Hope King: [MUSIC]
Hope King: Hello, everyone.
Hope King: Welcome to Cheddar brought to you by HP, I'm Hope King.
Brad Smith: I'm Brad Smith. Thank you so much for
Brad Smith: being here on this marvelous Monday?
Hope King: Not a marvelous Monday-
Brad Smith: Not at the markets, yeah.
Hope King: For the markets-.
Brad Smith: But not the market, yeah.
Hope King: Marvelous for us, but not for the markets.
Hope King: We're an hour away from the close,
Hope King: and so far the markets are having a meltdown.
Hope King: They've got a case of the Mondays and a bad one at that.
Hope King: Apple shares are falling
Hope King: and dragging down the tech sector after
Hope King: one facial recognition technology company
Hope King: cut it's outlook and another company out of Japan,
Hope King: a display company cut it's outlook as well.
Hope King: The tech sector getting
Hope King: absolutely smashed at this moment.
Hope King: Lumentum is one of the suppliers we're talking about.
Hope King: Their customer base is made up 30 percent of
Hope King: Apple and this company asked- well,
Hope King: said, that Apple asked it to
Hope King: materially reduce shipments for its products.
Hope King: Now, the company didn't name Apple specifically,
Hope King: but because we know Apple is
Hope King: 30 percent of their business and their largest,
Hope King: well, we know of course that it is Apple.
Hope King: Amazon also in focus today.
Hope King: That's Lumentum, by the way.
Hope King: This is down 31 percent on the day.
Hope King: Total bummer. The other big company in focus today,
Hope King: a big tech company called Amazon.
Hope King: It's officially in bear market territory.
Hope King: That stock is down about 20% from its all
Hope King: time high which happened back on September 4th.
Hope King: We get a chart of that.
Hope King: Look at that right now, 3.7
Hope King: percent on the decline here for the day.
Hope King: And then, Goldman Sachs,
Hope King: a big Dow component, Goldman Sachs,
Hope King: those shares are down sharply,
Hope King: I think about seven percent, the last I checked.
Hope King: Bloomberg is reporting that
Hope King: Malaysia's finance minister said
Hope King: the country is seeking a full refund of all the fees it
Hope King: paid to Goldman Sachs for
Hope King: arranging billions of dollars of deals
Hope King: for the troubled state fund and is
Hope King: still down about seven percent right now.
Brad Smith: Absolutely. We're also monitoring tobacco stocks.
Brad Smith: Shares of British American Tobacco are
Brad Smith: sliding after the Wall Street Journal on Friday
Brad Smith: reported that the FDA was
Brad Smith: planning to propose a ban on menthol cigarettes.
Brad Smith: Take a look at the shares here of the 80 on the day,
Brad Smith: trading much lower down about eight percent right now.
Brad Smith: Also another big name that we're tracking here today, GE,
Brad Smith: taking a hit after CEO Larry Culp
Brad Smith: told CNBC in an interview
Brad Smith: that he feels the urgency and
Brad Smith: will sell assets to raise cash.
Brad Smith: Taking a look at shares of GE,
Brad Smith: of course one of the few original Dow stocks
Brad Smith: in the Dirty Dozen,
Brad Smith: that is down a seven percent.
Brad Smith: And of course, this follows them
Brad Smith: getting booted from the Dow earlier this year,
Brad Smith: so really bad times in GE land right now.
Hope King: Yeah. Power business not doing so well.
Hope King: Their biggest and oldest business.
Hope King: Okay. Turning over to the energy sector,
Hope King: oil price is not able to hold onto gains.
Hope King: Crude posting its longest losing streak on record.
Hope King: Prices were higher earlier in the day after
Hope King: Saudi Arabia and OPEC said,
Hope King: all of them decided they need- needed to take
Hope King: a little bit of a cut in their
Hope King: oil production in December.
Hope King: Shares of a Pacific Gas and Electric and
Hope King: Edison are under pressure right now.
Hope King: Electric utility companies dealing also with
Hope King: the fallout of wildfires in California.
Hope King: So there was a bit of good news there for oil prices
Hope King: because the supply was going to
Hope King: be throttled just a little bit.
Hope King: And then, over here in the US because of the wildfires,
Hope King: we're seeing other depression. So there's-
HOPE KING: There are so many factors right now, uh,
HOPE KING: that are contributing to these big losses
HOPE KING: here on the market.
HOPE KING: We are down almost 500 points at this point.
HOPE KING: 483 right now the Dow is seeing losses at this moment.
HOPE KING: So, we'll be continuing to
HOPE KING: track that throughout the rest of the show,
HOPE KING: which by the way, we have a jam, jam-packed show.
HOPE KING: So, let's check out what is on tap today
HOPE KING: for the rest of these two hours.
HOPE KING: We'll be joined by Congressman Harley Rouda
HOPE KING: taking- taking the US House seat for California,
HOPE KING: defeating 15 term Republican Dana Rohrabacher.
HOPE KING: Plus Cheddar's own Jon Steinberg caught up
HOPE KING: with Twitter's CFO Ned Segal.
HOPE KING: And Lyft donating a million dollars
HOPE KING: to the United Service Organization.
HOPE KING: We speak to the head of social impact.
HOPE KING: I'd love to hear what the ride
HOPE KING: sharing company is doing for veterans,
HOPE KING: Veterans Day being yesterday.
BRAD SMITH: And remember, if you have any questions
BRAD SMITH: for us or for our guests,
BRAD SMITH: you can tweet them to us or use the #CHEDDARLIVE.
BRAD SMITH: We'd love to engage with you directly.
HOPE KING: That's right, we're live now on Twitter.
HOPE KING: Okay, guys, on to our big stories of the day,
HOPE KING: another longtime Snap Executive is leaving the company.
HOPE KING: Our own Alex, he is breaking the news earlier today that-
HOPE KING: that the company's VP of content Nick Bell,
HOPE KING: is departing as part of a reorg of
HOPE KING: Snap's content team under
HOPE KING: the company's new chief strategy officer.
HOPE KING: Bell, has been with the company since 2014.
HOPE KING: He led the development of
HOPE KING: Snapchat Discover and live video.
HOPE KING: He also recently launched
HOPE KING: a slate of original programming.
HOPE KING: Bell, is the latest in a long list of executives to leave
HOPE KING: Snap since it went public in early 2017.
HOPE KING: But again, it looks like the reorg has
HOPE KING: a lot to do with why he is leaving.
HOPE KING: Media is back in focus now for Snap.
HOPE KING: The company just announced a new type of way for
HOPE KING: media companies to curate posts from individuals.
HOPE KING: Now we know that for the most
HOPE KING: part people who post on Snap,
HOPE KING: are posting it to their friends, or to groups of friends.
HOPE KING: They're not public facing
HOPE KING: like Twitter and Facebook posts are.
HOPE KING: Now by doing this, by allowing media companies
HOPE KING: to come in and curate some of these posts,
HOPE KING: you actually get a good blend
HOPE KING: of those private posts and also public posts.
HOPE KING: It is part of their big strategy to try to win
HOPE KING: back users and try to
HOPE KING: get engagement back onto its platform.
BRAD SMITH: This is at a time where Snap continues to
BRAD SMITH: boost all of the time spent on the platform.
BRAD SMITH: And what this content is doing for them,
BRAD SMITH: you think about the stats
BRAD SMITH: that they've thrown out there recently,
BRAD SMITH: ten million unique viewers for these shows,
BRAD SMITH: these monthly audiences that they're trying to boost.
BRAD SMITH: Those 10 million unique viewers,
BRAD SMITH: 12 of which are original productions for these shows,
BRAD SMITH: these 18 shows that they've been able to generate.
BRAD SMITH: And so, as a platform they
BRAD SMITH: continue to throw this stat out
BRAD SMITH: there that they've grown the amount of
BRAD SMITH: total time spent engaging with their shows product,
BRAD SMITH: almost tripling since the beginning of the year.
BRAD SMITH: And so, their audience, for publisher stories that's
BRAD SMITH: also increased 20 percent, year over year.
BRAD SMITH: Just a few of the numbers to
BRAD SMITH: try and wrap your head around,
BRAD SMITH: but at the same time,
BRAD SMITH: time spent on the platform is only as good
BRAD SMITH: as your ability to put revenue
BRAD SMITH: behind that time spent as well and that's why
BRAD SMITH: we always look at that average revenue
BRAD SMITH: per user who's on the platform for Snap because it
BRAD SMITH: is a user who has not
BRAD SMITH: quite come into the purchasing power,
BRAD SMITH: similar to some of the other platforms.
HOPE KING: Now also, because they can't get
HOPE KING: people to join the platform and to stay on.
HOPE KING: The company lost two million users,
HOPE KING: quarter over quarter in the latest earnings report.
HOPE KING: Uh, it's not a good trend to have
HOPE KING: when people are- are-
HOPE KING: are leaving the platform and so you-
HOPE KING: you need to have ways to keep
HOPE KING: them engaged and reasons to come on.
HOPE KING: So, for it's unique content like this,
HOPE KING: then maybe, that'll work.
HOPE KING: But it's coming at a very,
HOPE KING: very difficult time for Snap right now.
HOPE KING: And Instagram is stealing all of
HOPE KING: their features and stealing
HOPE KING: all of their daily active users.
BRAD SMITH: Right. And the maturation of those viewers,
BRAD SMITH: doesn't favor Snapchat in this particular instance.
BRAD SMITH: As you mentioned, Instagram is stealing them.
BRAD SMITH: And so, what does Snapchat have to do?
BRAD SMITH: What can they do at this point to
BRAD SMITH: generate a product that is going to have
BRAD SMITH: the retention that's necessary to see- to see
BRAD SMITH: this company continue to
BRAD SMITH: succeed in a public market standpoint.
BRAD SMITH: You look at Snap shares today,
BRAD SMITH: they're down another two percent and it's at
BRAD SMITH: a time where there is increasing talk about Facebook,
BRAD SMITH: what they might be rolling out.
BRAD SMITH: And we'll dive into some of
BRAD SMITH: those stories in a moment here.
BRAD SMITH: But there, you are taking a look at Snap shares down more
BRAD SMITH: than 1.7 percent here on the day.
BRAD SMITH: So, taking a hit on
BRAD SMITH: yet another loss in the terms of the executive team.
BRAD SMITH: Moving right along here.
BRAD SMITH: We mentioned Facebook, so let's go there.
BRAD SMITH: Facebook's website is back up and running
BRAD SMITH: after experiencing an outage earlier today.
BRAD SMITH: Twitter lit up with reports around 1:00 PM Eastern time,
BRAD SMITH: with users not being able to
BRAD SMITH: access the social media site on Monday.
BRAD SMITH: Because what do you do when Facebook's down,
BRAD SMITH: you go to Twitter, right?
HOPE KING: Right.
BRAD SMITH: The outage appeared to be concentrated mostly on
BRAD SMITH: the East Coast and lasted approximately 30 minutes here.
BRAD SMITH: All right, so there you're seeing
BRAD SMITH: the error message that a lot of people saw here.
BRAD SMITH: We've talked a lot about what happens,
BRAD SMITH: the natural flow from users from one platform to another.
BRAD SMITH: When there is an outage like this,
BRAD SMITH: and what do they all do,
BRAD SMITH: they go to Twitter and they tweet about it.
BRAD SMITH: "Hey, anybody else having this issue?"
BRAD SMITH: Is the question that you see up on there.
BRAD SMITH: But this is on a day where
BRAD SMITH: much of the broader tech names are down.
BRAD SMITH: So, Facebook's not visibly seeing any wear,
BRAD SMITH: tear on their stock price as a result of it.
BRAD SMITH: At least, not more so than what we've already
BRAD SMITH: seen on the table
BRAD SMITH: today in terms of losses for the company.
HOPE KING: Yeah. Exactly. And if you take a look at a down to
HOPE KING: sector map for the outage reports.
HOPE KING: Downdetector is the website that looks at where a service
HOPE KING: might not be fully up and running
HOPE KING: based on the type of complaints that they get.
HOPE KING: It looked like it was concentrated here primarily in
HOPE KING: the north east region of the US,
HOPE KING: but also weirdly in Peru.
HOPE KING: On the west coast of Peru,
HOPE KING: these were where the complaints were coming from.
HOPE KING: If you looked at Downdetector
HOPE KING: and looked at the status there of Facebook.
HOPE KING: So, it's of course,
HOPE KING: unknown why the Facebook platform
HOPE KING: went down to the website specifically,
HOPE KING: but this tends to happen from time to time.
HOPE KING: And actually, I feel like in the last month or so,
HOPE KING: this is the second time
HOPE KING: that Facebook in- in some way has gone down.
HOPE KING: I think the app was not working a couple of weeks ago.
HOPE KING: So, we'll continue to track that.
HOPE KING: But as of now, it looks like most of the service that
HOPE KING: people have complained about being
HOPE KING: down are now back online.
BRAD SMITH: Yeah.
HOPE KING: All right, sticking with Facebook here.
HOPE KING: The social media giant is taking on TickTok.
HOPE KING: Do not know what TickTok is?
HOPE KING: We'll explain in a second. Social media giant,
HOPE KING: is launching this music video app.
HOPE KING: It's called Lasso.
HOPE KING: Now TickTok and Lasso are very, very similar.
HOPE KING: Both of these cater toward teens.
HOPE KING: And what you do on these apps is you share videos.
HOPE KING: And it could be you, it could be somebody else,
HOPE KING: and you're dancing and singing to very popular songs.
HOPE KING: Now Lasso, is a separate app.
HOPE KING: I downloaded it on my Facebook
HOPE KING: just a couple of minutes ago.
HOPE KING: And according to some of the reports right now,
HOPE KING: it looks like it does have a very big music library.
HOPE KING: There will be hashtags of course and
HOPE KING: challenges and you can share
HOPE KING: directly to your Facebook story.
HOPE KING: And this move by Facebook is just another way that
HOPE KING: the company is trying to win
HOPE KING: back some of its younger users.
HOPE KING: We know that right now Facebook is losing
HOPE KING: popularity with some of its teen users.
HOPE KING: But will it be actually successful?
HOPE KING: We don't know. So, I
HOPE KING: downloaded it, I haven't tried it yet.
HOPE KING: But if you don't know what TickTok is,
HOPE KING: it's wildly, wildly successful.
HOPE KING: It's got a 4.7
HOPE KING: star rating right now on the Apple app Store.
BRAD SMITH: Yeah.
HOPE KING: More than 580,000 people have
HOPE KING: rated this 4.7 stars
HOPE KING: which means that it's a pretty good rating.
HOPE KING: And according to the Apple store,
HOPE KING: this is the number one.
HOPE KING: TickTok is not Lasso because it just came out.
BRAD SMITH: All right.
HOPE KING: TickTok is the number one photo and video
HOPE KING: app right now in that category.
HOPE KING: So, yet again, maybe an attempt for Facebook to test out
HOPE KING: a feature without messing up
HOPE KING: the rest of the Facebook ecosystem.
BRAD SMITH: Right.
HOPE KING: But if it does do well maybe,
HOPE KING: you'll see it in messenger or on Instagram stories.
BRAD SMITH: And for those who of that don't
BRAD SMITH: know TickTok was formerly Musically.
BRAD SMITH: The app that I know I've gotten into
BRAD SMITH: before because I'm all about making the music videos.
BRAD SMITH: Music videos. Exactly.
BRAD SMITH: Hit them with the angles and
BRAD SMITH: there you go, you're lip syncing.
BRAD SMITH: So, that was a past life for me.
BRAD SMITH: Guys, coming up, [LAUGHTER] we will speak with
BRAD SMITH: the winner of California's 48th District.
BRAD SMITH: Stay here. You're watching Cheddar.
BRAD SMITH: [MUSIC]
BRAD SMITH: [MUSIC] Welcome back to Cheddar
BRAD SMITH: everybody brought to you by HP. I'm Brad and that's Hope.
HOPE KING: Uh, we started the show early though.
BRAD SMITH: I mean, well, let's bring them back.
HOPE KING: Yes, bring it back.
HOPE KING: And with us now Harley Rouda one of
HOPE KING: California's newest congressman pronounced
HOPE KING: the victor over the weekend
HOPE KING: following the heated midterm elections.
HOPE KING: Peter King is live in D.C. with him now. J.D.
J.D: Yeah, thanks a lot Hope and Brad good to be with you.
J.D: Joining me now Congressman elect
J.D: Harley Rouda just elected at
J.D: least according to The Associated Press and
J.D: a handful of others in California's 48.
J.D: Congressman elect really a pleasure to have you on.
J.D: First I will say congratulations.
J.D: I want to start with ah, a bit
J.D: of news of the day that pertain
J.D: specifically to the area of the country that you
J.D: come from of course these deadly forest fires?
J.D: Congressman let me get your reaction to
J.D: the president's tweet this weekend and we'll pull it up.
J.D: You certainly know what he says.
