Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Parenti. A this is bloomberg and Bloomberg Technology is next. Emily i am emily chang, and this is Bloomberg Technology. Coming up, a new twist in the investigation into election interference. This time, the trail does not lead to russia. How facebook and google are implicated in antirefugee campaigns in u. S. Battleground states. And coverage of the wsjd conference. One about big plans to take the future. And after a Disappointing Box Office summer, disney doubles down on fantasy. Why a musical animation and the force will pack theaters this fall. And first to our lead, financial execs around the world are bearish, fearing robots will eliminate jobs on the trading floor. Consultant in charge of deploying technology for bloomberg said robots will take on tasks currently performed by humans. Has already predicted they will wipe out 235,000 jobs by 2025. Here with us to discuss the growing influence in the world and other industries, the founder of activate. He has his top predictions for 2018 at the conference. Thank you so much for writing. For coming here. Automation will have a grave impact across sectors, but in the finance industry in particular, what do you think . Michael we have already seen the robo advisers like intermittent wealth front already managing accounts, and they are making financial banking accessible to people that cannot afford it. Now we will see automation going to other parts of the finance world. Some of it is expertise automation and augmentation. It is taking jobs where a lot of judgment has been applied in the past, providing tools to help those people. It is natural a lot of these jobs, whether it is bond trading or sales, those are jobs that yes im a there is a lot of routine tasks involved yes, there is a lot of routine tasks involved with them. Automation should replace parts of them. Emily what about other sectors like on a faction manufacturing . Michael i think we will see it in those jobs that require a great deal of expertise, but that expertise can be managed another way. A great example is the Legal Profession where lawyers are performing tasks that have to go through documents, go and find certain things using natural language search. Using Artificial Intelligence to highlight and translate those into law, that will be important. Emily could ai take jobs in technology itself . When you think about the top stuff facebook is doing with ads, curating of content, flagging and filtering of content muslim of that is done by humans, but the goal is to have that filtering of content, some of that is being done by humans. The goal is to make it automating. Michael we need to have actual human actions versus machine learning. But a lot of the tasks in computing, they will be done automatically. So some of the most basic programming, a lot of those things that a couple of years ago would have required expertise, that expertise really can be done by computing. Emily Something Else you predicted, of the giants, apple am a facebook, amazon, they will apple, facebook, amazon, they will compete on the same turf. Michael one of the places is ai. What they are most concerned about we hear about this with speakers, every company has a Smart Speaker, every company but facebook. Every one of them has a digital assistant like google assist, siri, and why are they so focused on this . They want to own the first the front and between ai and user. They will be competing. They view owning that front end as part of their manifest destiny because it is the control to their business, ecommerce, search, media, whether it is social and communication. That is where we will see the complete, and it will be see them compete, and it will be ferocious competition. We have got tencent and alibaba end line. And line. They will be doing the same thing, launching Artificial Intelligence, digital assistant, and they will be delivered through a speaker, then later on through every Consumer Electronics product. Emily so google, amazon, do you see all of them maintaining footholds in this area, or do you see one or two dominating the market . Michael we believe the Smart Speaker market will peak in two years. Part of the reason for that is those Digital Assistants will be golden into every other device, whether it is your heart or your toaster. There is a lot of devices that you can use more than once. There is a speaker that uses alexa, but in the future could use alexa or google assist. Emily when it comes to the assistance themselves, assistants themselves, is one becoming dominant, tied it to the smartphone you are using, or is that multiple assistance and survive . Assistants can survive . Michael i think multiple can survive. There is nothing that will stop them from being four standards in Digital Assistants. Huge discussion about the power and responsibility of these platforms as you know, facebook, google and twitter will be speaking before congress november 1 to talk about russian meddling on their platforms. Do you think the reputation of these platforms is tarnished by this, or is this about security . Michael what has come out already is the tip of the iceberg. They are trying to minimize the impact are talking about small and campaign. In a lot of ways what is ad campaigns. In a lot of ways what is driving fake news is fake friends. They will have a huge impact on their reputation. Emily what do you mean fake friends . Michael there are hawks were people who are posing b. Or people who are posing. They were posing either as americans that did not realize they were working for russians or they were Bank Accounts managed by people. Emily do you think it is a significant proportion of the accounts or a problem . Problem it is a massive because in twitter, if you look at peoples accounts, there is lots of box. When you look bots. When you look at facebook, how many of them are people . You will find people you dont know. This is part of the whole problem, not just in terms of social but in terms of advertising, fraud, and other things plaguing these industries. It will hurt their reputations in the longer term. Nearterm they will clean it up. Emily all right, thank you. Think you for sharing your predictions with us. Ebay is out with earnings. Its shares rolling in late u. S. Trading as the company got adjusted earnings in the holiday fourth quarter. . 