to you. Diana, thank you for that diana olick. Switching to uber. Ceo Travis Kalanick stepping down take a listen to uber board member Arianna Huffington talking about the uber culture when we spoke to her earlier this month. The numbers released yesterday showed that out of 215 complaints, 122 are not corroborated 47 were about sexual harassment. So it all depends on your definition of disturbing, but what matters and what my commitment as the only woman board member is is to take that number and reduce it to zero for more this morning were joined by former metronics ceo and jeff sonnenfeld. Controversy, jeff, around kalanick is not new. Why do we think the board acted now . I think now they recognize that with his future uncertain, recruiting a chief operating officer with five players of unknowns around makes this a very hard job to staff running the company as a committee of 14, find a town square or a village anywhere that has a statute of 14 people on the committee they need some bold leadership in there with kalanicks uncertain return, this was too confusing and, you know, you have a leadership vacuum with 20 key positions from the head of engineering, cfo, everything out there, general counsel, communications wide open they just need somebody to start to give this place some direction. I think the bereavement is genuine. I think hes very close to his mother horrible tragedy really important his dad needs him. I think its absolutely the right move, but even this board has plenty of uncertainty. Apparently disaffection on the board. They have problems in the governance model, the operating syste systems. They need directions. You raise an interesting question about the board which well get to bill, wanted to get your take. Do you think this was the right move having him step down . Absolutely. I think jeffs right often what you have is chaos, and travis is a brilliant entrepreneur i met with him a couple of years ago, but it was clear they were headed for trouble by being at war with all of their external constituency theyve create the a bro culture. My Business Partner has gone in to straighten that out and bring some of her brilliance in service. But i think right now they need a stable leader. Look what eric schmidt did for google look what Sharyl Sandberg has done for Mark Zuckerberg i disagree with jim cramer larry page and Mark Zuckerberg are not at war with the world. They need a strong leader, john donohu now with service now. He did such a great job at ebay or somebody like tom segs at disney it has enormous potential. I think with the selfdriving cars, ride sharing, this potential is unlimited we need an executive that can take it to the next level. By the way, it wasnt really the board that acted this is a travis had control. He had to agree with the investors. To his credit, he did so he still controls well over half of the voting shares, but i think he recognizes its time for a change i have great empathy for him and what hes going through personally, but theres a lot of issues in his life jeffs right, you cant have a Company Without leadership its time for a very strong entrepreneurial leader. Were going to be on the lookout for the New York Times reporting some of there is such a person. Phil mentioned a couple of candidates i havent heard saggs name. I would say mark field. Theres nobody on the planet, including eli musk and jeff bezos that understand new Global Technologies mark as the intelligent consumer about this the open secret is in january of 2016, a year and five months ago, larry page and sergei brinn pulled out with a great adventure with ford. That left ford flat footed mark went out there and hired these people theres nobody more on top of all of this. Mark had brought in ford several years back to back relationships. Jeff, just on the sales point. Wasnt the narrative that he left because he didnt bring ford up to speed on Technology Fast enough . So youre disputing that well, yeah. Its completely wrong narrative. The issue had to do with the family and board dynamics and the fact that the stock wasnt soaring. We had wealth dilution and bill fords ambivalence about what roles and titles he wants in his life. Thats where it was going on this was really good times for ford and they lost the im sorry, bill, the thing had dissolved with google. They had ramped up mark is on the front tier far more than anybody else. I agree with jeff completely on that. I think its a very good point fields would be an outstanding point. I think he got kind of a raw year you cant remake a company like ford in two years. Malalick. Or bill george. Bill, you would be great they need adult supervision like bill george. Thats what Mark Zuckerberg did and mike dell. They learned from senior people like bill george you would be fantastic. Guys, let me pivot the conversation just slightly here. Bill, does this episode change the thinking in what we all believe a disrupter needs to be, disruptive ceo innichanging industry do they need to be nice . No, its not a question, nice or not nice. You have to be strong and visionary like a zuckerberg or page you dont have to be at war with the world. I think travis is modeling himself after steve jobs steve had tim there. You have to get all of these things right they were at war with too many external constituencies. I can see that three years ago im glad it finally happened, but you also id also like to comment on this bro culture thats too prevalent in Silicon Valley we need more balance there are so many talented women. We need to create a culture thats appealing to everyone thats why frances fry is going to be so critical in this organization to get that straight