J.D: By now he says this, "There is no reason for
J.D: these massive deadly and
J.D: costly forest fires in California
J.D: except that forest management is
J.D: so poor remedy now or no more federal payments."
J.D: Congressman elect Rouda your response?
RUDA: Well, it's disappointing on so many different levels.
RUDA: First of all we used to live in Malibu with my family.
RUDA: Many of our friends have lost their homes.
RUDA: The devastation is incredible
RUDA: and for the president of the United States to
RUDA: offer that up as the best he can do
RUDA: for leadership is a tremendous disappointment.
J.D: Do you see this as being the latest fight
J.D: between the Trump administration
J.D: and the State of California?
J.D: It's been a bit of a proxy battle
J.D: since the day he's taken office.
J.D: Do you see this and this threat perhaps of
J.D: withdrawing federal funds of simply
J.D: being the next iteration of the president,
J.D: trying to take our policies on your state?
RUDA: I do though and this is a time for leadership.
RUDA: This is a time to step up and show that you
RUDA: have one ounce of empathy in your entire being,
RUDA: and instead he uses this as
RUDA: an opportunity to insult Californians,
RUDA: insult firefighters,
RUDA: insult those families who have lost lives property.
RUDA: Incredible devastation,
RUDA: and these these tweet tantrums that show
RUDA: him acting as a temperance small child has to stop.
J.D: Uh, we have ah,
J.D: we've seen much of the conversation
J.D: in recent days around this issue as
J.D: to whether or not you can attribute
J.D: these in any degree to climate change.
J.D: We know where the Trump administration falls on this.
J.D: Congressman elect Rouda, where do you think
J.D: the Trump administration's stance on climate change
J.D: falls leaves the president on
J.D: this crucial issue and how does that
J.D: play a role with the fires we're seen?
RUDA: Well, they certainly- climate change is certainly causing
RUDA: changes in weather patterns that
RUDA: are causing bigger, greater,
RUDA: nastier storms as well as the fires here in
RUDA: California and unfortunately our president denies,
RUDA: uh basic science that the vast majority 97 percent of
RUDA: climate change scientists recognize
RUDA: this is a real issue and uh,
RUDA: it would be better to see our country take
RUDA: a leadership role in
RUDA: addressing climate change and creating
RUDA: the new industries and new jobs that will have to be
RUDA: created to address this issue for the sake of humanity,
RUDA: and that's why I'm excited with our new Congress that if
RUDA: the president won't do it in concert with
RUDA: Congress and Congress will march ahead without him.
J.D: I want to ask you one more news of the day question,
J.D: the president catching quite a bit
J.D: of criticism for missing
J.D: out on this World War one
J.D: Memorial specifically on Saturday.
J.D: Of course the White House citing
J.D: weather and rain concerns Congressman
J.D: elect Rouda you know just well as I do a lot of
J.D: Democrats have been crying foul over this.
J.D: Is this a big deal?
HARLEY ROUDA: You know on one hand it is unfortunate that our veterans,
HARLEY ROUDA: some of our veterans feel slighted by
HARLEY ROUDA: his unwillingness or inability to show up.
HARLEY ROUDA: Uh, but I do think as a country we need to
HARLEY ROUDA: stay focused on the bigger issues.
HARLEY ROUDA: The one we just talked about, climate change being
HARLEY ROUDA: one of them and- and not
HARLEY ROUDA: provide distractions from those key issues
HARLEY ROUDA: and his not attending that,
HARLEY ROUDA: uh, event creates another distraction.
J.D. DURKIN: In your home district 48
J.D. DURKIN: of the great state of California,
J.D. DURKIN: you knocked off a nearly 30 year Republican incumbent.
J.D. DURKIN: Uh, you know just well as I do this is
J.D. DURKIN: historically speaking, Republican territory.
J.D. DURKIN: Anyone who watched the West Wing
J.D. DURKIN: certainly knows that from when
J.D. DURKIN: Sam Seaborne threw his hat into the Congressional ring.
J.D. DURKIN: How did you beat a 30 year incumbent?
HARLEY ROUDA: Yeah, Sam was the only other Democrat
HARLEY ROUDA: that's ever won this district and he was,
HARLEY ROUDA: uh, fictional. Uh, listen.
HARLEY ROUDA: We did it by doing
HARLEY ROUDA: the hard work of creating a grassroots support,
HARLEY ROUDA: being moderate on the issues,
HARLEY ROUDA: showing that there is opportunity,
HARLEY ROUDA: we don't have to live based on fear.
HARLEY ROUDA: And that resulted 5,000 plus
HARLEY ROUDA: volunteers knocking on doors, getting our message out.
HARLEY ROUDA: Making it clear that we
HARLEY ROUDA: could fight against climate change,
HARLEY ROUDA: we can embrace our diversity,
HARLEY ROUDA: we can be a better, uh,
HARLEY ROUDA: people and a better country than
HARLEY ROUDA: what we were seeing from our leadership
HARLEY ROUDA: in both Donald Trump and Dana Rohrabacher,
HARLEY ROUDA: and that's why we won.
J.D. DURKIN: If I'm not mistaken, Congressman Rohrabacher
J.D. DURKIN: has yet to officially concede.
J.D. DURKIN: What do you make of that and have
J.D. DURKIN: you spoken with the congressman?
HARLEY ROUDA: I have not spoken with him and he has not conceded.
HARLEY ROUDA: And, uh, I can't answer why he hasn't.
HARLEY ROUDA: That would be a question
HARLEY ROUDA: that he would be there to answer.
J.D. DURKIN: Ah, Secretary Hillary Clinton became
J.D. DURKIN: the first Democratic presidential nominee to
J.D. DURKIN: carry Orange County since the Great Depression.
J.D. DURKIN: You knocked off a 30 year Republican incumbent.
J.D. DURKIN: Do you simply see this as
J.D. DURKIN: the demographics in Orange County,
J.D. DURKIN: California shifting increasingly blue, and, uh,
J.D. DURKIN: what is your message to longstanding
J.D. DURKIN: Republicans who do live in the district,
J.D. DURKIN: who may see a lot of
J.D. DURKIN: their core conservative values getting
J.D. DURKIN: lost perhaps if they have those concerns?
HARLEY ROUDA: Yeah, I think demographics are part of it.
HARLEY ROUDA: But I think the bigger issue is that
HARLEY ROUDA: the Republican Party has moved so far to the right.
HARLEY ROUDA: I used to be a Republican.
HARLEY ROUDA: I left in the 1990s and back then and before you
HARLEY ROUDA: had Republicans who
HARLEY ROUDA: believed in environmental stewardship,
HARLEY ROUDA: who believed in women's rights,
HARLEY ROUDA: who believed in civil rights,
HARLEY ROUDA: who believed in voting rights,
HARLEY ROUDA: who believe in reducing the deficit.
HARLEY ROUDA: And all of those issues have been placed on
HARLEY ROUDA: the back burner or
HARLEY ROUDA: worse by the current Republican leadership.
HARLEY ROUDA: And that's why we're seeing so many Republicans move to
HARLEY ROUDA: independent status and in
HARLEY ROUDA: many of them also supported
HARLEY ROUDA: our campaign which we're very proud of.
J.D. DURKIN: Congressman like you will, uh,
J.D. DURKIN: soon be sworn in,
J.D. DURKIN: presumably here in just a couple of months time as
J.D. DURKIN: an official member of the 116th United States Congress.
J.D. DURKIN: Democrats in the House of Representatives are
J.D. DURKIN: already using the I word, impeachment.
J.D. DURKIN: There's talks of increased oversight.
J.D. DURKIN: How hard should Democrats be pressing on this issue?
HARLEY ROUDA: I think [inaudible 00:19:57] talked to you.
HARLEY ROUDA: But for me personally my opinion is I want to see
HARLEY ROUDA: Mueller's investigation have the time
HARLEY ROUDA: to have the appropriate depth and breadth it deserves.
HARLEY ROUDA: Let's see what that says and then
HARLEY ROUDA: let's see what needs to be done.
HARLEY ROUDA: There are so many important issues affecting our country,
HARLEY ROUDA: I'm hoping we can find the opportunity to work in
HARLEY ROUDA: a bipartisan way to address
HARLEY ROUDA: these issues that affect our country and our communities.
J.D. DURKIN: Ah, finally here Congressman elect.
J.D. DURKIN: Last Wednesday morning there's wide ranging
J.D. DURKIN: at times wildly contentious press conference.
J.D. DURKIN: The president seemed to me
J.D. DURKIN: to try and be striking a deal with Democrats.
J.D. DURKIN: So as if to say Democrats control the House consider,
J.D. DURKIN: uh, consider holding back some of the oversight,
J.D. DURKIN: some of the investigations work.
J.D. DURKIN: We can work together, right?
J.D. DURKIN: There's health care, uh,
J.D. DURKIN: that has bipartisan concerns,
J.D. DURKIN: issues that the Affordable Care Act
J.D. DURKIN: certainly infrastructure.
J.D. DURKIN: Are you as an incoming member of Congress
J.D. DURKIN: perhaps willing to pull some punches on
J.D. DURKIN: the Oversight Investigation subpoenas
J.D. DURKIN: if it means being able
J.D. DURKIN: on the other hand to deliver
J.D. DURKIN: some much needed win to your constituents?
Harley Rouda: I think we have to look at it as what
Harley Rouda: our obligations are under
Harley Rouda: Article 1 of the Co- Constitution.
Harley Rouda: And certainly there is latitude there.
Harley Rouda: But within that latitude is
Harley Rouda: also appropriate restraint to,
Harley Rouda: you know, I go back to what I said before,
Harley Rouda: putting country and community first.
Harley Rouda: So, you know, we can't be going to Congress with
Harley Rouda: the primary purpose of spending,
Harley Rouda: uh, the next two years with
Harley Rouda: subpoenas and impeachment process.
Harley Rouda: We need to make the primary effort to
Harley Rouda: find bipartisan support for
Harley Rouda: appropriate legislation to address
Harley Rouda: the many issues affecting our country.
Harley Rouda: And, you know, if, uh,
Harley Rouda: investigations need to take
Harley Rouda: place it likely will take place, uh,
Harley Rouda: for certain aspects of the conduct of
Harley Rouda: the behavior of the president and- and those,
Harley Rouda: ah, closely associated with that conduct and behavior,
Harley Rouda: then that also needs to be done under Article 1.
MALE_1: Congressman elect Harley Rouda of
MALE_1: the Democrat from California's 48th.
MALE_1: First of all sir, congratulations to you.
MALE_1: We send our best to the greater Los Angeles community,
MALE_1: our very best wishes to everyone there.
MALE_1: And, ah, we'll see you in Washington soon enough.
Harley Rouda: Thank you.
JD Durkin: All right. Hope and Brad back to you in New York.
Brad Smith: Excellent, stuff there that was Chadder's own JD Durkin
Brad Smith: live in Washington DC. Thanks so much JD.
Hope King: All right. Good staff. Coming up one on one with
Hope King: Twitter CFO [MUSIC] we talk user numbers,
Hope King: fighting election misinformation,
Hope King: video ads and so much more.
Hope King: [MUSIC]
HOPE KING: [MUSIC] Hello, everybody. Welcome back to Cheddar.
HOPE KING: Brought to you by HP.
BRAD SMITH: Watching user growth, the rise of video advertising,
BRAD SMITH: and keeping false information off the platform.
BRAD SMITH: Cheddar CEO, John Steinberg sat down
BRAD SMITH: with Ned Segal who's the CFO of Twitter,
BRAD SMITH: to talk all of those issues and much more. Take a look.
JOHN STEINBERG: I watched your CNBC interview right after earnings.
JOHN STEINBERG: And you're going through the same MAU/DAU discussion and
JOHN STEINBERG: debate and now you guys are trying to focus on
JOHN STEINBERG: the fact of DAU growth as opposed to MAU growth.
JOHN STEINBERG: Why not just end the whole conversation
JOHN STEINBERG: around this DAU, MAU thing?
JOHN STEINBERG: You know, if Apple can stop publishing unit sales,
JOHN STEINBERG: why- why don't you guys just
JOHN STEINBERG: terminate the conversation around this?
NED SEGAL: Both of the numbers are helpful in different ways.
NED SEGAL: MAU is higher up in the funnel.
NED SEGAL: It gives you a sense for what's happening?
NED SEGAL: Who's coming to Twitter on a monthly basis?
NED SEGAL: It's also more inclusive, than DAU because,
NED SEGAL: it includes people who get Twitter
NED SEGAL: through our non owned
NED SEGAL: and operated properties so they
NED SEGAL: get it through something else.
NED SEGAL: They get a text message and it
NED SEGAL: gives you a sense for some of the ways that we
NED SEGAL: can grow our daily active users or
NED SEGAL: through that base of MAU.
NED SEGAL: DAU, of course those are the people who comes
NED SEGAL: our owned and operated properties who see ads every day.
NED SEGAL: There are two ways to grow DAU.
NED SEGAL: One is inside of MAU.
NED SEGAL: We've said that, today well less than half of
NED SEGAL: our DAU- our DAU represents well
NED SEGAL: less than half of our MAU and then,
NED SEGAL: we obviously can grow DAU outside of the MAU base.
NED SEGAL: It's the same work that ought to drive both of them.
NED SEGAL: I- I'm not sure when we think about ending the debate.
NED SEGAL: We're trying to give people information that helps them,
NED SEGAL: make decisions about whether
NED SEGAL: they should buy or sell our stock.
NED SEGAL: That's been one that we've provided MAU since the IPO.
NED SEGAL: We think every quarter about
NED SEGAL: our disclosure of various metrics.
NED SEGAL: We always say there's a high bar to
NED SEGAL: make changes and there's an even higher bar to make
NED SEGAL: changes in the middle of a year
NED SEGAL: because we want to give people
NED SEGAL: the opportunity to compare one period to another.
NED SEGAL: But when we talk about the business,
NED SEGAL: we try to talk about a lot more than just MAU and DAU,
NED SEGAL: so that people understand,
NED SEGAL: how we think about the opportunity in front of us,
NED SEGAL: and how many more people there are and that
NED SEGAL: should be using Twitter that aren't today.
JOHN STEINBERG: Well, because you know, because even to
JOHN STEINBERG: David Faber's point, you know,
JOHN STEINBERG: we we can look back as far as
JOHN STEINBERG: Dick Costolo when when the conversation around
JOHN STEINBERG: better onboarding and I watch your
JOHN STEINBERG: interview better ways to follow people.
JOHN STEINBERG: You know, it just seems like,
JOHN STEINBERG: that's a continual- tha-
JOHN STEINBERG: that's never going to work for the business.
JOHN STEINBERG: Everything else is working for
JOHN STEINBERG: the business and how many years
JOHN STEINBERG: of of trying to say we're going to
JOHN STEINBERG: make Twitter easier are we gonna have,
JOHN STEINBERG: when everything else is going so well in the business.
JOHN STEINBERG: Why not just concede that point? I- I guess.
JOHN STEINBERG: I mean, I- I'm trying to make a
JOHN STEINBERG: positive here not a negative really.
NED SEGAL: We think about it differently.
NED SEGAL: We feel like we've made tons of progress on
NED SEGAL: the service over the last couple of years.
NED SEGAL: and there are lots of ways that you can see it.
NED SEGAL: It can be through your own experience on the platform,
NED SEGAL: where it's easier to tweet,
NED SEGAL: it's easier to find things,
NED SEGAL: it's easier to get into an event,
NED SEGAL: experience around the World Cup,
NED SEGAL: or a political campaign or something
NED SEGAL: else that's happening that you come
NED SEGAL: to Twitter to find out about.
Ned: So, there's- that we feel like we've made tons of
Ned: progress and one great way to uh,
Ned: demonstrate our progress is you
Ned: look at the DA you growth which has been
Ned: between nine and 14 percent
Ned: for each of the last eight quarters.
Ned: It feels like those improvements that we've
Ned: made continue to compound to
Ned: make the experience better both with people who are on
Ned: the platform but also
Ned: for those who are new to the platform.
Jon: Video ads on fire uh,
Jon: 50 percent of the ad revenue in the past quarter.
Jon: It reminds me almost of the Facebook shift in mobile,
Jon: the Twitter shift to video advertising.
Jon: What is propelling that rapid growth in the business?
Ned: So we've now had four straight quarters
Ned: where videos have been more than half of
Ned: our ad revenue and we expect that to be
Ned: this- the case consistently as we look ahead.
Ned: Ah, we've come out with better ad formats, first of all.
Ned: So, if you can watch a six second video
Ned: on Twitter that you can click through to get to an app,
Ned: that you can click through to get to a website,
Ned: that you can watch a pre roll ad
Ned: before any live content on the platform.
Ned: Those tend to just be uh,
Ned: better experiences for the people who are watching
Ned: them and there is a better RY for advertisers.
Ned: So, one better ad formats.
Ned: Two, we're doing a better job driving relevance.