57 to . 59 per share, the estimate was . 60. He did meet estimates for the third quarter. Another development for online political ads used in last years election as we were just discussing. How facebook and google were involved in a campaign that antiislam messages. And Bloomberg Technology is Live Streaming on twitter. Check us out weekdays 5 00 in new york, 2 00 in san francisco. This is bloomberg. Emily one thing is for certain when it comes to bitcoin, there will be volatility. At the trading session, the cryptocurrency had its worst day in a month. Commodity Trading Commission published a primer on the asset class where the virtual tokens were used in bitcoin operations can come under oversight. They have got tokens from some ipos insecurities under its oversight. Now to the russian meddling in the 2016 election through advertising on social media. Google and facebook are being scrutinized for helping the antirefugee campaign in swing states during the final weeks of last years election. But this time the and did not did not, russia ads from russia but from an American Campaign in collaboration with facebook and google. Nevada and North Carolina saw islamic plenty of comic ads in their feeds. This is a fast antiislamic ads in their feeds. This is a fascinating story. Who are these groups . It is called secure america now. They are a nonconservative political group. They chime in on conservative causes. We dont know their donors. It is a nonprofit, but their messages were a mix of antiislam and antihillary ads. What is surprising is google and facebook, they have selfservice ad platforms. Candidates and companies can come in, but what was not known is the degree to which they roll up their sleeves and actually help orchestrate these campaigns and better target ad dollars and get them set more efficiently. That is what they did with this group, putting out antiislamic ads. Emily so how do they help this campaign . Benjamin so it ranges from troubleshooting how to better use the system and how to use targeting mechanisms. On facebook they were trying to target some of these antiislamic refugee at the swing state voters. They wanted to go after he islamic hispanic voters around the las vegas area. They needed help how to best utilize the system. Facebook and google do this all the time for major advertisers. If you are procter gamble, you will spend tens of billions on ads, they will help you. They were doing the same thing here with these political groups. Emily so what are facebook and google saying . Benjamin they are not talking to us on the record. They do not they did not want to engage with us. A google spokesperson told me they eventually blocked some of these and they were running. But that is sort of the extent of it. If ads run against our policy, we will cut them off, but it is not clear how long these ads ran on google before they were discontinued. Emily how is this different from the russian interference legally speaking . Benjamin this is perfectly legal, and a surprise people have had with this is these companies would actively engage with the groups on the fringes of the clinical spectrum. But it raised political spectrum. It raises questions on how the russian meddling potentially impacted the election in social media. Here is one other area where this occurs, were these nonprofits can funnel a ton of money into ads, and people dont know why is this at, why is this showing up in my facebook feed . You dont know who it is coming from. It is a transparency issue. Facebook and google will be pressed to better disclose who is doing these in the future. Emily fascinating piece, thank you so much. Paypal,p, he cofounded now he has his sights on ending predatory lending. This is bloomberg. Emily cnn has received a waiver for allowing routine drill flights above clouds. The milestone for the Agency SeekingRemote Control devices from insurance expections to covering news. The approval was the first time a Government Agency has granted a waiver for flights over people. Previous exemptions allowed flights of drones over people in operations only when tethered with a max height of 21 feet. For this week, top Business Leaders are gathering at the conference in laguna beach. I spoke with max. He found paypal. In my interview with him, i asked about the trend he is seeing in the lending arena now. Take a listen. We are just about ready to enter this new market where Companies Good at managing ,isk, smart at reserving setting up for longterm success will pick up stragglers who dont have capital or management teams, are not ready to take on Risk Management demands and regulatory demands. Emily what do you see happening with predatory lending for example . Max i think the promise of fintech, what we have all come here to do is get rid of predatory lending. It is to shine a spotlight on what is the wrong way of doing this, bringing more acts of into the darker reaches of the pawn shops. I think the opportunity is still there. We are all working on it very hard. The dense has been made, but it is small. , but it is been made small. A lot of people have no access to credit. Emily talk about the Newest Development and how you are trying to combat these trends. So we have been scaling steadily over the last five or six years we have been around. We are very focused on this idea of honest finance, delivering a lowend product to a consumer, tailored to the purchase they are trying to make with transparent pricing, something we can commit to