Transcripts For BLOOMBERG Bloomberg Technology 20180120 : vi

BLOOMBERG Bloomberg Technology January 20, 2018

Trumps travel ban, which restricts entry into the country by people from six predominantly muslim countries. The high court will hear arguments in april, and the case could produce a definitive ruling by late june. President will meet with british Prime Minister theresa may at next weeks World Economic forum in davos, switzerland. The president said last week that he canceled a planned visit to the u. K. Because he was unhappy with the location of the new u. S. Embassy there, and because the old site an had been sold to cheaply. Global news, 24 hours a day, powered by over 2700 journalists and analysts in more than 120 countries. Im alisa parenti. This is bloomberg, Bloomberg Technology is next. Emily im emily chang, and this is Bloomberg Technology. Coming up, President Trump is closing in on his first year in office. We look back at how the administration has impacted Silicon Valley. Plus, the iphone x was one of the most anticipated devices ever, but one key analysts current projections, citing weak demand in china. And netflix stock has been on a tear this year,s skyhigh expectations for fourthquarter Earnings Results next week. You will discuss what to expect. But first, to the lead. U. S. Lawmakers trying to avoid a Government Shutdown. The Senate Minority leader told reporters he had a long and detailed meeting with the president but that a good number of disagreements still exist between the two sides. For more lets get to see okafor on capitol hill whats the latest . Everything is still up in the air. We are about seven hours away from the Government Shutdown and it would come around the Year Anniversary of before his state of the union. The last Government Shutdown lasted 16 days so there is a where they could continue. He recentlyirmed spoke to paul ryan about a path forward. Francine the senate has not yet announced a vote on the continuing resolution they dont seem to have the votes to get it done. Many things up in the air right now and the clock is ticking. Emily what are the chances this happens in seven hours, or can buy a few more days . It is hard to know, but there are many senators who are nervous about a shutdown and are proposing alternatives suggest a can to make resolution over several days. Somewhat to work through the weekend and soft issues on spending caps and on the pentagon side, which has been a major holdup. The major dividing point is the issue of the dreamers, the undocumented people by here illegally as children. Democrats are demanding that the deadline be used as leverage to force republicans to come to the table to force a solution. Democrats dont believe republicans are going to get serious on that issue unless they are forced to. There are facing a lot of pressure from their base. Emily one more question, if this happens, how does it impact midterm elections . The 2013 shutdown hurt republicans because they were the instigators. This is the first time if a shutdown happens that a single party would oversee a Government Shutdown on their watch, so it would be a historic first and republicans will take the blame. The last time republicans took the blame, the odds of that, i dont know. Emily thank you so much for that update. We are taking a first look at President Trumps first year in office and how it has impacted technology. Joining me now on this retrospective is bloomberg tech executive and David Fitzpatrick. My guest post for the hour. David, i will start with you. We had meetings with President Trump with tax reform what is the big takeaway . David he hasnt intersected with text nearly enough. If you look at a leader like macron or theresa may, so many leaders china, russia, these countries recognized technology is a competitive differentiator that is going to allow their economies to do better than different countries. Trump has barely mentioned it. For me, while there have been some good things, far more neutral or negative things about the Trump Administration approach to tech, i am disappointed that it has a disappeared from the white house rhetoric. Emily some tech executives met with trump multiple times and expressed concern that many of these councils and meetings dont amount to much, if anything. Take a listen to what tim cook told me back in june. I dont find these councils and committees to be terribly productive. It wasnt about not wanting to advise on something where i thought we could help, or we had a point of view that should be heard. I am doing the latter i think it is in the best interest of america to do it, and i am first and foremost an american. Emily have these councils not been able to do much Silicon Valley . No. There has been a variety of councils, and you have seen a number disband after the way the president responded to charlottesville. Theres one aimed at reforming the government some have disbanded, ubers debt ubers then ceo quit. Is no longer happening, and one is focused on reforming government and upgrading the technology, vucevic everyone would agree needs to happen. We havent heard anything more about it. The Technology Industry and trump i would say it is a lot of love and hate. Mostly the hate on where the government stands on Net Neutrality. And love when it comes to tax reform the one big thing that the Trump Administration has accomplished this year. Whether he wanted to or not, it is going to have a big benefit for the Technology Industry, in so far as many reducing the tax rate on all of those billions of dollars that are overseas right