Ned: Where we're just showing ads
Ned: that make more sense that people who are
Ned: watching them are often they feel like they're part of
Ned: the experience and not attacks on,
Ned: on their time on the platform.
Ned: And then three, we're doing a much better job
Ned: talking to advertisers, talking to agencies,
Ned: explaining the value of using video as a way
Ned: to reach their customers
Ned: when they're most receptive on Twitter.
Ned: So, wer- we've been working on this for well over a year.
Ned: We've seen some real success
Ned: around the new formats and we
Ned: expect to see continued strength
Ned: from video advertising on the platform.
Jon: Election manipulation and harassment that concerns
Jon: about those across all social media platforms while,
Jon: while no doubt uh,
Jon: terrible and need to be corrected
Jon: from a societal perspective.
Jon: It doesn't seem like that
Jon: needs to be something that should
Jon: concern investors from
Jon: a financial perspective about the platform.
Jon: Is that, is that accurate?
Ned: Well, I- I'll just take you back if you think more
Ned: broadly about our work around health.
Ned: It's our number one priority when we're resourcing.
Ned: It's our number one priority from
Ned: a mindset perspective because
Ned: ultimately we think that the health of
Ned: the platform is a growth factor.
Ned: And if we have a Twitter that people can trust,
Ned: if people feel safe interacting with others and offering
Ned: their perspectives on Twitter and
Ned: consuming other people's perspectives ah,
Ned: then the platform will grow up, more people using it.
Ned: They'll come back more frequently
Ned: and they'll stay longer when we're there.
Ned: We're really proud of the work that
Ned: we've done around elections.
Ned: More broadly you saw it around the midterms
Ned: here in the U.S. but also in ah,
Ned: Brazil and Mexican presidential elections
Ned: recently where our adds
Ned: Transparency Center is a place
Ned: where you can go to see who's advertising,
Ned: what they're seeing, even how much they're
Ned: paying to reach an audience on Twitter.
Ned: It's unprecedented ah,
Ned: transparency which we're really proud of.
Ned: We've also made it clear who th- the candidates are.
Ned: So, people can't impersonate candidates.
Ned: This is just gonna be an ongoing [OVERLAPPING] effort on
Ned: our part but it's worked out we feel really good about.
Ned: And when we think about how investors ought to think
Ned: about this from a resourcing perspective
Ned: or how it impacts the business,
Ned: it's all incorporated into our guidance and
Ned: our thinking around our long term margin targets.
Ned: We're really able to benefit at Twitter from
Ned: the fact that the platform is public,
Ned: and open, and real time.
Ned: So, we get signal from
Ned: the platform that allows us to adjust and
Ned: learn and make sure that we're
Ned: providing a safe place for
Ned: people to interact on the platform.
Jon: Is there one or two things,
Jon: one or two perceptions that you- you or
Jon: misperceptions that you wish you could correct?
NED SEGAL: I don't know if there are misperceptions,
NED SEGAL: but I'll tell you a couple of things that
NED SEGAL: sometimes people ask us about,
NED SEGAL: and [OVERLAPPING] how we think about.
NED SEGAL: The first is, when you look at
NED SEGAL: 326 million monthly active users
NED SEGAL: of the platform and you think about the whole world,
NED SEGAL: there's so many more people who can benefit from what's
NED SEGAL: happening on- on Twitter than do today.
NED SEGAL: Those two million or more users who come to
NED SEGAL: Twitter everyday that haven't
NED SEGAL: been on the platform for a month or more,
NED SEGAL: there's- that's a massive opportunity for us.
NED SEGAL: And we need to continue to do
NED SEGAL: a better job serving Twitter to them,
NED SEGAL: in a way that they're going to come back
NED SEGAL: more frequently and stay longer when they're there.
NED SEGAL: So we still see lots of opportunity to
NED SEGAL: grow the base of people who benefit from Twitter,
NED SEGAL: for a long period of time.
NED SEGAL: Ah that's ah one.
NED SEGAL: The second one is, we've now grown
NED SEGAL: revenue in excess of audience for three quarters,
NED SEGAL: ah in a row.
NED SEGAL: Ah we said for a while
NED SEGAL: that our audience would lead revenue,
NED SEGAL: and that proved to be true,
NED SEGAL: and now revenues leading audience.
NED SEGAL: We see opportunity continue to grow
NED SEGAL: revenue in excess of audience in the near term,
NED SEGAL: as we continue to improve ad formats,
NED SEGAL: and drive better relevance,
NED SEGAL: ah and deliver a better RY ultimately for advertisers,
NED SEGAL: but ultimately growing the- the base of
NED SEGAL: people who use the platform
NED SEGAL: is the lifeblood of the company,
NED SEGAL: and that's going to be our focus as we ah
NED SEGAL: continue to invest to
NED SEGAL: drive growth over the next few years.
JOHN STEINBERG: Ned Segal, CFO of Twitter.
JOHN STEINBERG: Thank you so much
JOHN STEINBERG: um for the time. I really appreciate it.
NED SEGAL: All right. Thanks for having me.
Speaker 3: Awesome shot there. Cheddar CEO,
Speaker 3: John Steinberg with the CFO at Twitter, of course.
Speaker 4: Absolutely. And a look at
Speaker 4: the top national headlines that we're
Speaker 4: following this hour with Cheddar,
Speaker 4: big news anchor Vanessa Freeman.
Speaker 4: Cheddar's big news anchor,
Speaker 4: Vanessa Freeman, take it away. [LAUGHTER].
VANESSA FREEMAN: Hey, Brad. Thanks so much. Hi, Hope.
VANESSA FREEMAN: Well, sadly the death toll from
VANESSA FREEMAN: the two massive wildfires in
VANESSA FREEMAN: California actually rose over the weekend,
VANESSA FREEMAN: now a total of 31 people have lost their lives,
VANESSA FREEMAN: as fire crews now try to get
VANESSA FREEMAN: control of those vicious flames.
VANESSA FREEMAN: They are feverishly working
VANESSA FREEMAN: in the camp fire in the north,
VANESSA FREEMAN: and the Woolsey fire in the south.
VANESSA FREEMAN: Statewide, 150,000 people are displaced,
VANESSA FREEMAN: and hundreds of homes have been lost.
VANESSA FREEMAN: In the north, search crews have the grim task
VANESSA FREEMAN: there of going through charred communities like Paradise,
VANESSA FREEMAN: to search for the more than 200 people still missing.
VANESSA FREEMAN: The wall of flames are reaching Big Bend as
VANESSA FREEMAN: the evacuation area continues to grow.
VANESSA FREEMAN: More than 8,000 firefighters are
VANESSA FREEMAN: fighting fires across that state.
VANESSA FREEMAN: Meanwhile, the godfather of
VANESSA FREEMAN: the Marvel Universe Stan Lee, has died.
VANESSA FREEMAN: Lee is known as the architect of contemporary comics,
VANESSA FREEMAN: and is credited with bringing
VANESSA FREEMAN: a human vulnerability to the world of comics,
VANESSA FREEMAN: creating beloved superheroes
VANESSA FREEMAN: including Spiderman, Iron Man,
VANESSA FREEMAN: Thor, The Incredible Hulk, the X Men,
VANESSA FREEMAN: The Fantastic Four, and that is just to name a few.
VANESSA FREEMAN: Stanley was born in New York City.
VANESSA FREEMAN: He got his big start in
VANESSA FREEMAN: the comic book business back in 1939.
VANESSA FREEMAN: He was the top writer and publisher for
VANESSA FREEMAN: Marvel Comics during its revival in the 1960s.
VANESSA FREEMAN: More recently, fans were delighted by
VANESSA FREEMAN: his cameos in the widely popular Marvel movies.
VANESSA FREEMAN: Stanley passed away this morning at the age of 95.
Vannesa Freeman: Meanwhile, Disney Pixar released the first teaser for
Vannesa Freeman: a much-anticipated sequel to one
Vannesa Freeman: of its most beloved franchises.
Vannesa Freeman: We're talking about Toy Story 4 and
Vannesa Freeman: here's the first look at that teaser trailer here.
Vannesa Freeman: After two hugely successful films
Vannesa Freeman: in Coco and Incredibles 2,
Vannesa Freeman: Pixar is once again at the top of the animation world.
Vannesa Freeman: The only plot hints in this teaser is the introduction
Vannesa Freeman: of a new character called Forky
Vannesa Freeman: who has some toy identity problems.
Vannesa Freeman: Toy Story 4 will hit theaters on June 21st, 2019.
Vannesa Freeman: Brad and Hope, back to you.
Brad: I'm seeing it. I've seen them
Brad: all. I gotta see this one too.
Hope: Oh. So good.
Vannesa Freeman: Yeah
Hope: Oh my gosh, the third was so dramatic with that scene-
Brad: It was.
Hope: With the compactor, the trash compa- oh my God.
Brad: Sad times.
Vannesa Freeman: And a lot of people thought
Vannesa Freeman: the third one was the perfect kind of bookend-
Vannesa Freeman: -to just wrap it up. So it's kind of
Vannesa Freeman: a surprise that they're reopening the universe.
Hope: I know.
Vannesa Freeman: But we shall see.
Hope: I know. I'm like, yeah. I'm like-
Brad: Big time. Big time, but wait, there's more.
Brad: But wait.
Hope: Yeah. We'll see. [LAUGHTER] Let's not
Hope: drag out a good thing. You know what I mean? Like-
Vannesa Freeman: I'm with you. I'm with you.
Brad: Vanes- Vanessa, it sounds like we're all
Brad: going to see it. Uh, can't wait for it.
Brad: Thanks so much for the big news there,
Brad: Vanessa Freeman from Cheddar big news.
Vannesa Freeman: You got it.
Brad: All righty. Guys, coming up.
Brad: Catching a lyft while helping a good cause along the way.
Brad: More on a major milestone for roundup and Dante,
Brad: when we come back.
BRETT: [MUSIC] Welcome back to Cheddar.
BRETT: Closing bell brought to you by HP.
BRETT: I'm Brett and that`s Hope, let's get you
BRETT: a quick check of the markets are,
BRETT: as we are just outside of
BRETT: 20 minutes left in the trading session here.
BRETT: Dow Jones Industrial average has
BRETT: moved lower since we begin the hour,
BRETT: it's now down more than 500 points.
BRETT: 528 points to be exact.
BRETT: They're hovering around intra-day session low territory.
BRETT: We have been down more than 500
BRETT: points- at a few points during the day.
BRETT: Here we have found ourselves there
BRETT: yet again at this point in time.
BRETT: Down 2 percent is the Dow S&P 500 that is down about 46,
BRETT: 47 points there one point
BRETT: seven percent in the Russell 2000.
BRETT: The small cap stocks also in decline
BRETT: by one and a half percent here.
BRETT: All major indices giving up
BRETT: their gains seen since the midterm. Elections.
HOPE: Yeah. That's right, all right guys switching gears here.
HOPE: Lyft has allowed riders to round up their fares and to
HOPE: donate the difference to charity for some time now.
HOPE: This Veteran's Day,
HOPE: the company reached a major milestone.
HOPE: Round up and go has now given
HOPE: a million dollars for the United Service Organization.
HOPE: And with us. Right now, Mike Vassterson,
HOPE: he's the head of global policy and impacts at Lyft.
HOPE: It's great to have you here.
HOPE: Congratulations on the milestone
HOPE: for those who are not familiar with Roundup and donate.
HOPE: How does it work?
MIKE: Yeah sure. Thanks for having me.
MIKE: So we are a company
MIKE: that's lead with our values from day one and
MIKE: we're always looking for ways for
MIKE: our community to participate In this,
MIKE: and that's why a year and a half ago we
MIKE: launched Roundup and Donate so
MIKE: passengers can round up their fare to the nearest dollar.
MIKE: It's on the menus section of the app and you
MIKE: USO actually was our very
MIKE: first round up and donate partner.
MIKE: 10 percent of our drivers are veterans and 25 percent
MIKE: of our drivers are related to
MIKE: service members either an active or veteran.
MIKE: So we're really- really excited
MIKE: about uh this milestone
MIKE: announcing it on this Veterans Day.
BRETT: Where does the money go towards?
MIKE: Yes, so part of the money is for
MIKE: USO it is going towards
MIKE: care packages that they're sending overseas,
MIKE: and also we really rely on
MIKE: our partners to use that money
MIKE: in whatever way they see fit.
HOPE: Awesome stuff, and um I- I wanna
HOPE: ask because it's- it`s been a news of the day.
HOPE: How important is- is this type of program um,
HOPE: to the retention and the attraction of- of new users.
HOPE: We understand Lyft overall is rolling
HOPE: out a rewards program.
HOPE: So this particular ah,
HOPE: part of this, the charitable side of this,
HOPE: how important is it to that?
MIKE: Well, first off, we're really excited to be
MIKE: the first ride sharing platform
MIKE: to announce a rewards program
MIKE: where every dollar used on Lyft is going
MIKE: to go towards points being that can be redeemed,
MIKE: uh, used on Lyft flux,
MIKE: and reducing other types of fares.
MIKE: In terms of leading with our values, look,
MIKE: we've seen over 9 million dollars
MIKE: worth of funds that have been
MIKE: donated through roundup and donate,
MIKE: and this is to various causes including the ACLU,
MIKE: and the human rights campaign and
MIKE: so like I said we're going to continue
MIKE: meeting with our values and we're really excited to see
MIKE: that passengers really want to be part of that.
BRETT: Do you have any specific stories
BRETT: that come to mind of how this has been able to
BRETT: help veterans and impacted
BRETT: a military veteran or- or his family or her family?
MIKE: Well, I don't have a specific story from USO,
MIKE: but what I can tell you is that
MIKE: our veterans program is more
MIKE: extensive than just round up and donate.
MIKE: We also have a relief rights program which
MIKE: we started in the wakes of hurricanes uh,
MIKE: ir- Irma and Harvey and as part of
MIKE: that program we're working with
MIKE: the United Way and they have a two on one uh,
MIKE: line where they're actually
MIKE: helping veterans in transition get the job interviews,
MIKE: and so in addition to just USO
MIKE: we- we look to other programs like that United Way uh,
MIKE: program that we have to help veterans as well.
HOPE: Uh, let's talk about this,
HOPE: a little more Lyft to relief rides
HOPE: a- as you mentioned ah,
HOPE: bringing it up when there are natural crisis's there's
HOPE: a very big national crisis
HOPE: happening right now in California,
HOPE: is Lyft doing anything specifically there?
HOPE: And if not how- how might you be helping?
MIKE MASSERMAN: Yeah, so we have activated our Relief Rides program for
MIKE MASSERMAN: the fires in both Northern and Southern California,
MIKE MASSERMAN: helping folks get to shelters, and hospitals,
MIKE MASSERMAN: and clean air shelters, specifically
MIKE MASSERMAN: here in San Francisco.
MIKE MASSERMAN: Some of the roads our drivers can't get to and and
MIKE MASSERMAN: first and foremost the safety
MIKE MASSERMAN: of our community is paramount.
MIKE MASSERMAN: But we are also bringing on United Way
MIKE MASSERMAN: as around them and donate partner starting today,
MIKE MASSERMAN: um, so that passengers can be
MIKE MASSERMAN: involved in helping folks as well.
HOPE KING: I want to talk about the safety aspect
HOPE KING: of this because while you
HOPE KING: are of course trying to help those who are impacted,
HOPE KING: you of course want to ensure the safety
HOPE KING: of the drivers as well.
HOPE KING: Talk about your mapping,
HOPE KING: uh, technology right now,
HOPE KING: or are you updating that in real time to try to adjust
HOPE KING: for all the changes in the transportation flow?
MIKE MASSERMAN: Well, I can't really speak to our mapping capabilities
MIKE MASSERMAN: but what I can tell you is that we work very,
MIKE MASSERMAN: very closely with local officials and
MIKE MASSERMAN: law enforcement to make sure
MIKE MASSERMAN: that everyone of our community is safe and to make
MIKE MASSERMAN: sure that we aren't going out until those roads,
MIKE MASSERMAN: until those folks policy can.
BRAD SMITH: Well, the autonomous efforts certainly very critical, um,
BRAD SMITH: and- and the mapping very
BRAD SMITH: much a integral part of the autonomous efforts there.
BRAD SMITH: Do you know how the autonomous kind of
BRAD SMITH: driving and and all the efforts
BRAD SMITH: that Lyft is putting forward,
BRAD SMITH: how that might impact some of
BRAD SMITH: these same veterans who are
BRAD SMITH: moving into driving positions.
BRAD SMITH: Do you have a plan of how
BRAD SMITH: in the future you might be able to
BRAD SMITH: reposition some of them to still work with Lyft?
MIKE MASSERMAN: Well, I can't really speak to- to those specifics.
MIKE MASSERMAN: I know that we are very focused
MIKE MASSERMAN: on an autonomous vehicle program.
MIKE MASSERMAN: We have a level five facility, uh, in Palo Alto.
