Transcripts For BLOOMBERG Bloomberg Technology 20170711

New York City Police officer. She was shot to death while sitting in a police vehicle. She was posthumously promoted to detect if. Detective. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. Im Alisa Parenti. This is bloomberg technology. Emily im emily chang. This is bloomberg technology. Coming up, trump juniors show and tell. The president s eldest son takes to twitter to mount a defense on the latest email scandal to hit washington. We get the latest from the hill. Plus comeback. Tolos he returns to the startup scene with a new focus on fitness. He joins us for a wideranging interview from everything from twitters newly hired cfo, to the culture in Silicon Valley. Amazon echo hits all the right notes on its way to the top of prime days bestseller list. Doubles down on the discount bonanza to push the digital assistant into more homes. The lead. That is the email bombshell coming out of washington involving president trumps eldest son, donald trump junior. Trump junior used his twitter account to reveal a series of female exchanges with a british publicist showing he was promised, damaging information about Hillary Clinton at a meeting with a russian lawyer during the president ial campaign. Donald trump junior said in a statement that he had released emails in order to be totally transparent. President trump came out with a response through spokeswoman Sarah Huckabee sanders, that trump junior is a highquality person. Joining us from capitol hill, however White House Correspondent kevin cirilli. Give us the latest. Isorter the white house defending donald trump junior today, including the president himself through a deputy spokesperson, Sarah Huckabee sanders, saying donald trump junior is a highquality person, but ive spoken with several lawmakers who are pressing for more answers, particularly on the eve of the testimony before the Senate Judiciary committee tomorrow, and president trumps announcement to be fbi director. Senator john cornyn, a republican from texas, said donald trump junior should in fact testified before the committee. I also just interviewed House Freedom caucus chairman mark meadows who says he hopes the special prosecutor Robert Mueller will be able to get to the bottom of this. I apologize, special counsel Robert Mueller, will get to the bottom of this. Senator marco rubio says the investigators do need to look into these new emails. Emily so what are the next steps, and how does this affect the special investigation . Reporter i can tell you that there will be poignant questions at the hearing tomorrow on this two christopher wray, particularly how he plans to take up the Ongoing Investigation into whether there was any kind of relationship with the russians and the trump campaign. It wasnt just donald trump junior at this meeting. It was also jared kushner, the president s soninlaw and senior adviser, as well as paul manafort, who has been the center of this probe for quite some months. He was the then campaign manager. Expect to hear not just from democrats tomorrow, but also republicans. Emily our White House Correspondent kevin cirilli, i know you will keep us updated throughout the day as that unfolds tomorrow. A new higher now out to it or at twitter. The chief Financial Officer will be effective in late august and will report to jack dorsey. Rolell soon resume the of cfo from anthony noto since adam bain any. Left the company. For more reaction to the story, we are joined by dick costolo, farmers ceo of Twitter Former ceo of twitter. Hes now the ceo of chorus, a new company aiming to disrupt fitness. What kind of timing . Literally five minutes before i got out of the cab. Totally unplanned. Emily so is he a good choice . Im sure hes a high quality person. I was just riffing on the news story. That was funny to me when i heard of it. [laughter] as i said many times, i have a lot of confidence in the team over there. Im sure hes a great addition to the team. Emily we know twitter had a Strong Quarter with growth, but they reported their first quarterly loss. Do you expect any change in strategy with the new cfo . I couldnt say. But those guys are pretty focused and have been clear about what they are working on. I would expect that to continue as long as they are promoting it. Emily let the you think a new mandate of a cfo would be . Think its probably anthony taking on a daytoday operating role, and moving fully into the coo role, and they need someone to backfill into the cfo role. Emily lets talk about the Trump Administration. Theres been a lot of noise. Im curious from someone who has started Many Companies many, Many Companies. Emily what is it like starting a company under the Trump Administration is it different . . Emily this feels that the question you should ask when we are walking along the appear pier. To be honest, its not that different when you are in the daytoday trenches of running a startup. You are focused on hiring pipeline and trying to find the right people on the team, and trying to get the bugs out of of thea, and performance data better, trying to understand user dynamics. I would say that to be perfectly a daytoday basis, it doesnt really affect