Cofounder, welcome to you busy day, good day to have roger on the set another record setting day on the street biggest gain for stocks on tuesday. Rally being driven a lot by tax reform optimism. Bitcoin stealing some part of the story surpassing 11 k less than 24 hours after breaking 10 k. It has backed off that price were learning nasdaq is reportedly planning to launch Bitcoin Futures in the first half of next year. Thats according to dow jones. There is a lot to tackle roger, bitcoin news rortation between sectors as people watch this tax bill advance. Whats the lead for you. To me the bitcoin thing is a phenomenon at this point its really hard to know what to say. What do you do when the thing is going up 10 a day, whole asset class going up 10 a day, youre obviously not doing this on fundamentals theres a lot of enthusiasm here to me what really matters is where does it land what role is it going to play in the economy going forth, because its clearly worked brilliantly as a tradeable commodity now the question is, can they make it more than that can they make it into something thats an exchange. Who is they important question. Im involved in a company where there has been a lot of malicious attacks on their Software Bitcoin is the way perpetrators maple ta maintained their anonymity clearly commercial uses are not the ones youre looking for if you want this to become a big deal i mean, ive never seen anything like this. Does it remind you of anything else . No. Because its a whole new asset class. In that sense, no, ive never seen. You called eight commodity earlier. Its not just commodity, technology, currency. There are a lot of things going. But bitcoin is a commodity obviously underneath it you have a technology that has hopefully a lot of applications. You know what it reminds me of, dotcom in the late 90s just dotcom there was the internet underneath it, like a real world changing technology, and there were some dotcomes actually worth something, amazon. Talking about those. There was pets. Com, web band im getting my facebook feed blown up with every day people asking what about bitcoin right as im seeing the price go up. I worry for people getting in. In that sense it looks just like dotcomes, but because its a new thing, there isnt any infrastructure past experience to evaluate how far is too much. Just like dotcomes. Yes, but they were stocks mechanisms for doing trades and those kinds of things were inside a framework we all understood there were places you could go to either get out of the way or to hide out. You know, i look at this thing, and i may be wrong, john, but from where i sit, this is its own phenomenon so at this point i would make no bet at all about what happens next, you know its gone a lot further than the bears would ever have imagined i think its probably gone further than some of the bulls would have imagined. You know, as far as i can tell, its like the market is going to make a choice here and im not going to pretend like im the one who knows because i sure dont. Even though 2 of the population odni bitcoin, this is something you think is important enough for us to be talking about . I look at it because everything on wall street is at the margin looking over its shoulder and wondering what bitcoin is going to do when you see Goldman Sachs and nasdaq all putting their strategies to try to embrace this thing. Figure out derivatives to play in the market. That is a big deal. Is it a big deal because its going to provide momentum or a big deal because frankly if theres more of an efficient market in this thing and people are able to predict where its going to be and short it, it could put some downward pressure, besides the upward pressure in scarcity. Theres a third thing that i think is the real goal of those two organizations, which is bitcoin right now is completely decentralized. Before we go on, lets get sbos into 20th century fox admission. Its important, perspective from the outside looking in around any allegation, more investigation than the company that certainly weve lived this for the last year and a half the fact set of these allegations, whether theres been harassment or not can be very different in very different cases, which the headlines dont always show. So a harassment case or claim against one person, one situation versus someone else might be a completely different situation. It also might be much more difficult for a company to act on presumably here in nbcs case they have had actionable information they were able to move quickly i think youve got to commend them for that. Its a trick sign to see the Companies Moving that quickly to eradicate, if thats ever possible, we hope it is, Sexual Harassment in the workplace. With fox news, for instance, it took us 13 days from the time we had the first we learn of the first allegation with roger ailes until we walked him out of the building im not sure when nbc first we dont know when nbc first heard the allegation but 13 days by historical standards removing a ceo of a business i think is a pretty good track record. And with bill oreilly, it seemed there was a private settlement he was allowed to continue have things changed around that. What happened for us is that, again, have you to look at the facts. The fact set around roger ailes and bill oreilly appeared very different and still are factually different. With with roger ailes what we were able to do, go in, hire an independent law firm, sorry, outside law firm to work for us, work for us and go in and investigate all the allegations, which included speaking to the women involved, corroborating their stories, getting firsthand corroboration from when the harassment claims happened, really very rigorous investigation where we were able to talk to our employees and gain the fact that we needed to act upon that. With bill oreilly, it was very different in that they were private settlements that happened in the past the company had never had a complaint. The private settlements included anyone not talking about it. So we had a complete inability to dig into the story and find out what had actually happened once, however, these things became public, and