MIKE MASSERMAN: And look, we we believe
MIKE MASSERMAN: that there is always going to ne- a need for drivers.
MIKE MASSERMAN: Right now we're only up 0.5
MIKE MASSERMAN: percent of all vehicle miles traveled.
MIKE MASSERMAN: We believe that over
MIKE MASSERMAN: the next few years we're going to
MIKE MASSERMAN: have to double the number of
MIKE MASSERMAN: drivers that we have and that means continuing to
MIKE MASSERMAN: focus on communities like veterans,
MIKE MASSERMAN: uh, who again we're very proud to have be
MIKE MASSERMAN: 10 percent of our driver population.
HOPE KING: I want to talk about another way that
HOPE KING: perhaps your company is thinking about social impact.
HOPE KING: Which is, uh, something that just
HOPE KING: happened, uh, last week,
HOPE KING: providing subsidized costs for
HOPE KING: those who were going out to the polls.
HOPE KING: Any first, uh, kind of impressions
HOPE KING: and maybe what you've learned from,
HOPE KING: uh, this midterm election, uh, ride.
MIKE MASSERMAN: Yeah. Well, first off what I learned from
MIKE MASSERMAN: the 2016 election was that 15 million people
MIKE MASSERMAN: who were registered to vote didn't vote
MIKE MASSERMAN: because of transportation related issues.
MIKE MASSERMAN: So we knew that we had a huge opportunity,
MIKE MASSERMAN: this election season to have an impact.
MIKE MASSERMAN: And it's not just about rides to the polls,
MIKE MASSERMAN: we were able to help hundreds of thousands of
MIKE MASSERMAN: people with voter registration,
MIKE MASSERMAN: with making a voting plan.
MIKE MASSERMAN: That means early voting, vote by mail.
MIKE MASSERMAN: We were able to have a polling locator tool
MIKE MASSERMAN: where people were able to find their, uh,
MIKE MASSERMAN: polling location and then were able to
MIKE MASSERMAN: provide 50 percent discounts
MIKE MASSERMAN: across the country and provide
MIKE MASSERMAN: free rides for underserved communities.
MIKE MASSERMAN: So we were incredibly
MIKE MASSERMAN: proud of the fact that we were hired to
MIKE MASSERMAN: make sure that everyone across the country
MIKE MASSERMAN: exercised the right to vote this election.
HOPE KING: Very cool. Look I used it.
HOPE KING: So thank you, uh, for that.
HOPE KING: Do you have any number that you can share
HOPE KING: with us on- on how much,
HOPE KING: uh, growth or how many people
HOPE KING: actually, uh, did take advantage?
MIKE MASSERMAN: Not exact figures but I know that tens of thousands of
MIKE MASSERMAN: people on Election Day did use that to get to the polls.
BRAD SMITH: And additionally when you look at some of
BRAD SMITH: the other methods beyond just Lyft Rides, you know,
BRAD SMITH: all of the all of the driving companies ride
BRAD SMITH: hailing companies taking more of
BRAD SMITH: a stake in some of the bikes,
BRAD SMITH: some of the, uh,
BRAD SMITH: scooter companies out there.
BRAD SMITH: How do you see that as a position
BRAD SMITH: into this broader social
BRAD SMITH: impact that you're looking to have?
MIKE MASSERMAN: Well, I think there's, there's a few ways.
MIKE MASSERMAN: Number one, I think when it comes to sustainability,
MIKE MASSERMAN: we're really excited to launch
MIKE MASSERMAN: a green cities initiative and-
MIKE MASSERMAN: and offset all of our carbon emissions.
MIKE MASSERMAN: But part of this also is around
MIKE MASSERMAN: having multi modality options.
MIKE MASSERMAN: So, we have public transit
MIKE MASSERMAN: integrated into our app and we're
MIKE MASSERMAN: gonna be investing in bikes and
MIKE MASSERMAN: scooters all across the country.
MIKE MASSERMAN: And on election day, well,
MIKE MASSERMAN: I was happy to see other folks get involved.
MIKE MASSERMAN: We were proud to be the first company
MIKE MASSERMAN: to announce what we were gonna be doing with our,
MIKE MASSERMAN: our Rides to the Polls initiative,
MIKE MASSERMAN: but I thought it was great to see other companies, um,
MIKE MASSERMAN: leading the way and I'll tell
MIKE MASSERMAN: you that we're gonna continue to lead with
MIKE MASSERMAN: our values and if other folks
MIKE MASSERMAN: want to do that as well I think that's fantastic.
HOPE KING: All right. Great stuff there.
HOPE KING: Mike Masserman, thank you so much for joining us.
HOPE KING: Lyft's head of social impact.
HOPE KING: We'll see you real soon.
MIKE MASSERMAN: Thanks for having me.
BRAD SMITH: All right, guys. And moving right along here,
BRAD SMITH: Lime has issued a recall for a second e-scooter model.
BRAD SMITH: The company pulled more of its vehicles from the roads.
BRAD SMITH: We're continuing to track that story as well.
HOPE KING: Look, there are definitely a lot of concern right now.
HOPE KING: Uh, we actually had, uh,
HOPE KING: Lime's, uh, public policy director on with us last week.
HOPE KING: We asked her about this.
HOPE KING: Uh, it looks like there are a couple of problems, right?
HOPE KING: So, first of all, uh,
HOPE KING: there is one main manufacturer of
HOPE KING: all these e-scooters, that's Ninebot.
HOPE KING: It's a Segway owned company.
HOPE KING: Segway of course, uh, being founded here in the US,
HOPE KING: now a Chinese company.
HOPE KING: They make a majority of all
HOPE KING: of these scooters that are now on the roads.
HOPE KING: There's another company that's
HOPE KING: also making these right now, uh,
HOPE KING: that Lime also uses,
HOPE KING: Okai, I believe is how you pronounce it.
HOPE KING: And this is another version
HOPE KING: that's now also seeing a lot of issues.
HOPE KING: Okay, manufacturing certainly should
HOPE KING: be a priority, manufacturing them safely.
HOPE KING: But the other big problem with these scooters recently,
HOPE KING: and we seen this with the backlash against scooters.
HOPE KING: People abusing them on the streets,
HOPE KING: throwing them around, setting them on fire.
HOPE KING: These wild, wild things.
HOPE KING: Uh, of course, that would mean that
HOPE KING: these products end up being a little bit damaged.
HOPE KING: So, that's one aspect of why some people
HOPE KING: believe these scooters are- are- are suffering damages.
HOPE KING: The other part is they just regular wear and tear.
HOPE KING: I mean, these are not like cars, right?
HOPE KING: They're- they're very fragile in terms of the,
HOPE KING: the body of it and,
HOPE KING: and because they can be left around just about anywhere,
HOPE KING: a little bit of a ding here,
HOPE KING: a little bit of a ding there,
HOPE KING: might impact the full body of
HOPE KING: the scooters leading to some of these issues.
BRAD SMITH: A spokesperson real quick said the company is quote,
BRAD SMITH: "Decommissioning all Okai scooters in its fleet" as well.
HOPE KING: There you go. All right guys, and make sure, of course,
HOPE KING: to check out Cheddar Rides, our new show.
HOPE KING: It explores the future of transportation.
HOPE KING: It happens every Wednesday 3:30 PM, Eastern time.
HOPE KING: I will be here, Cheddar will be here.
HOPE KING: We've got all the news for you on Wednesday.
BRAD SMITH: And coming up, could Tesla have come to
BRAD SMITH: the rescue in the California wildfire?
BRAD SMITH: A look at Elon Musk's offer, next.
BRAD SMITH: [MUSIC]
HOPE KING: Hello everybody. Welcome back to Cheddar
HOPE KING: brought to you by HP.
HOPE KING: With devastating flames spreading throughout California,
HOPE KING: Elon Musk is volunteering to help.
HOPE KING: The Tesla's CEO tweeting that the Model S and the Model X
HOPE KING: have hospital grade filters
HOPE KING: which could help transport people.
HOPE KING: But, is this another case of Elon Musk playing hero?
HOPE KING: Sasha Lekach is with us now,
HOPE KING: transportation reporter at Mashable.
HOPE KING: Great to see you as always, Sasha.
HOPE KING: What was your first reaction to Musk's tweet?
SASHA LEKACH: It was another, here we go again.
SASHA LEKACH: Is he going to be able to live up
SASHA LEKACH: to a promise of helping.
SASHA LEKACH: And in this case, it might.
SASHA LEKACH: Um, you look at the filters in the Model X and S,
SASHA LEKACH: they're- they're the highest quality out there.
SASHA LEKACH: Um, they- they are impressive.
SASHA LEKACH: So really maybe this could be something but it does
SASHA LEKACH: come off initially as a marketing ploy for Tesla again.
BRAD SMITH: And in terms of the actual
BRAD SMITH: meaningful impact that it could have.
BRAD SMITH: Sure, they are effective.
BRAD SMITH: But given the scope of what we've been
BRAD SMITH: watching play out in California, how impactful?
BRAD SMITH: How meaningful could this contribution
BRAD SMITH: be from from Musk's side and the Tesla team?
SASHA LEKACH: Yeah, exactly.
SASHA LEKACH: This is- this is too little for what we're seeing.
SASHA LEKACH: I mean, the fire is over 100,000
SASHA LEKACH: acres just here in North Cal.
SASHA LEKACH: Um, I'm in San Francisco we're feeling
SASHA LEKACH: the impacts of the smoke pollution.
SASHA LEKACH: Um, can't even imagine what it's like further north.
SASHA LEKACH: Um, you have, however,
SASHA LEKACH: many cars with these filters.
SASHA LEKACH: How- how exactly that will work
SASHA LEKACH: to help firefighters to help,
SASHA LEKACH: fire victims to help people trying to get some fresh air?
SASHA LEKACH: Not entirely clear.
SASHA LEKACH: Musk also sent an email out to Tesla employees
SASHA LEKACH: saying you're free rein to help as necessary.
SASHA LEKACH: Don't worry about payment is what he said in
SASHA LEKACH: the email according to a document- uh,
SASHA LEKACH: the e-mail obtained from another, um, news outlet.
SASHA LEKACH: So, again, that was really great to offer that,
SASHA LEKACH: but what does that really mean?
SASHA LEKACH: Like you said it's huge scope,
SASHA LEKACH: huge- huge fires, historic fires.
SASHA LEKACH: How can a cou- how can these employees actually help.
HOPE KING: How is this different or the
HOPE KING: same as when he tried to offer
HOPE KING: help to get the boys who
HOPE KING: were trapped in a cave in Thailand,
HOPE KING: also with hurricane Marina and the power issues?
SASHA LEKACH: I think this is different
SASHA LEKACH: in the sense that these filters exist.
SASHA LEKACH: They've been shown to work.
SASHA LEKACH: Um, they are in the cars.
SASHA LEKACH: They're not in the new Model 3.
SASHA LEKACH: The Model 3, um,
SASHA LEKACH: are smaller and Musk said that they are
SASHA LEKACH: too small to fit the filters, um,
SASHA LEKACH: so they're not as powerful HEPA filters, um,
SASHA LEKACH: which get the really fine particular matter
SASHA LEKACH: that's really dangerous for everyone.
SASHA LEKACH: Even here in San Francisco
SASHA LEKACH: and- and LA, everyone is dealing with it.
SASHA LEKACH: But, yeah, this are real things that can actually help
SASHA LEKACH: with an air quality issue that's happening.
SASHA LEKACH: So, um, that's the difference.
SASHA LEKACH: The Thai- the Thai-
HOPE KING: Sasha, are you saying that that's
HOPE KING: the difference between like and because these
HOPE KING: actually exist versus in
HOPE KING: the situation in Thailand he hadn't actually,
HOPE KING: uh, come up with anything, uh,
HOPE KING: or he tried to and then also with,
HOPE KING: uh, the power banks there, uh,
HOPE KING: in hurricane situations but those were not
HOPE KING: actually already existing Tesla kind of products.
SASHA LEKACH: Exactly. These exist.
SASHA LEKACH: They could be deployed.
SASHA LEKACH: But, again, they're owned by private drivers,
SASHA LEKACH: uh, to drive it's point.
SASHA LEKACH: They- it's not like they're part of a-
SASHA LEKACH: the fire service fleet or anything like that.
SASHA LEKACH: Um, kind of hard to imagine how this would be
SASHA LEKACH: organized to actually get them out and use,
SASHA LEKACH: obviously, one off cases.
SASHA LEKACH: Super helpful, amazing if those can come into play.
SASHA LEKACH: It could really help somebody who
SASHA LEKACH: hasn't had a breath of fresh air in a few days.
SASHA LEKACH: Who know? But, again,
SASHA LEKACH: really hard to see how this goes out
SASHA LEKACH: on a- at a larger level.
MALE_2: Absolutely. And we- we certainly hope
MALE_2: these efforts are helpful
MALE_2: for those who are in the region,
MALE_2: uh, just the scale
MALE_2: is something to wrap our heads around here.
FEMALE_1: Absolutely. Sasha, great to see you as always.
FEMALE_1: Sasha Lekach. Transportation reporter at Mashable.
MALE_2: Okay. Let's switch gears and get you
MALE_2: a quick check of the markets here as we are just
MALE_2: outside of five minutes left in
MALE_2: the trading session on
MALE_2: this what has been a market meltdown.
MALE_2: Monday, the Dow Jones Industrial average
MALE_2: setting a new intra-day session low.
MALE_2: It's now down more than 600 points.
MALE_2: 2.4 percent,
MALE_2: the downside losses have
MALE_2: accelerated going into the close here.
MALE_2: S&P 500 index, you're
MALE_2: also looking at that on the right side of your screen.
MALE_2: That's lower by two percent right now,
MALE_2: about 56, 57- ish points there.
MALE_2: Russell 2000, you're also looking at that.
MALE_2: That's lower by 1.9 percent
MALE_2: right now at this point in time.
MALE_2: If we can take a quick look
MALE_2: at the Nasdaq composite as well
MALE_2: before we break down exactly
MALE_2: what's going on on a more granular level.
MALE_2: The Nasdaq is down about 2.8 percent.
MALE_2: This, of course, so comes after earlier in the day.
MALE_2: We saw President Trump tweet about the markets,
MALE_2: saying that the reaction is really due to all of
MALE_2: Democratic sides criticism of
MALE_2: the president and his actions there.
MALE_2: But let's not forget as well that we have
MALE_2: several lingering things that are out there,
MALE_2: questions that the markets
MALE_2: have yet to have answered for themselves.
MALE_2: Where are we at with US-China?
MALE_2: What are we going to see come from the Fed,
MALE_2: especially in meetings to
MALE_2: come before the end of the year,
MALE_2: and how that sets us up for 2019,
MALE_2: and still earnings from big retail companies
MALE_2: to come before the start of the December, really.
FEMALE_1: Sure. Of course, that's the narrative he's pushing
FEMALE_1: out on his social media.
FEMALE_1: But if we look at the numbers specifically, Brad,
FEMALE_1: and as you mentioned some
FEMALE_1: of those sectors that we've seen,
FEMALE_1: uh, I believe nine out of
FEMALE_1: the 11 S&P sectors are down today.
FEMALE_1: One of the biggest ones that we're looking at,
FEMALE_1: of course, is technology.
FEMALE_1: Apple leading the charge there.
FEMALE_1: And when it comes to declines,
FEMALE_1: down five percent there,
FEMALE_1: as you can see on the day.
FEMALE_1: Chip makers also then falling in relation to this story,
FEMALE_1: which is essentially the same one we've been
FEMALE_1: hearing over the past couple of months.
FEMALE_1: The decline in demand of Apple products,
FEMALE_1: two very key Apple suppliers,
FEMALE_1: one display maker in Japan,
FEMALE_1: another who makes the chips
FEMALE_1: and the technologies for the face I.D.
FEMALE_1: sensor in the front-facing camera,
FEMALE_1: both of these companies issuing outlook that was reduced.
FEMALE_1: They cut those outlooks, uh,
FEMALE_1: for the next coming,
FEMALE_1: uh, couple of weeks and months.
FEMALE_1: Uh, and-and, of course,
FEMALE_1: both these companies, their biggest customer is Apple.
FEMALE_1: So, because of this,
FEMALE_1: we're seeing other chip makers fall as a result.
FEMALE_1: All across the board, uh,
FEMALE_1: tech sector really hear
FEMALE_1: depressing all these major indices.
FEMALE_1: The other big name that's depressing
FEMALE_1: the Dow today has been Goldman Sachs,
FEMALE_1: that big story coming out of Bloomberg saying that
FEMALE_1: the financial minister there in Malaysia
FEMALE_1: wants to get a refund basically [OVERLAPPING] for some of
FEMALE_1: the big deals that the bank
FEMALE_1: made for one of their troubled funds.
FEMALE_1: So, Goldman Sachs now weighing really heavily as well.