the way we think about what we are doing. Largely cameeaders out against trump, so we havent yet seen some of the results of the policies he has promised. To blockw it appears start of visas given to entrepreneurs from foreign countries. How a gay deal is this . How big a deal is this. To be blunt about it, i think its a sign hes not paying much attention to what tech leaders are talking about. I can assure you they are promoting an idea. It promotes job creation in the u. S. You want then best the best Job Companies in the world promoting their big businesses here and hiring people here, and to theng it elsewhere, extent that you can attract them here and film those companies here and thrive here with a great asset to capital. I think ats probably a sign, not having been in those discussions, its paying lip service to tech leaders. Aily weve seen stock take bit of a hit in the last couple of weeks. They also take a hit today in the wake of another email scandal from the president , so what would you be bracing for the public . I thought for a while that the markets had an underpricing risk with everything going on in the world, not just this. Things in europe and elsewhere in the middle east. I would continue to be bracing for what i would have expected by now to be a lot more volatility. I would be surprised if it continues to be the case for an extended period of time. Emily how about in the private markets . It has been the case recently stagehese very late private market valuations of company staying private for 6, 7, 8, 10 years now and of being end up being much higher than when the companys debut in the public markets. Thats probably going to continue to be the case in the nearterm, meaning you will see companies go public in 18 and maybe early 19, whose late round private valuations were much higher than the initial public valuations. I dont see that changing anytime soon. I see continued, lots of money in the private markets chasing few deals, which drives up the price is, and when they finally see the light of day in the its sort ofs, probably, rightly turns out to be they are not worth as much as the last private rounds were. Ceo dickrmer twitter costolo, we will continue this conversation after the break, and talk more about what you are working on now. Lots more coming up. A quick reminder that bloomberg technology, is Live Streaming on twitter. Check us out 5 p. M. In new york, 2 p. M. In san francisco. This is bloomberg. Emily a stock we are watching is snap. After closing just below its ipo price on monday, it continued its decline, falling nearly 9 today. It was downgraded by Morgan Stanley amid concerns over petition from instagram in and the ability to grow as fast as expected. The market cap of about 18 billion stands in contrast to the highend valuation target of 40 billion one person described back in october. We are back with dick costolo, currently the ceo of chorus fitness, and former ceo of twitter. Whats your outlook on snap . I have said for many years that i think having is maybe the eva is maybe the best Consumer Product think are out there. He has innovated over and over , with stories, then spectacles, now geofilters that my son and all his friends use all the time. I think he is a remarkable Consumer Product anchor. The challenges for these companies include, and the Consumer Advertising space, facebook has just got lots of the cards. They had volume, they have , their ability to deliver quality efficiently, hyper efficiently for advertisers is so great that it makes competing in that space difficult if you dont have that kind of scale, and the other advertising tools at their disposal. That will be the challenge for them. It will continue to show interesting and fascinating Consumer Insights that will probably continue to be copied by others. They will have to try to figure out how to aim outflank bigger players like faith. Facebook. Emily that said, growth is slowing, facebook is copying features across all its platforms, and potentially blocking future growth in international markets. You had to contend with facebook at twitter. Can snap overcome that . It is a challenge. Theres no question. Has is he is evan a remarkable Consumer Product thinker. The fact that he launched spectacle when he did, in the wave of people letting go of google glass emily spectacle took off momentarily. As a Consumer Product in the digital space, as an innovator, he has launched a number of tech products, he had had a number of insights that have been wildly different than anything else. If he has the ability to continue to do that quickly and monetize on the heels of those innovations, thats great, and probably their best that. Tbet. Andchallenges it facebook all of these things and continue to present opportunities as, we have the same thing, but with a bigger audience, to advertisers, that is tough to compete against. Emily Silicon Valley has been rocked by Sexual Harassment claims. The uber ceo resigned. Funds have been closed. Losses have been filed. What is your take on the bro culture problem in Silicon Valley . I dont mean to trivialize it, but its a problem. I think it is probably actually may be understated and underreported. Its probably