Transcripts For BLOOMBERG Bloomberg Technology 20180220 : vi

Ex Current Campaign chairman Paul Manafort ex trump Campaign Chairman Paul Manafort. Global news 24 hours a day powered by more than 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, russian bus take on u. S. Gun control. Rushers in during an expanding Twitter Campaign against america. Plus, walmarts margins hit record lows. The fight with amazon takes a toll. How investors are reacting. An essential goldman for advertisers looking to cash in on the new era of connected cars. First to our lead. Russian bots were caught targeting certain hashtags following last weeks School Shooting in florida. Widenjust one way to divide among the u. S. Electorate on how to handle guncontrol, making compromise even more difficult. This is impacting issues like the nfl in the debate and a 2016 u. S. President ial election and ultimately led to Robert Muellers indictment of 13 russians for allegedly meddling in the u. S. Election. Twitter and facebook are facing renewed pressure to do more to expose these bots and take more into account. Are the tech giants doing enough . Ands welcome in selina wang our guest who joins us from d. C. You have done so much work on counterterrorism over the years. What do you make of simply how these russian bots are approaching this new particular tactic . Sure. Week witheen a big the pressure on tech. Not only did you see much of us come out in full force after the horrific and tragic events in florida, but he also saw last week the Robert Mueller indictment citing facebook 13 times and twitter and youtube all mentioned, and that is because the Tech Companies have a number of problems on their hands. Bots whichuld the came out after the shooting trying to create divisive rhetoric and fake news conspiracy theories. This is not new, but the real concern is the same tactics and strategy is going to be taken again in the midterm elections and the same tactics and strategy is taken by terrorist organizations on this platform. So when you are seeing right now is another issue area of a tragic School Shooting that russia is trying to exploit across these platforms, and they clearly still have the ability to do so despite some minor reforms that have been made. Emily walk us through the tactics stepbystep. Selina almost the exact same playbook that has been played over and over again. I spoke to a researcher of a project who has been tracking this, and he says it is almost exactly the same as what happened in vegas. Army tweetingots and tweeting the breaking news. They are trading implications of the most extreme and divisive issues and opinions on guncontrol. By day three, this is when they promote conspiracy theories and want to start to destabilize American Trust in public institutions, saying the government, the media, the police are all lying to you. This is something we have seen over and over again. You mentioned the nfl and then issue and the president ial election so that there is this same playbook will be applied to the midterm elections coming up. Emily how big of a concern is it that this could move not only from social media, but fabricating reallife events . We now know the russians were behind creating a reallife this islam protest in texas. Absolutely. This is out of the letter playbook and they will continue to repeat it because they do not need to employ a lot of resources. What needs to happen is that Tech Companies need to take steps not only to get down content that violates their terms of service, but there are other measures they can take. Obviously, you not going to be much of control of every individual rights online if it does not cross a particular threshold. On at buying, there are specific measures that congress is pushing them to take going into the election. On bots, companies are not in favor of these and trying to crack down on these. Why are there so many bots operating on these platforms . That is a measure that if twitter was to reason out i have seen Different Levels of reporting, 50 of accounts are bats bots. In any case, there are enough that are amplifying the messages of the fake news russia propaganda counterintelligence operations that may influence our midterm elections so if the companies are serious, there are clear measures they can take to crack down on some of this and make a real dent in the problem. Unfortunately, we have not seen it happen as evidenced by what has been going on this week. Emily you cover twitter and know extensively what they are doing and not doing. How are they actually cracking down here when we know a lot of bots have been kicked off the platform, but there is no more than enough. Selina twitter is doing all they can, but there are more constraints. They have had financial issues. They just reported their first real profitable quarter. They are dedicating as many engineers to this issue as they can, but we have not heard them take steps to hire new people to address the problem. Another issue is even though these algorithms twitter has are Getting Better and better, they are changing tactics faster than twitter can keep up. I have spoken with people who work at twitter or worked at twitter who described it as a whackamole proble. We see a new pattern emerge, and that is the pattern they are up against. Have made stuff for transparency and are starting and add Transparency Program for. He 28th elections they they are trying to make sure they keep it as clear of russian meddling as they coan . Emily the you agree, or do you think twitter can do more . Twitter, facebook, google, you hear them repeatedly saying they are doing all they can, but if you look at his companies and the amount of money in the companies, they are technical wizards. They are able to do a lot with your data when they want to do a lot with your data, and i think they can do a lot more with these problems from terrorism to russian meddling to other nefarious foreign actors that are trying to be meddling in various ways as well, particularly when the line is being crossed and laws are potentially being violated, which is what is happening in terms of at buying. If they dont fix that, that will continue to be a violation of the real World Campaign election finance laws. I dont think the Tech Companies are going to have the luxury any longer of being able to operate in this free space where laws are potentially being violated and things that would not slide in reality are able to fly online. I think what is going to happen here is you are going to see not just the public start to get fed up with this, but you are seeing other parts of the private sector, most notably advertisers. You have the unit executive a week or two ago threatening not to buy ads on these platforms because to be frank, ad and