Early facebook investor roger joints me for a conversation from tech regulation to politics. We begin with the coronavirus and the outbreak spreading beyond china. In the United States, the first known case of unknown origin was reported in california. Two hours north of san francisco. The state is monitoring thousands more for signs of exposure. President trump tapped mike pence the task of overseeing the u. S. Response. Trump spoke from the white house wednesday. Pres. Trump because of all we have done, the risk to the American People remains low. We are ready to adapt and do whatever we have to. This one is different, much different. This is a flu. This is like a flu. I think the stock market will recover. This economy is very strong. Emily but the markets were not all fine, with markets pinned to the virus threats. The s p 500 and dow jones suffered big losses this week. At some point, as much as 10 . As for the tech sector and supply chains, microsoft and apple sounded the alarm. I caught up with dan ives thursday. It is a major tragedy, but our view is that we have to look especially over the past he and past 10 years being bullish, we have to look at if this impacts demand or changes dynamics for our winners. Fundamentally, when i look at names like apple and amazon, even though this is going to be a very uncertain period, in my opinion, these continue to be stocks we want to be owning. Even though you have to factor in risk in the near term. Emily facebook just canceled a conference that is three months away. You have got microsoft, apple, hp cutting their forecast. What do you think the impact is going to be in the near term . If, in the long term it is positive . Dan microsoft is a good example. Two thirds, the cloud continues to be something microsoft has kept on the table and 80 of the 70 80 of the valuation is because of that. Microsoft is going to be a victim of the supply chain, but no different than apple or any other pc player, but when i look out in 18 months, is this a name that i believe continues to believe the best cloud play over what i believe is a growth trend . Divert why i continue to view this as a scary headline. Look at the winners and you look at that list and you selectively continue to buy them during this massive volatility. You are not alone in that view. A number of analysts have rated a number of analysts still rate microsoft as a buy, but the question is how selective do you need to be . I have been telling clients on the phone all day. Our view is, you do scenarios now for apple, amazon, you pick your spots. You areselective, but continuing to own these names and buy at these levels if you believe in the fundamentals that we do. Timeour opinion, it is not to go into the bunkers, it is a time to look at your whiteboard, look at the names you want to own over the last four or five months. Stocks, youat these have in five days, six or seven months of gains wiped out. There are obviously going to be a bears, and more of the armageddon. They are not going to be buying high growth. In my opinion, this is more of a pause in the long term bull market for tech rather than the start of a darker period. Paul in the short term, i am wondering if the risks around the supply chain are fully understood. When apple was the first one to fess up and then microsoft, that is something where the streets try to get their arms around. Fundamentally, it is such an unprecedented situation where the supply chain do we start seeing normalization in march, april, may . That is how you have to put the goal posts. To some normalization starting in march, 5g super cycle remains. You have the 5g phones for apple, in december. But if you start to get into april, may, and later, thats where the supply chain impacts are going to be more pervasive and you are seeing that reflected in stocks. As we continue to go through this volatile situation. Emily dan ives of wedbush securities. Coming up, disney just got a new ceo and it is a company veteran. We hear from the new and former guards of the magic kingdom. And if you like bloomberg news, listen to us on the bloomberg app, bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. Emily disney named bob chapek its new ceo this week, replacing landing him one of the most coveted jobs in the industry. Replacing bob iger, who will remain chair. It comes weeks after an upbeat earnings report. Creating an air of mystery that has been talking hollywood. I spoke to the two executives bob iger and bob chapek shortly after the news came out. Its a great time to begin this transition. I was going to be leaving the company at the end of 2021. The board has been engaged in a process for quite some time. Considering who best to succeed me,. Time. In bob chapek, we have somebody who knows the company very well, but he is also somebody we know very well could not think better candidate. In terms of why now, we have recently completed the acquisition of fox and have engaged in assimilating those businesses. We deployed a brandnew strategy, our direct to consumer strategy with disney plus, hulu, and hot star. Given the fact that our asset base and our new strategy is in place, my next priority was really making sure that our creative pipeline was as vibrant and rich as possible at the company, particularly