Transcripts For BLOOMBERG Bloomberg Technology 20170906 : vi

The long going standoff and says the only way to solve the crisis is for the u. S. And south korea to stop joint military exercises, which it called a rehearsal for war. President trump is losing another white house aide. Insiders say it could be the most damaging. Keith schiller is leaving. He was director of oval office regulations. He was once mr. Trumps bodyguard and closest confidant. Senate colleagues welcomed back john mccain in washington. The six term arizona senator had been receiving chemotherapy for cancer in phoenix. He is the chair of the Armed Services committee. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am alisa parenti. This is bloomberg. Bloomberg technology is next. Emily i am emily chang and this is bloomberg technology. The American Dream in limbo, nearly one Million People who arrived in the u. S. As children face deportation after the Trump Administration pulled the curtain down on daca. Our deep dive into the controversial decision and what it means for the tech community. Plus, hbe beats revenue but remains cautious on forecasts. We break down the scorecard since meg whitman nearly jumped ship, and we monitor the companys conference call. Rodeo rolls the dice on an ipo for its most successful franchise. Will angry birds continue to soar or follow the path of game makers that bet and failed on the Public Market . After months of speculation amidst messages the Trump Administration made it official, the deferred action for childhood arrivals, better known as daca, is ending. President trump spoke about it this afternoon. President trump i have a great heart for those we are talking about. I have a great love for them. People think in terms of children, but they are really young adults. I have a love for these people and hopefully now congress will be able to help them and do it properly. I can tell you in speaking to members of congress, they want to be able to do something and do it right. Emily the Program Allows people who entered the United States illegally as children to apply for renewable twoyear permits that shield them from deportation. Those who fall into this category are known as dreamers. Tech reaction to the repeal was a swift. Was swift. Tim cook tweeted, dreamers contribute to our companies and Communities Just as much as you and i. Apple will fight for them to be treated as equals. Googles Ceo Sundar Pichai said dreamers are our neighbors, friends, coworkers. This is their home. Congress needs to work now to defend daca. Microsoft said they intend to take legal action if their employees who happen to be dreamers are deported and will fund their employees legal bills, if necessary. Joining us to discuss, an analyst, and our own reporter, bill. First of all, what does this mean lets talk about businesses. Microsoft has 39 dreamers, apple has 250. What does it mean for companies that employ these people . It puts employees in a state of legal limbo. What they said today is that they want to kick it over to congress, give them about six months to pass legislation that could, in theory, make these people have a full legal status. Just like they had under the dream act or some other capacity. The reality is, Immigration Reform has been a hard sell in congress for several years. Congress has a ton on their plate, when you think about the debt limit and Hurricane Harvey. And passing a budget, and all those things. It is not something they were looking for. It adds to a very full plate over the next six months. Emily president obama did make a statement today. He said to target these people is wrong because they did nothing wrong. It is selfdefeating, cruel. Lets be clear, the action taken is not required legally, it is a political decision and a moral question. Talk to us about that. Is this a moral question and not a legal issue . I think it can be both. There are moral issues here as well as legal ones. In terms of the moral dimension, you have people brought here as children, under the age of 16. They did not make the decision to come to the u. S. And break our immigration laws. Many grew up hearing did not know they were Illegal Immigrants until they were older. It is the only culture they know. They are culturally american. About 80 of americans have sympathy for them and want to give them at least the ability to have a path to citizenship. These are people we have a lot of sympathy for and we do not like to punish people for the crimes of their parents. And this is one of these cases where the American Public is completely on the right side of this, ethically, notwithstanding the legal issues. Emily President Trumps bill says it is time for congress to pass comprehensive Immigration Reform. But will he actually support it . The language he used was in interesting. He has publicly agonized over this decision, even though during the campaign he said it is something he would do his first day in office. The language from Jeff Sessions was harsher. He describes people who have benefited under the dream act as illegal aliens. He said that they have been taking jobs away from true citizens. That kind of terminology does not sound to most peoples ears very compassionate. It raises the question of how much support he will put behind congressional effort to enact this. An important point, attorney general sessions said that any kind of legalization of dreamers should probably be teamed up with other legislative proposals the president wants, such as a bill introduced that would cut Legal Immigration in half, including cuts to end it by 100,000 a year. That is just a nonstarter, dead on arrival. If congress is serious about passing the dream act, they need to ignore the political advice of the attorney general and put up a clean dream act with nothing else on it that makes it impossible to pass. Emily of course, Mitch Mcconnell already weighing in on this. Lets take a listen. Senator Mitch Mcconnell said, president obama wrongly believed he had the authority to rewrite our immigration law. Todays action by President Trump corrects that fundamental mistake. This congress will continue working on securing our border and ensuring a lawful system of immigration that works. Bill, what is next . Congress is just getting back into town tonight. This was not the welcome present they were looking for. On the immediate horizon, it is hard to see something getting done in the next few weeks. Congress has to