Transcripts For BLOOMBERG Bloomberg Technology 20180226

He will lie wednesday and thursday at the u. S. Capitol. Well news 24 hours a day powered by more than 2700 and analyst. Bloomberg technology is next. Technology,omberg coming up, the heavyweights take center stage in the fight for smartphone supremacy and we weigh in the upcoming battle of the iphone x and sampson galaxy s nine. Didnt the white house and how one writer believes the trump team and mastery over analytics one him the election. Scope, witherg tencent in the crosshairs, and we focus on the giant and its takeover. Our lead, samsung has come up with its response to the iphone x, and the s9 has and thed emojis company unveiled its handset in barcelona, spain, and off the heels of this announcement, bloomberg is announcing that apple is planning to announce a trio of iphone releases, the largest iphone ever, and an upgrade from the size of the iphone x and some key features. Apple is running production test with suppliers and an official announcement is expected this fall. Mark gurman but the story and joins me now. So what do we know . We note know a lot, apple is working on three new phones, and the story is the bigger font that is going to be the biggest apple has done and is also going to be largest mainstream smartphone on the market, even topping the samsung note 8. Cheaperre will be a model with many features that people like in the iphone x. Emily how will it compared today iphone 8 and eight plus . The problem is that eight and eight plus, while neil and have your tech inside, outside, which is what makes consumers care about them it is extremely outdated and the same once pretty much that came out in 2014. So a lot of the new outward facing features. Emily why do we want a bigger phone . It appeals to consumers in asia who are single device users, which makes people who only have one piece of technology, they watch tv, email, homework, people who do everything on one device versus other people who spread their workflow. Same, so thisthe is appealing to those people, especially business users. Emily what will competition be like . Mark thats moved to samsung, i9 is not a big upgrade think samsung is holding its fire for this fall when they come out with whatever they choose to call the galaxy x, and the big feature there is going to be this flexible, foldable digital screen which is unprecedentednew, Tech Industry. I think sing the apple this fall is going to be a significant moment to watch. Emily you often hear tim cook and apple talk about getting new users from the android platform. How many users are switching platforms . Mark it is interesting because tim cook. Stec question in the Earnings Call and typically they tout those numbers. I dont know if we should read into it as much, but it wasnt as frequent as expected or maybe they dont have the data and yet so we dont have updated data on that, but we do know is that the speakerphone is going to appeal this bigger phone is going to appeal. The lowercost model will bring the hightech to a lower price and could be appealing to android switchers. To thewhen it comes iphone x, what do we know about the makes and how do expect that mix to a ball . Evolve. Iphone is north of record numbers because of the strong price point of the iphone x and sales overall came out at so 77. 3 Million Units that means even if the asp was higher, unit sales were lower than expected, 1 lower your over your, which indicates to me people are interested in iphone x hightech features but some people cant afford it and are left with the cheaper one which they dont want. Coming out with a lower cost model around the same price as the iphone 7 with the new technology is going to be a big boom for apple. Emily thanks mark. Some breaking news, glassdoor is interviewing banks on an initial Public Offering that come as soon as this year. A funding valued blaster at more than a billion dollar and have a lot more coming up with ipo reporter alex barinka. Check us out on the Bloomberg Radio app and on the u. S. On sirius xm. This is bloomberg. Emily we just broke the headline of glassdoor preparing for an ipo and we will get bloomberg reporter alex barinka who covers deals for us. What do we know . Blaster is interviewing bankers and according to people familiar with the matter, the online job company is looking to list in the second half of this year. That could change but it is a concerted step forward for a company that has been on my watchlist since they raised money to couple of years ago giving it a valuation of almost a billion dollars. The listing would come on the heels of what we have seen as a rush of Companies Getting towards the public market. Drop box filed last friday so it could be a good indication we have more like a store to come. Emily guster is taking on executives, what do know about the Business Model and how well is this is doing . Alex the business is going strong and what we hear, revenue is growing at a 30 cut which is what investors typically like to see added these companies anything less than that is seen as a bad sign, and glassdoor just brought in the chief Financial Officer who used to work at advent software, so they have been bolstering their ranks and they have also brought in a like there it seems is a lot of good momentum here from this company. I will Internet Company fly to our sources told us today could be a good candidate for 2018 or 2019 is surveymonkey. Their financials have been it ising, so whether spotify listings, surveymonkey, or glassdoor, it will be busy for tech Companies Getting out to the the the market. Emily alex, thank you so much, but will be watching. How influential were russians in getting donald trump