please dont want baby product ads or ben jerrys ads running on platforms where there is jihadist content, russian bots undermining our election. It is bad form for advertisers. The happening of hearings on capitol hill and i think you are seeing pressure out of the u. K. Grilling tech executives a week or two ago and being grilled on capitol hill. Emily Robert Mueller has indicted three companies, taking individuals with relation to russian meddling in the u. S. Election. How is that related to the activity we are seeing now . Are these the same parties who are behind it . Selina was russia has been doing is much more wellfinanced, wellorganized, and sophisticated than what congress could have even imagined. I definitely think that has created fear among lawmakers. They can be well organized themselves to combat this issue if they had operatives in multiple countries. They had very sophisticated measures to try to cover their tracks. They were buying servers in the u. S. , buying servers here to cover up what they were doing. There are many tactics they could do. Someone who has testified many times says that twitter should ban all social bots. Knowing whats what is mission is, this is not some thing they would do, but there are more obvious drastic measures they can take. That happened calls that the Companies Need to integrate and talk to each other more and have some sort of shared database about a foreign influence networks and bots and influence how to more easily and effectively target them together. Emily what is next . I mean, the midterm elections are coming up. Are they going to be potentially another disaster . Are. Potentially, they they are coming up quickly, and i dont think we have seen the amount of reform that would be necessary to prevent the same type of meddling we have seen happen on these platforms. Our best Case Scenario is we will see more of the same and now people will be more aware of the problem so they will not perhaps fall. Or pray to the russian bots or russian intelligence operations trying to carry out online, people might look better at the information that is coming to them, but i dont think we will see a dramatic change unless the 1 Tech Companies undergo dramatic measures. What is troublesome your is is not just about the midterm elections. I mean, this is about potentially any significant event or issue area in american and domestic politics when we see this happen after terrorist attacks, after School Shootings. We see terrorists exploiting these albums as well to help radicalize people. Is a problem. The same technical issue is at the heart of it, but it is permeating a number of really important issues right now, and im hoping youll see a groundswell of movement by the companies. I think for the next election what we really want to hope for is that there is no hacking into our election systems, which we have been lucky enough to not have anything dramatic on that front because that would create real have a. It didhis is more not successfully interfere with peoples voting or vote counts or anything like that. So a best Case Scenario unfortunately will be more on the same on the platforms and nothing that directly hits the election system itself and the infrastructure. Emily this is something we are going to continue to discuss. Tara and our very own selina wang, thank you both very much for joining us. At t it is proposed to time warner deal. A judge has ruled the u. S. Justice department does not have to identify whether the recommendations between the white house and attorney general jeff sessions. They suggested President Trumps dislike of time warners cnn sway the Justice Department decision to oppose the takeover last year. A antitrust trial date has been set forn march 19. Coming up , walmart is falling behind in its efforts to keep up with amazon. The latest on the retail giants ecommerce slowdown, next. Check us out on the radio. You can listen on the Bloomberg Radio app, bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. Inly walmart fell the most over two years after delivering a disappointing annual profit forecast. The once hot ecommerce unit begins to decelerate, sparking fears in traders about walmarts chances to battle amazon. Matt boyle covers the Worlds Largest retailer. Arah is in washington tara what caused the slowdown in web sales . The slowdown was called by some holiday snafus. It took us a while to get the truth out of them over the course of this analyst call, but Doug Mcmillon did say eventually that the influx of all the holiday related gifts and toys just through their system out of whack a little bit, and that prevented some orders of basics, april towels and the lot paper towels and the like, getting to customers. They came up on the oneyear anniversary of the acquisition of jet. Com. They had told us that the growth rate was certainly going to slow. They have got into a 40 growth rate for this fiscal year, but i dont think anybody was expecting a number as well as 23 and the shares certainly reacted to that. Emily talk to us about the acquisition and how that factors in. Of thisd hope that more growth would have happened organically, but how much of it was coming from jet. Com . I think that is the big question that todays results have posed to us. Walmart has been telling us all along that the core of their improvement they have seen the last three quarters have been organic sales from their own walmart. Com website and netjets. Com has been a nice additive but has not been a heartbeat of the growth. They wills questions hit his 40 growth target in the fiscal year ahead. How are they going to do that with a stumble this quarter . Emily lets talk about the how, matt. What are the bright spots that walmart has going for it when they are going up against a company that is all ecommerce like amazon . Matthew their biggest price spot is food. They are the nations biggest grocer and they now have curbside on language we pick up where you dont have to go to the store. You place your order online, drive into the parking lot, alert them you are there on your an a from employee try to enter the car and puts it in your car. They had it in over 1100 stores now and are putting in another 1000 stores so about half of the u. S. Store based will have Curbside Grocery pick up by the end of this fiscal year, and that is a huge advantage over amazon, who are still figuring out how to do food online despite the acquisition of whole foods, which got so much attention. Lets remember online food, walmart is the 800 pound gorilla here. Emily so if that is the right spot, what is the dark spot . The dark spot is lots of other categories. Apparel is a business walmart has never really gotten right. They have been trying to get back at it. We had a story