pass an increase in the debt limit and look at passing some kind of budget or continuing resolution just to fund the government, either through the end of the year or next fiscal year. You have Hurricane Harvey aid tied into all of that. I imagine you will have different proposals coming up from bipartisan groups of senators and members of the house. But i do not think we will get a clear guidance on whether this is possible for quite a while. Emily nancy pelosi has been speaking with reporters. She does not think attaching daca to the debt ceiling is reality. Alex, tell me more about what you expect when it comes to the actual legal fight these people and companies that employ them up involved in. Alex it will be a vicious little fight. We have heard of the tech firms that will be defending their employees who are in daca. This speaks to our wider problem. Why would they have foreignborn people on their payroll. They feel they need to defend the dreamers, to show the rest of their employees and investors that they are serious about protecting their very skilled workforce. We have a sixmonth deadline, when in early march, 2018, the president s cancellation of daca will start pushing 1000 dreamers a month off of work permits and into the illegal economy, where they will either be fired from their jobs immediately or have to work illegally on the black market, like the other 10 million to 11 million Illegal Immigrants in this country. We are on a deadline. It is not a soft deadline. This is a pressing issue, something where there is broad agreement across the political spectrum with moderates, conservatives, and a lot of liberals, that something needs to be done to bring these people out of the shadows so they can work lawfully in the United States. It is good for the economy, good for us ethically, consistent with traditions in this country. Congress needs to solve this problem immediately. It is very Rare Congress passes a reform in an Election Year of this magnitude. They have three to four months to figure it out before it becomes politically more desperate and toxic. Emily a lot of work to do for sure. Thanks so much. Apple has returned to the bond market. The iphone maker is offering 5 billion in debt after in four parts. Through about 3 4 program that is returning capital to shareholders by the end of march, 2019. Hpe emerging from an effort to slim down promising prospects. We break down their thirdquarter earnings. This is bloomberg. Emily google is looking to resurrect its android 1 program in india. The Alphabet Company is teaming up with xiaomi. Google first launched in the toroid 1 project in india sell affordable smartphones, but sales were lacking. The phone went on sale tuesday for 232. It has a 5. 5 inch screen and dual camera system. Hewlettpackard enterprise is emerging from an aggressive slim down, with promising prospects. They showed stronger than projected sales. Shares in afterhours trading popped as much as 6 . Joining us from massachusetts, crawford del prete. I know you just got off the phone with meg whitman. What did she have to say . Crawford as she characterized on the call, they feel they have more work to do. They have made really good progress. I think what meg spends a lot of time talking about, people have to understand how different this company is right now, in that we may split away from the services group. 0,000 peopleany 11 exited over the past 12 months, in march of last year. The hewlettpackard we see today is more focused and leaner. And now is starting to make moves for what their future will look like. I believe this company is not just in the enterprise deal market, but starting to take the company in a new direction. Emily as you are saying, meg whitman saying there is a new effort to make operations more efficient. More work to have do. Interesting to hear her say that, given the reporting about her in contention for the ceo job at uber. She was the top candidate until the 11th hour, even though a few weeks ago she said she was not interested. Is she going to stay at hp . What do you make of these reports that she was close to leaving . Crawford in my opinion, meg is an incredibly talented executive who has provided unbelievable contributions to the valley. Having said that, the hewlettpackard that exists today in the form of hewlettpackard enterprise and hp inc. Is vastly transformed. I think she can look back at this point and say, she put the company on a different path, took them in a new direction. I would not be surprised if she is not over the next six months looking for a new chapter. But i do not get that feeling when i talk to her. That is my conjecture when you think about the transition this transformation this company has been through. When you think about someone as talented as meg, it does not surprise me she is getting a lot of calls and interest for significant transformation projects that other companies are facing. Uber put her squarely in that category. Emily i was at the dell vmworld last week, and spoke with michael dell. We will hear more from him later this week. I asked him about hpe and he did not think they were doing so hot. How do you think hpe is performing, relative to the juggernaut that is now Dell Technologies . Crawford they are very different strategies. Dell is able to play a portfolio strategy and executing that well. It is important to keep in mind they are executing that strategy out of the light of what michael likes to call the 90 day shot clock. If you look at hewlettpackard enterprise, they have slimmed the company down to go after outside profit pools within the enterprise. Today, with their acquisition of Cloud Technology partners, is now looking at, what are the services they can add to their Technology Services portfolio, to be able to grow that meaningful base of revenue for the company . Again, the strategies are increasingly over time, incredibly different. Michael has a great strategy and he will continue to execute that. But he will face challenges in certain areas, like being able to keep all that large, diverse business executing on all cylinders. Hp has gone to the other area, getting focused and building off that core. They are entirely different strategies. Up until recently, dell was executing better with them leverage they had, outside the scrutiny of Public Markets. What we see today hp is making , progress. It is not surprising, given their ability to be more nimble than they were a year