Space, more than any other american, male or female. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. I am Alisa Parenti and this is bloomberg. Caroline i am caroline hyde. This is bloomberg technology. August,p, another another lackluster jobs report for the seventh time in a row. What does it reveal about the state of the u. S. Economy and the future of jobs in tech . We will get the big picture from top recruiters. The Dara Khosrowshahi regime officially begins tuesday. Is the board behind the new direction and the new man behind the wheel . After two bloomberg scopes on apples most significant launch to date, the beginning of a new era for whole foods and uber finally naming Travis Kalanicks successor. We will run through the biggest stories in tech. First, breaking news. Now for atistering least 100 million for an initial public offering. The Company Discloses revenue of 200 million and intent to list on the nasdaq. We will have more details as we get them. It has been reported they could seek a valuation of as much as 1 billion. Lets get to the latest jobs report out of the United States. Growth slowed in august with a lower than projected 156,000 jobs with the Unemployment Rate picking up to 4. 4 . The data was lest positive with momentum slowing in a few sectors at a time when the u. S. Labor force is under closer scrutiny because of President Trumps America First hiring agenda. Joining us to discuss is risen blumberg, rishon ahead of a recruitment firm. Great to have you on. Talk to us about these numbers. We are seeing sluggishness for august. What did you see in your area, technology . Technology remains strong. I i haveverall, the thing taking away from the report is the Unemployment Rate is still very low, which is great. The thing behind the numbers is more concerning. Wages are stagnant. We see the wage rate at 2. 5 , still above inflation but below where the Housing Market is at. I think our employees are losing a little bit in wages stagnation. Caroline productivity seems not to be going fast anywhere. Talkingingly, you are of an imminent and massive job loss crisis due to automation and ai. Are we already seeing this in the numbers . Is Wage Inflation not going anywhere because of the threat of a robot taking your job . I think you are right. That is baked into the numbers, the fact that rate is so low. And also, the Participation Rate is only 62. 9 , equivalent to all salvador and ukraine. What we are seeing in the market is there are not as many people in the labor market in general. Some of that has to do with automation for sure. We have launched a website to focus on the best and brightest minds and lawmakers on addressing this issue of impending automation job loss we could see globally that will be massive. I dont to scream that the sky is falling because this is not today and tomorrow. But this is happening already and will increase over the next 5, 10, 20 years. Caroline Oxford University said half of u. S. Jobs could be automated in the next few decades. When you say massive, what numbers are you talking about . Those kinds of numbers. Those are huge, unprecedented numbers. Close to 50 of the workforce being eliminated, as in no more jobs for them. What happens . What do we do to keep people out of poverty . More importantly, maybe not more importantly, but equally important, what do people do with all of their time . We are trying to focus attention on this looming, huge issue globally. Caroline your launching this petition, a new website to raise awareness. What do you expect to be talked about in terms of the policy arena . In terms of helping people that will find themselves out of a job . What do you want to be on the table . That is the milliondollar question, billiondollar question. What are the options . There are a few things being talked about. There is universal basic income, which is effectively a base income everybody would earn to keep them out of poverty. Those are some of the negative aspects of job loss due to automation. Some of the positive aspects of the fact Consumer Prices will be incredibly low because of the efficiencies we will see in the economy. If we can find a way to keep people at a base level of learning, quality of life as far as cost of goods will be reduced significantly due to the efficiencies. The next question is, what will we have people doing when they are not working . Caroline what about the Companies Role in all of this . At the beginning of the year, there was talk by bill gates about taxing the robots. Should Companies Help those likely to be asked axed . Large problem with a public and private solution. Governments will have to play a massive role. Companies and charities will have to step into the role to fill any gaps. I do think there is a responsibility companies will bear by increasing efficiency and decreasing human labor. There is going to have to be some sort of contribution and a system that is different from what we are used to over the last 150 years. Caroline a fascinating call to arms you are making. Talk to us about the here and now about what skills are being demanded of you by the looks of google, ebay, the tech giants you serve in what people might look into to protect themselves from the mass unemployment you envisage. One area i think will continue to be robust is going to be tech because we currently have fewer tech specialists then there are tech needs domestically and abroad. As long as you are focused on Stem Education and retraining for technology positions, i think we will see that market continue to be strong longterm. Right now, we are finding it is much like the economy right now. Tech needs are very robust because