friday about them launching some new clothing brands. They bought some things so they are making some inroads, but outside of food, is just a case where people are shopping for price, for convenience. Amazon prime is a huge benefit. Walmart has countered that by saying, if you order 35 or more, you will get free two day shipping. Lets recover this is a marathon, not a sprint. Walmart has had quite a few good quarters in a row. They had a bad one today, but this battle is far from over. Emily we are talking about the last year. What does the next year look like for walmart. Com from your perspective . Sarah i think we should see some interesting innovations of them in the ecommerce space that will hopefully tell us more about their longterm prospects. One is the implementation of smart card technology, where essential you get a discount for bundling your orders as opposed to rapidfire firing off orders for individual items at a time. It helps the retailer with profitability. Walmart will try to roll that out more broadly this year. Interesting to see if consumers respond to that, specifically the classic walmart consumer who is budget conscious. Emily obviously something we are going to continue to follow. Sarah, thanks so much as well as our own matt. Thank you both for weighing in. Offer muchqualcomms to broadcoms chagrin. The latest twists and turns explain, next. This is bloomberg. Emily it was a busy day for dominoes as the pizza maker reportedly fourthquarter earnings reports. The announced the first revenue miss since 2016. About half of domino sales is done online. The percentage of Digital Sales is less important than working with a customer. He spoke with bloomberg earlier. Ultimately the percentage of sales is less important than what you do with those customers once they are there. If you got a great analytics group, which we do, you are finding ways to drive more sales from those customers once they have signed up with them. Our Loyalty Program i think has been terrific for us and our customers. Emily qualcomm has raised the bid by 16 to shore up support from shareholders. The new offer is 43 billion. Qualcomm is fighting off a takeover event. It rejected a 121 billion offer from broadcom. Joining us is our guest who covers all things qualcomm. Walk us through what happened over the weekend. The weekend did not start off well for qualcomm. This morning, the two Investment Advisory services that work for the big investors till then you should look at this this way or vote this way kind of came out a lot more strongly against qualcomm and in favor of broadcom than people have been expecting. Emily house so how so . They did not give broadcom the full flight, but they said the managing is much better. Glass lewis went even further. Emily what does this mean for annenxp . It has been going on for more than a year. Ian 14 months. This has been the regular tory approval thing, but what qualcomm did was go out and say, ok, we are raising our bid for this. This is money to bring in all of the investors like elliott, all of those hedge funds trying to hold the deal up and ask for more money. Appears to have gotten over that hurdle now. Emily how did qualcomms effort to buy it improved qualcomms effort to buy broadcom . Ian that is a good question and complicated. Emily shakespeareanemily what is going on here. Ian broadcom told qualcomm dont do it. Our bid for you is contingent on you paying 110. Now they are paying 127. Obviously that is not look good, but what is going on behind the scenes is qualcomm has a lot of billion, so effectively qualcomms bid is a leveraged buyout. And it makess away that bid much harder. Emily you have been covering the chip industry for many years. How would you rank the level of drama we are seeing right now . Is this more dramatic than you have ever seen in your career as a reporter . Ian never seen anything like this. This is the biggest deal in history of technology, nevermind the chip industry. Level of competition. Seems like one minute one team is winning and the next minute, another team is winning. Emily the you have a sense which way it will go . Ian on saturday morning, i thought, wow, looks like broadcom is winning. That dragged, things back. Emily ian king, thank you so much for giving us a playbyplay as always. Coming up, one of the fastestgrowing cloud and Current Campaign<\/a> chairman Paul Manafort<\/a> ex trump Campaign Chairman<\/a> Paul Manafort<\/a>. Global news 24 hours a day powered by more than 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, russian bus take on u. S. Gun control. Rushers in during an expanding Twitter Campaign<\/a> against america. Plus, walmarts margins hit record lows. The fight with amazon takes a toll. How investors are reacting. An essential goldman for advertisers looking to cash in on the new era of connected cars. First to our lead. Russian bots were caught targeting certain hashtags following last weeks School Shooting<\/a> in florida. Widenjust one way to divide among the u. S. Electorate on how to handle guncontrol, making compromise even more difficult. This is impacting issues like the nfl in the debate and a 2016 u. S. President ial election and ultimately led to Robert Muellers<\/a> indictment of 13 russians for allegedly meddling in the u. S. Election. Twitter and facebook are facing renewed pressure to do more to expose these bots and take more into account. Are the tech giants doing enough . Ands welcome in selina wang our guest who joins us from d. C. You have done so much work on counterterrorism over the years. What do you make of simply how these russian bots are approaching this new particular tactic . Sure. Week witheen a big the pressure on tech. Not only did you see much of us come out in full force after the horrific and tragic events in florida, but he also saw last week the Robert Mueller<\/a> indictment citing facebook 13 times and twitter and youtube all mentioned, and that is because the Tech Companies<\/a> have a number of problems on their hands. Bots whichuld the came out after the shooting trying to create divisive rhetoric and fake news conspiracy theories. This is not new, but the real concern is the same tactics and strategy is going to be taken again in the midterm elections and the same tactics and strategy is taken by terrorist organizations on this platform. So when you are seeing right now is another issue area of a tragic School Shooting<\/a> that russia is trying to exploit across these platforms, and they clearly still have the ability to do so despite some minor reforms that have been made. Emily walk us through the tactics stepbystep. Selina almost the exact same playbook that has been played over and over again. I spoke to a researcher of a project who has been tracking this, and