right away. Until you do, great people wont work there just to build on that, jeff, wondering if there is some Inflection Point for Silicon Valley over all . There have been Corporate Governance issues over founder control. This was an investor led revolt, jeff does this empower investors more in Silicon Valley . Will they get more voting shares as we still ponder whether uber is headed towards an ipo we have three people. I think to bills point about Travis Kalanicks control. While he doesnt have that complete control himself with two others, his first employee and cofounder, they have more than 40 control i dont know that this is going to shake that model. Mark zuckerberg and of course jack mao, you featured him they both are coes for life. If you read them their registration documents, they cant be moved they did ma sure i was very critical of Mark Zuckerbergs early role with the hoodie on. Didnt mind getting enormously wealthy and hes transformed himself. Jack ma who you featured, look how jack ma is a disrupter without being obnoxious. Sure. Hes worked so hard hes been able to deal so well with the chinese its theyve had servers shut down jack ma has better relations with the parties and not to mention his relationship with trump and real quick. Quick comment about the potential for uber i think the world today is create your own job, not send out resumes looking for a job from somebody else thats what jack ma is talking about and thats what uber is doing. We have to make sure all of those people as uber drivers are great representatives of uber, but i think a lot of them doing it much more broadly and helping people create their own jobs. A lot of them drive for lyft. I love these harvard showdowns that we have. You guys need a show. Thanks a lot. Well see you next time. Thank you when we come back, alibaba, speaking of alibaba, founder and executive director speaking with david faber. Plus media mogul Martha Stewart joins david in detroit you wont want to miss that conversation tech is outperforming. Its one of the three groups higher along with health care and discretionary. That just dipped into negative territory. Well be right back. [ crickets chirping ] [ light music playing ] youve wished upon it all year, and now its finally here. The mercedesbenz summer event is back, with incredible offers on the mercedesbenz youve always longed for. But hurry, these shooting stars fly by fast. Lease the c300 for 399 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. A used car, welcome back to squak in the street. Im david faber in detroit where alibaba is holding its first gateway 17 event designed to entice u. S. Businesses small and medium sized, as well as farmers, which are business men, to sell into china one way that jack ma, the companys founder and chairman, believes that employment will be increased overall around the world and here in the u. S. , but when it comes to employment, there are certainly many questions as to whether the machines are going to take place of many of the jobs that are out there, whether Artificial Intelligence, robotics, so many advances will ultimately result in the loss of the jobs. Here are mr. Mas thoughts on that very, very important subject. The first of technology, i said calls to world war i. Second Technology Revolution caused world war number 2. This is the third Technology Revolution people already unhappy because of a lot of machinery, Artificial Intelligence so this is what i think. The way to figure out the job creati creation, one of the best ways is helping Small Business to sell their local products across the board and we have to prepare now because the next 30 years is going to be painful. Painful painful. Because of the change change of the technology, change of the world. A lot of people with a lot of time on their hand they might want to spend it on alibaba watching movies buying things but well, believe it or not, i think next 30 years people only work four hours a day and maybe four days a week my grandfather worked 16 hours a day in the farm land digging he thinks hes very busy we work eight hours five days a week, we think we are very busy. By the neck 30 years normal people visit 30 places. 30 years later they will probably visit 300 places so they will be mobile population stop globalization its impossible. Globalization knowledgeable inclusive. This is how we can dealing with the unstability of the world these are all very important issues a lot of them do come back to politics they come back to governments and the willingness to invest and the willingness to make hard choices. Not seeing a lot of those hard choices made. This is why im traveling, talking to all the government state leaders, telling them. Moving fast. If they do not move fast, theres going to be trouble. My belief that you have to repair the roof while it is still sunshine. Do you think the machines will win no, human will win. They will oh, absolutely. Machine is good, knowledge good wisdom. Encouraging a lot of government and talking to a lot of government officials, pay special attention. If you want, the machine is going to be smarter than the human being, this is for sure. The day when we design the machine, we know machine is powerful, stronger than us we design the trains, buses, we know machine is going to run faster than us we have the computers, we have to know that machine is going to be smarter than us the human being, they are not only smart, they have the wisdom. So Artificial Intelligence will never have wisdom no, Artificial Intelligence is going to be very smart. So the smart between the smart and the wisdom, smart people know what do you want wisdom people