elected . The social media giant, facebook, and a former employee says trumps on mastery of the facebook platform may have had the greatest influence of all. Writing in wired magazine, external enemies serve a purpose and the trail serves closer to home, it is topped by a blue bar on our smartphone screens and could be how you arrived at what you are reading right now. To explain, i want to bring in the author of that piece, contribute in writer at wired and the product manager for facebook and the author of chaos monkeys in Silicon Valley. Good to have you on the show. Explain what you mean by that. Antonio there was so much fanfare on the russia thing, and trumps use of facebook and the products i worked on is how he won the election. That is what might these is about. Emily there was a conversation about this and basically Hillary Clinton had to pay more for at donald trump, correct . Antonio at the end of the day, that is right. Trumps Campaign Advisor said i bet we were 100 times are 200 times able to hit cpms this is like trump was the perfect candidate for facebook. The bottom line is that facebook gives you more at cheaper ads if they can figure out you are engaging. Antonio by engaging, we mean could debate, you effectively get driving. Emily why are trump adds more engaging . He engages people in a more indignant way, and it would spread easier on the at system. System. Fory do think it is ok Hillary Clinton to pay more for aston donald trump . Antonio there is equal time rules for tv and donations by Certain Networks and candidates and it is strange, it is weird. There is the reality, the facebook system is designed to sell you issue or sweater and not designed to elect a president of the united states. Emily but that changed a long time ago. Antonio not as long as you think, politics was not a priority at all at the time. Emily the next question is what is the responsibility of facebook . Antonio that is a good question. I think one side exploits facebook, i think it is fair, calling the election i think people will Pay Attention to facebook Going Forward. Emily you explored the ethics in your book and elude to it in piece, how much work ethics a part of what you talked about in facebook . Does this come up on the mind of product managers . Antonio 10 of my time was spent with lawyers, and the weird thing is in the u. S. There is a lot of regulation and it comes down to industry practice, which we made up as we went along. Emily what you imagine is happening in facebook right now . Antonio i am sure they are thinking deeply about this, they are shutting down the russia thing is going to be more aggressive than it is now. You cant enter a credit card in russia and swing voters in ohio. I am pretty sure that will be the case moving forward. The bigger question is how did the at system change in engaging content and organic side. A lot of russian efforts were not paid, it was spreading memes. That is a much harder question for facebook. Emily dont you think facebook is trying to shirk some of the responsibility here . Antonio i think broadly you are seeing the death of editorship. It becomes an algorithmic popularity contest. Will facebook actually embrace that responsibility . I am not sure, i dont think they wanted, to be honest. They have a job they dont want. Emily another one from your piece, we have all contributed in his political thought asian myself sorting or being sorted by facebook on to on my tribes that get more into filter bubbles that are then colonized by commercial means. How much responsibility do you think facebook bears to the election of donald trump . Antonio i think it is one part of the puzzle but not something that tells us. Emily how much responsibility to for the divisiveness of our country . Antonio it is the megaphone, i think it bears some responsibility. Emily how this facebook grapple with that and what did they change to rise to that responsibility . Antonio i think political ads will be regulated differently and will exist separately from other ads. This business of hillary paying more than trump is not going to happen Going Forward and emily you see regulations coming . The way they do things now is not going to be the case moving forward. Emily people benefit from the way things are right now. Antonio that is right. Emily twitter bot one of your companies, this twitter have a comparable problem . They have a problem with tailored audiences to the extent that they would have the same issue. Emily we can imagine the Hillary Clinton campaign will pay more. This paradigm is very common, google came up with the first facebook did not invent this, this is industry practice in many ways. Emily are than answering what will happen because you dont know for sure, what you think facebook should do differently . Ads the policing of last week they said it will send postcards to people about political advertisers of what their address is, they are in columbus, ohio and not st. Petersburg. They will crack down on advertisers a lot and will be a big guilt to run advertisements on facebook, you basically need a license to do it. Inventory on aside various campaigns and say, you need to pay the same amount the same people in the same swing states, just like tv does. And set aside inventory and say this is what goes to this campaign, and that is it. Emily Mark Zuckerberg has said they are going to start showing more status updates from friends and family rather than use. After asked this question do you think the intention first facebook is good for facebook is good . Antonio they actually believe that the question is they either frame that or dont see the evil or negative consequences of what they do. At the time we were thinking