ago. Emily crawford del prete, idc chief officer. Thank you so much. Were still listening to the hpe comments. Meg whitman saying they have a next efficiency effort. Coming up, devastation from Hurricane Harvey has hit the greater houston and Insurance Companies are looking for help. How the Drone Industry is helping houstons victims. This is bloomberg. Emily Hurricane Harvey has devastated much of the greater houston area. And Insurance Companies are looking to get as much information they can in relief efforts. For example Farmers Insurance , will use kespry drones to fly over damaged areas in texas to leverage of their highly accurate Imaging Technology to use analytics to analyze footage and provide reports on the farmers claims adjusters. For more on this partnership and how the Drone Industry is helping houstons harvey victims, we are joined by kesprys ceo, george mathew. Tell us how this will work. George it is great to see you. We at kespry are focused on c insurance other p adjusters having the ability to help on all of the rescue and Recovery Efforts going down in houston and the Corpus Christi area. In particular, kespry is focused on the recovery effort for enabling claims processing to occur faster, using a kespry drone. The ceo of the farmers and got on air and said, the use of a drone for recovery and being able to process claims faster can really enable the adjusters to be able to work at a pace which is unprecedented. He even quoted saying, a drone can help the Recovery Process occur, where claims adjusters can cover literally three houses per hour. Versus without a drone it is about three houses per day. Emily without a drone they are using ladders, ropes, harnesses. Some of these waivers are being passed out right now. What is the status on when the drones will be out there at work . George great question. Drones are flying as we speak. Most of those drones have been flying for the rescue effort the last few days. Our kespry drones are now in the air, related to recovery. We have Customers Using our drones in particular to aid in the recovery effort, as of this past day. We see the coming days, weeks, and months largely about supporting all of our customers. Specifically, the policyholders. There has been deep devastation and impact regarding everything that has gone on with harvey, to date. We are there to support our customers and policyholders. Emily what are you seeing out there, what are the big challenges . George there is a lot of work to do. When you look at the damage that has been impacted in Corpus Christi and houston and galveston, there are multiple months of recovery underway. What we see is the need to be able to process those claims as fast as possible, and to enable policyholders to have the best possible experience. For farmers and other p c carriers in houston and around the country, it is about Customer Service being seamless to get claims processed in an meaningful way. The drone is enabling that to happen as fast as possible. Emily we know that irma might be hitting florida in the near term. Will you be involved in that and other natural disasters . George anyplace there is wind damage or hurricanerelated damage, flooding, we are starting to see the use of drones most effectively to support the insurance adjusters. It is not just about the property and casualty carriers, but the roofers and independent adjusters. For kespry and others in the drone space i see us busy in the , future. Emily when it comes to talking about the future of this industry, do you see this as the future of how insurance claims can work . George it is the future of industrial work. The use of an aerial intelligence that form like kesprys is supporting the way work like this can be done faster, by roofers, construction workers, miners. In that regard, kespry has really been scaling out our operations to serve our customers needs. Frankly, the policyholders, in the greatest time of need. We are very focused to ensure we are providing the best possible experience to our customers and their policyholders. This is where the next few months will take kespry forward in the market. Emily good to see how technology is helping, even if just a little. Thank you so much for joining us. Coming up, facebooks latest play to become a hub for video. The new deal with the Armed Services<\/a> committee. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am alisa parenti. This is bloomberg. Bloomberg technology is next. Emily i am emily chang and this is bloomberg technology. The American Dream<\/a> in limbo, nearly one Million People<\/a> who arrived in the u. S. As children face deportation after the Trump Administration<\/a> pulled the curtain down on daca. Our deep dive into the controversial decision and what it means for the tech community. Plus, hbe beats revenue but remains cautious on forecasts. We break down the scorecard since meg whitman nearly jumped ship, and we monitor the companys conference call. Rodeo rolls the dice on an ipo for its most successful franchise. Will angry birds continue to soar or follow the path of game makers that bet and failed on the Public Market<\/a> . After months of speculation amidst messages the Trump Administration<\/a> made it official, the deferred action for childhood arrivals, better known as daca, is ending. President trump spoke about it this afternoon. President trump i have a great heart for those we are talking about. I have a great love for them. People think in terms of children, but they are really young adults. I have a love for these people and hopefully now congress will be able to help them and do it properly. I can tell you in speaking to members of congress, they want to be able to do something and do it right. Emily the Program Allows<\/a> people who entered the United States<\/a> illegally as children to apply for renewable twoyear permits that shield them from deportation. Those who fall into this category are known as dreamers. Tech reaction to the repeal was a swift. Was swift. Tim cook tweeted, dreamers contribute to our companies and Communities Just<\/a> as much as you and i. Apple will fight for them to be treated as equals. Googles Ceo Sundar Pichai<\/a> said dreamers are our neighbors, friends, coworkers. This is their home. Congress needs to work now to defend daca. Microsoft said they intend to take legal action if their employees who happen to be dreamers are deported and will fund their employees legal bills, if necessary. Joining