he says it is almost exactly the same as what happened in vegas. Army tweetingots and tweeting the breaking news. They are trading implications of the most extreme and divisive issues and opinions on guncontrol. By day three, this is when they promote conspiracy theories and want to start to destabilize American Trust<\/a> in public institutions, saying the government, the media, the police are all lying to you. This is something we have seen over and over again. You mentioned the nfl and then issue and the president ial election so that there is this same playbook will be applied to the midterm elections coming up. Emily how big of a concern is it that this could move not only from social media, but fabricating reallife events . We now know the russians were behind creating a reallife this islam protest in texas. Absolutely. This is out of the letter playbook and they will continue to repeat it because they do not need to employ a lot of resources. What needs to happen is that Tech Companies<\/a> need to take steps not only to get down content that violates their terms of service, but there are other measures they can take. Obviously, you not going to be much of control of every individual rights online if it does not cross a particular threshold. On at buying, there are specific measures that congress is pushing them to take going into the election. On bots, companies are not in favor of these and trying to crack down on these. Why are there so many bots operating on these platforms . That is a measure that if twitter was to reason out i have seen Different Levels<\/a> of reporting, 50 of accounts are bats bots. In any case, there are enough that are amplifying the messages of the fake news russia propaganda counterintelligence operations that may influence our midterm elections so if the companies are serious, there are clear measures they can take to crack down on some of this and make a real dent in the problem. Unfortunately, we have not seen it happen as evidenced by what has been going on this week. Emily you cover twitter and know extensively what they are doing and not doing. How are they actually cracking down here when we know a lot of bots have been kicked off the platform, but there is no more than enough. Selina twitter is doing all they can, but there are more constraints. They have had financial issues. They just reported their first real profitable quarter. They are dedicating as many engineers to this issue as they can, but we have not heard them take steps to hire new people to address the problem. Another issue is even though these algorithms twitter has are Getting Better<\/a> and better, they are changing tactics faster than twitter can keep up. I have spoken with people who work at twitter or worked at twitter who described it as a whackamole proble. We see a new pattern emerge, and that is the pattern they are up against. Have made stuff for transparency and are starting and add Transparency Program<\/a> for. He 28th elections they they are trying to make sure they keep it as clear of russian meddling as they coan . Emily the you agree, or do you think twitter can do more . Twitter, facebook, google, you hear them repeatedly saying they are doing all they can, but if you look at his companies and the amount of money in the companies, they are technical wizards. They are able to do a lot with your data when they want to do a lot with your data, and i think they can do a lot more with these problems from terrorism to russian meddling to other nefarious foreign actors that are trying to be meddling in various ways as well, particularly when the line is being crossed and laws are potentially being violated, which is what is happening in terms of at buying. If they dont fix that, that will continue to be a violation of the real World Campaign<\/a> election finance laws. I dont think the Tech Companies<\/a> are going to have the luxury any longer of being able to operate in this free space where laws are potentially being violated and things that would not slide in reality are able to fly online. I think what is going to happen here is you are going to see not just the public start to get fed up with this, but you are seeing other parts of the private sector, most notably advertisers. You have the unit executive a week or two ago threatening not to buy ads on these platforms because to be frank, ad and please dont want baby product ads or ben jerrys ads running on platforms where there is jihadist content, russian bots undermining our election. It is bad form for advertisers. The happening of hearings on capitol hill and i think you are seeing pressure out of the u. K. Grilling tech executives a week or two ago and being grilled on capitol hill. Emily Robert Mueller<\/a> has indicted three companies, taking individuals with relation to russian meddling in the u. S. Election. How is that related to the activity we are seeing now . Are these the same parties who are behind it . Selina was russia has been doing is much more wellfinanced, wellorganized, and sophisticated than what congress could have even imagined. I definitely think that has created fear among lawmakers. They can be well organized themselves to combat this issue if they had operatives in multiple countries. They had very sophisticated measures to try to cover their tracks. They were buying servers in the u. S. , buying servers here to cover up what they were doing. There are many tactics they could do. Someone who has testified many times says that twitter should ban all social bots. Knowing whats what is mission is, this is not some thing they would do, but there are more obvious drastic measures they can take. That happened calls that the Companies Need<\/a> to integrate and talk to each other more and have some sort of shared database about a foreign influence networks and bots and influence how to more easily and effectively target them together. Emily what is next . I mean, the midterm elections are coming up. Are they going to be potentially another disaster . Are. Potentially, they they are coming up quickly, and i dont think we have seen the amount of reform that would be necessary to prevent the same type of meddling we have seen happen on these platforms. Our best Case Scenario<\/a> is we will see more of the same and now people will be more aware of the problem so they will not perhaps fall. Or pray to the russian bots or russian intelligence operations trying to carry out online, people might look better at the information that is coming to them, but i dont think we will see a dramatic change unless the 1 Tech Companies<\/a> undergo dramatic measures. What is troublesome your is is not just about the midterm elections. I mean, this is about potentially any significant event or issue area in american and