there is a supply and demand imbalance in that sector. Caroline always great to get your opinion. Great to have you joining us. The white house has announced President Trump will make a decision about the deferred action for Childhood Arrivals Program next week. The Program Allows people who entered the United States illegally as children to apply for renewable work permits that shield them from deportation. The news comes as Business Leaders signed an open letter defending the program. It is a story we will discuss later this hour. Stay tuned. Coming up, last week, vanguard and t. Rowe price reduced the valuation on uber. Greenl hear from mitchell next. Bloomberg technology is Live Streaming on twitter. Check us out weekdays at 5 00 in new york, 2 00 in San Francisco, 10 00 p. M. In london. This is bloomberg. Caroline also that is alphabet is forming a new Holding Company called 26. It will legally separate google from other units. 26 holdings will reorganize alphabet is a corporate parent and complete the separation from google. As we have been reporting this week, uber has a new leader. Dara khosrowshahi is now charged with cleaning up uber after the resignation of Travis Kalanick. How are uber investors feeling about the board selection . We spoke with michel green, an early investor in the startup. Take a listen. Im sure he will be involved. The build a 35 billion juggernaut growing superfast. Im sure he will be involved in some capacity. What our relations like and kalanick . Dge than invested much later benchmark. I wish i had invested when they did. Im sure given time we and lots of other shareholders will not want that will want that to settle down. Im sure given time, it will. How soon are we going to get the ipo . Ara came out and said 18 to 36 months. We have been under the impression it was 2019 or 2020 ipo. We are in no rush for them to go public. We were an investor in Alibaba Group in 2009 and 2010. They were a private company for 15 years almost before they went public. We are in no rush. It is nice to see dara put a timeline on it. I think that will calm a lot of investor nerves. This week has all been about the challenges he faces, comparing his challenges at expedia to what he will face at uber. What is his number one and to challenge . What will be most difficult to address . He has a lot of experience. I dont think it is appreciated as much how similar the global ridesharing business in the Global Travel business is. The first thing he has got to do is build a robust team. We have heard from numerous executive he is a great leader. I think the list is long of people who would love to work with him on this rocket ship. He said he thinks this is the opportunity of a lifetime. I think he needs to build a leadership team, which he will. It will take time. Two, he needs to figure out his international strategy. Does he do more deals in other areas of the world like he did like they did in china or russia . Three, i think they need to figure out the longterm strategies. Do they go out alone at it alone, partner with others . I have no idea. Those are things he will be focused on. It is important to realize how similar the global ridesharing business is versus the travel business. If you are expedia competing in ,urope against booking. Com think about it. Priceline may be lowering prices one day in brussels, raising them in prague, keeping them flat in paris, and spiking them or lowering them dramatically in barcelona when the weather is bad. The same thing happens in ridesharing. I think there are a lot of similarities between the Business Models. How concerned are you about valuations right now, apart from leadership . Holding. Other fund are you concerned perhaps uber is not as valuable as it was . That is completely irrelevant. It makes good headlines. We would be aggressive buyers at prices people have talked about today. An example. A couple of big ritual funds mark their values down, but i think it was blackrock that marked it up. 53 a share from 40. Our view is fundamental. What can this generate in three to five years on an earnings multiple to 30 times looking out three plus years . We think it can be conservatively a 150 billion company. Great companies have tails. It is possible it is a 200 billion company. Theses not surprise us prices are in the news. You have bought fantastic Companies Like spotify. These are investments in your portfolio. Eye. Bviously have a good i am wondering what gives you such confidence uber will be profitable so soon. It is still reporting losses in the hundreds of millions of dollars even as bookings are up. Lets not forget two other companies have spent lanes of dollars building their businesses, tesla and netflix. These companies are burning tons of money. And lets not forget goober is growing much faster than them. I am very confident ubers business will be nicely profitable and sustainable. Caroline that was Founding Partner mitchell green. We will follow a developing story. Roku filing for ipo. Can the move help the company breakout in the crowded streaming market . We will discuss next. Reminder of our interactive function on tv. You can send our producers a message. This is for bloomberg subscribers only. Check it out at tv. This is bloomberg. Caroline bitcoins big year got bigger today. It hit 4800 for the first time ever. Its time has jumped more than 350 since it began. It is not the only cryptocurrency reaching a record high. The total value of the cryptocurrency market is now over 175 billion. Back to our developing story. Roku is filing for ipo with initial registration of at least 100 million. Forils are just coming in one of the pioneers in streaming