we were aware of them, what we were able to do is change the contract if there were any further allegations that arose, we could fire him for cause immediately, which is what we did. And fox and more generally is it now no longer okay that someone could have a private settlement where there are gag orders on the other side and still stay at work is that the companys business yes thats what it should be you should not have situations where we do as well this is the disappointing, we have very strong hr departments, global head of hr. The local hr departments in these situations dont talk to local management basically straight up to the Senior Management ultimately if the situation looks serious, my brother or myself we also have hot lines throughout the company we have a number of anonymous hot lines for complaints or for people if they want to go on the record with us about a complaint. So these are important mechanisms that you need people to trust and to use so that we can then act on that if people dont use that, its very hard for the information to filter up that we can take advantage of. Lets take about other recent news i met an executive who worked with you and the family and company for a long time. Henry, i think the fundamental things, the headlines and these are juicy media stories, its so important, a very good year because it is completely unacceptable for men particularly were seeing powerful men to have and allow or engage in harassment in the workplace. The fact that weve gone through this sort of cathartic moment, not just the media but we see through all of society and business and elsewhere i think is a tremendous thing. I think we come out of it as a community far, far stronger. Here here other news, saw a friend, former executive of the company he said, i never, ever thought that the murdochs would ever consider selling anything. How here were reading you may sell half your crown jewel, the company, whats changed . Talking about our children. We both have 13 years old. My 13yearold was telling me the other day the one thing hes disappointed with going into middle school was the school quartered gosse yard gossip. A lot of rumor and speculation gets out there that arent necessarily true the advice to him and myself, lets not feed that speculation. Thats been a london standing policy of the company. Were not going to talk about stuff bubbling out in the media and for the hollywood hallways but the reality is, what this has caused, speculation we might ever sell a part of our business, this has caused a debate in the media. When i look, ive said on stages the last couple years. Absolutely there are some scale businesses in media today, which will be the losers Going Forward in a Digital World thats the case. If you havent invested in your programming and channels, you havent invested in sort of distribution platforms, you are unlikely to get on the new Digital Services and youll struggle we dont believe were in that situation. We can demonstrably point, maybe the only company growing, large media growing because of our mix of younger cable channels. We feel very well talk about it more in a minute. We feel very strongly where were positioned to grow the company. And yet, it is the job of analysts and others to evaluate schoolyard gossip, as you put it one of the very strong media analysts said about the reports that you might sell half of 21st century fox. This makes immense sense so if we go the other way on that, if you dont sell them, the analyst will say it makes less sense can you shed some light on what hes seeing . Two reports. So reports are youre considering selling, sky, satellite control pay tv in the uk, national geographic, fx, film and tv studio, hulu, keeping fox sports, fox news and Fox Broadcasting hypothetically, what would be the reasoning there . Why would that make immense sense. Again, im not going to comment on exact speculation, but whats happening you are the reason the analysts are saying in the industry is if you look at whats happened w h digital as cable universe declining, around overall and traditional cable, 2, 2 1 2 if that continues, obviously cable affiliates are one of the key drivers for the big american companies. Little bit left for us because we have a Big International business but u. S. Business is a very important area of revenue so whats happening, though, the new digital of the youtube, tremendous service, hulu live service, dm thats loachlan murdoch commenting on termination of matt lauer on nbc, declining to speculate about asset sales. He says the speculation itself has caused a debate around scale in the media speaking of media social snap down snapchat writing oped for axios, and he slams social media rivals for fake news rough illusionized the way people share and consume content. Lets be honest this came at a huge cost to our fax, minds and entire media industry. Thats the same day they roll out a new redesign this is speigle reviewing the changes. Were separating social from media and reorganizing snapchat around relationships to make it personal we hope it feels more familiar, inspires you to express your self with your friends and explore content you love. Roger mcnamee still with us on set youve been critical with the way they have altered the flow of information is this a first fix. I think its a step in the right direction. First of all, i think its a really smart, strategic move for evan spiegel to focus on, try to drive a wedge on this issue. Facebook and google are extremely vulnerable because of filter bubbles and this notion they manipulate the thts of their users the way they present information. In fairness s. N. A. P. Is not free of blame s. N. A. P. Streams exploit the same basic problem in order to sell ads, the strategy is to addict your audience once youve addicted them, you want to find ways to manipulate their behavior. In fairness, thats the Media Business everybody who is putting something on tv or on a phone wants their audience to want more of it. The difference is that on smart phones the people who have personal data, who can essentially program individualry for 2 billion members have advantage and power