domestic politics when we see this happen after terrorist attacks, after School Shooting<\/a>s. We see terrorists exploiting these albums as well to help radicalize people. Is a problem. The same technical issue is at the heart of it, but it is permeating a number of really important issues right now, and im hoping youll see a groundswell of movement by the companies. I think for the next election what we really want to hope for is that there is no hacking into our election systems, which we have been lucky enough to not have anything dramatic on that front because that would create real have a. It didhis is more not successfully interfere with peoples voting or vote counts or anything like that. So a best Case Scenario<\/a> unfortunately will be more on the same on the platforms and nothing that directly hits the election system itself and the infrastructure. Emily this is something we are going to continue to discuss. Tara and our very own selina wang, thank you both very much for joining us. At t it is proposed to time warner deal. A judge has ruled the u. S. Justice department does not have to identify whether the recommendations between the white house and attorney general jeff sessions. They suggested President Trump<\/a>s dislike of time warners cnn sway the Justice Department<\/a> decision to oppose the takeover last year. A antitrust trial date has been set forn march 19. Coming up , walmart is falling behind in its efforts to keep up with amazon. The latest on the retail giants ecommerce slowdown, next. Check us out on the radio. You can listen on the Bloomberg Radio<\/a> app, bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. Inly walmart fell the most over two years after delivering a disappointing annual profit forecast. The once hot ecommerce unit begins to decelerate, sparking fears in traders about walmarts chances to battle amazon. Matt boyle covers the Worlds Largest<\/a> retailer. Arah is in washington tara what caused the slowdown in web sales . The slowdown was called by some holiday snafus. It took us a while to get the truth out of them over the course of this analyst call, but Doug Mcmillon<\/a> did say eventually that the influx of all the holiday related gifts and toys just through their system out of whack a little bit, and that prevented some orders of basics, april towels and the lot paper towels and the like, getting to customers. They came up on the oneyear anniversary of the acquisition of jet. Com. They had told us that the growth rate was certainly going to slow. They have got into a 40 growth rate for this fiscal year, but i dont think anybody was expecting a number as well as 23 and the shares certainly reacted to that. Emily talk to us about the acquisition and how that factors in. Of thisd hope that more growth would have happened organically, but how much of it was coming from jet. Com . I think that is the big question that todays results have posed to us. Walmart has been telling us all along that the core of their improvement they have seen the last three quarters have been organic sales from their own walmart. Com website and netjets. Com has been a nice additive but has not been a heartbeat of the growth. They wills questions hit his 40 growth target in the fiscal year ahead. How are they going to do that with a stumble this quarter . Emily lets talk about the how, matt. What are the bright spots that walmart has going for it when they are going up against a company that is all ecommerce like amazon . Matthew their biggest price spot is food. They are the nations biggest grocer and they now have curbside on language we pick up where you dont have to go to the store. You place your order online, drive into the parking lot, alert them you are there on your an a from employee try to enter the car and puts it in your car. They had it in over 1100 stores now and are putting in another 1000 stores so about half of the u. S. Store based will have Curbside Grocery<\/a> pick up by the end of this fiscal year, and that is a huge advantage over amazon, who are still figuring out how to do food online despite the acquisition of whole foods, which got so much attention. Lets remember online food, walmart is the 800 pound gorilla here. Emily so if that is the right spot, what is the dark spot . The dark spot is lots of other categories. Apparel is a business walmart has never really gotten right. They have been trying to get back at it. We had a story friday about them launching some new clothing brands. They bought some things so they are making some inroads, but outside of food, is just a case where people are shopping for price, for convenience. Amazon prime is a huge benefit. Walmart has countered that by saying, if you order 35 or more, you will get free two day shipping. Lets recover this is a marathon, not a sprint. Walmart has had quite a few good quarters in a row. They had a bad one today, but this battle is far from over. Emily we are talking about the last year. What does the next year look like for walmart. Com from your perspective . Sarah i think we should see some interesting innovations of them in the ecommerce space that will hopefully tell us more about their longterm prospects. One is the implementation of smart card technology, where essential you get a discount for bundling your orders as opposed to rapidfire firing off orders for individual items at a time. It helps the retailer with profitability. Walmart will try to roll that out more broadly this year. Interesting to see if consumers respond to that, specifically the classic walmart consumer who is budget conscious. Emily obviously something we are going to continue to follow. Sarah, thanks so much as well as our own matt. Thank you both for weighing in. Offer muchqualcomms to broadcoms chagrin. The latest twists and turns explain, next. This is bloomberg. Emily it was a busy day for dominoes as the pizza maker reportedly fourthquarter earnings reports. The announced the first revenue miss since 2016. About half of domino sales is done online. The percentage of Digital Sales<\/a> is less important than working with a customer. He spoke with bloomberg earlier. Ultimately the percentage of sales is less important than what you do with those customers once they are there. If you got a great analytics group, which we do, you are finding ways to drive more sales from those customers once they have signed up with them. Our Loyalty Program<\/a> i think has been terrific for us and our customers. Emily qualcomm has raised the bid by 16 to shore up support from shareholders. The new offer is 43 billion. Qualcomm is fighting off a takeover event. It rejected a 121 billion offer from broadcom. Joining us is our guest who covers all things qualcomm. Walk us through what happened over the weekend. The weekend