the virus. they postponed the decision yesterday. this has been a conversation here at davos and has been affecting markets in asia. more are down this morning looking at the red arrows there. off close to 3% for the hang seng >> the mortality rate looks low relative to what we've seen in the past 3% versus 17% for sars the idea of shutting down wuhan. imagine that happening in an american or european city and the panic and up rising. >> what is the population of wuhan? >> it is a major city. >> if you've heard of it, it is probably 10 million. >> i think >> we'll get you some is numbers. we have another block buster lineup of guests >> 11 million. >> the woke economic forum it was kind of a joke but now second nature for me the world economic forum, including the ceos of honeywell, liberty global, goldman sach, pay pal and more steven mnuchin is still here everybody else left. >> air force one is gone but other members of the administration is here >> he came on air force one, everything else is a step down except neil. >> the government has some of those, by the way. >> let's get to our first guest, neil, how do you start a company in 2005 that's worth $45 billion. you are still young. you learned at people soft >> i did >> why weren't they doing enough ceo at workday to talk about the latest of cloud and ai >> what a great story. >> you are a leader in terms of ai and machine learning for all these human resources. i don't see how ai makes it that much better to plan out a career, does it? there was a bit of a slow down that you saw about three or four months ago that has lessened now? >> yes the world is so hard to predict. there is uncertainty in the air at all times it is the world settling to business as usual. that's the sense i get for this week for workday in particular, what is the nexus of what you are attempting to do right now >> transitioning from being an hr leader to finance, planning and procurement. that part of the business is now 20%, the non-hr piece. that is growing in the 40% to 50% range. it is great. it gives us another leg of growth we have happy customers. >> is most of your growth coming from existing customers putting new lines into what they already have >> it is pretty split equally between new hr and existing hr customers buying into financial and planning >> why do you need ai for that >> i like to talk about machine learning artificial intelligence gives people a picture of the terminator that's not it. it let's you sift through mass amounts of data. humans are not great at making predictions but they are good at making judgements. these will predict the next right move for you in your career it will automate audits. if it has been through enough audit cycles, it will highlight transactions as you know auditors sample the books, this will speed up auditing >> did you say it will help me make the next move in my career. >> you guys are already at the top. there is nowhere else to go. >> one of the issues is the power of the cloud suppliers aws, google, azure talking about this topic, worry about the cloud provider themselves trying to provide new products >> we try to work on all three >> google and amazon are customers. >> do you see them as becoming frienemies >> i would say welcome to the swamp. you need to know hr and payroll rules in hundreds of companies great companies try to offer horizontal services. going to the world where you've got different accounting standards. you have to have another disruptive technology to free up the market again >> are you too big for them to buy? >> i don't think about that. all three of them are friends and partners >> you've got a big market cap >> they've got bigger. >> they do you are at 45, you want 90, probably i know you >> i just want to see this out and build the best company we can. we are still so early in the cycle of cloud deployment and machine technology >> five years from now, when you say you want to see it out, what does workday look like >> i hope we are one of the true erp leaders. not just hr but transitioning to finance and procurement. we are more global than we are today. i think the hr world for cloud, finan that might be 20% penetrated, finance might be 5% penetrated a lot is still in front of us. >> what if customers wait to see. >> every company needs an hr system at what point does the old system break down and they need a replacement. they want to run finance differently. that's on the agenda of every ceo here it is budget cycles and the highest productivity these are necessarities. you can't run a system without the financial systems. >> who runs those? >> sap and oracle. they run people soft >> we'll have carmine on from ei zha anything close to consider >> i think blockchain is looking for problems to solve. we found one to solve, which is credentials. an employee should be able to go from company to company and carry their credentials with them it would be captured by blockchain rather than edited. >> is that personal information and reviews from you it is one of the verification i worked with. so people can't fake their linkd account or whatever they are doing? >> no. that's the whole idea behind credentials and other companies that are doing background checks as well. it gives the employee power over data >> work with universities to make sure those diplomas are real >> absolutely. >> you started off the top i know you said back in october, you were seeing delays >> i have to be careful. that was our quiet period. we were worried in october but that did not pan out we had a strong q 3. a couple conversations with big-time ceo can get you worries. one was a industrial company being impacted by tariff issues. you can draw too many conclusions. we wait until the quarter is over >> that's good to hear >> so happy employee makes happy customers. that's really nice how do you keep your employees really, really happy i'm thinking, you've got some nice food court or something i was thinking, you know what, maybe you give them shares in workday. you need share holder and i'm back to shares going up and helping the other stake holder dependent on the previous stake holder >> is this your new analysis >> this is our final day here. we are all a little punch drunk at this point. >> if you are going to help the stake holder, ie employee, you make them a share holder and you are back to square one do you agree with me >> will you stop talking if i agree with you >> there are different ways to do it. >> and doing the wrong thing >> absolutely. economic growth and thinking profitability. it