of having a company like Bed Bath Beyond selling towels and not trump winning the white house, i think it is difficult to envision when you are intoxicated inside to the culture of the company and trying to push that imagining what you did. If he told me in 20 that the products we are building will be used by kremlin agents to hurt american democracy, i would have left at your face, and yet here we are in 2018. Emily nobody is laughing now. Thank you so much, great to have you on the show. Saysg up, Deutsche Telekom it has been a headache because of brexit but the company is convinced things are looking up. That interview from barcelona coming up next. This is bloomberg. Emily 100,000 people have dissented in barcelona for the mobile World Congress, and we spoke with Deutsche Telecom ceo a recipe for has success and will recover and says the investment has a headache to the brexit and the pound depreciation and tough dilatory environment has had an impact. Take a listen. Deutsche telekom is the biggest telecommunication operator with 11 markets in europe. To austria and consolidation in the netherlands of bringing two we arers together, so much more focusing on strength of position in the market, and we have the u. S. , which is a new position as well. 19are growing double digits quarters in a row, and in this area, not m a is planned, but organic growth for the new areas we are building with infrastructure. What about Liberty Global assets . Are the regulators listening . I think it is unacceptable, this type of deal is trading a new monopoly and dominating in the housing where they have certain legal privilege and theres going to be a nomination and cable infrastructure while these guys are unregulated. Fullyof telecom is still regulated, and that is totally unfair and competition and i am asking for fair competition. You view the competition . If this deal is going to happen, we have to see a total different landscape. It is not approvable, but from what i have seen in the past of Cable Networks in germany, well see when the deal is coming and what authorities will decide. What about the u. S. , there is no deal there. Have invented a totally negative perceived industry in a way it has created and then terrible opposition, and 19 quarters in a row we have grown. The only one gaining growth is us. We have a balance of new Customer Growth and our profits flow we bought more than 30 of the 600 megahertz spectrum. We are getting the flow we ce across the country and are now opening a lot of areas. We are going into 330 million and this is a new area of growth for tmobile in the u. S. Are you going to buy more spectrum . There is a break, there will be a key spectrum coming for renewed applications which we are planning but we have plenty of spectrum with have to deploy, and we are growing organically in the market with our customers. Me about my hometown, tell me about u. K. , still a headache . It has been a headache, to be honest and straight. We have brought the business and gotten shares in exchange for that one due to the brexit decision, due to the pound, your you rock relation, and a tough environment facing in the u. K. , we lost value on that one and depreciated. What we see and what they are doing the convergence of mobile, the good portfolio of content on top of that i think this is a recipe for success. Were going to see a big recovery in the stock in the u. K. Ceo withose telecom bloombergs Caroline Hyde. Coming up, how do you spent 100 billion . The softbank vision fund, next. This is bloomberg. Im alisa parenti. Here is a check of your first word news. The Florida House is expected to subpoena records from Broward County sheriff scott israel and other agencies that interacted with High School Shooting suspect nikolas cruz. The House Committee recommended the full house initiate a formal into howtion Government Agencies dealt with crews and how lawenforcement responded to the shooting. The u. K. Labor parties postbrexit vision could set the stage for a showdown with theresa may. Deliver then keynote speech in coventry, england, today. Labor would seek to negotiate a new comprehensive u. K. Customs union to ensure there are no tariffs with europe and to help aoid any need whatsoever for hard border in northern ireland. Alisa may has ruled out a Customs Union with the eu and that puts her at odds with the customs community. Ban on president serving two consecutive terms, it removes the only formal barrier to president she staying in office and completes chinas departure from a system of collective leadership. 2700 andws powered by analysts in more than 120 countries. Im alisa parenti. This is bloomberg just after 5 30 p. M. In washington, 6 30 a. M. Tuesday morning in hong kong where we are joined by sophie with a look at the markets. Lots of green arrows in the states today. A big rally. Sophie we will take as green arrows and run with them. More stocks could and on a upbeat note as we have bonds and the dollar looking steady ahead of jay powells appearances later this week. We do have markets suggesting chinas move to abolish term politicalvides certainty but there is checks and balances. Especially after early indicator te these the 2018 near. The new year. , apple suppliers the tech giant prepares the release of three new smartphones later this year. In hong kong, im sophie. Up next, bloomberg technology. Emily this is bloomberg technology, im emily chang. When it comes to tech investment funds, softbank vision funds reign supreme with 100 billion in its coffers. And they are not stopping. Vision fund ceo spoke with bloombergs Caroline Hyde and World Congress in barcelona about what comes next. And hitting that 100 billion commitment in