wise people knows what they dont want. I just continue to wonder what that world will look like over the next 30 years. Its going to be painful. Whats painful . What does that mean . Well, you will see that some people because knowledge is not enough the wisdom is enough enough. So the new way of coming, the job has been taken away. Some people who catch up the way will be rich, will be more successful some people will be more painful. The government, you know, the world is going to be dated the people will know have more data than the bosses. You have a lot of data at alibaba, dont you yeah, we do. How are you focused on creating and obtaining more of it i think its just the beginning of the data period we think data is going to be so important to human life in the future compared to tomorrow, our data is nothing tomorrow i. O. T. , internet of things, everything connected. Billions upon billions of devices connect. We think we are a Big Data Company today. That was compared to yesterday compared to tomorrow we are nothing. Well, what will it let you do having accessto that data as i accumulates more and more . What will it allow to you do to improve peoples lives, to improve the machines, to make sure the machine can do better job to support human beings instead of machine doing better job to cure human jobs we dont know how data really can make money today, but we know we have to protect the security of the data, the privacy of the data and when we know one day the data will empower the human beings. You know a lot about your customers already, i would assume they spend a lot of time on the platform, 25 minutes a day. Yeah. Seven times a day. Yeah. Yeah many of them are younger. Yeah. Using your mobile device. Yeah. Thats just the tip of the iceberg . Yeah, this is just the beginning. Todays data is like 100 years ago. People think about electricity is the light, but they never thought 100 years later we have a refrig, washing machine, everything using electricity data, we have to believe our kids will be much smarter than us using the data. But you dont believe all of that data when used with Artificial Intelligence will create wisdom . No. You dont no. Wisdom is from heart the Machine Intelligence is about the brain. Brain is about the now knowledge. You can always make machine to learn the knowledge but it is difficult for machine to have human heart. So, carl, sarah, weve got that going for us. We have wisdom, yes. Yes. Were going to beat the machines no, i thought that was very encouraging even though he does expect it to be painful. David, speaking of data, i i was on set yesterday during closing belle when you talked to josi of alibaba. The conversation turned toward why groceries were so appealing in light of the amazon whole foods deal and the sort of search for a High Frequency data im wondering if youre hearing more about that there at the conference and what the chatter is, what the alibaba strategy is around that. You know, they were early in grocery. Earlier than amazon. Even though you wonder, their investors would like more clarity if they move more strongly into that area. But there is a believe, sarah, that there is a way, they call it new retail at alibaba, a way to own brick and mortar and repurpose some of the store for fulfillment in a way that turns it so taking some of the store and using it for that. I would suspect theyre going to continue to move into that area. As you heard mr. Sai yesterday applauded amazon he said it makes a great deal of sense to him kind of a new world here that were talking about. Yeah. You wonder where all of these old School Industries are going to go. David, thank you well see you in a bit with more of your conversation with jack ma were going to talk about the big push for tax reform. Speaker paul ryan renewing his call for overall before the end of the year. Will it actually happen . More squawk on the street straight ahead okay. Got it. Rumor confirmed. Theyre playing. What . We gotta go. Where . San francisco. When . Friday. We gotta go. [ tires screech ] any airline. Any hotel. Any time. Go where you want, when you want with no blackout dates. [ muffled music coming from club. Blue monday by new order. Cheers. ] how does it feel the travel rewards credit card from bank of america. Its travel, better connected. Parts a and b and want more coverage, guess what . You could apply for a Medicare Supplement Insurance Plan whenever you want. No enrollment window. No waiting to apply. That means now may be a great time to shop for an aarp Medicare Supplement Insurance Plan, insured by unitedhealthcare insurance company. 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They had hoped to break through on the strength of antitrump enthusiasm, but republicans succeeded in turning out their vote and in a very republican district, that was enough to give karen handel a margin over jon ossoff, the democratic candidate. Karen handel avoided the subject of donald trump but last night she thanked the president. Special thanks to the president of the United States of america trump, trump, trump, trump. Reporter and its no surprise that donald trump tweeted out, congratulations to himself as well as karen handel last night and chided democrats going 0 for 5 in special elections. Now that shouldnt give too much comfort for republicans about 2018 because democrats all of these were republican districts and democrats did better than their congressional candidates had done in the fall of 2016 or 2014 by that matter. On the other hand, this does calm the Republican Party down just as theyre trying to get over the finish line on health care and get on to tax reform. So