did not start off well for qualcomm. This morning, the two Investment Advisory<\/a> services that work for the big investors till then you should look at this this way or vote this way kind of came out a lot more strongly against qualcomm and in favor of broadcom than people have been expecting. Emily house so how so . They did not give broadcom the full flight, but they said the managing is much better. Glass lewis went even further. Emily what does this mean for annenxp . It has been going on for more than a year. Ian 14 months. This has been the regular tory approval thing, but what qualcomm did was go out and say, ok, we are raising our bid for this. This is money to bring in all of the investors like elliott, all of those hedge funds trying to hold the deal up and ask for more money. Appears to have gotten over that hurdle now. Emily how did qualcomms effort to buy it improved qualcomms effort to buy broadcom . Ian that is a good question and complicated. Emily shakespeareanemily what is going on here. Ian broadcom told qualcomm dont do it. Our bid for you is contingent on you paying 110. Now they are paying 127. Obviously that is not look good, but what is going on behind the scenes is qualcomm has a lot of billion, so effectively qualcomms bid is a leveraged buyout. And it makess away that bid much harder. Emily you have been covering the chip industry for many years. How would you rank the level of drama we are seeing right now . Is this more dramatic than you have ever seen in your career as a reporter . Ian never seen anything like this. This is the biggest deal in history of technology, nevermind the chip industry. Level of competition. Seems like one minute one team is winning and the next minute, another team is winning. Emily the you have a sense which way it will go . Ian on saturday morning, i thought, wow, looks like broadcom is winning. That dragged, things back. Emily ian king, thank you so much for giving us a playbyplay as always. Coming up, one of the fastestgrowing cloud and Software Data<\/a> firms just a tech veteran to its board. We will speak with john thompson, next. This is bloomberg. Emily coming to you from washington and youre watching bloomberg technology. A check of news. During the valor medal awards at he white house today President Trump<\/a> says hes making moves that could lead to a ban on the bump stocks on legal weapons. Ago, i a few moments signed a memorandum directing he attorney general to propose regulations to ban all devices into urn legal weapons machine guns. Expect that these critical regulations will be finalized, jeff, very soon. Administration wants to give consumers the option of buying less coverage in exchange for reduced premiums. The proposed regulations would expand an alternative to the plans ensive medical required under the Affordable Care<\/a> act. Individuals could buy socalled policies for up to 12 months but the coverage would protections umer and offer fewer benefits. On capitol hill, senators are crambling for fallback options to prevent the deportation of young people who arrived in the u. S. Illegally as children. The clock is ticking towards expiration of the program that allows them to stay. Legislation failed last week in congress and none of the plans put forward since traction. Ained global news, 24 hours a day, owered by more than 2,700 journalists and analysts in more than 120 countries. This is bloomberg. 5 30 p. M. Here in washington. Morning in ednesday hong kong where were joined by loombergs sophie, with a look at the markets. Good morning to you. Morning. It looks like stock market jitters have returned after u. S. Treasury opened up the option flood gates. Continue after the struggle on wall street. In tunnel of catalysts, on the data docket we have japanese pmi to look out for and from australia wage data. Watched for closely growth and steer inflation. , that continues for several. Markets, a ncy officialer dollar will be a driver and were seeing the in crude slowing somewhat. The is comments from the u. S. Deputy, Energy Secretary<\/a> aying on track for phenomenal growth. Rebalancing is gaining traction. In hong kong, up next, more with bloomberg technology. Emily this is bloomberg technology. Firm ed in 2014, software rubric has seen rapid growth. Status last icorn year with billion plus valuations. Now its picking up the the with the help of microsoft chair thompson who ust joined the board and is advising the company. Thompson joins us with the c. E. O. And cofounder. Invested in one of the earliest rounds. Thats impressive in four years. Data backup and recovery, not he most obvious or sexy topic but it is still a huge need for businesses. Product stand out from the rest . Its to connect to the cloud softer fabric that goes from one premises to the cloud unique architecture has prepared rubric around the world into the Largest Enterprises<\/a> who want to keep and manage their data. Emily john, youve seen so many technological shifts. Out to you as special here . My sense is that every 15 ears or so, there is an Inflection Point<\/a> in every segment of our industry, and no had really entered this particular segment for the last 15 or 20 years. View was, it was time. And so when i got introduced to thought why not make an investment in him and in the together. Hes put because its time for a change in this sector. Emily why use this as opposed amazon has to offer . Just because applications run in the cloud doesnt mean that he need for the protection of Data Management<\/a> go away. Oth microsoft and amazon have deeper partnerships through rubric. Emily we hear this word partnership a lot when talking companies. Rprise im just curious, john, from your perspective, who will own what and when does the partnership, you know, not make sense . Make sense to own as much territory as possible . Lets be clear. The customer owns the data. Amazon norrosoft nor google or anyone else, particularly around the enterprise space, should feel data. Hey own the the customer owns the data. Goes on, however, it i think as time goes on, the er, it will be who has strongest share of the enterprise. Clearly microsoft has a pretty strong position. Aws has done very well. Primarily, i would say, with arly Stage Companies<\/a> looking for a cloudbased platform. For those Enterprise Customer<\/a> want to move their data and aps to the cloud they chosen to opt for microsoft as opposed to other alternatives and i think thats a good thing clients soft and those as well. Emily what does it mean for the up and comers like rubric . Things about great rubric is it is what one would refer to as the hybrid model. And recognize that is a certain amount of the data will remain on premises for a certain amount of time and a certain amount will move to