media. Wherego to Los Angeles Lucas shaw reports we could see a valuation of as much as 1 billion. What are you thinking for this particular company . Roku has held up fairly well in a market where it is competing with three of the Biggest Tech Companies in the world, apple, amazon, and google. Roku came out of netflix once upon a time. This was a box they were developing to deliver their service. But netflix is all about focus so they spun this out. It has been one of the earliest and continues to grow. There was a report this week it is still the largest settop box in the market. Caroline what is fascinating is the timing. We are getting numbers in terms of revenue, 200 million in the last six months. It is still posting a loss. We have seen how the markets digested previous ipos. Do you think it is interesting timing . Roku is theenge for longterm business. It is a great utility. It offers all of these different services. They made a point in their filing of comparing themselves to a comcast or directv or paytv divider provider. Unlike those companies where you pay a monthly fee and they work out the deals with cbs and so on, they are not there are they lot of major payers are working with. How they will be a company that generates a ton of revenue and is profitable is a little unclear to me. In terms of the timing, i feel like roku has been out there is a company that could get bald, sold, go public for a while. Having the styling on a friday before a Holiday Weekend is unusual. We will wait and see. Caroline we will indeed. I want to get your expertise on streaming in general. We had some stellar numbers coming out of the european juggernaut which owns Universal Music Group. It looks as though music streaming is starting to be a cash cow. Spotify and apple music have revived an industry many left for dead a year or two ago. We have had the recorded music post numbers that had not happened since the c. D. Boom. There was an enthusiastic report from Goldman Sachs this week that projected the industry would grow to be 30 billion something with 800 billion people paying for music. That may be a bit much. Most people i spoke with feel that was excessive enthusiasm. They are still in the early stages of recovery. But all signs are pointing in the right direction. You have seen Warner Music Group post solid numbers. Spotify just registered incredible growth in consumers and revenue. Caroline quite amazing, that growth story posted by Goldman Sachs. And the focus on emerging markets in particular. It is not just the streaming but also the ipo story. There is talk of Universal Music Group ipoing in the u. S. I believe our colleagues in europe reported on this. There has been a lot of discussion about what will , whetherth universal they will file for ipo in the u. S. , whether they sell off a piece of it, whether they sell the whole thing because the value of universal is going up. They are sitting on a valuable asset. The c. E. O. Is trying to figure out the best way to maximize it. Caroline there is more streaming news. Tencent entertainment is getting new funding ahead of a potential ipo for their music streaming business. China is one of the best semiuntold stories in the music business. The amount of money generated for music sales in china has more than doubled in the past four years. It is now more than 200 million. With all things streaming and media, established players like spotify an apple music have a hard time. Spotify is not in china. Apple music is there, but the big player is tencent that has deals with all the major labels. They are all incredibly enthusiastic as to where the industry is headed, much as the video streaming market in china has taken off as Movie Box Office sales have taken off in china. Music seems to be the next one ripe for growth. Tencent season opportunity to get money for it. Shaw, thank you very much for joining us. Coming up, what is the appetite for apples new iphone . The company know if consumers will be willing to pay up for a 3d camera . We discuss next. This is bloomberg. Mark i am Mark Crumpton in new york. You are watching bloomberg technology. President trump on friday signed a proclamation establishing sunday as a day of prayer for those dealing with the aftermath of hurricane harvey. The president returns to texas saturday and is also expected to stop in louisiana. House Speaker Paul Ryan is urging the president to fix, not and, the deferred. Action for childhood arrivals. The announcement is expected next week. The democratic congressman says ending the program is the wrong move. It has not been a drain. It has not cost the United States anything in terms of government costs. On the contrary, it has been a plus in terms of the Economic Vitality of this nation. Mark german chancellor Angela Merkel enter centerleft opponent square off sunday in the only tv debate of the german election campaign. He hopes the debate increases his chances with just over three weeks to go. The polls have merkels party ahead by at least 12 points. The Associated Press reports smoke was seen coming from the russian consulate in San Francisco on friday. The Trump Administration recently ordered the closing of the consulate and other russianaffiliated offices in washington and new york. It is retaliation for the kremlins demand last month that the u. S. Substantially reduce the size of its diplomatic staff in russia. Enyas incumbent president says hes ready to campaign again and told reporters it is time to get back to work. He spoke and nairobi after the court ratified nullified last months election and call for a new vote in 60 days. A respected. I i respect it. I disagree with it. Kenyans made thei