Transcripts For BLOOMBERG Bloomberg Technology 20171011 : vi

BLOOMBERG Bloomberg Technology October 11, 2017

Reports tillerson called the president eight more on it was considering stepping down. Moron and considering stepping down. Also reportedly challenged tillerson to like you test. Hundreds of firefighters and Law Enforcement officials are headed to california to battle wildfires that have killed at least 13 people. I wondered 15,000 acres have been scorched and one dozen wineries are damaged. Global news 24 hours a day powered by more than 2700 journalists and analysts in more , i am alisantries parenti, this is bloomberg. Bloomberg technology is next. Emily vicki choir summit in seattle. Google, facebook, and twitter are scrambling to hold washington and regular edition at bay as the result of the russian political ad scandal. What is the game plan . Being called to Congress Next month. We will cover how seattle has transformed into the centers of innovation. One of seattles biggest players, microsoft. An exclusive interview with president. First to our lead. Tech giants bracing themselves in the face of congressional regulation coming their way. Ads paid for by russia on all platforms influence the 2016 president ial election, it has sent companies into a pr crisis. Upping lobbying budgets, hiring Crisis Management firms as they get ready for a november 1 public hearing. Thank you so much for joining us. Im going to start with you. You wrote a story about the Great Lengths these companies are taking to minimize the damage including calling lawmakers personally, talk to us about these efforts. These Companies Need to figure out exactly how much was on civility they should pay, how much change they should promise. These are all very difficult issues that have grown to the scales they have at they have now by adding these platforms you can transact on automatically. It has helped propel their growth. Thoseat they have cleared ahead of the election, it is something lawmakers are trying to understand and trying to think about how they should regulate them. It has really been something that nobody has really cared about as much as they do now. The companies are coming to terms with that in trying to figure out what the next steps are. Anchor you are going to be in washington covering these hearings. The same day as the earnings call. Mark zuckerberg not expected to testify. Not expected to testify. I think we will likely see somebody who has more technical knowledge. That is what senators have asked for. Mostney is on alexs they alex, the head of security for facebook. I have not confirmed that. Anchor zuckerberg has apologized for minimizing the extent of fake news, the problem of fake news. Do you buy it . Not for a minute. He began by saying it was a i think sarah got it right, you have to follow the money. This is not a pr crisis is a technical crisis and almost a moral crisis. What is the responsibility you take your responsibilities seriously. That what he failed to do. Lets talk about another company, lets talk about uber. Anything that built the business is ok. Ok with the ceo, business, employees, as long as it built the business. Facebook is selling ads. We know now they had people embedded in the Trump Campaign, helping the Trump Campaign micro target dozens of individuals. There was an article in the Washington Post that said they took a trick from the u. S. Business playbook. I think more foreign manipulation was aided and abetted by companies turning a blind eye. 60 minutes, the digital director of the Trump Campaign said they had facebook employees embedded in their campaign. What is the significance of this . Emily this is one of the things i have heard it internally. Facebook investors are dismayed to hear they had partisan hands in the election. They dont feel like they did. Report isonse to that of course we help them. We help everyone. We did not need to put people in her office is the way we did with trump because she was in new york and we have an office in new york. They dont see the issue. They say this is something we would do with a retailer for black friday or play movie studio a movie studio. To come is just trying to terms with the fact that people dont understand how business works. Not understand so much how these things can be interpreted. Now that they are looking at it through the lens of Understanding Health his book the head of the elections the elections. The best we can trust them to self police . Congress has to get involved. It is a difficult technological problem to deal with fake news at scale. I believe there was a willful blind eye to what was going on. If i were good at business i would be in business. Anchor longtime Computer Science professor. Sarah covered facebook for us, thank you so much for stopping by. Softbank is leading a 93 million investment. Software that can be used by a variety of Industries Including health care and more. To technology is intended simple five Machine Learning applications at scale. Seattles tech scene is on the rise but how does it compare to Silicon Valley . Next. Livestreaming, 5 00 in new york. This is bloomberg. Boom seattle has seen a in the past few years. The company racked up 2. 