the clouds so the customer gets to as to where they want their data to reside. Thats a good thing for rubric client. Emily where do you see the cloud industry going . There is all this talk about certain point, again, its about ownership, right . Public cloud versus private cloud, which cloud will be bigger in the future, or will model endure for the long term . So far, rubric, way we think business, we want to manage customer data, enterprise data, wherever it is, whether its on the premises, or cloud r both, it really doesnt matter to us. What were seeing in the marketplace is Large Enterprises<\/a> cloud and at public saying, how do i gain by going l agility into the public cloud . If you look at rubrics growth, growth of d on the public cloud. We grew from zero employees 40 800 employees, 300 rate. N annualized run we just hired a new cfo. E joined me on the board to 30year bear a long time company. Our vision is whether its premises or cloud or both, we to be the Data Management<\/a> platform. Emily youre making a huge commitment to your customers to data. T i dont know, is it more unsafe than its ever been before attacks, there are so many bad actors out there. John, how would you sort of threat rize the environment and the importance of, you know, protecting your this . Ith a product like there is no question that the andscape has changed quite substantially from when i joined the company back in 1999. Experienced e hackers attacking us, and, quite more y, there are geopolitical attacks that are going on which are hard to separate from someone who is in for profit versus someone who is in it for intelligence, if you will. O i think one of the things that rubric has done, thats uite phenomenal, is they have ntegrated not just integrated not just Data Management<\/a>, but Security Management<\/a> into the platform, so customers get the benefit of both when they go to the rubric platform, which is something i a few years ago for sure. Emily when you look out at the especially given your time at your company, what concerns you the most . What are the most dangerous facing . That were the greatest vulnerability we have in the world is you and me, we make mistakes, when phishing campaigns come our way that look real. Invariably, that becomes the single most significant exposure for every organization, that one of their employees, naively clicks on a link that creates an absolute disaster. I have done that ill admit that. Emily if it comes down to ndividual, even the most educated individuals make mistakes. Thats exactly right. Emily how can you ensure, i mean, if someone is paying for something goes wrong, thats a big deal. How do you ensure that their data is protected . We think about Data Management<\/a> and data protection, in ssume something will get and something will go wrong. The integration platform. If something goes wrong we can running and bring the data back instantaneously. Thats the rubrics business. The recovery process. Emily last question for you, ohn, do you see consolidation ultimately in this part of the industry . I think right now there are or so large n global cloud providers. I dont see any of them each other. G with thats for sure. But thats easier said than to do ut it may be hard given the size and scale of those companies. However, many on, of what i would call the tier two players ever really reaching one. And ill let you define who is in tier two versus who is in tier one. Emily i have some ideas. Chair of son, microsoft now, thank you both us. Joining coin base, the Largest Cryptocurrency Exchange<\/a> is out a long roll awaited Software Update<\/a> paid. First made available by developers in august as bitcoins growing popularity led network. Tion in the most recently the Company Received<\/a> an influx of complaints and high ficiency transaction charges. They said in a tweet on tuesday they will begin a phased rollout week. From kevinwell hear mandia. They helping to secure the primaries coming up. Emily japans south bank is working on what could be a 19 ipo of its tell coastline business. Of thenk may market most offering to japanese individuals. Largestwould be japans in two decades. Russia meddling in the 2017 president high u. S. L elections and as the looks toward midterms, how to erable can companies be future interference . Fire. Question was asked of charlie i c. E. O. Technical vurnlrabilities, steal sia hack and documents . That will always be a tool in their tool kit that they can use something thats obvious. We can trace it back and say the ussian stole these documents and are leaking them. When it comes to the sharing of idea and ideology were an open ountry and weve got to sort out as a nation where the boundaries between how people person in e one todays world be represented by so to a thousand online per personas. Operations like that are here to stay. Government will use them to some extent and weve got to them . Out how do we find kevin, youre at the center of the security storm per se. Actually released a report on chinese cyberspies. Ago. Ive years five years ago. How does this compare, what russia has done to something seen in the past . You know, there is a general continuum, i can tell you, i have observed russia my whole career and on offensive to be there t used playground. The military against military, government against government. Started to change around 2015 their Operational Security<\/a> slipped a little bit. The ng they werent doing counterforensics. Their targeting broadened and seemed s of engagement to spiral into other areas like releasing documents. These are things they didnt do decades in my career but now they are doing it so its obvious to me we havent settled are the appropriate rules of engagement between two nations how much is it because we dont take the time and effort to actually defend ourselves . A lot of those emails that were say they could have taken basic steps to protect their emails . Its hard to defend. Playing goalie against gretzky, or later the puck is getting in. The same thing with russian sooner or later they are going to score a goal. Agree to uld they rules of engagement . There may not be a good reason. The bottom loon is we have to kind of ome proportional response and repercussions whether its do omatically but if all we a play defense it will be long thing and the puck will get in the net. Sending out hundreds of posts, picking up the gun why cant these bots be reigned in . Were a country that staunchly defends free speech anonymity on the internet. Its hard to impose, in a global profile, e privacy right . But here in the united states, allow anonymity on the internet. When you pose as a chinese cyberspy, we have these 13 russians being indicted what action can we expect from russia . People asked me