now. Emily there was a brief mention of peter thiel and his relationship with President Trump suggesting that the president didnt much prioritize his relationship with peter. You see that relationship has amounted for anything for Silicon Valley . David not really. Its in like peter thiel was trying to bring that one key tech executives but nothing came out of that. While Tech Companies have tremendously benefited from the tax bill, it wasnt directed at helping them at all. It was peripheral. It is funny that you have that clip from tim cook, and apple has done this announcement that theyre bringing money back. They give absolutely no credit in all of their discussion to the administration or the tax bill, as far as i saw. That has two great on the president. Emily we do have a tweet from the president saying that he promises companies will bring money back to the u. S. A huge win for American Workers and the usa. Tax reform is the only significant think this administration has accomplished so far, at all. He is quick to take credit for anything these companies do, any lip service they pay competing jobs home and manufacturing here. To his credit, apple made a commitment to the number of jobs they want to create and the ways they want to invest in r d, and ways they want to bring that money back. I think r d centers is creating jobs in america, and a lot of Top Companies we talked to a lot of that is going to go towards dividends, buybacks, maybe towards compensation. These are not going to result in money trickling down to the average worker. To the middle class it is going to line up the pockets of wealthy investors. Im interested to hear what these Companies Plan to do when they bring the money back. Emily Silicon Valley will be balloting with Net Neutrality and immigration. Based on u. S. Census data, nearly 70 of people in Silicon Valley are from outside of the united states, but they are increasing scrutiny of tech workers what is happening here . This is the administration that ran on a platform that is less than friendly and hostile to immigrants. This is a constituency to has become the backbone of Silicon Valley of the Technology Industry. Senior leadership are oftentimes foreignborn. A lot of engineers want leniency they dont want to see daca go away. This is the industry that has opposed that immigration stance that this administration has taken, and you will continue to see them oppose any crackdowns on immigration. Emily tom, thank you. David fitzpatrick, you are sticking with me. Coming up, we will catch up with the new ceo of cocacola and how they are technology to usher in a new era. Chec out on twitter on weekdays. Check out on twitter on weekdays. This is bloomberg. Emily we saw square jump on fridays trading session. It is at a street high of 64, reiterating its by on the stock and expecting more growth in payment volumes, and compared the company to amazon and its early days. Although cocacola was founded well over 100 years ago, technology plays a crucial role in the business giant. They are using technology to hold its place on top of the beverage market. We talked about the evolution of technology at the company. I actually think that places like shanghai and some parts of western europe are all cutting edge, along with some bits of the u. S. The u. S. In many respects it is advanced in places like shanghai and western europe as well. The penetration of ecommerce is even higher in some of those places that even the u. S. When you want to learn what is going on, i would be just as tempted to tell you to go to shanghai than to stay in new york. How do you market . You dont have that when you are on your app. No, but you have to get it. If you go to china for example, a lot of the apps in the mobile Payment Systems came in, we werent on the menu. Even worse, were trying to return a glass bottle to the restaurant, and there wasnt a delivery system. That advance very quickly to be present on the apps, so what is the virtual representation of what you normally see in the store and how do we change the packaging portfolio so we could be part of the delivery system. Yet places in shanghai where all food orders is 50 of restaurant sales. That his relationship with the consumer. Talk about cocacola, how does Technology Change how youre doing business . It is changing and a lot of profound ways. In simple terms, you go back 20 years, we are one of the few to invest in expensive i. T. Systems and do our own stuff, our own programs. We have to move to the cloud, we have to move to standard programs that the whole industry uses, and refuse mobile. The one thing i tell the i. T. Department is to put it on the phone, lets move everything to the mobile phone. Everyone knows how to use apps on phones, so it is profoundly changing the way we work, and it is going to continue to flow through the organization. We have a program of digitizing the company. Does that translate to a fewer employees . People are having to adapt to doing things in a different way. We have actually make a lot of changes in our i. T. Departments to move to different skill sets, so it is changing the nature of employment and the source of profiles you want. Whether we buy the services ourselves towards do it ourselves, it makes a difference as to where the employees are. But more employment is being generated in the economy. When you are trying to recruit young computer scientists . The state of georgia has been ranked top one or two places to do business in the u. S. For many years in a row. The local political system has been a great job. It is a competitive economy there, and we do great in atlanta. They have done a lot to invest in Tech Startups and the media industry, and it has been successful. Emily that was the ceo of cocacola speaking with david westin. Coming up, amazon is making a price change for prime members. This is bloomberg. Emily facebook will not bid for the National Football leagues package next season. This according to a person familiar with the matter. Hammond said if they will make future bids on and of all content they havent said still make future bids. Sticking with amazon, they will remain in the spotlight over prime prices, saying they will raise the prices by 18 starting on friday. New members will pay 12. 