us to discuss, an analyst, and our own reporter, bill. First of all, what does this mean lets talk about businesses. Microsoft has 39 dreamers, apple has 250. What does it mean for companies that employ these people . It puts employees in a state of legal limbo. What they said today is that they want to kick it over to congress, give them about six months to pass legislation that could, in theory, make these people have a full legal status. Just like they had under the dream act or some other capacity. The reality is, Immigration Reform<\/a> has been a hard sell in congress for several years. Congress has a ton on their plate, when you think about the debt limit and Hurricane Harvey<\/a>. And passing a budget, and all those things. It is not something they were looking for. It adds to a very full plate over the next six months. Emily president obama did make a statement today. He said to target these people is wrong because they did nothing wrong. It is selfdefeating, cruel. Lets be clear, the action taken is not required legally, it is a political decision and a moral question. Talk to us about that. Is this a moral question and not a legal issue . I think it can be both. There are moral issues here as well as legal ones. In terms of the moral dimension, you have people brought here as children, under the age of 16. They did not make the decision to come to the u. S. And break our immigration laws. Many grew up hearing did not know they were Illegal Immigrants<\/a> until they were older. It is the only culture they know. They are culturally american. About 80 of americans have sympathy for them and want to give them at least the ability to have a path to citizenship. These are people we have a lot of sympathy for and we do not like to punish people for the crimes of their parents. And this is one of these cases where the American Public<\/a> is completely on the right side of this, ethically, notwithstanding the legal issues. Emily President Trump<\/a>s bill says it is time for congress to pass comprehensive Immigration Reform<\/a>. But will he actually support it . The language he used was in interesting. He has publicly agonized over this decision, even though during the campaign he said it is something he would do his first day in office. The language from Jeff Sessions<\/a> was harsher. He describes people who have benefited under the dream act as illegal aliens. He said that they have been taking jobs away from true citizens. That kind of terminology does not sound to most peoples ears very compassionate. It raises the question of how much support he will put behind congressional effort to enact this. An important point, attorney general sessions said that any kind of legalization of dreamers should probably be teamed up with other legislative proposals the president wants, such as a bill introduced that would cut Legal Immigration<\/a> in half, including cuts to end it by 100,000 a year. That is just a nonstarter, dead on arrival. If congress is serious about passing the dream act, they need to ignore the political advice of the attorney general and put up a clean dream act with nothing else on it that makes it impossible to pass. Emily of course, Mitch Mcconnell<\/a> already weighing in on this. Lets take a listen. Senator Mitch Mcconnell<\/a> said, president obama wrongly believed he had the authority to rewrite our immigration law. Todays action by President Trump<\/a> corrects that fundamental mistake. This congress will continue working on securing our border and ensuring a lawful system of immigration that works. Bill, what is next . Congress is just getting back into town tonight. This was not the welcome present they were looking for. On the immediate horizon, it is hard to see something getting done in the next few weeks. Congress has to pass an increase in the debt limit and look at passing some kind of budget or continuing resolution just to fund the government, either through the end of the year or next fiscal year. You have Hurricane Harvey<\/a> aid tied into all of that. I imagine you will have different proposals coming up from bipartisan groups of senators and members of the house. But i do not think we will get a clear guidance on whether this is possible for quite a while. Emily nancy pelosi has been speaking with reporters. She does not think attaching daca to the debt ceiling is reality. Alex, tell me more about what you expect when it comes to the actual legal fight these people and companies that employ them up involved in. Alex it will be a vicious little fight. We have heard of the tech firms that will be defending their employees who are in daca. This speaks to our wider problem. Why would they have foreignborn people on their payroll. They feel they need to defend the dreamers, to show the rest of their employees and investors that they are serious about protecting their very skilled workforce. We have a sixmonth deadline, when in early march, 2018, the president s cancellation of daca will start pushing 1000 dreamers a month off of work permits and into the illegal economy, where they will either be fired from their jobs immediately or have to work illegally on the black market, like the other 10 million to 11 million Illegal Immigrants<\/a> in this country. We are on a deadline. It is not a soft deadline. This is a pressing issue, something where there is broad agreement across the political spectrum with moderates, conservatives, and a lot of liberals, that something needs to be done to bring these people out of the shadows so they can work lawfully in the United States<\/a>. It is good for the economy, good for us ethically, consistent with traditions in this country. Congress needs to solve this problem immediately. It is very Rare Congress<\/a> passes a reform in an Election Year<\/a> of this magnitude. They have three to four months to figure it out before it becomes politically more desperate and toxic. Emily a lot of work to do for sure. Thanks so much. Apple has returned to the bond market. The iphone maker is offering 5 billion in debt after in four parts. Through about 3 4 program that is returning capital to shareholders by the end of march, 2019. Hpe emerging from an effort to slim down promising prospects. We break down their thirdquarter earnings. This is bloomberg. Emily google is looking to resurrect its android 1 program in india. The Alphabet Company<\/a> is teaming up with xiaomi. Google first launched in the toroid 1 project in india sell affordable smartphones, but sales were lacking. The phone went on sale tuesday for 232. It has a 5. 