way worse than weve seen so far. It, i think inut a lot of cases the investors in some of these venture firms are simply ignoring it and maybe paying lip service to it, but ignoring it, and funding some of the enterprises anyway. It is widely understood that some of these issues were things that had been said in the background, and yet new funds were raised, and on and on. Until the capital being committed by these lps to the venture funds start to take it seriously and invest in more y in women running the funds, and maybe gender specific funds, or people of color funds, you will continue to see lipservice paid. When push comes to shove, the money is flowing into these anyway. Emily we have seen a lot of longwinded apologies. Do you buy it . I mean, it is hard for me to ,omment on that stuff, because you know, im not in either of their shoes, either the victims or the predators. I dont know. Its a pattern, and when something comes out, people say, oh gosh. You look askew at it. Emily reid hoffman is talking about a third hr function to oversee the relationship between vcs and entrepreneurs. Is that a realistic solution . I dont think that is sufficient. Loves like saying i reid, i understand what hes trying to do, but the answers seem more dramatic to me. Why arent people funding women only gps . There are certainly 20 of funds where the gps are all men. I dont thin those things are getting funded. Kand instead to the people already in these guys only promise tos, if you do xyz, i would like to see more money flowing. There are a lot of smart women in the valley. A lot of them are in the venture business. Lets enable a few of them to create their own fund and get after it. There are new funds launching on the time you have people. Able to get funds raised with what i would even go as far as to say arent records you would look at and say, yes, im going to find that new venture. There are plenty of super qualified women out there that i with lpse to see more and Institutional Investors putting their money where their mouth is. Emily quickly, i know you are very focused on hiring women at at a smaller stage making sure it is 5050. What is your vision for this company . A social fitness platform. Our vision is that in the real world the way people get healthy and live healthy is through social motivation and social accountability. Online, most business platforms are oneonone. Program for you. Then you do it and try to keep yourself motivated in isolation. Chorus is about getting a team of people together to help each to do whatmotivated they want to do and do it they committed to do, to help each other be successful. Emily when is it coming out . It is in beta. We are working on the dynamics. I would say late this fall. Emily dick costolo, chorus fitness ceo, former ceo of twitter, great have you on the show. Thank you. Coming up, we are on the ground at the taobao festival. Which gadgetsou the youngest consumers in the country are gravitated towards gravitating towards. This is bloomberg. Emily alibaba is taking a page from the amazon go cashless Convenience Store by showcasing a similar concept in its chinese hometown. Bloomberg tv not asia correspondent Stephen Engle got a use a look at the taobao maker festival that features other new Retail Strategies that integrate online with offline shopping. Reporter the taobao maker festival is where the Virtual World meets the physical. Someone hundred eight taobao 108 taobaod some vendors selling, millennials by all kinds of stuff. The festival, in its second year, is doubled in size of last years. Showcase offline for the Online Sellers without the crippling brickandmortar overhead. Whether it is the latest in eyepopping design or body stocking virtualreality combat, the taobao festival represents the youth driven consumer economy of china. In fact, a quarter of the thosere socalled born after 1990. In this melee, the generation gap was evident. Knew exactly what he was doing when he started making these portable and professional folding electric guitars. This is the only way we could get so many exposures at a certain time. We only existed for two years. Reporter how many have you sold . About 1000. Reporter are all your customers in china . We sell in the u. S. We have distributors there already. We just started. Reporter alibaba is also just cafe new retail concept, targeting young consumers were more adept at using mobile wallets. It is grab and go, cashless, and cashier list convenience. Much like the amazon go concept, cafe has its flaws. For example, you cant have too many shoppers inside at the same time. In the beta trial, it can overwhelm the system. But for alibaba, it pays off. It gets shoppers, on my paypers, to use their ali in the offline world. That is data that is very valuable. Emily bloombergs Stephen Engle reporting from china. Coming up, one of the worlds Biggest Cybersecurity Companies has ties to Russian Intelligence Services that go deeper than previously known. We will bring you a Bloomberg Businessweek report. This is bloomberg. Alisa im a Alisa Parenti in washington. You are watching bloomberg technology. Thats a start with a check of your first word news. The epa has been saved from proposed m