that will not change. No hidden fees or Interest Rate changes, things that hurt consumers and give the industry a bad name, deservedly anyway. We have been working on that for a long time, and we have picked up a lot. We have been hovering well north of 80, which traditional banks have a negative score. It is in a compliment i am proud of. One of the things we have been able to show at this point with real data is we opened our Credit Access. Proved 30 more, so we are actively bringing Credit Access to audiences that are traditionally excluded. Best way of doing it, create responsible vehicles and lend money to those who cannot afford to get it but provide guide rails that they do not go into a cycle event. Emily the equifax hack has been in the spotlight on the hundreds of millions having their private information stolen. You were asked should equifax even exist given Credit Bureaus should exist, but how do we avoid risks like this . Max i think it is the new reality many traditional players have not come to terms with. Security is no longer optional. It used to be the joke in the Security Industry that cryptography is only after wanted after the day your house burns down. So with this latest incident, people must stay loud enough on the alarm that it teaches the industry, do yourself and your customers a favor. Encryption data, have security practices. There is a lot of time showing how easy it is to fix the problem. We should not have to have that. Emily i am curious your thoughts on bitcoin. Jamie dimon says that coin is a fraud. What do you think of cryptocurrency . Max i think it is a developing story in a sense that from a skeptical perspective, it is a hammer looking for nails. Anytime someone is looking for a currency based company, they say, can this be done without bitcoin, and nine times out of 10 it is yes, it is unnecessary to bring cryptocurrency in. But the problem of cryptocurrency and the ledger and inexpensively creating fully distributed verifiable trust is really powerful. I believe we will converge on andept and companies fundamental improvements to our society through the use of blockchain. I am not sure what they are yet. Emily i recently interviewed bill marries, former ceo of google ventures. He suggested the sun is setting on silicon valley. There is influx of foreign capital of billions and billions of dollars from softbank that is changing the landscape dramatically. He said for investors, what changes are you seeing in the investing landscape and valuations . Would you echo this idea that the sun is setting and the way we have been doing business up to this point . Max i think that is right. No one can ignore the asteroid in the room, that once they are involved, the valuations become very different if they are involved. I think that is a backdrop, but probably more to the trend is the fact it feels like we are in the later stages of this dont go public, raise late stage money, the idea of companies being told by their investors in no certain terms it is time to prepare yourself for being treated. Seems to be traded. Seems to be an emerging theme i dont find unwelcome. So in general, i think it is probably for the better in a sense that we are swinging back to more accountability and transparency, something that i am happy about. Emily my exclusive interview with a firm ceo and paypal cofounder max left jen. Max levchin. We go back to the conference and have more on facebook. How it will become the default messaging app. ,nd if you like Bloomberg News check us out on the radio. Listen on the app, on sirius xm. This is bloomberg. Mark i am Mark Crumpton in new york. Bloomberg technology. You are watching says he faces a onceinalifetime opportunity to overhaul the tax system. Pres. Trump the timing is right. I have promised not to mention the names of the people on the other side, but a lot of people are liking this very much, and i think we will have tremendous support trad. Nafta negotiators are working on a side deal for the u. S. , canada, and mexico to make a nonbinding pledge to avoid devaluing their currency. That is according to three people familiar with the matter. President Emmanuel Macron says today that the sanctions on france will be lifted november 1, which were put in place after the terrorist attacks that killed many people. Haseuropean union encountered deadly lowtech extremistslowing driving vehicles into crowds. Terrorists change and adapt their methods. We need to be ready to adapt response. The european commission, which proposes and ensures compliance with the eu laws, says the measures are aimed at better protecting concerts and sporting events. ,lobal news 24 hours a day powered by over 2700 journalists 120analysts in over countries. It is after 5 30 here in new york. My colleague paul allen has a look at the markets. Paul trading has been underway a few zealand for minutes now. We have oil hovering over 52 brawlers 52 a barrel, mark. Here in australia futures are looking pretty flat, down just two points, the market waiting on production numbers from santos and westside, two petroleum developers. Also keeping an eye on the Australian Dollar today. Jobs are expected to remain steady at 5. 6 . I am watching the bank of korea as well, setting to hold at 1. 1. 5 . Emily the wall street journal conference kicks off in laguna beach, california. David marcus, recruited personally by facebook ceo mark zuckerberg, is credited with updating the tech giants messenger product. I caught up with him and started by asking how much revenue the company is dragging into advertising. Break it outnot for specific products, but it is still very early in the development of messenger for facebook. The early signs are promising. So basically if you are a business, and you build inside of messenger, and you redirect people from either a facebook or now intagram ad, messenger at in a conversation, you will increase our business objectives. That is