5 inch screen and dual camera system. Hewlettpackard enterprise is emerging from an aggressive slim down, with promising prospects. They showed stronger than projected sales. Shares in afterhours trading popped as much as 6 . Joining us from massachusetts, crawford del prete. I know you just got off the phone with meg whitman. What did she have to say . Crawford as she characterized on the call, they feel they have more work to do. They have made really good progress. I think what meg spends a lot of time talking about, people have to understand how different this company is right now, in that we may split away from the services group. 0,000 peopleany 11 exited over the past 12 months, in march of last year. The hewlettpackard we see today is more focused and leaner. And now is starting to make moves for what their future will look like. I believe this company is not just in the enterprise deal market, but starting to take the company in a new direction. Emily as you are saying, meg whitman saying there is a new effort to make operations more efficient. More work to have do. Interesting to hear her say that, given the reporting about her in contention for the ceo job at uber. She was the top candidate until the 11th hour, even though a few weeks ago she said she was not interested. Is she going to stay at hp . What do you make of these reports that she was close to leaving . Crawford in my opinion, meg is an incredibly talented executive who has provided unbelievable contributions to the valley. Having said that, the hewlettpackard that exists today in the form of hewlettpackard enterprise and hp inc. Is vastly transformed. I think she can look back at this point and say, she put the company on a different path, took them in a new direction. I would not be surprised if she is not over the next six months looking for a new chapter. But i do not get that feeling when i talk to her. That is my conjecture when you think about the transition this transformation this company has been through. When you think about someone as talented as meg, it does not surprise me she is getting a lot of calls and interest for significant transformation projects that other companies are facing. Uber put her squarely in that category. Emily i was at the dell vmworld last week, and spoke with michael dell. We will hear more from him later this week. I asked him about hpe and he did not think they were doing so hot. How do you think hpe is performing, relative to the juggernaut that is now Dell Technologies<\/a> . Crawford they are very different strategies. Dell is able to play a portfolio strategy and executing that well. It is important to keep in mind they are executing that strategy out of the light of what michael likes to call the 90 day shot clock. If you look at hewlettpackard enterprise, they have slimmed the company down to go after outside profit pools within the enterprise. Today, with their acquisition of Cloud Technology<\/a> partners, is now looking at, what are the services they can add to their Technology Services<\/a> portfolio, to be able to grow that meaningful base of revenue for the company . Again, the strategies are increasingly over time, incredibly different. Michael has a great strategy and he will continue to execute that. But he will face challenges in certain areas, like being able to keep all that large, diverse business executing on all cylinders. Hp has gone to the other area, getting focused and building off that core. They are entirely different strategies. Up until recently, dell was executing better with them leverage they had, outside the scrutiny of Public Market<\/a>s. What we see today hp is making , progress. It is not surprising, given their ability to be more nimble than they were a year ago. Emily crawford del prete, idc chief officer. Thank you so much. Were still listening to the hpe comments. Meg whitman saying they have a next efficiency effort. Coming up, devastation from Hurricane Harvey<\/a> has hit the greater houston and Insurance Companies<\/a> are looking for help. How the Drone Industry<\/a> is helping houstons victims. This is bloomberg. Emily Hurricane Harvey<\/a> has devastated much of the greater houston area. And Insurance Companies<\/a> are looking to get as much information they can in relief efforts. For example Farmers Insurance<\/a> , will use kespry drones to fly over damaged areas in texas to leverage of their highly accurate Imaging Technology<\/a> to use analytics to analyze footage and provide reports on the farmers claims adjusters. For more on this partnership and how the Drone Industry<\/a> is helping houstons harvey victims, we are joined by kesprys ceo, george mathew. Tell us how this will work. George it is great to see you. We at kespry are focused on c insurance other p adjusters having the ability to help on all of the rescue and Recovery Efforts<\/a> going down in houston and the Corpus Christi<\/a> area. In particular, kespry is focused on the recovery effort for enabling claims processing to occur faster, using a kespry drone. The ceo of the farmers and got on air and said, the use of a drone for recovery and being able to process claims faster can really enable the adjusters to be able to work at a pace which is unprecedented. He even quoted saying, a drone can help the Recovery Process<\/a> occur, where claims adjusters can cover literally three houses per hour. Versus without a drone it is about three houses per day. Emily without a drone they are using ladders, ropes, harnesses. Some of these waivers are being passed out right now. What is the status on when the drones will be out there at work . George great question. Drones are flying as we speak. Most of those drones have been flying for the rescue effort the last few days. Our kespry drones are now in the air, related to recovery. We have Customers Using<\/a> our drones in particular to aid in the recovery effort, as of this past day. We see the coming days, weeks, and months largely about supporting all of our customers. Specifically, the policyholders. There has been deep devastation and impact regarding everything that has gone on with harvey, to date. We are there to support our customers and policyholders. Emily what are you seeing out there, what are the big challenges . George there is a lot of work to do. When you look at the damage that has been impacted in Corpus