right before election, what do you expect . There are times there is just thats ed diligence and one of those times. This indictment, i didnt find surprising. I would imagine there are many want to influence elections in many other countries and one of the tools disposal is our Information Operations<\/a> are influence operations where you chaos. T magnify im not going to make a response to the Foreign Policy<\/a> but given ed states your technical expertise, we hear about a bloody nose this is to north korea, the equivalent of that in cyber. Do we at some point really have in a limited way to brush them back from the plate to use a different sports analogy . Will be a lot of varying opinions on that, david. If we launch attacks in against russia and they are successful and they at us and wes back are successful, we will lose. Were more dependent on open communications. Our economy has an online basis to it that i think is more any other economy. Cyberdomain is probably not the retaliate. N for us to were in a glasshouse and sometimes youre throwing rocks at a mud hut. Coming back to the first question, is the greater throat what ually have hackers, if russia would actually affect would it be more the that you l threat describe, we dont know what they are saying and who is saying knit are k the threats were here forever. It was here before the internet and it will be here now. The threat during the elections, how to ntinue to learn do more digitalbased elections up. Well be doing shields everybody will be very cognizant during elections to protect the tally. C. E. O. Of spotfire. Coming up, the possible effort ry hurdles the may face. If you have a bloomberg terminal check out tv go and watch us or click on our charts. You can chat with us directly over the ib. You can contact us on twitter. The first 24 hour Global News Network<\/a> streaming live on twitter. This is bloomberg. Youve now had to follow bill gates. Dont try to be like us. If you do this well, well be happy. Job, k, if you do a good maybe youll have another job. If not, you wont. Emily the goitalone approach in japan isnt working. To say in they had tokyo on tuesday, announcing hes looking to forge partnerships. Made clear japans 16 billion taxi market is already could ality but said it become even more efficient, fter japan, hes scheduled to visit india where uber is competing against another local startup. Is racing to ary new connected future. One in which wireless onnections and cars combined with Artificial Intelligence<\/a> is spurring in car advertising oftware powered by dryers personal data but the big question remains, can automakers all the data they are capable of collecting without lienating consumers or risking backlash from washington . For more, well bring in the welch. Chief david david can, they . Sure. The Car Companies<\/a> collect a lot data. The car knows a lot about you. It knows how many people are in car because the airbag sensecers have to know who is seated and where. If your not buckled in, it knows somebody is sitting in that seat knows the weight because the cartels whether or beep at you. It knows where you go onfrequent basis because it sort of tracks the Navigation System<\/a>, frequent destinations and may even suggest your home or work. That information, if driving a certain route a may say, why not stop for ruben sandwich. Its not happening now. The Car Companies<\/a> arent selling data at this moment. They do work with some third know, they areyou not en mass selling their data individually. Aggravated data but its coming. Emily were talking about this being focused on the actual screen. Ion weve talked a lot about distracted driving. Is there a safety issue here . Yeah, there could be. General motors has launched something called marketplace here you can connect to starbucks or Dunkin Donuts<\/a> and order coffee or make restaurant safety ions and some groups have already piped up on this and wondered, okay, are we area of too the much, if youre sitting there staring at your screen or even screen, to your order up your latte or whatever it is you want to pick up. Safety issue . Gm has made the system Pretty Simple<\/a> so you dont really have a lot of time staring at it but the safety groups are already starting to take notice and, you know, they are not in favor of it. Are the big players trying to get in on this . There has been a battle on between the automakers and Companies Like<\/a> apple. And those systems right now, car being one of them there is already a debate over if only certain aps are allowed to go up on the screen and will work with your car. Thats the car companys we of google, if you happen to be using a samsung phone, its of keeping google from mining all of your data in the say, ut if youre using, ways, which is a google owned Navigation System<\/a> on your phone, knows where you are and it does flash up pop up ads. The system et into of your car but it knows where youre driving. Youresnt have to get into car itself to market to you, just know where you are. Period. Emily have regulators weighed in on this yet . Not really. Privacy is et something where right now its of the wild west still. People are giving up a lot of their information for different online and cars are kind of the same way. Right now, car executives are want to sell nt your individual data marketers. They wont do that but if you story, they said they dont want to make that statement forever. Doing st say they arent it right now. Emily david welch for us in detroit. As always, thank you so much for by. Ping you can read this story on , our dedicated webpage featuring our best reports on the future of across bloomberg news. That does it for this edition of bloomberg technology, on wednesdays show well fair from facebook cofounder chris hughes. Inequality and he also has some some great facebook. Ies about check customer out at in san gy, 2 00 p. M. Francisco, thats all for now. This is bloomberg. 7 00 a. M. Here in hong kong. Ere live from bloombergs asian headquarters. Welcome to day break asia. This wednesday, asia specific stocks are expected to all after snapping a six day winning streak. U. S. Equities were dragged down disappointing results from walmart. Thats crazy. In the meantime, bloombergs its just quarters, past 6 00 p. M. On a tuesday. The dollar rose as the treasury securities to rebuild its cash balance. Rates not seen since 2008. And the russia inquiry nets another catch. A londonbased lawyer","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia800109.us.archive.org\/31\/items\/BLOOMBERG_20180220_220000_Bloomberg_Technology\/BLOOMBERG_20180220_220000_Bloomberg_Technology.thumbs\/BLOOMBERG_20180220_220000_Bloomberg_Technology_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240630T12:35:10+00:00"}