1 billion in funding, dwarfed by Silicon Valley. As of may this Year Companies in seattle received a 600 million. How the seattle scene stacks up to the general partner rebecca lynn. It has been a wild. You met with a few companies in seattle. What trends are you seeing . It is amazing. Two of the richest men in the world here. And bill gates. The start of scene continues to evolve. I think it is always been strong but when you go around seattle you see the amazing number of new companies that have come up. Emily you invest across a range of investors. What is your take on bitcoin . It is early. Bitcoin is in the gambling category. I think there are the bad actor cases at bitcoin in terms of out and out fraud. Casesk i ceos, there are that can make a con of sense. I ceos, debt financing. Wasmpany in south africa selling solar cells and the and unity on that income was the currency other words. It for companies of that nature. Emily what is of interest and what is not . Stantec is always hot. There is a billion dollar in every cycle. Reinvent the to Banking System and we are moving more into real estate. They were really excited about it. Syntax will continue to be hot in many sectors. What has cooled is the lending space. Emily you invest in early on, had issues, a new ceo. What do you think about the risks associated with it and the sandal scandal . Lending club was a ceo transition. Scott stepped up, he was amazing for that company. He has done a great job leading that company through that executive transition. In that case it was a case of management transition. There has been a rash of Sexual Harassment stories, women at Tech Companies along among venture capitalists. Personally, i have not been sexually harassed. Is kind of funny because i get asked this all the time. I think it is setting the right example to be honest. More from the men than the women. It has to be not tolerated. I think what we are seeing this days is people stepping up and saying this is not ok. I think that is what is going to take. What about discrimination . At the taste that have you faced that . Ive always been lucky. I was the only female in the often, it is not that i have not seen it. It is people saying something about it. You dont let us go. I do think i think that is how you can change it. In the memo came out where he in the memo came out where he said he thinks there are biological regions reasons for a of women in leadership you said to the New York Times there is a high awareness right now but there is a fear. Many men feel like they have a gun to her head. I hope not. I would say when people heard about these things coming out they themselves were mortified that this is happening. Our peopley about going to extremes where they are women to inviting dinner for a business meeting. Very normal things guys would do together. I worry about that because i feel like that will set us back even further. Awarenessere is an and a level of it. A level of not expecting it that needs to happen. They should be doing these dinners, how do you make sure these dont happen . In terms of . Have you make sure women are included . The inclusive. Ask yourself what everyone feel comfortable if we are going to this event. I often do that with myself. What would Everyone Wants to go to this activity . Sometimes you have to make sacrifices that are better for the overall group. A lot of it is a judgment call. The guys that are accused of these things, is not a oneoff thing. It is a repeat occurrence. It is not endemic in the industry. Actorsre specific bad that have not been called out before that are now. Emily rebecca lynn, thank you for joining us. All right. Coming up, much more from Seattle University of washington. Helping to transform the region as a leader of Computer Science education. He will join us next on bloomberg. Emily uber says its ok drivers would face broad changes if considered employees with benefits. It is considering alternatives to its model after scrutiny from regulars. Uber would become a private higher car service, more control over where drivers work. The company said how it may adjust if the government implements new labor laws. Hubtle has turned into a outside of tech giants like amazon and microsoft. Home to a growing number of startups that could lead to a new wave of cloud computing. Thee joined once again by bill and Melinda Gates chair at the school of engineering in washington. One of the top programs in the country. A few for joining us. Microsoft are a duopoly in seattle. What are the advantages and risks . You just saw the amazon announcement recently. It is interesting. It seems they need to geographically diversify. Amazon is just phenomenal as is microsoft. Horse towne a one and amazon cannot be a one town horse. It just makes sense. The important thing for us in seattle is to figure out what caused jeff a ghost to move here in 1993 in what allowed him to grow this Great Company with 50,000 employees in seattle. The fact that amazon needs to diversify his is obvious. At the same time we want them to grow in seattle and it is Just Announced they leased 700,000 feet downtown. It is an amazing contributor to our economy. See the policyou impacting the industry in the longterm . In the longterm we all mother statistics in this country. A stunning proportion of them were born elsewhere and moved here. People from everybody in the world came to get a graduate education. They historically have stayed here and built a Great Company and driven our economy and we are telling them we dont often anymore which is crazy. Amazon was one of the First Companies to join the challenge to join the travel ban. Microsoft and amazon committing to defense for its employees. This is critical to the university as well. Some of our best students. Emily ai, Machine Learning, these are areas of innovation that are exploding. Do we have the resources to train students to be ready for these jobs . Is there a coming skills gap . There is a huge skills gap in this country in Computer Science. There is a workforce gap in this state. The gap between degrees and Jobs Available is four times as great as the gap in other areas combined. In washington. 