Dow Slides 600 Points, Twitter CFO Talks User Growth and More

November 12, 2018

Stocks sank on Monday with Apple weighing heavily on the tech sector as iPhone demand concerns resurfaced. Plus, Twitter's CFO talks user numbers, fighting election misinformation, video ads and more. And the deadly wildfires in California claim more lives.


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?


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.


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.


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.


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] 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-

Hope: Right.

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.

Hope: Yeah.

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.

Brad: [MUSIC]

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.


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] 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 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.


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.


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.


HOPE KING: Thank you.


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