Christi<\/a> and houston and galveston, there are multiple months of recovery underway. What we see is the need to be able to process those claims as fast as possible, and to enable policyholders to have the best possible experience. For farmers and other p c carriers in houston and around the country, it is about Customer Service<\/a> being seamless to get claims processed in an meaningful way. The drone is enabling that to happen as fast as possible. Emily we know that irma might be hitting florida in the near term. Will you be involved in that and other natural disasters . George anyplace there is wind damage or hurricanerelated damage, flooding, we are starting to see the use of drones most effectively to support the insurance adjusters. It is not just about the property and casualty carriers, but the roofers and independent adjusters. For kespry and others in the drone space i see us busy in the , future. Emily when it comes to talking about the future of this industry, do you see this as the future of how insurance claims can work . George it is the future of industrial work. The use of an aerial intelligence that form like kesprys is supporting the way work like this can be done faster, by roofers, construction workers, miners. In that regard, kespry has really been scaling out our operations to serve our customers needs. Frankly, the policyholders, in the greatest time of need. We are very focused to ensure we are providing the best possible experience to our customers and their policyholders. This is where the next few months will take kespry forward in the market. Emily good to see how technology is helping, even if just a little. Thank you so much for joining us. Coming up, facebooks latest play to become a hub for video. The new deal with the Music Industry<\/a>. If you like bloomberg news, check us out on the radio. You can listen on the Bloomberg Radio<\/a> app, or on sirius xm. This is bloomberg. It is 11 29 a. M. In singapore, 12 29 in tokyo. Chinese policymakers have six,gthened todays yuan setting it against the u. S. Dollar. It has jumped around 6 of this year. Journalese securities says it has room for gains because of the resilient economy and prudent monetary policy. The yuan has beaten every major asian pulp currency in the past month. Gdp expanded 0. 8 in the second quarter, slightly below estimates. In construction slightly offset higher government and household spending. Aussie dollar slipped below the . 80 mark. It expanded 1. 8 and the reserve bank kept rates on hold at record lows yesterday. President trump will end of the obamaera program preventing the deportation of undocumented immigrants brought to the uss children. It would throw about one Million People<\/a> who consider themselves americans into legal limbo. Highprofile ceos including Mark Zuckerberg<\/a> and jack dorsey have criticized the decision. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am haslinda amin. This is bloomberg. I am sophie kamaruddin. Aussie stocks are falling while bonds are rallying, even as treasuries fall in the asian session. Check out what is going on with the hang seng, falling over 1 . Chinese stocks are snapping a three day rise. It has been a rocky day for them yuan. We have offshore and onshore rates swinging, despite the fix for an eighth straight day. The korean won has been on the defensive, while the ringgit has led. Below the dollar secondquarter gdp data miss this morning. The yen thriving in this risk off session. Unlike gold, which is dropping with other commodities. We aren a strength, seeing bond yields setting japanese stocks lower. Financials begin to drop across the markets. Check out this jumping almost 20 , rising a seventh straight day. That is the longest winning streak since 1998. It is trading at the highest level since april, 1999. Japan raising its Defense Budget<\/a> for a six time since 2012. Today, the defense chief of japan and the u. S. Discussed fending off north korea. Emily today, the defense chief f japan and the u. S. This is blog technology. I am emily chang. Facebook offering millions of dollars to publishers for music rights. They would be allowed to include songs and videos they upload. According to people familiar with the matter, they have reassessed the system for tagging videos that infringe copyrights. That system could take up to two years to establish. Joining us now, james stock mock james. Will start with you. Can you tell us about how this would work . Facebook and the Music Industry<\/a> have tried to resolve this ongoing problem where you have millions of videos getting uploaded to facebook that cannot be there. Facebook is trying to build the system kind of like what youtube uses. Because that will take so long, facebook would give a under different rights holders millions of dollars to buy them off, while they build this system. Supposedly in collaboration with music earners, to have a system for all the user generated videos you see and are so familiar with already. Emily this comes as facebook is rolling out a new hub for video. What do you think of this . James it is great, supersmart. They have the leverage to get the deal done. What theyre doing is, putting their money where their mouth is, willing to spend up ton of money to get people engaged. Whether it is ensuring no issues when it comes to music. [indiscernible] theyre willing to spend hundreds of millions of dollars on top of that for video content, like they did 600 million for the Indian Premier League<\/a> on cricket. They are showing their willingness to really be a contender and a real player when it comes to the division of content. Puty who does this pressure on youtube, who else . Lucas the record industry certainly hopes youtube. They have been trying to get youtube to change for years, with no success, because they have no leverage. There. E hoping their it does put pressure on facebook to figure it out. They are hoping that the tighter they get bound together, the more facebook, the more seriously facebook will take these problems. It does not necessarily put pressure on anyone in the longterm. This is really just the next step in facebook figuring out what its video strategy is. Emily on that note, facebook made a bid for indias premier League Cricket<\/a> games. They lost. They also bid for nfls thursday night football games. They lost to amazon. They are dabbling. James making 100 million plus bids for this type of content. At the end of the day, on a