this is some breathing room for the republican agenda, the donald trump agenda, and that is reason for the president to be happy today, guys. And that is just where we want to go, with what it means for the agenda john thank you john harwood in georgia. Sticking with politics, House Speaker paul ryan pushing forward with a comprehensive Tax Reform Program calling for, quote, a transformational plan by the end of the year. They could face hurdles as they hope to push through Major Health Care legislation. Joining us is terry haines also david mack intosh conservative group super pac. Hold on. Theyll be successful in the next elections our polling shows that they can even go on offense against the Democratic Senators for obstructing all of that. But the key is if they fail to do it then Republican Voters will, in fact, stop. Thats the word. The voters and donors are saying, whats happening why isnt anything getting done . I think this election should let them segue to finish up the Health Care Bill in the senate and then the all important tax cut. What voters want and what businesses are looking for is a pro growth agenda. Cut the rates, change the territorial system so that we can compete around the world and youve promised for six elections, the economics shows the jobs will be created, economy will boom once again theyve got to come together and get the job done and finish it up by the end of this year frankly. Terry, are you a little more optimistic on the legislative calendar than you were, say, 48 hours ago . Yes, for a variety of reasons. Good morning, carl, sarah, david whos an old friend. Yes, for a variety of reasons. Weve had encouraging remarks from speaker ryan, Vice President pence, secretary mnuchin on this. What youve seen combined with the georgia results is a series of small events that combine to show that theres some real resolve here and some desire to finish it up our view is tax reform is 60 to 65 . Its the first or Second Quarter of 18 today i think the sweet spot is the First Quarter of 18 it is entirely possible as former senator mcintosh knows to get this going sooner. How do you game out the exact probabilities of health care when so far the senates version has been very secret Senate Leader Mitch Mcconnell has held it close to his vest. Yes, were supposed to get something, hopefully as soon as tomorrow, but how do you game out the probability without knowing whether all the factions within the Republican Party can get on it . I game out the probability because majority leader mcconnell has been telling his fellow senators that failure is not an option here and the majority leader has no ability to dictate a result in the senate, of course, but i think that these folks are galvanized and that they understand the ability to finish up the Affordable Care act frankly is the first step in a process that gets us to tax reform and gets us to that pro growth agenda that david mentioned. David, do you agree that it has to go through health care . Theres no detour around it in this case . No, among other things theres a big cut in the health care appeal. That will further stimulate the market, investment and pro Growth Opportunities in the country. We did some polling on this. Its binary. If the republicans pass an appeal, they can go on offense if they fail, theyll stay home in 2018. I think terrys called it right. Mcconnell has said failure is not an option. We have to get it done lets say we get through a vote next week does border adjustment remain an obstacle to consensus or not it is i think its probably the biggest obstacle right now its been floating out there for about a year speaker ryan did not mention it yesterday in his major speech. I was glad that the speaker stopped talking about it chairman brady still mentions it you can tell that it was losing ground when he said maybe well have to phase it in. The best thing for them is to drop it, bury it, give it a nice funeral and get on with the real pro growth tax elements in their bill theyve got very good rate cuts moving to a territorial system the expensing provision. One of the things weve proposed is do a 25year budget window. That lets you get stability and certainty for the markets about a lower tax regime that will increase investment and create jobs well see what happens. July 4th recess end of next week well see if they can get a Health Care Vote by then thank you both great to be with you. Lets get over to contessa brewer, get a news update at this hour. Hi there, carl. Queen elizabeth has outlined the governments legislative program in a speech to Parliament Following Prime Minister theresa may slimming down her plans and promising humility in negotiating brittains exit from the European Union my governments priority is to secure the best possible deal as the country leaves the European Union my ministers are committed to working with parliament to devolve administrations, business and others to build the widest possible consensus on the countrys future outside the European Union Prince Philip was admitted to a hospital overnight for treatment of an infection. Buckingham palace says it was a precautionary measure and that hes in good spirits the prince is 96 years old and has suffered heart ailment in the past. Firefighters continue to battle portugals deadliest fire which has killed 64 people so far. The fastmoving fire started saturday killing many people in their cars as they tried to flee the flames thats the cnbc news update for this hour. Back to you, carl. Thank you very much, contessa getting some inventory numbers lets get to jackie deangeles with numbers. These numbers are interesting. We had a draw down in crude of 2. 