77 73 of all the newly created jobs in all of stem it will be computing. Created whether all Computer Science all the time. We have got to educate them better and faster. I know you are incredibly passionate about diversity in Computer Science. What is the progress you are seeing . That is a good question. It is taken for more seriously. The university of washington has a long way to go but we graduated with a High Percentage last year. The national average. Not year not nearly enough but we are working hard. Melinda gates took the challenge one year ago. The firstt to conference in 1994 as there were 500 attendees, 15 or so were men. This year was 18,000 people. One of the challenges that remain . Think me tell you what i the hope is. Among twiceeration from mark soft, startups, the latest challenge. In the first hour of code that heidi ran, more women and minorities spent one hour programming than in the entire 50 year history of the field. Groundswelleate a of students from Elementary School who demand more Computer Science. It will change education. Interesting young women in this is important. 50 yearssciences spent making things smaller and faster and less expensive and it has been a great run but that does not make society a better place. The next 50 years are going to be how we Impact Health care, education, energy efficiency. How we impact the developing world. That is what Computer Sciences about these days. That is going to attract a far more Diverse Group of people because they care about societal challenges, not faster, smaller, cheaper. Emily what is the response ability in the industry . On impacting the pipeline . One Thing Companies can do is ensure there are places for everyone to work and google has done that. Microsoft has done that. You have to pick up the newspaper to see how the Smaller Companies are doing. It is a complicated thing. Entrepreneurism breeds people who push the envelope and they may push the envelope in terms of culture as well. Making it clear that these are great jobs, everybody is welcome. The most important thing to me we need a Diverse Workforce because we are in a creative process. Engineering the creative process. If there are points of you that are not not represented or worse for presented, there will be problems you do not consider. Even if you dont care about social equity or any thing like that, if you are a craft capital who wants to sell more stuff, you want a Diverse Workforce. Emily we will have to leave it there. The university of washington, we will be back with more from the deke wires summit area talking with the microsoft president rapped about these issues and more. This is bloomberg. Who knew that phones would start doing everything . Entertaining us, getting us back on track, and finding us dates. Phones really have changed. So why hasnt the way we pay for them . Introducing xfinity mobile. You only pay for data and can easily switch between pay per gig and unlimited. No one else lets you do that. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit or go to xfinitymobile. Com. 2 29 in sydney. I am paul allen with the latest first word news. Election campaign is underway in japan with candidates across the country in search of support. 465 seats are on the line as shinzo abe seeks to bolster his mandates and revive the economy. He faces the challenge of renewed opposition led by yuriko corday and criticism that his first five years in office have failed to start growth. Theresa may may trigger the anger of voters after declining to say she would vote to leave the eu in a future referendum. A series of interviews, she says she voted remain at year but things move on. The deputy major says he thinks the u. K. Is better off inside, although both said there is no chance of a second vote. Thailands return to democracy is said to happen next year after the government said elections would be held november 2018. The army seized power three years ago, pledging to restore stability after political unrest. The new military backed constitution that gives soldiers and bureaucrats the power to stifle elected politicians. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries, this is bloomberg. Juliette checking markets midsession here in asia. We are seeing the regional benchmark Index Holding onto the 10 year high. Many markets a decade or even a decade highs. Taiwan of. 7 . Coming off the high. The first time it has traded after a long weekend. Very close to the 27 year i. On after theback lunch break and it is holding at its highest level since december 1990 6, 1 day after the they hit a high. A positive movement coming through in commodity players. Iron or helping out the Australian Market and chinas. Hong kong is coming out of the morning session, pretty flat. Developers looking very strong as we await more details in hong kong. Having looked at movers in the region, great wall is up by 13 in hong kong. Solid numbers after yesterday. It is one of the cheapest hong kong car companies. A lot of solid support coming through from the south korean players. Good movement coming through there. Steel down 20 at lunchtime in the tokyo session. Emily we are continuing now with live coverage of the key are wire. Why brad smith, microsoft president and still with me, the professor at the university of washington. Good to have you. You are the chief legal officer at microsoft. You came out stronger than any. Ech company on daca saying if you come after our people we will support them, we will pay their way. Daca is an issue we believe is important for the country and our business. As an industry, we critically depends on having the best and rightist and many of the best and brightest are among the 800,000 people who are registered under daca. If the government seeks to deport our employees, any of the 44 microsoft employees who are daca registrants,

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