headtohead matchup, amazon versus facebook, it is advantage amazon. Investors are conditioned to a 0 margin. There is almost unlimited cash they can spend. Facebook, willing to show the willingness is impressive. The one thing facebook needs to be careful of is not trying to monetize some of their newer, emerging efforts like whatsapp, too fast, and make sure they get the experiences right. Emily we are just starting to see how they could potentially be earning money from the whatsapp. They will charge businesses to use those to communicate with consumers. What do you think . It is the right thing to do, i do not want them to rush it. They did it so perfectly with facebook and instagram. People are still using messenger and whatsapp, but i am not sure they are ready for the inapp type of advertisements. It is great to monetize business relationships. Emily it has been a few years. James but they are facing pressure with the declining ad load. They need to show growth. It needs to not be done as a reactive measure for the market expectation versus turning on the spigot for monetization at the right time. Emily when it comes to twitter and snapchat, we know growth is struggling in both companies. Do they stand a chance . James i think twitter does have a chance, as long as a deploy the right strategy. A service that is indispensable for realtime information. We use it on every website and media outlet. With snap, every day will get harder and harder. We came out initially bullish on snap. But they are their own worst enemy because they are not capitalizing on their core strength. You have facebook showing willingness to spend money on content. Money on that battle, it is a losing proposition for snap. Emily when you are bidding to rights for a specific franchise, it is a zerosum game. But is it . Can facebook, amazon, youtube all win, if they are willing to pay up . James the Tech Companies<\/a> could all win. Is the ecosystem big enough for them and the media guys to have the rights . What we have seen in the nfl, twitter had the nfl last year, but most watched them on cbs and nbc. The audience on twitter was much smaller. What we will see with amazon, can they pull some of those zeros away . How seriously are amazon and twitter going to bid on these rights . I was surprised by the facebook bid because in the past they have indicated they did not want to spend a ton of money on the rights. They were looking to share advertising revenue. That suggest they are willing to spend enough money to buy away the biggest rights out there. When that happens, we could see a more significant migration of the viewers from tv to viewer platforms. From tv to viewer platforms. Emily thank you both. We have been listening into the hpe earnings call. Meg whitman has been asked about it that uber ceo job. She said there is lots more work to do, i am not going anywhere. Coming up, a new player in the london taxi hailing market. How a startup is taking on uber in the british capital. This is bloomberg. Emily some big banks are already using Artificial Intelligence<\/a> to monitor traders. Now looking to expand that coverage to make sure they do not wind up in a similar situation to wells fargo. Banks have asked ibm if they can use their watson team to watch their team. In june, a rolled out a trader project to weed out collusion to prevent scandals like the one at wells fargo where employees opened up as many as 3. 5 million fake checking and credit card accounts. Uber is getting tough competition in london today. This is bloomberg. Signed up 3000 taxi drivers compared to ubers 40000 and said they have been vetted. With the ceo spoke ahead of the launch to get an idea of how a company a fraction of the size of uber can compete. So far they have been suffering from lack of competition. The market and we want to show why we can grow on that. They should benefit from a new service. Just seems to me it is not the customers, but very much aimed at the drivers, meant to be bettering their way of life. How do you distinguish yourself from uber in that capacity . The passengers inside, we offer longtime discounts of 10 to 15 . Aside, they make 10 to 15 more on every trip. As a driver who makes minimum wage, going fulltime, they can expect to earn 200 pounds extra every month, which is a big leap. Caroline the way to do that is to have bigger commissions . Thinner margins for yourself . Markus exactly. In the longterm this makes more sense. If we take lower commissions, we can of happier drivers, which leads to better service. In the longterm, that could lead to a bigger network. Caroline the network is expanding to london, but where else in europe . Markus we are in 19 countries already. Central europe, eastern europe, africa, and mexico. Caroline and other parts of europe . Paris is in the offing . Markus we are launching paris in a few months. Caroline the expansion has been accelerated by your partnership with didi chuxing. About with that came the chinese giant to partner with the european company. Markus didi is one of the biggest ridesharing apps in the world. They want to support local champions. They have already invested in the u. S. , india, southeast asia. And now finally, a partner in europe. We managed to prove we can win and a lot of markets and make a Service Better<\/a> than what was there before. Caroline what are they providing to you . Wekus on top of the money, are getting a lot of new expertise. How to set up Business Operations<\/a> efficiently and get newest technology. Caroline what has been your focus when expanding taxify . The aim is to be the second entrant . You let uber do the hard work in terms of regulation . Markus in many ways, that is one of the main reasons we have been so efficient. We go into markets where ridesharing has been proven, millions of people use it, thousands of drivers. Then we come in and improve on that by offering commissions and more back to drivers and riders. We do not want to get into regulatory troubles or battles. Caroline how do navigate . Has it been difficult . Berlin,nking of barcelona, madrid, these cities are difficult because the Regulatory Environment<\/a> is not hospitable for ridesharing. Markus exactly, that is why those cities are second on our list. There are so many that embrace ridesharing. We want to go there. Caroline the relationship with didi, how does that go forward . Do you see them investing more money . Markus right now, is in its early days. We