FEMALE_1: And then the other big stories today have
FEMALE_1: been about oil and the wildfires.
FEMALE_1: Uh, really just a confluence of
FEMALE_1: all of these events today really depressing the markets.
FEMALE_1: We're heading into the last couple of
FEMALE_1: minutes of today's trading session,
FEMALE_1: and we're already at- at
FEMALE_1: some new lows and we still have some more room to go.
FEMALE_1: Whether or not they will continue to sink lower,
FEMALE_1: we've seen this happen again a couple
FEMALE_1: of times in just the last couple of months here,
FEMALE_1: [OVERLAPPING] at this end of day sell-off.
MALE_2: Uh, just four out of
MALE_2: the 30 Dow components are
MALE_2: in positive territory right now.
MALE_2: At one point during the day,
MALE_2: 60 percent of the S&P 500 was in
MALE_2: correction territory down off of
MALE_2: its highs by more than 10 percent.
MALE_2: Uh, so we're continuing to watch that very closely,
MALE_2: as well as all the big names that
MALE_2: Hope just mentioned as well.
FEMALE_1: That's right. All right. We're going to carry it out of
FEMALE_1: the close after the break.
FEMALE_1: Stay with us.
MALE_2: All right.
BRAD SMITH: All right, guys.
BRAD SMITH: Welcome back to Cheddar Closing Bell. I'm Brad Smith.
HOPE KING: And I'm Hope King. The markets are
HOPE KING: about to close right now.
HOPE KING: You're hearing them clapping,
HOPE KING: which means the bell will be
HOPE KING: ringing in just a couple of moments.
HOPE KING: We're looking at incredibly
HOPE KING: big sell off toward the end of
HOPE KING: today's trading session with the Dow down
HOPE KING: more than 600 points at the moment here.
HOPE KING: We're looking at the podium
HOPE KING: on the floor of the New York Stock Exchange.
HOPE KING: Up there is AvalonBay Communities.
HOPE KING: They're ringing the closing bell,
HOPE KING: and they are celebrating
HOPE KING: their 25th anniversary of
HOPE KING: being listed here on the Stock Exchange.
HOPE KING: And over at the Nasdaq it's Let's Win Pancreatic Cancer.
HOPE KING: That team there closing out
HOPE KING: the day uptown at the Nasdaq market site.
HOPE KING: These trades will continue to settle everybody.
HOPE KING: So, these numbers that you're looking at
HOPE KING: here are continuing to change,
HOPE KING: but it looks like we will not
HOPE KING: see a 600 point decline here for the Dow.
HOPE KING: Just barely above that in terms of declines,
HOPE KING: but it will be, uh,
HOPE KING: a more than two percent decline here on the day.
HOPE KING: Also, 2000 down about two percent as
HOPE KING: well and then the S&P down about two percent.
HOPE KING: The Nasdaq though, this is the big one
HOPE KING: that we've been watching all day to day declines
HOPE KING: here erasing all of its post election gains from
HOPE KING: the midterm elections down 200 points.
HOPE KING: Technology leading the declines for the day.
HOPE KING: Also on the Dow Goldman Sachs leading
HOPE KING: the decline biggest loss there on that index.
HOPE KING: Oil prices in focus today and the wildfires
HOPE KING: in California also depressing
HOPE KING: some of the energy stocks that we watched.
BRAD SMITH: We saw the VIX spike back up again today.
BRAD SMITH: Not quite to highs that we'd seen back in April,
BRAD SMITH: but still coming off of
BRAD SMITH: the lows as a reason
BRAD SMITH: that we were able to see of about 17,
BRAD SMITH: 16, 17, last week,
BRAD SMITH: where things started to settle.
BRAD SMITH: But then of course coming off of the midterm elections,
BRAD SMITH: we saw a lot of activity re-enter into the markets.
BRAD SMITH: Volume was their, volume validated the trade there and
BRAD SMITH: its value dat- validating the move lower here today,
BRAD SMITH: especially as we are watching this sell off.
BRAD SMITH: And so, the VIX back up to 20.
BRAD SMITH: We'll continue to keep an eye on that.
BRAD SMITH: Any time you see that in green,
BRAD SMITH: it's not a great thing, but hopefully,
BRAD SMITH: it just doesn't touch some of those highs that we've
BRAD SMITH: all seen as recent of 24, 25.
HOPE KING: Absolutely. And some of the big stocks that have
HOPE KING: been contributing to this
HOPE KING: and those sectors that I mentioned,
HOPE KING: Apple is one stock we've been watching all day today.
HOPE KING: At one point, when it was hitting about four percent,
HOPE KING: uh, in declines 4.4 percent.
HOPE KING: It reached its low that it has not seen since
HOPE KING: July 27th of this year.
HOPE KING: Again, concerns that the demand
HOPE KING: for the ne- these new iPhones are
HOPE KING: not as strong as they should be or where they'd
HOPE KING: like them to be, uh, depressing that.
HOPE KING: GE also big stock that we're falling- following today.
HOPE KING: That was down as much as 10 percent to below $8.
HOPE KING: The CEO there, newly instated
HOPE KING: CEO only been- been there for about six weeks,
HOPE KING: are saying that they're close
HOPE KING: to bottom on their power unit,
HOPE KING: which means at the bottom is not quite here yet.
HOPE KING: That has investors concerned.
HOPE KING: This is GE's biggest in business not only by revenue,
HOPE KING: but also by the number of
HOPE KING: employees right now also in trouble.
HOPE KING: And then of course, as I mentioned earlier,
HOPE KING: Goldman Sachs, the biggest decliner
HOPE KING: there on the Dow, uh, today.
HOPE KING: So, those three big names
HOPE KING: are contributing to these big, big losses.
HOPE KING: Uh, by the way, the bond markets
HOPE KING: today are actually closed.
HOPE KING: Another reason why we're seeing
HOPE KING: equity markets kind of sell off.
HOPE KING: There's nothing to balance them out on that side.
HOPE KING: And, and, and, and in honor of Veterans Day,
HOPE KING: uh, that market is closed.
HOPE KING: So, potentially tomorrow we will not see declines
HOPE KING: to this nature since all markets
HOPE KING: will be back up and running.
BRAD SMITH: Absolutely. All right, guys, switching gears here.
BRAD SMITH: Now it's time for a serious generation trader
BRAD SMITH: sponsored by E-Trade,
BRAD SMITH: the original place to invest online.
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BRAD SMITH: The tools are E-Trades, the opinions
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HOPE KING: All right. Well, today we're taking a look at
HOPE KING: Chinese e-commerce giant Alibaba,
HOPE KING: which over the weekend pulled in a record $30.8
HOPE KING: billion in sales during
HOPE KING: its annual Singles Day shopping holiday 11/11.
HOPE KING: That is more than all of the sales across
HOPE KING: retailers on Black Friday and Cyber Monday combined.
HOPE KING: Those two days together brought in just about
HOPE KING: $11.5 billion last year.
HOPE KING: Now Amazon of course has had its own sales day
HOPE KING: sort of mirroring what Alibaba Singles Day looks like.
HOPE KING: Of course, Singles Day predates Crime Day.
HOPE KING: Now, the company here Amazon doesn't release it's
HOPE KING: sales figures for its own sales day but analysts
HOPE KING: had estimated that Amazon probably brought in around $3.4
HOPE KING: billion this year over 36 hours.
HOPE KING: Now, in contrast, Alibaba this year brought in
HOPE KING: a billion dollars in just 90 seconds.
BRAD SMITH: Wow. All right, guys.
BRAD SMITH: Now, let's use E-Trades platform to see how
BRAD SMITH: Alibaba stock performed after this year's event.
BRAD SMITH: Singles Day of course kicked off at
BRAD SMITH: midnight on November 11th, Sunday.
BRAD SMITH: So, let's take a look at shares today.
BRAD SMITH: As you can see, things moved a little bit lower,
BRAD SMITH: they were down by about 1.4 percent here on the day.
HOPE KING: Yeah, absolutely. Now, if we look
HOPE KING: over at the chart over the last three months,
HOPE KING: you can see that Alibaba has been struggling as of late.
HOPE KING: Shares which had nearly doubled last year have lost
HOPE KING: almost one-quarter of their value
HOPE KING: over the last three months.
HOPE KING: The pullback here is coming amid
HOPE KING: growing trade tensions between China and the US.
HOPE KING: Other names in the Chinese tech industry were not immune.
HOPE KING: Search giant Baidu, WeChat owner Tencent,
HOPE KING: those have sold off as well.
HOPE KING: Now, earlier this month Alibaba reported
HOPE KING: earnings for its fiscal second quarter.
HOPE KING: The company posted better than expected
HOPE KING: earnings $1.40 a share.
HOPE KING: Analysts were only looking for $1.06.
HOPE KING: Sales though were below expectations just slightly.
HOPE KING: They came in about 12.4 percent and sa- shares of
HOPE KING: Alibaba though did fall
HOPE KING: on the news more than two percent.
BRAD SMITH: All right, guys. Switching gears,
BRAD SMITH: let's also look at Alibaba stock
BRAD SMITH: on the one year scale here.
BRAD SMITH: Last years Singles Day,
BRAD SMITH: let's stretch it out to that.
BRAD SMITH: The company brought in $25.3
BRAD SMITH: billion on November 11th, 2017.
BRAD SMITH: What had been a record at the time.
BRAD SMITH: The stocks fell in reaction the Monday
BRAD SMITH: after down about a percent.
BRAD SMITH: Here you're taking a look at shares since that time.
HOPE KING: That's right. And as always, everybody,
HOPE KING: there are of course several factors to consider
HOPE KING: when looking to trade or invest in a stock.
HOPE KING: Generation traders now it's your turn.
HOPE KING: Visit E-Trade's innovative platform to get started.
HOPE KING: And coming up, the subscription service that was
HOPE KING: started by a Navy Seals veteran,
HOPE KING: we're sitting down with him, next.
HOPE KING: [MUSIC]
Hope King: [MUSIC] Welcome back to Cheddar everybody.
Hope King: The death toll in California shows no sign of
Hope King: stopping as fires continue to pillage homes and cities.
Hope King: To make matters worse, a partisan battle is taking
Hope King: place as to how to handle the fires.
Hope King: J. D Durkin is live in Washington with the latest.
Hope King: J. D, partisan battle over this?
J.D. Durkin: Yeah. You're exactly right there Hope and Brad.
J.D. Durkin: I think I can objectively say how
J.D. Durkin: unfortunate is that there is a partisan battle.
J.D. Durkin: Not really so much about how it's handled,
J.D. Durkin: but really perhaps what is most responsible for this.
J.D. Durkin: Now the president got himself into a whole lot of
J.D. Durkin: controversy both at home and abroad
J.D. Durkin: this past weekend when he traveled to France,
J.D. Durkin: ah, and he used the Twitter airwaves so to speak,
J.D. Durkin: the last few days, to weigh
J.D. Durkin: in as this tragedy continued to unfold.
J.D. Durkin: Now let's remind our viewers,
J.D. Durkin: 31 confirmed deaths at this point,
J.D. Durkin: more than 200 people remain missing,
J.D. Durkin: about 150,000 Californians currently displaced as,
J.D. Durkin: ah, various fires continue to ravage the state there.
J.D. Durkin: Here is the first big controversial tweet from
J.D. Durkin: @realDonaldTrump earlier on the weekend
J.D. Durkin: that set this whole thing in motion here guys.
J.D. Durkin: He says this, ah, "There is no reason for
J.D. Durkin: these massive deadly and
J.D. Durkin: costly forest fires in California
J.D. Durkin: except that forest management is so poor.
J.D. Durkin: Billions of dollars are given each year,
J.D. Durkin: and with so many lives lost all because of
J.D. Durkin: gross mismanagement of the forests.
J.D. Durkin: Remedy now, or no more federal payments."
J.D. Durkin: That has resulted in a huge huge backlash of reaction,
J.D. Durkin: not just from here in Washington,
J.D. Durkin: but even from a handful of celebrities
J.D. Durkin: whose homes are in the greater Malibu area, area.
J.D. Durkin: Yes. We've seen people like, ah, Katy Perry,
J.D. Durkin: even Leonardo DiCaprio go
J.D. Durkin: after the president for the sorts of rhetoric.
J.D. Durkin: Someone like DiCaprio citing
J.D. Durkin: the climate change concerns and expressing
J.D. Durkin: his disappointment that the president
J.D. Durkin: is not taking this issue seriously.
J.D. Durkin: In the last hour here on closing bell,
J.D. Durkin: we spoke with Congressman elect,
J.D. Durkin: Harley Ruda, a Democrat from
J.D. Durkin: California's 48th congressional district.
J.D. Durkin: I asked him if he saw this
J.D. Durkin: as the latest, ah, back and forth,
J.D. Durkin: the tit for tat between
J.D. Durkin: the Trump administration and the state of California.
J.D. Durkin: Here's what the congressman
J.D. Durkin: elect told us a short time ago.
Harley Rouda: This is a time for leadership.
Harley Rouda: This is a time to step up and show that you have
Harley Rouda: one ounce of empathy in your entire being, and instead,
Harley Rouda: he uses this as an opportunity to
Harley Rouda: insult Californians, insult firefighters,
Harley Rouda: insult those families who have lost
Harley Rouda: lives, property, incredible devastation.
Harley Rouda: This, this tweet tantrums that show him
Harley Rouda: acting as a temperant small child, has to stop.
J.D. Durkin: The tweet tantrum says the incoming Congressman.
J.D. Durkin: Look here Hope and Brad,
J.D. Durkin: for all the controversies the president has helped
J.D. Durkin: stir up over the course of the last few days,
J.D. Durkin: this is simply going to be the latest issue
J.D. Durkin: that I know the White House and Press Secretary,
J.D. Durkin: Sarah Sanders will be forced to ask more questions on.
J.D. Durkin: If they hold a press briefing
J.D. Durkin: where they make the president,
J.D. Durkin: ah, available out there,
J.D. Durkin: a lot of critics,
J.D. Durkin: even third party observers,
J.D. Durkin: have been inclined to say, "Mr. President,
J.D. Durkin: now is not really the time to
J.D. Durkin: play party politics like this."
J.D. Durkin: Of course we talked about the last hour here, ah, ah,
J.D. Durkin: Hope and Brad on the ongoing proxy battle between
J.D. Durkin: the Trump administration and the state of California,
J.D. Durkin: whether it's on climate, on immigration,
J.D. Durkin: on fuel emissions, or safety initiatives,
J.D. Durkin: ah, there's been a long division.
J.D. Durkin: The president has, ah,
J.D. Durkin: launched a war of words at the state of California and
J.D. Durkin: California officials have given
J.D. Durkin: it right back to the Trump White House.
J.D. Durkin: Unfortunately today, the war of words has to do with
J.D. Durkin: this deadly fire situation
J.D. Durkin: that continues to play itself out.
J.D. Durkin: I will closely monitor the developments
J.D. Durkin: there and ongoing White House reaction.
J.D. Durkin: We'll bring you the latest from Washington as it happens,
J.D. Durkin: but for now Hope and Brad,
J.D. Durkin: back to you on the floor of the stock exchange.
Hope King: All right J. D. thanks so much
Hope King: and we're live from Washington.
Brad Smith: Moving on to our next guests here,
Brad Smith: Crate Club is a subscription service that
Brad Smith: delivers tactical and survival gear each month.
Brad Smith: Everything is curated by
Brad Smith: former special ops and the company is run by veterans.
Brad Smith: Joining us now to discuss is Brandon Webb,
Brad Smith: CEO Hurricane Media and Crate Club.
Brad Smith: Brandon, great to have you here with us.
Brandon Webb: Thanks for having me.
Brad Smith: A very sincere and happy Veterans Day to you.
Brad Smith: You served 10 plus years as a Navy SEAL,
Brad Smith: we certainly appreciate your service here on Cheddar.
Brandon Webb: Thank you.
Brad Smith: Uh, let's dive in here, how did
Brad Smith: that experience inspire this company?
Brandon Webb: I think my whole military experience
Brandon Webb: gave me a lot of leadership skills
Brandon Webb: to, to go into business.
Brandon Webb: I come from a family of entrepreneurs,
Brandon Webb: my grandmother was an entrepreneur, my mom and my dad.
Brandon Webb: So, I take a lot of
Brandon Webb: the leadership skills that I learned
Brandon Webb: in the SEALs and apply it to business,
Brandon Webb: and so far so good.
Hope King: All right good stuff. We're looking at some of
Hope King: the items that are in the crate,
Hope King: and I think you also have one that you brought with
Hope King: you just to show as an example. What are [OVERLAPPING]
Brandon Webb: I've got a bunch of things
Hope King: Yes, Okay. Well, let's start with the,
Hope King: the crate itself and, and just,
Hope King: [OVERLAPPING] what is the concept behind this?
Brandon Webb: Basically a typical, we try and theme it each year.
Brandon Webb: This would be something of a coming or procreate.