still helps that the shares go up. >> it still does almost every employee in the company owns shares in workday >> thank you for be eing so kin to play along. we are just getting started here, we have three more hours of this. >> not four. >> true. former commerce secretary penny pritzer to talk about trade. ceo of honeywell on manufacturing in america we are live omfr davos, switzerland. we'll be right back. sfx: [phone ringing] you still have service? call the insurance company it's them, calling us. it's going to be a week before they can get through on these roads shhh, sorry, i didn't catch that. i said ask how soon they can be here right now? what's now? he says they're surveying our property now they're probably at the wrong house i don't see any hovering his name is hovering? look up? by automating claims with machine learning and analytics, cognizant is helping insurance companies advance how they serve even hard to reach customers. cool ♪ some things are too important to do yourself. ♪ get customized security with 24/7 monitoring from xfinity home. awarded the best professionally installed system by cnet. simple. easy. awesome. call, click or visit a store today. welcome back to "squawk box. we are live from davos, switzerland. a few stocks to watch this morning. let's get you caught up to speed on what is happening st microis on track for the best day since october. reporting better than expected revenue. that company supplies chips to apple and tesla. guiding first quarter sales down 14% from the first quarter that stock is up over 6% shares ofcitrix system on the rise fourth quarter profit rose by 25%. cloud computing is raising guidance for 2020. >> coming up, former commerce secretary penny pritzker will join us. you are watching "squawk box" this morning live from the world economic forum in davos, switzerland. >> annnc: iltoouerstl come, the ceo from honeywell on the health of the world economy hey you dang woodchucks, quit chucking my wood! geico. fifteen minutes could save you fifteen percent or more on car insurance. with a nation-leading $150 billion commitment to infrastructure, we're creating state of the art, 21st century transportation hubs, constructing new bridges, bringing high-speed internet to every corner of the state, and committing to low-cost clean energy. with infrastructure built for the future, the companies of tomorrow can thrive here today. see your future at esd.ny.gov. the companies of tomorrow can thrive here today. but we're also a company that controls hiv, fights cancer, repairs shattered bones, relieves depression, restores heart rhythms, helps you back from strokes, and keeps you healthy your whole life. from the day you're born we never stop taking care of you. between what is hoped for and what can be, there's a bridge. between endangered and protected, there's a bridge. between chaos and wonder, there's a bridge. there from the beginning to where we stand today. one company. one promise. if you can imagine it, we will build the bridge to get you there. cisco. the bridge to possible. welcome back in an interview with joe yesterday, president trump was upbeat about u.s./china relations. >> the best thing that happens is that we have two countries that like each other again it was getting pretty nasty. >> joining us now is penny pritzker what is your take on where the relationship is between the u.s. and china? >> the good news is, it seems like tensions are down at least this week. sos that good. we've been through a lot of pain to get where we are at the question is, was it all worth it we didn't get any structural change and it cost us about 10% of wisconsin farmers are gone. >> i think this is hype? >> i think it is not as far as long as we are being told we are. >> we haven't dealt with china security there is a lot of work we've had people take that it was more than they thought for phase one. >> having worked with the chinese, the proof will be in the pudding. the good news is tensions are down that's good for the global economy. >> do you think the relationship fundamental fundamentally changed. this is a genuine detant do you believe that? >> we'll see who knows. will the chinese live up to their end of the bargain >> one of the big issues here. what was it, the woke economic forum, rather than the world economic forum what is your sense on the woke economic forum there is so much emphasis on esg. >> i think you can do both what people are talking about is focusing on sustainability is good for the planet, which is absolutely essential our customers want companies it do that and our employees. >> is this a sign of the top in an abundant world, we can have these conversations when things have terrible, it is complicated to talk about issues that might feel like there on the side. >> if you think about clean energy it is enormous opportunity are people feeling okay with the growth talking about other issues what are we doing for employees to be skilled up and deal with the fact that we have so much more technology at work. >> you made news last week when you endorsed joe biden you are the sixth cabinet minister from obama to have done this it still looks like a pretty open race. are you concerned about what happens to the party with maybe more moderates and those much more far leaning left? >> it will be interesting to see what happens and i think healthy to have the conversation what is going on in the democratic party is a recognize that while wages are rising, it isn't enough we have a lot of people struggling we still have a manufacturing recession and challenges to deal with because people are being laid off how do we address that there is a big spectrum you point out. let's try and make the system work for everybody >> if it turns out to be bernie sanders or elizabeth warren nomination, would you support them >> i struggle with a number of their policies i don't believe in a wealth tax. should someone like me pay more in taxes i pay more, yes. i don't think the wealth tax is the way to get there i don't think blowing up you are health care system is the way to get there? >> would you vote for president trump then >> i can't go there. >> so you won't vote what would you do? >> president trump for me has been a real challenge for our country. that's why i'm supporting joe biden. he's the man with the experience and respect around the world i still stay in touch with many of our friends around the world. they tell us you are off the playing field. you are asking they are doing whatever they want regardless of consequence because we are unreliable i'm a friend of mike bloomberg he's trying to make an important message. >> will he have a chance >> we'll see still to come, the ceo of honeywell and why big data is a big deal in manufacturing. through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from managing inventory... to detecting and preventing threats... to scaling up your production. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence. before we talk about tax-s-audrey's expecting... new? -twins! ♪ we'd be closer to the twins. change in plans. at fidelity, a change in plans is always part of the plan. welcome back we are live this morning from davos, swriitzerland. we are on day three here >> day last. >> our next guest, ceo from honeywell. good morning to you. >> thank you >> thank you for being here. on our last day, do you have a big take away. something you learned? a lesson for all of us >> for me, this is my first time in davos >> even better some fresh eyes on the situation. >> i think there is some mi misperception on what this is about. i'm up at 7:00 and go until 10:30. none of that is fun oriented it is fun because i see customers and we get to dig into problems or solutions. it isn't a social hour >> not at all. >> it has been a great experience for me. >> so you are coming back? >> yes i'll be back >> you've been talking to customers? >> my schedule is loaded >> all your customers are here >> you think about all the trips i would have to take whether mideast or china, they are all here >> give us the pulse then. a lot of people seem to have a sense of optimism. >> the industrial outlook might be slightly cooler we have our short cycle business promising. short cycle is more iffy i just don't know. the outlook is 30-45 days. slightly in the ballpark of 2019 there are some real tail winds i like what is happening around trade. we have the election coming up >> you think capital spending will be slow >> i don't know. i see this year a little different. better on trade fiscal policies. >> how important is china's growth in this picture if china does better than anticipated, that helps other countries around the region. >> for us, it is very important. we are 10% in china. we do everything there in terms of innovation, manufacturing and selling. china is very important. signs are positive i'm an optimist. people are picking at the faults any time you get two parties negotiating, it builds poe memom >> i'm curious what you think about boeing, what you think will happen? >> i think boeing will solve these issues they are a great american company, they are a great brand. i know 737 max is getting a lot of attention there has been wrong steps i'm confident that plane will fly again. >> we had glen hutchins on yesterday talking about the spread 50 basis points trying to suggest there is something genuinely a miss >> i talk to a lot of the airline ceos, that's the person that really matters. they will tell you it is a great aircraft they have issues that have to be fixed. once they are fixed. >> you make components for that? >> yes we are 90% of air transport large aircraft, we have some presence on. >> i didn't realize you have 25% of the world's buildings controlled by honeywell systems too. that's a massive number. >> this underpins our digital strategy called forge is the basis we have. whether aircraft install, buildings, industrial plants, process plants, industrial workers, that underpins our whole strategy when is the digital transformation >> when are you going to be able to heat and cool 25% of buildings with hydropower? >> maybe the year after. >> hurry up. honestly >> i can't tell you a number i can tell you we can do it a lot more energy efficient. >> which is a great way. >> 10 to 20% savings in energy >> you can do that with your eyes shut, problably >> some is efficiency, watching patterns and patterns >> what does it cost to remapla the system and put a new one in? >> i don't care if they are honeywell or not we can provide for others as well the may back is a year or less it is a compelling value proposition for customers. i'm a little frustrated because i think honeywell doesn't get the credit it should from the foot print perspective >> it is a huge initiative for you. >> the key initiative for us >> you'll join us again next year >> i'll be back. >> you won't have fresh eyes i like the idea of first timer coming up, vista energy partners on the next generation of americans >> wealthiest african-american in the world not in the world, united states. you can watch for us live on the go on the app. i'm told there is no video it's broken. we'll be right back. at leaf blowers. you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. make ice. making ice. but you're not mad because you have e*trade which isn't complicated. their tools make trading quicker and simpler so you can take on the markets with confidence. don't get mad get e*trade and start trading commission free today. don't get mad get e*trade and start trading the world's most spellbinding journey... will take its wildest turn yet. prepare to face the forbidden forest and join hagrid to encounter... the rarest of magical creatures. in the epic new addition to the wizarding world of harry potter™. only at universal orlando resort. stay at an amazing universal hotel with rooms starting from $79 dollars plus tax per night. restrictions apply. well come back live at the world economic forum in davos, switzerland on day three. i caught up with robert smith, chairman and ceo of vista partners and i asked how he sees the future of capitalism >> we are seeing the biggest disparity of wealth. in the world of enterprise, we are pretty good on the e side. we use power and have carbon foot prints. for the most part, we are pretty clean. the s part call it the social how do we make it a more inclusive environment. we have had to do it by necessity because we need more talented people. i've got 75,000 plus employees, 5,000 reqs if i go to the normal source, i can't fill those reqs. >> i'm curious to ask you how the african-american community sees the market. >> that's a long answer. in general, we go up but we have individual pockets that don't participate. african-americans have traditionally not participated you look at the homestead act, red lining around communities. inabilities to gain a foothold in the capital part of capitalism they've always been the labor part that's the dynamic how do you move them into capital. some are policy, some individual, some philanthropic we have the first time in