spending. It is simple. The method is entrepreneur first, the vision, the passion, the ability to grow. To goot able to recruit out globally. And hire Senior Management and building organizations. They believe they can do it because that is where they push on. How will you create exponential growth using that . That is one. And there are free Market Leaders. The economy, number two in the secondary. Because going from number two to overtaking the Market Leader takes a lot more effort than just going to number one. Market share, Market Leader in the country or globally . In the country. In the third objective is that they are truly disruptive. And there is a consumer need for them. Cars is a need to sell you for People Living in smaller towns or the larger towns were they can get a better price. And with cheaper homes, it comes with the ability to have the online real estate broker, and it would be a better price. You have 100 billion to put to work. When does it close . Sometime this summer. Have 100 billion, you have the eyes of the vc community on you and worried about value action valuation. Is that a cause for concern . Devaluation go up because they can exit at those prices and a lot of the early investors have invested a lot, predominantly. We do both primary and secondary r, and, including ube early investors exited and sold secondary shares. You mentioned uber, dd, companies and the thing space. How does that work when you have competitors . Where do you see the vision . They are not competitors because dd is in china. Uber is the rest of the world. I believe it is quite synergistic because at some and thehe r d division. Enefits are immense it going to 70 or 80 companies. Will you merge them . They can definitely be joint ventures and selling used cars to uber drivers. An Insurance Company like a limited selling Car Insurance uber drivers. Where does insurance go . Insurance atg up the moment . Rajeev no. Expansion intohe other areas . What are you seeing in terms of deals . Do you want to see more from the banking or geographical sector . Seeing i think we are enough deals. The ability to process them is important. We are seeing enough deals. Could thewe desire would be to see more from europe. We have made substantial investments in the u. S. , which is our number one destination. Weve made a few investments in china and india. I would like to see more from europe. What about the responsibility of technology . These Companies Need to have ethics. Where do you see the responsibility of vision fund guiding these . We dont get actively involved with management. We believe they are responsible. Has an amazing ceo and is doing a great job. They will continue doing so. Its about over the next 10 years. And the consumers should want to use you and relate to the brand. Uber,r it is auto one, dd. I dont think it runs counter because the brand as we have seen is a responsible brand. 10 years, you say. What is your timeline . Rajeev there is no timeline. We would like it to be 12 years, which is a long time. We will stay invested as long as we keep growing. We believe the mature organizations and the returns are not going to do as much. Shareholders that want the risk adjustment returns. We have investments for growth. If we stop growing, we will address it. Emily that was softbank ceo rajeev base runner rajeev misra. We also caught up with googles ifsident they asked google was going global with its assistant. Of this year, we will be available in 30 languages. It covers 95 of Android Users around the world. Were trying to cover the whole world with it. How much are people having to reinvest and get more money and time and effort into including how intelligent Artificial Intelligence is . Assistantlding the for all these different linkages is a huge investment. And luckily, we think some of the worlds best machine capabilities, things like speech recognition, language understanding, understanding dialogue. We putting all those Machine Learning engines to work across the different languages. It is not just a voice assistant, this is Artificial Intelligence. It is exciting because the assistant is really a unifying kind of thing across a google. On one side, it is bringing together the deep investments in ai over the years and giving them a kind of single place to be shown. The other side, allowing users to have a simple conversation with google to tap into all the Different Services that we can provide. Of course we have search, the answer is that we have, and also things like google maps. The services are already available through that voice interface. Emily Caroline Hyde with Scott Huffman of google. Falling in aftermarket trading, the wearable devices manufacturer dropped by as much as 14 after reporting revenue in the crucial Holiday Quarter of 570 1 million. It compared to the balance of 588 million. Quarter ofing at a the ipo price amid increasing opposition from apples highend smart watch and other, cheaper rivals. Coming up, we know Silicon Valley has a diversity problem. We will talk to one company about their approach, coming up. This is bloomberg. Emily the last few weeks, weve been looking at gender bias and issues in Silicon Valley and what can be done to bridge that gap. But gender problems and diversity problems go will be on the treatment or mistreatment of women. The numbers are even more appalling. Look at how some of the biggest compare with the National Averages that come to the breakdown in hiring minorities. They exceed the numbers when it comes to hiring asians but the numbers follow behind when it comes to hiring blacks and latinos. What can be done to change this . My next guest has an idea. The Online Education platform has