Brandon Webb: We have a urban survival kit,
Brandon Webb: and we've got everything to- from
Brandon Webb: medical supplies to firestarter.
Brandon Webb: This life straws interesting,
Brandon Webb: you guys that appreciate this as New Yorkers.
Brandon Webb: You could literally put this on
Brandon Webb: the East River and suck clean water out of it.
Brad Smith: What.
Hope King: No.
Brandon Webb: Just stuff like that, people don't think about.
Brandon Webb: Even living in a major city like New York,
Brandon Webb: when the lights go out, and the power goes off,
Brandon Webb: and we're short of water you know.
Brandon Webb: We just- we like to really focus on urban survival.
Brandon Webb: This for women is a great option,
Brandon Webb: it's a high powered [NOISE] flash light.
Brandon Webb: I got this through NY security.
Brad Smith: I can have that for me.
Brandon Webb: Absolutely.
Hope King: I like this.
Brandon Webb: You just hold- press on hold.
Brad Smith: Okay. So, how do you go about curating
Brad Smith: and making each of
Brad Smith: the products [LAUGHTER] different each month,
Brad Smith: what goes into that decision process?
Brandon Webb: I mean, we've already planned 2019 out.
Brad Smith: Really?
Brandon Webb: One of our program managers,
Brandon Webb: Drew Wallis, former Rangers,
Brandon Webb: Oak- Oakley alum has already planned and themed 2019 out.
Brandon Webb: So, you know, it's, it's a lot that
Brandon Webb: goes into kind of prepping,
Brandon Webb: prepping the boxes and making sure we have something
Brandon Webb: that is delivering a lot of value to the customer,
Brandon Webb: but especially for women in the holidays,
Brandon Webb: it's so hard- men are so hard to shop for,
Brandon Webb: but I think this is a great item, ah,
Brandon Webb: for any woman shopping for men out there.
Brandon Webb: Another last cool thing I'll show you.
Brandon Webb: This backpack would actually be
Brandon Webb: something in our premium crates,
Brandon Webb: but this is bulletproof insert for
Brandon Webb: briefcase [NOISE] passenger bags.
Brandon Webb: You feel how light that is.
Hope King: Wow, its really cool.
Brandon Webb: You just put it in there and forget about it.
Brad Smith: Can I just wear it?
Hope King: Yeah. You just put it across.
Brad Smith: Across here?
Hope King: Right.
Brandon Webb: But I mean it's- you can never be too
Brandon Webb: safe these days, but that's- you know,
Brandon Webb: we have a lot of fun with the, the Crate club,
Brandon Webb: and um, you know,
Brandon Webb: it's, it's a great business as well.
Hope King: Awesome. And, and I just want to understand too,
Hope King: is your company not only are you of course a veteran,
Hope King: but you also have
Hope King: a priority and focusing on hiring veterans?
Brandon Webb: Yeah. We try and definitely hire veterans where we can.
Brandon Webb: I think it's- our workforce
Brandon Webb: now is close to 100 and we have,
Brandon Webb: ah, probably 50 percent or greater are veterans.
Brandon Webb: So, we just find that
Brandon Webb: veterans are able to kind of multitask,
Brandon Webb: ah, you know, they are self starters,
Brandon Webb: so it's a great great group to hire from.
Brad Smith: You're also a New York Times best selling author,
Brad Smith: which- I mean we shouldn't
Brad Smith: just slide [LAUGHTER] past that as well.
Brad Smith: That's a huge honor.
Brandon Webb: Yeah.
Brad Smith: Your newest book is Mastering Fear
Brad Smith: [OVERLAPPING] went into that- and the book
Brad Smith: is in the back story
Brad Smith: [inaudible 01:15:09] on our screen for our viewers as well.
Brad Smith: What this book, what inspired you to write it?
Brandon Webb: This book was inspired by
Brandon Webb: a Todd Komal Robuchon his brother.
Brandon Webb: If you guys know the company
Brandon Webb: Angelos that is in Silicon Valley.
Brandon Webb: Komal's brothers started Angelos,
Brandon Webb: Komal is venture capitalist,
Brandon Webb: and my best friend in the city.
Brandon Webb: I found out he didn't know how to swim,
Brandon Webb: he was- he had this lifelong fear of water.
Brandon Webb: So, I took him over one week to
Brandon Webb: the New York Athletic Club and Monday through Friday,
Brandon Webb: one hour in the morning, and took
Brandon Webb: a guy that was terrified of the water,
Brandon Webb: gripping onto the- to the ladder,
Brandon Webb: and on Friday could Cannonball in,
Brandon Webb: sink himself to the bottom,
Brandon Webb: and hold his breath for
Brandon Webb: almost a minute and swim a few lengths.
Brandon Webb: We were on the subway back uh, to flat iron,
Brandon Webb: he said "You changed my life,
Brandon Webb: you have to write a book about this,
Brandon Webb: and what was your approach."
Brandon Webb: When I- the last part of my career as a Navy SEAL,
Brandon Webb: I was a sniper instructor and ran
Brandon Webb: the sniper course as program manager.
Brandon Webb: We use a lot of positive psychology and,
Brandon Webb: and performance uh, like psychology,
Brandon Webb: the same that, you know,
Brandon Webb: Tiger Woods performance management coach would use,
Brandon Webb: the same as an Olympic gold medalist like,
Brandon Webb: ah, you know, take your pick. Um-
Brandon Webb: We- we implement a lot and
Brandon Webb: address sniper training but a lot of
Brandon Webb: it applies to parenting,
Brandon Webb: to business, um, so,
Brandon Webb: that's what inspired the book.
Brandon Webb: It's- it's a system to deal with any fears,
Brandon Webb: small or large, and it's a great- great book, probably.
FEMALE_2: Without having read the entire book,
FEMALE_2: can someone get a tip from you,
FEMALE_2: maybe today, share with them,
FEMALE_2: what you should do when you are in a state of fear.
Brandon Webb: Yeah. I mean, the first thing is to- to really
Brandon Webb: recognize that this is the fear that you wanna overcome.
Brandon Webb: Um, I'm a big fan of visualization.
Brandon Webb: Like visualizing, like,
Brandon Webb: imagining yourself in this moment,
Brandon Webb: whether it's a career change or flying,
Brandon Webb: public speaking, is a big one.
Brandon Webb: But you can mentally rehearse for this stuff.
Brandon Webb: And then, the last thing I would say is personal mantra.
Brandon Webb: I'm a big fan of, uh, a mantra,
Brandon Webb: like, that- to initiate kind of self-change.
Brandon Webb: Uh, that's- that's huge.
FEMALE_2: What's your own personal mantra?
Brandon Webb: Uh, I could pull it out and- actually,
Brandon Webb: it's on my phone but- uh, I look at it every day.
Brandon Webb: I mean, it's just the kind of person I wanna be,
Brandon Webb: the kind of business I wanna build.
Brandon Webb: All that stuff wrapped in there.
Brandon Webb: And it is an anchor for me.
Brandon Webb: If I get off-center,
Brandon Webb: I go pull up my phone
Brandon Webb: and then just kind of read through that-
Brandon Webb: that mantra and sometimes I add to it as well.
MALE_3: What's the one thing that you hope businesses take away,
MALE_3: that they learn, that they know about
MALE_3: veterans in terms of bringing them into their workforce?
Brandon Webb: I- I mean, that's a great question.
Brandon Webb: I think too often we're caught up
Brandon Webb: in this hero or victim mentality.
Brandon Webb: When we have- like one of
Brandon Webb: the largest transitions of
Brandon Webb: active duty to veterans since World War II.
Brandon Webb: And I would just say like the veterans
Brandon Webb: have incredible skill sets.
Brandon Webb: Like you are trained to lead at a very young age.
Brandon Webb: At- I remember when I was- I mean, imagine this,
Brandon Webb: I'm 28 years old and charge one of
Brandon Webb: the world's deadliest sniper programs in the world.
Brandon Webb: Program that produced sniper like
Brandon Webb: Chris Kyle of American Sniper.
Brandon Webb: Twenty-eight-year-old- years old managing, you know,
Brandon Webb: millions of dollars of budget and- and
Brandon Webb: equipment, um, and staff.
Brandon Webb: Uh, and that just shows you like the kind
Brandon Webb: of level or responsibility.
Brandon Webb: And I know 22-year-olds that- that are responsible for,
Brandon Webb: you know, tens of millions of dollars in equipment.
Brandon Webb: So, I- I just think the men and
Brandon Webb: women that are coming out of the military today
Brandon Webb: have incredible skill sets that probably are- are being,
Brandon Webb: you know, underestimated in- in the workforce.
MALE_3: Brandon, we appreciate your time here today,
MALE_3: and even more than that, we appreciate your service-
Brandon Webb: Thank you.
MALE_3: -all right, too.
Brandon Webb: Yeah.
MALE_3: For so many of us, thank you so much.
Brandon Webb: Thanks.
MALE_3: Absolutely. Brandon Webb, CEO of Hurricane Media
MALE_3: and Crate Club as well joining us here today on Cheddar.
MALE_3: And coming up, the latest on the California wildfires.
MALE_3: We've been tracking that for you all day.
MALE_3: We'll bring you the latest next.
Smith: Hi guys, welcome back to Cheddar.
Smith: Let's recap the big losses that
Smith: we saw in the markets for you today.
Smith: Dow Jones Industrial average did indeed closed down
Smith: more than 600 points, down 2.3 percent.
Smith: SMP 500 index that declined by
Smith: nearly two percent will run
Smith: that off to about two percent,
Smith: 54, 55 points the downside there.
Smith: And the Russell 2000 that was deep in the red as well.
Smith: That was down two percent,
Smith: 30 points to the downside but that's.
Smith: More CAP Heavy Index.
Smith: Also, the Nasdaq Composite as we saw tech sector,
Smith: that got hit the hardest here on the day.
Smith: That was down by 2.7, 2.8 percent.
Smith: 200 points in decline for
Smith: the Nasdaq we've effectively given
Smith: up all the gains that we've
Smith: seen coming after the mid-term election,
Smith: which was the one- the best one day rally that we had
Smith: seen after a mid-term election since 1982.
Smith: All that wiped off the board now.
King: Yup. That's right. And the other of
King: course stories that we've been following today a- are,
King: we're all in ah, energy and then
King: also when it comes to one particular bank stock.
King: Goldman Sachs, the biggest decliner there for the Dow.
King: Ah, Malaysia finance minister has
King: said that the countr- the country is looking to
King: get a refund and all the fees
King: paid to banks bec- to that bank
King: because of the deals that they
King: made for their very troubled state fund.
King: GE, another company in focus
King: today that was also contributing to these losses.
King: That stock fell as much as 10 percent to below a dollar.
King: The CEO of that company, Larry Culp,
King: saying that the company is "getting close to
King: bottom on the power unit
King: which means that there is still more room to fall."
King: Investors not liking that story at all.
King: She's the biggest revenue driver
King: by far is this power unit.
King: They make turbines for coal and gas powered power plants.
King: Ah, and this is
King: a very problematic business unit for them.
King: Apple got the big stock watching today,
King: lowest point for their stock share price since July 27.
King: Base ID supply maker ah, cutting its forecast.
King: And then a display maker cutting its forecast.
King: Ah, signaling weak demand there for the iPhones.
Smith: That's great. And another big story
Smith: that we are continuing to track.
Smith: The wildfires continue to wreak havoc on California
Smith: and mandatory evacuations remain in full effect.
Smith: CBN's Alissa Julia Smith is live from Calabasas,
Smith: California with more on the California wildfires.
Smith: How are things looking ah,
Smith: right now in Southern California, [NOISE] Melissa?
Melissa: Hey guys. Well, yes,
Melissa: I'm still [NOISE] in Calabasas
Melissa: and these winds are no joke.
Melissa: These are the Santa Anas.
Melissa: And this isn't even the worst of it.
Melissa: These gusts are what makes
Melissa: the fires jump and continue to burn.
Melissa: And you can see the whole hillside
Melissa: behind me is burned right here.
Melissa: So, I'm right off the 101.
Melissa: If Kevin will pan,
Melissa: he's going to show you the 101 slowly chugging.
Melissa: You will now see that
Melissa: every hillside behind me is charred.
Melissa: It is burned.
Melissa: You can see [NOISE] active fires in the background.
Melissa: We've counted at least three fires [NOISE].
Melissa: You can see smoke and you can see a lot of dust.
Melissa: You can see the smoke and, er,
Melissa: we can't see flames from this location, but, uh,
Melissa: we can see three active fires,
Melissa: the woolsey fire of course.
Melissa: And, you know, there are now
Melissa: five active fires burning in California day five.
Melissa: Uh, recent [NOISE] updates for the woolsey fire.
Melissa: You know, this is LA [NOISE] County, Ventura County.
Melissa: Two reported deaths, 20 percent contained.
Melissa: That is an update which is great.
Melissa: Ah, but 91, uh,
Melissa: acr- over 1,000 acres burned,
Melissa: 57,000 structures threatened.
Melissa: We also saw the Hill Fire that's Ventura County,
Melissa: no reported deaths, 80 percent contained.
Melissa: That is an update, that's
Melissa: an updated number from this morning.
Melissa: Ah, 4,500 acres burned.
Melissa: Now, I wanna get into
Melissa: some new fires here before we go up north.
Melissa: We have a new fire called the Peak Fire.
Melissa: There's two new fires there so some breaking news.
Melissa: Peak Fire, you'll see it's up against the 118 Freeway.
Melissa: These flames go right alongside the freeway.
Melissa: And if you can see any visuals on,
Melissa: on screen it is pretty terrifying.
Melissa: It's right between Simi Valley, San Fernando Valley.
Melissa: So, it's right over the hill here um,
Melissa: and it's burning onto the one 118 Freeway as I
Melissa: mentioned and the 118 is now shut down because of it.
Melissa: It's already burned 105 acres.
Melissa: The other new fires the Lynn Fire.
Melissa: This one has been- being treated currently.
Melissa: So, they're starting to get this one
Melissa: under control already.
Melissa: Helicopters are making amazing drops
Melissa: on it and good progress.
Melissa: So, this is also in Thousand Oaks and
Melissa: it's burned just 15 acres,
Melissa: uh, so far because they have
Melissa: been able to get it under control.
Melissa: And then just to move back up to northern California,
Melissa: we know the Camp Fire.
Melissa: This is still one that is raging.
Melissa: They have enforcements coming in,
Melissa: 31 reported uh, deaths.
Melissa: Er, this is a- in Butte County,
Melissa: the city of Paradise completely devastated.
Melissa: Twenty-five percent contained so,
Melissa: that number is a little up, um,
Melissa: and over 113,000 acres confirmed
Melissa: burned now and ha- has been
Melissa: deemed California's most destructive wildfire.
Melissa: Now, I am- to bring it
Melissa: back down here in Southern California.
Melissa: I'm here in Calabasas.
Melissa: This is now under mandatory evacuation, uh,
Melissa: due to these high winds which, you know,
Melissa: they're not expected to go anywhere for
Melissa: the next three to four days.
Smith: Right [NOISE]. And, and when can we
Smith: expect full containment of these wildfires?
Smith: Is that clear Alyssa?
ALYSSA JULYA: [NOISE] It's not clear yet.
ALYSSA JULYA: So, a few things that aren't clear Brad is
ALYSSA JULYA: wha- how these fires started.
ALYSSA JULYA: The cause have not been deemed
ALYSSA JULYA: yet but also one is gonna end we know it's
ALYSSA JULYA: a red flag wind advisory at least in
ALYSSA JULYA: Southern California for the Santa Ana
ALYSSA JULYA: winds through the next three days.
ALYSSA JULYA: They're saying by this weekend they're hoping to have
ALYSSA JULYA: containment that's another five to six days.
ALYSSA JULYA: So still a long time.
ALYSSA JULYA: They're hoping to have the camp fire contained.
ALYSSA JULYA: I heard by November 30th which
ALYSSA JULYA: is that's a long ways from now.
ALYSSA JULYA: So, this is nowhere close to
ALYSSA JULYA: being over yet and unfortunately as
ALYSSA JULYA: we've reported we now have
ALYSSA JULYA: two additional fires underway here
ALYSSA JULYA: in Southern California in Ventura County.
ALYSSA JULYA: So, we still have a lot of progress to make, uh,
ALYSSA JULYA: good thing we have
ALYSSA JULYA: outside support coming from Texas today.
ALYSSA JULYA: We had support coming in from Colorado over the weekend.
ALYSSA JULYA: Um, so, we are have other- other states coming in,
ALYSSA JULYA: uh, it's a unified effort here between firemen,
ALYSSA JULYA: um, and FEMA, and and the- you know
ALYSSA JULYA: air- air force and
ALYSSA JULYA: so there's a- a private public sectors.
ALYSSA JULYA: Everyone's coming together here,
ALYSSA JULYA: often doing their best and, um,
ALYSSA JULYA: unfortunately not a lot of good news to report as of now.