are facing fast growth every single month. Right now, the focus is to grow. I think these questions will be solved some years down the line. Caroline what is your view point in terms of the ridesharing ecosystem . We will be going toward autonomous driving in the future . Up with thest came concept for years ago when you were 19 years old and coding it yourself, where did you see the product going . Markus four years ago i did not have an idea how big this industry would be. That has been quite exciting. Now that we are as big as we are, we see that Autonomous Cars<\/a> could be the future of ridesharing. There is still more ahead. The focus is clear. We want to have a product ready now. We do not want to postpone problems into the future, but solve them right now. Caroline where are you finding it is solved the most efficiently . It is interesting you are in africa. Markus africa is a fascinating example. In europe, private car ownership is quite high, and the need for ridesharing is significant. That is why we are seeing [indiscernible] caroline how did you build this company from your bedroom, to become the scale it is, to learn in the likes of didi . Where did you find yourself, what are the lessons you learned . Markus we started in estonia four years ago and it was selffunded. Make at saw we could good product if we raised outside money. That was the logic we followed for the first four years. Eventually we realized the Market Opportunity<\/a> was so big that we needed money before anyone else does. We started looking for future investors and got matched up with didi. Emily that was taxify ceo markus villig. Just after that interview, gary line caroline gave birth to a Beautiful Day<\/a> be way a beautiful baby boy. He is so beautiful. We want to welcome leo to the bloomberg family. Angry birds preparing to go public. Fizzling out once they hit the Public Market<\/a>. This is bloomberg. Emily flying jet taxi designer plans to haul passengers from Downtown Manhattan<\/a> to jfk airport in just five minutes. The munichbased startup raised and 90 million from investors such as tencent, to fly as fast as 180 miles per hour. The test model had a successful first flight in april. Angry birds is looking to go public. Finland has a Public Offering<\/a> to value the company as that much as 2 billion. Theyre the latest game maker to opt for an ipo following the likes of Online Gaming<\/a> company zinga, which stumbled in its road to the market. Does the same fate await them . Joining us to discuss, alex in new york. Nga ipo, wered the zy know it was not smooth sailing. Alex the fear is that they repeat what zynga did. It may as well be called angry birds. Angry birds came out seven years ago. They need to show they can find some growth after this new strategy it has implemented in the past couple years of massive cost cuts coming to fruition. You have seen the financial start to improve. You can see in the documents in the last quarter, they reported 94 Revenue Growth<\/a> to 86 Million Euros<\/a>. That is after following another quarter of growth. Revenue is growing. It seems like things are working. Frankly, a lot of that has to do with their selling strategy that they have shifted into more getting users to pay inapp, then getting them to pay when they download the games. Emily tell us about the financials, how is the company doing . Alex they are improving. 86 Million Euros<\/a> in revenue in the last quarter, that is about million u. S. They followed it up with angry 2010. To in it has been a while since we have seen new things from them. We did see the angry birds movie , that banked 350 million in box offices. They have angry birds 2 coming out in 2019. They have their old legacy games, recent introductory games they have put out in mobile apps that are not necessarily doing as well. And they have a movie in 2019. For the next couple of years, you need to see them pushing the strategy of getting users to pay up in apps. Bloomberg talked to some of their executives earlier this month who said, this has been working for us. They reminded the public that sometimes these games take a few years to catch on. Years isive said three a typical high point of success for some of these games. It is going to be whether or not this angry birds franchise can continue to find growth either in the mobile gaming world or some of these ancillary products like their movies. Emily what about investor appetite in general for a company like this, Software Entertainment<\/a> . Alex they are listing in helsinki. Their competition is in that market, too. Investor appetite seems to be there to a certain extent. Valuation. The average value for Gaming Companies<\/a> is about five times revenue. Valuation, a 2 billion market value, this is almost double that. There is a bit of a disconnect here when it comes to the content amount to that is traded. You are going to have to convince investors that they have cut all the costs they need, running a much more efficient ship. If they figure out the inapp purchasing strategy, it will be successful going forward. What are they going to do in the gap of 2017 and 2018, where they have not told us about anything new and exciting . Emily maybe it will be a new movie. Alex barinka, thank you so much for joining us. I know you will keep us posted. But does it for this edition of bloomberg technology. We are Live Streaming<\/a> on twitter. Check us out. That is all for now. This is bloomberg. So we need tablets installed. With the menu app ready to roll. In 12 weeks. Yeah. The world of fast food is being changed by faster networks. Data, applications, customer experience. Which is why comcast business delivers Consistent Network Performance<\/a> and speed across all your locations. Fast connections everywhere. Thats how you outmaneuver. The following is a paid program. The opinions and views expressed do not reflect those of bloomberg lp, its affiliates, or its employees. The following program is a paid advertisement. They are out there, driving recklessly, and driving up your insurance rates. This is a show about car accidents. Cars, and the hd mirror cam. This is acciden","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia600404.us.archive.org\/14\/items\/BLOOMBERG_20170906_030000_Bloomberg_Technology\/BLOOMBERG_20170906_030000_Bloomberg_Technology.thumbs\/BLOOMBERG_20170906_030000_Bloomberg_Technology_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240629T12:35:10+00:00"}