5 million barrels. A slight draw on gasoline. Little bit more than half a million barrels. Disti distillates of more than a million. The gains are capped even the draw downs that we got were not as steep as they could be at this time of the year, and thats what people are really focusing on. I will say this, another weather Storm Brewing in the gulf as well traders are saying theyre watching that closely to make sure it doesnt become a disturbance. We certainly are supported here, but thats not to say that certain folks dont think we could see that three handle. Right now were trading at 43. 87, a little bit higher than where we were when the report came out. Jackie, thank you very much. When we come back uber ceo Travis Kalanick is out and veeps executive producer tells us where he gets some of his comedic inspiration from. In the trump white house, the best source of comedic material . Look, its like having the Marx Brothers and the three stooges, i dont know, ucb, saturdsaturday night live all combined its hard to top the headliner, the president , but given a money by both mike pence and shaun spicer ill say. Will you ever let a real politician on veep no. You can catch the entire new season of binge on cnbc. The big story of the morning, uber ceo Travis Kalanick resigning from the company that he cofounded our deidre bosa joins us now was this bound to happen you know, some say the writing was on the wall. As you know, travis controls the board. Somebody may have survived this. Its going to be left up to a Management Committee of more than 10 employees. It includes, as you know, a very long list of empty positions after the exodus its not just kalanick, its ubers chief deal maker, amir michael. Jeff jones we couldnt fit them all on the graphic. The question now though is what does an uber 2. 0 world look like and one where we will not have a travis 2. 0 lrunning the company. That is what competitors are trying to figure out lyft for its part has not been sitting back watching the debacle. Its been raising money, signing more partners with the likes of waymo, jaguar, delta it is gaining ground in terms of market share as for the vc community which has pretty much thrown money at uber over the years, some of the people say ubers shakeup could make other startups, particularly in Silicon Valley, think about what internal governance, what internal controls they have particularly as they grow deidre, thank you very much covering the uber story out west. When we come back, media mogul Martha Stewart is with us. Well get her take on content, meal kits, her cooking show with snoop dogg and more. Dow is really stubbornly near the flat line up one point were back in a minute whoever threw it has to go get it. Not me somebody will get it. dog barking anyone can dream. Making it a reality is the hard part. From the b2 to the upcoming b21, Northrop Grumman stealth bombers give america an advantage in a turbulent world. And were looking for a few dreamers to join us. large boat honking im living that yacht life life life life top speed fifty knots life on the caribbean seas its a champagne and models potpourri on my yacht made of cuban mahogany gany, gany, gany watch this attention homeowners age sixtytwo and older. One reverse mortgage has a great way for you to live a better retirement. Its called a reverse mortgage. Call right now to receive your free information kit with no obligation. It answers questions like. 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I am a friend of jack ma. I visited his corporate offices several times and ive appeared at a huge conference he had in shanghai last year, exactly a year ago today, and i am a great admirer of what he has accomplished in encouraging sellers to find the buyers through alibaba, and thats really a simple Business Plan that alibaba has and its grown into a bohemoth company, one of the Largest Companies in the world, and jack is here in detroit because he is trying to encourage american makers to service with their products the Chinese Marketplace. Something youve actually been trying to do as well. Oh, yes yes. They have small kitchens in china. It doesnt matter we can adapt our products very nicely to the chinese home the rural family is now moving into the city and becoming the urban family there are 102 cities in china with a population over a million and in america we have only ten. Thats true can you imagine tell me about your own experience there in terms of trying to break into the Chinese Market i kid about the small kitchen. Its a real question youre trying to sell them stuff. They dont have places to put it. I visited a lot of the condominiums being built in beijing, outskirts and shanghai and they are actually making slightly larger Living Spaces than chinese have been used to with the increase and additional income that the families are earning, they can afford a larger apartment and they want them to come into the cities to fill the jobs that are so fast you know, growing so fast in china. Have you used the alibaba platform i have. What is your experience were selling the macys product on alibaba it is very good. We havent sold a lot yet, but we are selling more and more so its exciting. Do you agree with jack when he talks about this being a real opportunity. Hes talking about creating a million jobs from that right here in detroit there are young entrepreneurs who are dying to find marketplaces for their product, and they can grow quickly. They have a lot of people who need jobs here in detroit, for example, and if the Chinese Marketplace is a viable place for them to sell, can you imagine how many jobs it would encourage . So, yes, i do