ALYSSA JULYA: But we will keep you guys posted
ALYSSA JULYA: on everything happening out here.
HOPE KING: Alyssa you're doing your best as well.
HOPE KING: We see that you of course are wearing, uh, an,
HOPE KING: an airmask facemask rather because
HOPE KING: air quality has been such a big issue.
HOPE KING: How are people who are living in
HOPE KING: this area coping with this situation?
ALYSSA JULYA: Yeah I hope so.
ALYSSA JULYA: You know in a lot of these zones you need
ALYSSA JULYA: these masks because there is- there is
ALYSSA JULYA: ash that's been flying in
ALYSSA JULYA: my eyeballs just as we've been standing out here.
ALYSSA JULYA: But even on Saturday I had to go to
ALYSSA JULYA: five different locations just to get an air purifier,
ALYSSA JULYA: the air quality has been so
ALYSSA JULYA: poor and I live in Venice Beach.
ALYSSA JULYA: So, I'm not even anywhere near these fires.
ALYSSA JULYA: But as you know these winds blow the ash,
ALYSSA JULYA: uh, people in Silver Lake were affected,
ALYSSA JULYA: people all the way to Orange County could smell, uh,
ALYSSA JULYA: this air and- and it's not great to be breathing it.
ALYSSA JULYA: So, even if you aren't in
ALYSSA JULYA: this exact location where the fires are burning,
ALYSSA JULYA: everyone in LA is affected by this air quality.
ALYSSA JULYA: You're not supposed to breathe it,
ALYSSA JULYA: it's not good, uh,
ALYSSA JULYA: but again after so many days
ALYSSA JULYA: it's really hard to, you know,
ALYSSA JULYA: not have some of it
ALYSSA JULYA: consumed and you have to have a mask where you go
ALYSSA JULYA: and you need protective eyewear which I'm just wearing
ALYSSA JULYA: regular glasses right now is the best
ALYSSA JULYA: we could do at at short moment.
ALYSSA JULYA: But, we get the air quality is not good,
ALYSSA JULYA: there's a lot of health risks,
ALYSSA JULYA: health concerns from people that are out here.
ALYSSA JULYA: Um, so, yeah there's a lot of,
ALYSSA JULYA: there's a lot of things we're all trying to do to
ALYSSA JULYA: just be better do or- do our best,
ALYSSA JULYA: uh, and be healthy.
ALYSSA JULYA: But you know it's really those firefighters and
ALYSSA JULYA: people on the ground that are the most at risk.
BRAD SMITH: We certainly do see the efforts pouring
BRAD SMITH: in and certainly stay safe out there.
BRAD SMITH: Alyssa thanks so much for bringing
BRAD SMITH: us a live shot of what's taking place on the ground.
HOPE KING: Yeah, all right we're continuing to
HOPE KING: follow this and for more on
HOPE KING: these wildfires we are joined now by
HOPE KING: Andrew Friedman science editor at ASIOs.
HOPE KING: Andrew, great to see you as always.
HOPE KING: Now these fires are barely contained
HOPE KING: and we just saw the report there
HOPE KING: from our colleague Alyssa Julya Smith.
HOPE KING: It's caused massive amounts of destruction.
HOPE KING: How much more power do you
HOPE KING: believe these fires still have?
Speaker 1: Ah, they still um,
Speaker 1: [NOISE] they're still burning quite of a control,
Speaker 1: um 20, 25 percent of containment is still not ideal.
Speaker 1: And dealing with the challenge of uh the Santa Ana winds,
Speaker 1: what can often happen when
Speaker 1: these events is in different areas,
Speaker 1: the winds can kick up at different times.
Speaker 1: So uh, overnight you might see
Speaker 1: those winds increase in parts of Southern California,
Speaker 1: as well as in Northern areas that are
Speaker 1: affected by the- by the camp fire.
Speaker 1: And uh we're still dealing with
Speaker 1: another uh two to maybe four days,
Speaker 1: uh involving these offshore really really
Speaker 1: drying uh winds known as the Santa Ana's,
Speaker 1: which we see in the fall in uh California.
Speaker 2: [NOISE] Andrew explain to us
Speaker 2: the significance of these fires in particular,
Speaker 2: because we've been tracking especially
Speaker 2: as the broader climate
Speaker 2: change conversation has been taking place,
Speaker 2: more and more seemingly reports
Speaker 2: of these wildfires breaking out in California.
Speaker 2: What is unique about the ones that
Speaker 2: we're seeing now though?
Speaker 1: [NOISE] Yeah.
Speaker 1: So, this really is placed in the broader context
Speaker 1: of wildfire season going
Speaker 1: for longer periods during the year,
Speaker 1: we really have a year long wildfire season.
Speaker 1: Now for all practical purposes in California,
Speaker 1: that didn't used to be the case,
Speaker 1: and that is related to climate change,
Speaker 1: long term warming, and drying trends.
Speaker 1: Uh we've had ah
Speaker 1: roughly ah less than half the amount of
Speaker 1: rainfall that we should have had in some of these areas,
Speaker 1: uh over uh the past uh months or several months.
Speaker 1: Um the period from January to October was
Speaker 1: the fourth warmest such period on record for California,
Speaker 1: and all of the top five
Speaker 1: warmest have been in the past five years.
Speaker 1: Um, the unique aspect of
Speaker 1: the fires that we've seen in this outbreak,
Speaker 1: ah are- that they have been so difficult to contain,
Speaker 1: so extreme in their behavior,
Speaker 1: ah that they have gone from practically nothing,
Speaker 1: practically just the initial
Speaker 1: spark where there was a downed power line,
Speaker 1: an errant cigarette, an arsonist,
Speaker 1: whatever the cause may turn out to be,
Speaker 1: they went from that [NOISE] to
Speaker 1: rampaging through paradise California,
Speaker 1: in a matter of mere hours.
Speaker 1: And these types of
Speaker 1: extreme behavior are radically behaving wildfires,
Speaker 1: that firefighters really really fear-
Speaker 1: um are- are becoming more common in California.
Speaker 1: It's not just California um in the United States [inaudible 01:32:18] ,
Speaker 1: but around the world where we've also seen some of
Speaker 1: this activity noted in countries like Portugal,
Speaker 1: Spain, ah Italy, ah and
Speaker 1: even our neighbors in
Speaker 1: Canada experienced some of this in Alberta.
Speaker 1: So, wildfire seasons are shifting
Speaker 1: around the world as the climate does change,
Speaker 1: that these particular fires burning
Speaker 1: so close to ah populated areas,
Speaker 1: ah and burning so ah out of control,
Speaker 1: are really what is making this story um unique
Speaker 1: and- and really tragic in terms of the human losses,
Speaker 1: the monetary losses, and-
Speaker 1: and even the animal losses that we've seen.
Speaker 3: [NOISE] Right.
Speaker 3: And is there a way
Speaker 3: ah for us to change any of these conditions,
Speaker 3: or are we waiting for some type of
Speaker 3: weather pattern to work in our favor here?
Speaker 1: [NOISE] So, right now for
Speaker 1: these particular fires that we're seeing,
Speaker 1: we are waiting for the weather patterns to change.
Speaker 1: Ah we're waiting for the Santa Ana winds,
Speaker 1: and the persistence of
Speaker 1: the firefighters who are there to get the upper hand.
Speaker 39: Yesterday, on Sunday, they were able to drop enough.
Speaker 39: They had more than two dozen helicopters,
Speaker 39: doing just constant drops
Speaker 39: ah in one neighborhood near Malibu.
Speaker 39: Ah to try to save a subdivision,
Speaker 39: they were able to do that.
Speaker 39: We're looking for a lots of- lots
Speaker 39: of those little victories,
Speaker 39: ah to add up to something.
Speaker 39: Ah so that they are able to ah contain it.
Speaker 39: Ah It may burn till November 30th,
Speaker 39: it may burn you know,
Speaker 39: but let's have that'd be in a more rural area.
Speaker 39: Um that's what they're trying to do.
Speaker 39: That's what we're hoping. And [OVERLAPPING]
Speaker 31: Andrew, what about the long term impacts of this?
Speaker 31: I mean even if the fire subside,
Speaker 31: I mean we- we heard Allysa Julie Smith there,
Speaker 31: er our colleague in Los Angeles talk
Speaker 31: about ah the pollution,
Speaker 31: the air quality concerns.
Speaker 31: Even if these fires do go out,
Speaker 31: what are the long term impacts to our health?
Speaker 39: Yes. We're just starting to really appreciate the impacts
Speaker 39: of ah more severe wildfire seasons on- on our health.
Speaker 39: And really, the danger periods
Speaker 39: are right now um where the densest smoke plumes are.
Speaker 39: The National Weather Service is
Speaker 39: tracking the smoke plumes very closely,
Speaker 39: and they are issuing ah air quality alerts.
Speaker 39: Ah if you go to weather.com you'll see that information,
Speaker 39: um and you'll see it also on your weather app.
Speaker 39: Um and really that does mean,
Speaker 39: like don't go jogging during the day.
Speaker 39: Ah If you have an air quality alert going on,
Speaker 39: um get protective face gear, face masks.
Speaker 39: I believe the city of Sacramento is handing-
Speaker 39: handing them out distribution points,
Speaker 39: due to the camp fire um plume flowing over there.
Speaker 39: It's really changeable in terms of the air quality index,
Speaker 39: ah each day depending on the- on the wind direction.
Speaker 39: Um So- so, that's one thing that you know,
Speaker 39: they're- they're trying to track pretty closely.
Speaker 39: Once these fires d- diminish a little bit more,
Speaker 39: the health impacts aren't going to be so long term.
Speaker 39: It's really something that
Speaker 39: aggravates people with asthma right now.
Speaker 39: It aggravates ah elderly people
Speaker 39: who are dealing with certain conditions,
Speaker 39: and ah the young people like
Speaker 39: ah infants and- and toddlers especially.
Speaker 4: And what about
Speaker 4: the industrial impacts that we're seeing here?
Speaker 4: The different sectors and particularly California,
Speaker 4: I believe they still produce the most food
Speaker 4: by value of any state right now.
Speaker 4: So, the industries, the
Speaker 4: agricultural businesses that we're going to see impacted,
Speaker 4: what are the long lasting impacts of that?
Speaker 39: So the long lasting impacts um in terms of agriculture,
Speaker 39: we're not really bracing for a huge impact um in ah- so,
Speaker 39: in- in where the campfire is right now.
Speaker 39: So that's the one that's the closest
Speaker 39: to sort of the- the heart
Speaker 39: of um the agricultural area in California.
Speaker 39: Um so that region you probably ah want to keep an eye on.
Speaker 39: Ah but that probably not as big an impact.
Speaker 39: You are going to have ah
Speaker 39: significant problems with ah watching the stock of PG&E.
Speaker 1: Because there are uh gonna
Speaker 1: have to deal with the liability issue questions,
Speaker 1: of whether or not some of
Speaker 1: their power lines actually sparks these fires.
Speaker 1: The state did pass a new law,
Speaker 1: that allows them to pass most of
Speaker 1: that liability uh off to the taxpayers,
Speaker 1: to the ratepayers of electricity.
Speaker 1: Uh however, it's still a bigger question um as
Speaker 1: to how much of that can be passed- passed on.
Speaker 1: And in terms of it being a public policy issue,
Speaker 1: um that's going to be raised.
Speaker 1: And there's all sorts of economic impacts in terms
Speaker 1: of: Um you evacuated 250,000 people,
Speaker 1: you closed however many businesses
Speaker 1: um in Malibu in Calabasas,
Speaker 1: and other bustling communities.
Speaker 1: And you also destroyed one entire town,
Speaker 1: um which is going to raise
Speaker 1: questions about whether they rebuild and at what cost,
Speaker 1: and how many of those people- um
Speaker 1: a lot of whom were older residents,
Speaker 1: had uh the fire insurance
Speaker 1: necessary to recover their losses.
Speaker 1: So those are really the economic impacts that I'd be a
Speaker 1: little bit more uh tuned to.
Speaker 1: But I think if droughts would affect more of
Speaker 1: the agricultural sector a little bit more
Speaker 1: than- than that in these particular fires.
Speaker 2: Understood. Thanks so much, for that insight.
Speaker 2: We certainly appreciate the time here today,
Speaker 2: Andrew Friedman, Science Editor at Axios. Thanks, again.
Speaker 1: Thank you.
Speaker 3: Okay guys. Coming up,
Speaker 3: the FDA is looking to ban
Speaker 3: sweet E-Cig flavors and menthol cigarettes.
Speaker 3: How close though are we to that reality of the bans?
Speaker 3: We'll discuss, next. [MUSIC]
Lisa: [MUSIC] Hello everybody.
Lisa: Welcome back to Cheddar.
Lisa: The FDA is set to be looking to limit
Lisa: the sale of sweet e-cigarette flavors to
Lisa: hopefully curb the rampant use of
Lisa: the devices by teens and young kids.
Lisa: Joining us now is a Jane O'Donnell,
Lisa: a health care policy reporter at USA today.
Lisa: It's great to see you here Jayne.
Lisa: Uh, so, get us up to speed here,
Lisa: this ban that the FDA is looking to put into place.
Jayne: Well, they're expected to announce this week,
Jayne: probably in the next day or two that they're going to
Jayne: restrict the sale of these fruity flavors, creme brulee,
Jayne: these other- other ones except for sweet menthol or mint,
Jayne: um, in convenience stores or gas stations in particular.
Jayne: Um, those- that's- so, it's what,
Jayne: what the convenience store industry calls discrimination.
Jayne: It's what the FDA says it's necessary to,
Jayne: to curb the use, as you say, to teens.
Jayne: The, um, I think one important note, when you suggesting,
Jayne: you how- how, how soon could this happen or what's- when,
Jayne: when it's gonna happen?
Jayne: I- It will be interesting because
Jayne: the convenience store industry as I reported,
Jayne: has already- is already ah,
Jayne: making noise about filing suit as
Jayne: soon as the FDA makes its announcement.
Jayne: That could drag this out for quite a while,
Jayne: and we should also just quickly mention that
Jayne: the on- online sales will be,
Jayne: they'll be a lot stricter enforcement
Jayne: of a- age limits for age,
Jayne: you know, mandatory ages.
Smith: An- And in governments and enforcement,
Smith: how would they even go
Smith: about monitoring this the right way?
Jayne: How would they go about monitoring?
Jayne: Well, I- I think they'd be able to pretty,
Jayne: pretty easily uh, you know,
Jayne: restrict what stores can sell.
Jayne: They can- they can do spot checks,
Jayne: they can, they can,
Jayne: um, I think- I don't think that would be a problem.
Jayne: I mean, they might- they
Jayne: probably wouldn't catch all the stores,
Jayne: but certainly the bigger chains
Jayne: probably wouldn't take a chance.
Jayne: Some of those, those smaller fly-by-night ones might.
Jayne: But, um, you know, I should mention
Jayne: one other thing that came up when I was er,
Jayne: reporting on, on the possibility
Jayne: of this several months ago,
Jayne: is that it, that it really isn't that hard.
Jayne: I'm told to add flavoring to, um, vape liquids.
Jayne: So they, they will probably be,
Jayne: they'll probably be a pretty,
Jayne: um, a pretty good, good,
Jayne: for lack of a better word after-market
Jayne: industry of people selling these kinds of,
Jayne: um, [NOISE] flavors to be added
Jayne: to the e-cigarette liquid.
Lisa: Uh, based on other types of products,
Lisa: um, that, ah, the government and, and, ah,
Lisa: here and other countries have tried to limit, uh, to,
Lisa: to these younger kids ah,
Lisa: how effective do you think
Lisa: this strategy might actually be in,
Lisa: in curbing the use?
Jayne: Well, some people say that it,
Jayne: it will, it will just make it more attractive.
Jayne: I mean, that is one of the problems, uh,
Jayne: with- when you do the more you restrict it,
Jayne: the more it, the more enticing it can be.
Jayne: But hopefully, [LAUGHTER] hopefully,
Jayne: at least, on the, on um,
Jayne: from the perspective of people
Jayne: who are public health advocates,
Jayne: it will make it hard enough that
Jayne: it'll keep kids from starting.
Jayne: And that- that's, of course, one of
Jayne: the big problems here is that, that young people.
Jayne: It's- there's, there's a very important place
Jayne: in public health for,
Jayne: for vaping if you are addicted
Jayne: to cigarettes already because,
Jayne: it's not carcinogenic and- it's,
Jayne: and it's in it's a better alternative.
Jayne: But if you're [NOISE] addicting a whole generation of
Jayne: young people to nicotine
Jayne: with when they might end up turning to,
Jayne: to a cigarette if they can't if their vapor runs
Jayne: out of power or they don't have the liquid um,
Jayne: that becomes a- a much bigger public health cost.
Smith: So, it sounds like there's going to be a- a battle,
Smith: at the least, when might we
Smith: expect the policy to go through?