99. 99 sounds like a bargain compared to 13 a month. What do you think is the motivation for this change . David i have opinions whether this is the right thing to do or not, but i think the motivation is that they were making money the way they were doing it before. What has been happening is that people who pay monthtomonth were signing up when they had a bunch of things to order, and a turning it off again later. Or else, just not ordering enough stuff to justify what is generally expected by all analyst to be the loss leading shipping subsidy that prime represents. If you are not ordering enough stuff for order to much stuff and not paying on an ongoing basis, i could see white crime would be a good transaction for customers of amazon. Emily so what is europe union on whether or not it is a good call . David it reminds me of payday loans. Not have to spend 156 a year for the same thing that seems fundamentally wrong. It certainly is within amazons prerogative to make a change like this, but in effect are saying that people have less money should pay more, and i do like the feeling of that at all. Emily they have also started stiff competition for amazon hq2. I cant help but laugh because this is the most amazing pr in history. In my humble opinion. They have 20 cities doing everything they can to make their cities as attractive for a company like amazon. David i have a feeling that amazon didnt even think when they initially announced that they were going to build a Second Headquarters that it would turn into such an incredible boon for them, that every city in the country would be competing to be there subsidizer. There are getting a bonanza of free publicity in every one of these cities. It is a new story as well as a national story. Biking they get a new story and 20 cities, the guaranty and the 20 largest cities in the country, gary going to get all kinds of think. Whoever is managing it should get a big metal all reward from jeff bezos. Emily the company is leading in any which way, and it really is up to jeff bezos himself it reminds me of the race to host the olympics, which often has not turned out so well with the cities where the olympics and up. It is a huge expense, and i wonder how good it will be for the city that wins hq2. David cities that significantly subsidized sports stadiums almost never get a financial return and Economic Growth to justify the investment they have made. The winner of this derby will be the city that throws the must most money at amazon. The likelihood that city is going to benefit economically at a macro level is very questionable. On the other hand, the publicity benefits will be huge, because the publicity of this has gone out of control as we have discussed. If i were chicago, or new york, i would throw tons of money on this. Emily it makes a great story for us journalists. Coming up, the apple iphone x brought into question. Production of the 1000 device could and sooner than you think. Check us out on the radio and the Bloomberg Radio app, or on sirius xm. This is bloomberg. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. Im alisa parenti, and you are watching Bloomberg Technology. Heres a check of your first word news. Federal reserve vice chair rental car wants to ease regulation on u. S. Banks. In a speech in washington, he signaled he is embracing a mission to review and revise any of the rules in response to the 2008 financial crisis. Confusion that results from overly complex regulation does not advance the goals. Im advocating a simplification of large bank requirements. Im not advocating an intervention of the regulatory capital regime. In what may be the most urgent item on his agenda, he says the fed is finishing its nearterm efforts to rewrite big Bank Leverage limits. People familiar with the matter say the central bank is working to reduce capital demand on some wall street firms. A Supreme Court spokeswoman says they will try Robert Menendez on bribery charges. The first trial failed to produce any of the 18 counts against him or his codefendant, accusedy florida i dr. , of biting his influence with Luxury Campaign contributions. A Supreme Court spokeswoman says Justice Sotomayor your is doing fine after being treated at her Washington Home today for low blood sugar. The spokeswoman added that the 63yearold, who has type 1 diabetes, was able to go to work. Defense secretary james mattis says terrorism is no longer the primary threat to u. S. National security. Speaking today in washington, he said the military must be strengthened as competition from will powers grows. He described the power as eroding. We face growing threats from revisionist powers as different as china and russia are from each other. Create ahat do seek to world consistent with their authoritarian models pursuing veto authorities over other nations economic, diplomatic, insecurity decisions. A

© 2025 Vimarsana