believe that he can do that. And we are big exporters of product here in america. We just need to make more product. We gave a lot of our products all our manufacturing away in the last 50 years because labor was cheaper elsewhere. Seems to be. Well, the tables are turning because now china has the per capita income is growing so they would like to see and they would like to have American Made product. Right so whats you just addressed the crowd here, about 3,000 people here. Yeah, great ougaudience. Whats the main message youre trying to get across . The main message i am encouraging american makers to sell via alibabas amazing platform to elsewhere in the world. Youve done it through the macys. Yeah. But its early days well, for american makers its early days. Yes, of course. But it isnt for other people in shanghai we saw a huge number of european makers, a huge number of makers from elsewhere in the world selling on alibaba. I mean, they are selling 550 billion worth of goods. Oh, no, theres no doubt. All over the world. Most of it is Small Businesses in china selling to other chinese. Its not necessarily fully international. I think its time to Pay Attention to the immense growth thats going on over there yeah. Well, there is no doubt as they become more of a consumer. Let me ask you a few things about you these days youve got a Meal Delivery business oh, yeah, martha and marley its Meal Delivery we are on amazon you can buy individual meals on amazon prime. Do you have to cook them . Yeah. Yeah yeah. Blue apron filed to go public. I know, how exciting. I dont understand the economics of the business. Right now how do you get to generating cash flow. The expense of the delivery, the packaging takes a long time to cook. Our meals, and theyre based on Martha Stewart recipes, tried and true recipes, delicious recipes, our meals about 9. 80 per person per meal. Its a lot less expensive than going out to any restaurant, even fast food restaurants you are not only learning how to cook if you dont cook already, you are getting exactly the amount of ingredients you need youre learning exotic foods, too, because we have a lot of international kinds of meals and it eliminates such a tremendous amount of waste. If you think of how much waste there is in an ordinary household, but even more importantly in all the Grocery Stores. Right. You know, the Grocery Stores, you put outlet tuss, for example, they put out tons of lettuce to have that beautiful display. A lot of it goes to waste. About 50 goes to waste. Portion sizes all right i triedapron, it was not enough food for my kids. Try Martha Stewarts. Its more with jeff bezos buying whole foods, youll see meal kits being sold through whole foods, for example. Its a nice way to utilize what is being sold in bulk in Grocery Stores and exact quantities for the homemaker. It saves you time, too let me finally ask you something given your experience, your long experience, relevant for so long as well, i mean, people are coming up to them look at them all taking pictures of you what would you tell travis kapernick right now. He still controls the business hes staying on the board his mother just died tragically. The guy has gone through some crap and he needs some time off he needs to think through the techniques. The fundounderled ceo i had the lead for five months, and guess what my company was as strong and tight when i came back and thats because people, the customers really want the product. And i think the customers will really want to continue with uber if they can straighten out the few difficulties that theyve had. Is i think its a service that is a very brilliant service. The idea of it is brilliant. Hes brilliant he just has to take some time and rethink. All right martha, we appreciate you stopping by, thank you thanks, dave. Martha stewart, back to you i like that with opinions on all the stories we cover here today, david thanks now a look at what is coming up next on squawk alley. Well cover the uber question from all angles. Is there a signal here for the rest of the control from uber . Well cover it all on squawk alley coming up and messy and fragile. But under the proper care, they become something beautiful. To err is human. To anticipate is lexus. Experience the lexus rx with advanced safety standard. Experience amazing. Welcome to holiday inn whether for big meetings or little getaways, there are always smiles ahead at holiday inn. 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And the dollar versus the yen, that adds to a better tone and a better mood for the overall month of june. Fedex had a nice reversal intraday a good forecast. Some people were saying some things muddled the picture, but overall in light of what transports to yesterday and today. We got the Inventory Data after dropping into what is a bear market down 20 from the high, dropping below 3 yesterday. Well watch that Energy Stocks are under pressure, but they have recovered a little bit of their losses after that Inventory Data when we come back, more on that big news out of uber. Travis kalanick out as ceo atmes for the future of the Company Straight ahead i put everything into my business. And i had all these points from my chase ink card. So i bought ingredients, utensils, even made custom donut cutters. Wow all with points. Thats how i created the ripple the doughnut in a doughnut in a doughnut. Suddenly its everywhere. I mean, it really took off. What will you create with your points . 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Performance driven by incyte, regeneration and that will do it for us good morning, its 11 00 a. M. On wall street. And squawk alley is live