JAYNE O'DONNELL: I think it could. I- I mean
JAYNE O'DONNELL: the ban could happen fairly quickly.
JAYNE O'DONNELL: I mean they, they seem to- they seem to think that
JAYNE O'DONNELL: the FDA is- is talking about doing
JAYNE O'DONNELL: this quickly and likely this week.
JAYNE O'DONNELL: Uh, it's just a matter of how long it gets
JAYNE O'DONNELL: tied up in court and how that all plays out.
JAYNE O'DONNELL: And that's very difficult to predict
JAYNE O'DONNELL: but there- there will be a crackdown.
JAYNE O'DONNELL: I mean and some of this will be easier for-
JAYNE O'DONNELL: easier for the FDA to enforce than others.
JAYNE O'DONNELL: But- but, um, you know,
JAYNE O'DONNELL: whether this whether, um, you know,
JAYNE O'DONNELL: bubblegum flavored bait liquids are available
JAYNE O'DONNELL: at that 711, um,
JAYNE O'DONNELL: [LAUGHTER] at the end of this year
JAYNE O'DONNELL: the beginning of next year,
JAYNE O'DONNELL: um, that I wouldn't
JAYNE O'DONNELL: be surprised if that's still the case.
HOPE KING: What are some of the arguments
HOPE KING: that these companies [NOISE]
HOPE KING: made to try to prevent this ban from going forward?
JAYNE O'DONNELL: I'm sorry, can you say that one more time.?
HOPE KING: Sure. I was saying that
HOPE KING: these companies they've obviously put up a fight.
HOPE KING: What are their arguments?
JAYNE O'DONNELL: Well, they say it actually flat out violates
JAYNE O'DONNELL: the tobacco control act which says that you can't- that
JAYNE O'DONNELL: which basically states that you can't restrict
JAYNE O'DONNELL: which specific sales to certain places over other places.
JAYNE O'DONNELL: Um, that- that's the big thing in that and that, um,
JAYNE O'DONNELL: and that that you know, there's,
JAYNE O'DONNELL: there's too big of a public health benefit to,
JAYNE O'DONNELL: to making these available.
JAYNE O'DONNELL: Young people are not the only people that like
JAYNE O'DONNELL: these flavored Eliquids, um,
JAYNE O'DONNELL: a lot of adults prefer them too so that there is- that
JAYNE O'DONNELL: you're making it too hard for people to
JAYNE O'DONNELL: quit smoking and that is the big,
JAYNE O'DONNELL: the big public health problem right now there's,
JAYNE O'DONNELL: you know it is you know,
JAYNE O'DONNELL: it is- it is the big [LAUGHTER] the
JAYNE O'DONNELL: big problem that needs to be solved
JAYNE O'DONNELL: when it comes to lung cancer and so many
JAYNE O'DONNELL: other diseases, heart disease.
JAYNE O'DONNELL: So, so many are linked to, to this.
HOPE KING: Is there- is there a likelihood that
HOPE KING: the FDA could get sued here?
JAYNE O'DONNELL: Yeah. And that's what I'm saying.
JAYNE O'DONNELL: They, they will- the convenient store industry
JAYNE O'DONNELL: will file suit whether
JAYNE O'DONNELL: it's the industry as a whole or for
JAYNE O'DONNELL: individual stores that became pretty clear last week.
MALE_4: And tobacco stocks were down today
MALE_4: after reports that the FDA is
MALE_4: prepared to ban the sale
MALE_4: of menthol cigarettes altogether.
MALE_4: Is that possible and what should we expect from that?
JAYNE O'DONNELL: Yes, certainly it's possible.
JAYNE O'DONNELL: Um, they I mean they- they do have
JAYNE O'DONNELL: a lot of power and it would um, well it would, uh,
JAYNE O'DONNELL: have been would certainly
JAYNE O'DONNELL: they're very happy that menthol cigarettes are very
JAYNE O'DONNELL: popular with certain certain ethnicities
JAYNE O'DONNELL: African-Americans have
JAYNE O'DONNELL: a very disproportionate risk
JAYNE O'DONNELL: from smoking and they seem to think that
JAYNE O'DONNELL: menthol makes it less dangerous when in
JAYNE O'DONNELL: fact it's as dangerous if not more.
JAYNE O'DONNELL: So, I mean, I mean [NOISE] it's something that's,
JAYNE O'DONNELL: that's been considered for a long time so
JAYNE O'DONNELL: that that actually, um,
JAYNE O'DONNELL: could really help with
JAYNE O'DONNELL: health disparities because there's,
JAYNE O'DONNELL: because there's such a risk up there.
JAYNE O'DONNELL: There's some of the spine- some of
JAYNE O'DONNELL: the data last week that came out showed
JAYNE O'DONNELL: such- so much of a higher risk for certain LGBTQ people,
JAYNE O'DONNELL: people with mental health issues.
JAYNE O'DONNELL: Um, it's just it's one more thing that's adding to
JAYNE O'DONNELL: it a crushing burden of disease for so many people.
HOPE KING: And just to be clear there are two
HOPE KING: separate brands where we're looking at
HOPE KING: two separate different- two separate kinds
HOPE KING: of policies. Right?
Jane O'Donnel: Yeah, but it's all- it's all part of, uh,
Jane O'Donnel: it's- it's part- it's part of one kind
Jane O'Donnel: of sweeping effort to- to bring,
Jane O'Donnel: um, to- to look at flavoring in tobacco products.
FEMALE_3: Perfect. Okay. Jane, thank you for
FEMALE_3: breaking that down for us, really helpful.
FEMALE_3: Jane O'Donnell, health care [OVERLAPPING]
FEMALE_3: policy reporter at USA Today.
MALE_5: Alright, guys, and coming up, we'll talk to the producer
MALE_5: behind a new documentary which premieres this weekend,
MALE_5: and we'll be 60,000 hours in length when completed?
MALE_5: What? That on the other side.
MALE_5: Hi guys, welcome back to Cheddar.
MALE_5: We also want to welcome those of you listening to
MALE_5: Cheddar on iHeart Radio
MALE_5: [NOISE] and see Brad and [inaudible 01:50:10] DJ Hope
MALE_5: [inaudible 01:50:11] is giving to you on the ones and twos.
MALE_5: They say it takes 10,000
MALE_5: hours to become an expert in a field.
MALE_5: Then, when we say they,
MALE_5: Malcolm Gladwell says that,
MALE_5: uh, and many others believe it to be true.
MALE_5: But for the Takumi of Japan,
MALE_5: they train on their craft for 60,000 hours.
MALE_5: How is craftsmanship of that level
MALE_5: preserved in today's technology-driven society?
MALE_5: That's the big question. And joining us now to answer it
MALE_5: is Rupert Maconick who is the producer of Takumi.
MALE_5: Rupert, good to have you here with us today.
Rupert Maconick: Good to see you. How are you?
MALE_5: Absolutely. Oh, I am well.
Rupert Maconick: That's fantastic. [LAUGHTER]
MALE_5: Even better now that you're here with us.
MALE_5: You just had your world premiere yesterday.
MALE_5: Tell us about this documentary.
Rupert Maconick: Um, we were- we were hired to- to
Rupert Maconick: basically tell a story about the fact that,
Rupert Maconick: uh, automation and craftsmanship.
Rupert Maconick: So, um, as we all know the world is becoming automated,
Rupert Maconick: um, jobs are disappearing and jobs are changing.
Rupert Maconick: Um, at the same time,
Rupert Maconick: there's a lot of jobs which
Rupert Maconick: require craftsmanship and skill,
Rupert Maconick: which take many years to,
Rupert Maconick: um, to learn about.
Rupert Maconick: And they- and- and they are the- the specific, um-
Speaker 43: They require specific skills,
Speaker 43: and they're the kind of skills where-
Speaker 43: which take 60,000 hours to learn.
Speaker 5: Okay, well, so your documentary is
Speaker 5: actually 60,000 hours long?
Speaker 44: We- uh, there's one version of it
Speaker 44: which is 60,000 hours long.
Speaker 44: Just to give you something to do on a Sunday. [LAUGHTER]
Speaker 5: How does one film something that is 60,000 hours long?
Speaker 44: Well, we have breaks in between.
Speaker 44: So, we- each segment has a- has a loop.
Speaker 5: Sure.
Speaker 44: And it goes on for- for 60,000 hours, so it's-
Speaker 5: Got It.
Speaker 44: It's- it's five segments with some loops.
Speaker 5: Gotcha, gotcha. Okay, so you didn't actually
Speaker 5: sit there and- and- and shoot for 60-
Speaker 44: Thought about it.
Speaker 5: Yeah, I mean I don't think you'd be here, uh-
Speaker 44: Thought about it very briefly.
Speaker 5: -and being able to watch it. Um, who are
Speaker 5: the five people that you profiled for this?
Speaker 44: Um, there was a range of prof- of people.
Speaker 44: So we had the- one of the greatest potters,
Speaker 44: we had um someone who does textiles and design,
Speaker 44: we have someone who- who the
Speaker 44: oldest craftsman who built houses out of wood,
Speaker 44: and they did- they have one specific skill.
Speaker 44: They each have a skill that takes 60,000 hours.
Speaker 44: So, it's a wide range of people.
Speaker 44: We also had someone who has a- an inn, um and obviously,
Speaker 44: you know the all the- the processing involved in looking
Speaker 44: after people that one of these
Speaker 44: um- these inns. Japanese inns.
Speaker 34: Why focus on Takumi?
Speaker 44: Um truthfully we were approached by Lexus,
Speaker 44: who are a forward thinking brand.
Speaker 44: And they wanted um to
Speaker 44: tell a story about the fact that they have Takumis,
Speaker 44: and we needed to do it in an interesting
Speaker 44: way that felt more
Speaker 44: like entertainment and less like a promotional tour.
Speaker 44: So we look to this and we said, an ent- you know,
Speaker 44: we brought in uh the team from Chef's Table,
Speaker 44: and we said, let's do this is
Speaker 44: like an episode of Chef's Table.
Speaker 44: And so one of the episodes was also about Lexus,
Speaker 44: and again pe- the world's disrupted right now.
Speaker 44: So we're exploring the fact that- that
Speaker 44: all these traditional skills are becoming to the fore.
Speaker 44: One of those skills happens to have- you know,
Speaker 44: there's a team at Lexus who do that as well.
Speaker 44: There also- Takumi means art design in Japanese.
Speaker 5: And how did the Takumi feel about automation?
Speaker 44: They- I don't think it bothers them that much,
Speaker 44: because they're busy being Takumi,
Speaker 44: so it doesn't really worry them.
Speaker 44: If you're a Takumi, you're not
Speaker 44: really thinking that your job is going to be
Speaker 44: overtaken because it requires such specific human skills.
Speaker 44: And I think in many ways, they think
Speaker 44: sometimes that can complement them.
Speaker 34: And- and so, AI automation,
Speaker 34: they think and consider that a-
Speaker 34: a complimentary type of application?
Speaker 44: Can be, yeah.
Speaker 34: How so?
Speaker 44: Um, I think there's certain situations where
Speaker 44: the creative part of
Speaker 44: their job- they can focus
Speaker 44: on the creative part of the job,
Speaker 44: but they can let an AI assist them in-
Speaker 44: in- in more- some of the more repetitive skills,
Speaker 44: but they- you need the human skill
Speaker 44: to make it unique and- and- and different each time.
Speaker 5: Amazing. And- and when they think about
Speaker 5: their own uh- uh their own path
Speaker 5: to get to becoming this Takumi,
Speaker 5: because it's- it's a very revered title, right?
Speaker 5: And do they- do they understand that i-
Speaker 5: it's- how just amazing it is,
Speaker 5: or do they appreciate that?
Speaker 44: I think uh in Japanese culture,
Speaker 44: I think it's something that's really celebrated.
Speaker 44: Um I think there's a lot of documentaries
Speaker 44: in Japan about Takumi's,
Speaker 44: and a- and it's
Speaker 44: a whole philosophy which celebrates Japanese culture.
Speaker 5: And is it still alive, or is-
Speaker 44: I think so, yeah.
Speaker 5: -so, there are people who still aspire to
Speaker 5: be Takumi in something?
Speaker 44: Yes. I think they you know- often they're family driven,
Speaker 44: so i- it's-it's handed down but not always.
Speaker 44: Um and I think there are situations where-
RUPERT MACONIK: People aspire to be takumis.
RUPERT MACONIK: They-they choose to do that kind of job.
HOPE KING: Dedicate their whole life.
RUPERT MACONIK: Yeah.
BRAD SMITH: What did you take away, most
BRAD SMITH: from this from this productions,
BRAD SMITH: different than others that you're working on.?
RUPERT MACONIK: Well I think it's a couple of things.
RUPERT MACONIK: That it's just quite an interesting time in
RUPERT MACONIK: the world right now because everything
RUPERT MACONIK: is disrupted and changing.
RUPERT MACONIK: So from the side of what we all do for a living,
RUPERT MACONIK: I mean many of our jobs are going to get taken over.
RUPERT MACONIK: So there might be, you know,
RUPERT MACONIK: artificial AI reporters or all sorts of things.
HOPE KING: Oh yes we talked about it last week.
HOPE KING: We talked about it last week.
RUPERT MACONIK: There you go.
HOPE KING: And, um-
RUPERT MACONIK: So every job is getting
RUPERT MACONIK: disrupted, and what does that mean?
RUPERT MACONIK: So that's always
RUPERT MACONIK: a good thing to look in the mirror and think,
RUPERT MACONIK: is my job going to get, you know,
RUPERT MACONIK: get removed to change dor whatever.
RUPERT MACONIK: And I think every job is changing.
RUPERT MACONIK: And I think that was the thing
RUPERT MACONIK: that Lexus were fairly forward thinking about,
RUPERT MACONIK: was they actually looked at this and
RUPERT MACONIK: said this is a different way,
RUPERT MACONIK: to market and disrupted marketing world.
HOPE KING: Amazing. And Rupert before we let you go,
HOPE KING: I want to talk more about
HOPE KING: the takumis that you interviewed.
RUPERT MACONIK: Sure.
HOPE KING: Were any of them- did any of them feel like,
HOPE KING: a little trepidatious about about the future,
HOPE KING: or were they as you mentioned earlier in the interview,
HOPE KING: totally secure in the fact that they
HOPE KING: have earned this- this title?
RUPERT MACONIK: I think they're happy that-
RUPERT MACONIK: I think they're happy in their world because,
RUPERT MACONIK: I think part of if you are really
RUPERT MACONIK: expert artist design, you're not like, you know,
RUPERT MACONIK: all of us in the West are all stressed,
RUPERT MACONIK: rather depressed about our past,
RUPERT MACONIK: still stressed about our future,
RUPERT MACONIK: and not really living in the present.
RUPERT MACONIK: Whereas they are literally living in the present.
RUPERT MACONIK: So they're quite peaceful and that's something we
RUPERT MACONIK: could all learn because we're all a
RUPERT MACONIK: bit stressed with social media,
RUPERT MACONIK: and computers and, you know, daily stuff.
RUPERT MACONIK: And I think they are actually just very relaxed,
RUPERT MACONIK: and sort of meditative what they do.
BRAD SMITH: Lexus is the luxury division of Toyota in Japan.
RUPERT MACONIK: Correct. Yeah.
BRAD SMITH: What does it mean for them right now,
BRAD SMITH: running something like this,
BRAD SMITH: even producing and kind of looking for this effort,
BRAD SMITH: at a time where there are more European and US
BRAD SMITH: car brands that are trying to make
BRAD SMITH: their way into the Asia-Pacific region?
RUPERT MACONIK: I think they want to stand out,
RUPERT MACONIK: and celebrate their own culture
RUPERT MACONIK: and say that this is something
RUPERT MACONIK: unique to our particular culture
RUPERT MACONIK: and the way that we do things.
RUPERT MACONIK: And we do have these- these these guys within our plans,
RUPERT MACONIK: who are using their artisan,
RUPERT MACONIK: craftsmanship skills to- to
RUPERT MACONIK: really make sure that the cars are unique.
RUPERT MACONIK: And that's a good- that was one of
RUPERT MACONIK: the takeaways from the documentary.
RUPERT MACONIK: There's a way that you can balance.
RUPERT MACONIK: It's a very tech driven,
RUPERT MACONIK: um, factory, obviously incredibly high tech.
RUPERT MACONIK: But they do have these guys there that are important,
RUPERT MACONIK: and the specific things they do,
RUPERT MACONIK: where you do require a human touch and a human eye.
HOPE KING: Amazing stuff. Rupert, thank you for joining us today.
RUPERT MACONIK: Nice to meet you too.
HOPE KING: Rupert Maconik, producer of Takumi.
RUPERT MACONIK: Cheers.
HOPE KING: Thank you.
BRAD SMITH: Thanks.
HOPE KING: All right, well that is it for us today.
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