to do great deal more harm than broadcast network can do my simple point, its a matter of degree jump but degree matters. When i look at s. N. A. P. , you know, i hope this is the beginning of them defending themselves more aggressively they are in a position to get benefits from the government because theres no question that facebook and google are doing things that are contrary to the public interest, right, thats now been validated by a lot of data theres at least some evidence as revealed by pro publica facebook in particular has been resistant following through on its program toss reform itself i think if spiegel starts to stand up for users this way and really is committed to that notion, again, i dont think fake news is a real problem. Its a system like Everything Else its a place to start and its a place he can start. Is standing up for users whats best for business is that really what isnt that you what want, if youre a snap investor. Yes, take care of your consumers but youve got to make money, figure out a way to make this platform profitable. Youre right. The issue for facebook and google they are becoming stock toxic. Facebook in particular risks being viewed like a tobacco company. It addicts people, harm. Vulnerable to youtube kids, vulnerable to things on facebook. Snapchat have we already forgotten how snapchat got popular . Snap streaks are one of the biggest offenders on that very issue. So he does have issues around this, but as a shareholder i want him fighting back against these people, taking whatever weapons oes he weapons. Hes david against goliath hes going to get crushed if he doesnt use every weapon available. I dont know if this is going to work but its better than sitting back and letting facebook copy everything its hard to judge the price action because its such a bad day for tech in general. It is but its the right move no matter what the price tells you today, strategically hes got to get aggressive, hes got to get very public he needs to separate himself from the other guys. By the way, google needs to do the same thing relative to Facebook Google took one point million 150,000 youtube kids videos down the other day in response to the protest there. Google can find a way to separate itself from facebook, then all of them look relatively better strategically as a shareholder, you want alphabet, you want these guys to separate themselves from facebook because facebook right now is still behaving very badly. Roger, its good having you. Always a pleasure to be here and fun to listen to lachlan sit there and talk about what a day. Have a great day. Thanks very much. Appreciate it. Thanks for joining us. Janet yellen meanwhile on the hill for whats likely her last congressional testimony as fed chair. Lets get to cnbc economics reporter Steve Liesman on what shes saying steve. Hey, jon. Janet yellen and valedictory being praised, vocal disagreements on both sides as often. Want tax cut proposal which she would only do to the point current taxes need fixes and capital is a good idea for the economy. Democrats want to continue dodd frank which she is mostly doing, saying it would be a mistake to roll them back. She does support easing them for small and midsized banks. Economic committee on why Interest Rates should continue rising. We do think its important to gradually move our policy rate toward what ill call a neutral level which would be consistent with sustainably strong labor market conditions. We want to do this gradually if we allow the economy to overheat, we could be faced with a situation where we might have to rapidly raise rates and throw the economy into a recession. On the economy yellen noted it seems to be taking up steam but she said she hadnt seen a lot of ways for Inflationary Pressure if theres a difference if fed chair nominee powell and yellen its how far they are willing to go with dodd frank financial regulations. Powell seems to want to go further than yellen indicated she would. They both were asked about the deficit. About they both said u. S. Deficit on unsustainable path. Seems congress likes to ask fed chair questions and they dont necessarily listen to things they are saying. Given these tax proposals, it certainly looks that way, steve. Thanks so much meanwhile major announcements from amazon at aws reinvent in las vegas, thats where i caught up with aws ceo. Aws the most profitable unit at amazon seeing huge growth. I asked jassy about the scale, can they become the biggest on the planet take a listen. I do think its possible. Its not really the goal i have or the team has for itself we dont ever really talk about it that way. But our mission is to enable any developer or any company to be able to build all their Technology Applications on top of our technology app, Structure Technology platform. It has the chance to be a really Large Business i think if were able to accomplish the right type of Customer Experience and continue to build what customers ask us over time as the market moves more and more toward cloud, i think we have a chance to be the Largest Enterprise Company in the world. Largest in the world perhaps. With the adoption of the cloud, the question is are Companies Going to move completely away from their own data centers, this hybrid cloud, private cloud thing . Does that have legs . Here is what jassy had to say . I dont know if its ten years. Could be ten years, could be sooner, could be a little later. Ten years is a reasonable estimate yes, i think in ten years having your own data centers is going to be a little like comparing to mainframes, they are still around but not a major part growth segment of tech ecosystem. Thats a shot across the bow to dell trying to sell equipment onto businesses, campuses and saying you only pay for that you use. You dont have to pay the whole amount up front. A shot across the bow to microsoft, oracle and others trying this hybrid approach. You dont want to move all to the cloud, well help you transition, have our equipment, use our platform on your campus as well. But notice what he said about the potential size of aws. Everything is in the crosshairs here for amazon, as we talked about