launched a new program to try to help companies create a more diverse engineering team. It is backed by some big names on Silicon Valley. Ryan, first of all, what is it about talent path that is different from what anyone else is doing out there . Talent path directly connects people of color and women to Tech Companies by going to organizations like the boys and girls club because they have the trust in those communities. That way they will enter the pipeline. Talk to me how it works, how you came up with this idea . I started this journey about we had trouble hiring people of color and women. As a white male ceo, i couldnt figure it out. I started talking to friends, people i trust, that were people of color and women and asked, what do we do . You have to partner with somebody we trust. So we went to the boys and girls club. They communicated that message that yes, there is a job for you. You can get it. Companies need you and want to invest in you. And they successfully recruited folks to the pipeline. And we put them into the online boot camp treehouse. At the end of that, they come out ready to be hired by Tech Companies. But they have be supported with mentorship and with a lot of support so that they are successful once they are inside that organization. As you know, it will be mostly white males in that organization and they need a lot of support to need. We create a talent path to put those pieces together to plug into companies. I know amazon is one of your customers, nike is one of your Customers Using your new talent path system. Im curious, when you go to the boys and girls club, what you hear from some of these potential candidates . What do they tell you about why they either cant get a foot in the door or dont apply in the first place . There is no one that looks like them in the Tech Industry so they dont even know its possible. Her parents are mexican, theyve never made more than 45,000 ever. They are not in college or in tech, so she didnt know she could get a job in tech. Canboys and girls club communicate that message. And she is able to believe it because it is coming from someone she trusts. And that is so important. As an will get a job apprentice at envision which is one of the Partnership Companies and she will be able to recruit her family, friends. Shes already recruited her sister. Building a diverse engineering pool is a start, but a lot of people say we need more people of diversity in leadership positions. As you mentioned earlier, you are a white guy like most other people employed in this industry. It becomes this impossible catch 22. How do you respond to that . Byn we have to start opening the pathways so folks can get those jobs. We are doing that. They need to be men toward and supported,ored and have someone to fight for them inside the company. We are training the company on how to be inclusive and supportive for those apprentices. And we are teaching the apprentices how to find someone who is their advocate in the thatny who will talk about person in those meetings. If youre hiring for manager, you need an advocate higher in the company to say, what about abby . Lets put her name on the list. Specifically focus on that. And they will start mentoring people down below them as they advance up the program. It is a longterm solution, but it is a real solution. Emily treehouse ceo ryan carson, thank you for stopping by. Ryan thank you very much. Emily coming up, alibaba edging out other investors to be the sole owner of delivery startup alumina. I will get it right in the next block. This is bloomberg. Emily ebay is set to buy the ecommerce site, and from the joint venture partner. The biggest market is in japan. The deal would bolster ebays for 1. 2 billion in 2009. Alibaba is ramping up competition over food delivery. Alibaba has agreed to by the shares of start up ele. Me. They already had a stake in the company. Me was right up to 6 billion last year. The Bloomberg News reporter in hong kong, thats what you can tell us. It is largest chinas largest food delivery platform. Nearly 50 of the market. It benefits the new retail strategy. The company does have Grocery Store lines right now. Promising to deliver groceries within 30 minutes of the three kilometer radius. And they also have their own business which operates a similar kind of neighborhood services. It would help them consolidate businesses. It is really breakneck competition between alibaba and tencent. They are emerging to become this supervision is. Is set to be valued around 30 billion already. Already right now, they are occupying about 40 of the market share even though in , alibaba haster the upper hand. But they need to put in a great deal amount of money. Now, that position would really help them consolidate that business. And what do you see the broader chinese ecommerce market playing out . Lulu remember, baidu wanted to join. But right now, as you can see, it is just alibaba and tencent ultimately. They will be focusing on Artificial Intelligence and their search business which is just their core business. It seems alibaba and tencent has the longterm cash to play out that. In hong kong, talking about last mile delivery. Thank you so much. And that does it for this edition of bloomberg technology. A reminder we are Live Streaming on twitter. Check is at weekdays at 5 p. M. In new york and 2 p. M. In san francisco. That is all for now. This is bloomberg. 7 a. M. In hong kong and where live with bloombergs asian headquarters. Im yvonne man, welcome to daybreak asia. The top stories this tuesday, said to extend gains after u. S. Stocks in a fourweek high. Can your yields fell for a Third Straight day. Plans for the iphone with a big new tablet to attract