given the new strategy. In order for me to concentrate those creative pursuits and endeavors, i needed to turn over the reins to bob, to someone else, so that they could essentially free me up to do what i think should be the priority at this point. It made perfect sense and creates a really smooth transition, given the fact that i will be around to advise bob when he needs it, and bring bob into some of the business he has not been familiar with. That gives me the opportunity to spend the time really working on our creative side. Emily bob chapek, day one for you is today. This is effective immediately. Bob talked about the streaming strategy, you had two hit sequels to toy story and frozen. You have opened the star wars portion of that theme park, where do you intend to double down . Mr. Chapek i intend to double, i intend to double down on the same strategies bob has established 15 years ago that continue to serve us so well. At the core of everything, the center of our brand is creative storytelling. If the creative storytelling is right, then Everything Else is right, no matter where you put it. Whether you put it in theatrical channel, disney or the theme parks. The thing i have taken away from bob igers legacy is getting the content right. Everything else will follow suit. Emily bob, you said you will be focused on creative endeavors. Can you give us an idea of what intrigues you the most . Mr. Iger creativity abounds at the company, whether it is a Television Channel or our various movie studios, or all of the places that we create globally. There is a lot of creation outside the United States. I dont have any specific priority, but fueling the pipeline of our new direct to consumer businesses is very important to us. You know, given how large a role they will play in the future of the company. There is a lot to do. A lot of creative activity. It makes it exciting and separates his company from so separates this company from so many others in the business. Emily it is a Global Business, bob chapek, youll have to get used to being in the hot seat in answering a host of questions. The coronaviruss front and center. You have theme parks in china. Can you give us an update on the status of the parks there and what life is like for employees . Mr. Chapek we are not prepared to give an update on the impact of the coronavirus on our business. What i will say is that when you have a brand as strong as us with tremendous franchises and builtin consumer demand, we know that when we are able to reopen, we will come back better and stronger than ever. Emily bob iger, are there any jobs out there that are of interest of best interest to you . Your potential political ambitions have been speculated about very much. What else might we see you do if not at disney . Mr. Iger i have not made any decisions about what comes after disney. I will have to use my imagination. Right now, i am concentrating on priorities we have talked about. I will not take my eye off the ball until i retire at the end of 2021. Emily you are leaving at a time when the coronavirus has markets in upheaval, a very competitive election in the United States, bob iger, what is your outlook on the macroeconomic picture in 2020 . Mr. Iger again, as bob said, i am not going to comment specifically about the impacts of the coronavirus. Obviously it is very unfortunate and we feel for all of the people affected by it. Overall, we thought that the world was quite a hospitable place for our company. As bob mentioned, our stories and storytelling are enjoyed the world over. Our businesses are doing well. The longterm prospects for our brands and franchises and businesses are looking quite good. We are obviously experiencing some very, very challenging times now, whether you are looking at the stock markets or just the Global Business environment due to this virus, but we view this as a serious situation. We also know it is not permanent. This company has always shown an ability to rebound from some of the Biggest Challenges that it has faced, and this is one of them. Emily bob iger and bob chapek of disney. Coming up, the rise of and how it plus, later, can Artificial Intelligence help detect Health Threats before human doctors . That is next. This is bloomberg. Emily in politics, all eyes are on the South Carolina primary and super tuesday. The Democratic Candidates sparred in the latest debate and we saw joe biden try to hold on to his lead. So far, biden has been backed by strong support among africanamerican voters. To get perspective, paul allen and i spoke to a Political Science professor, jeannie. I think this endorsement, traditionally, is critically important. In 2008, it was instrumental in support for barack obama over hillary clinton. I know it is important for joe biden who has not been doing so well in early states. For that reason, it is critically important. Clyburn is really well respected not only on the party, but in the africanamerican circle. Looking at a state where 60 of voters are africanamerican. That said, its 2020 and we are entering this brandnew era. All of us our holding our breath to see if these types of traditional endorsements matter anymore. Looking at nevada, we saw the culinary unions. Critical of Bernie Sanders, yet many members broke ranks and voted for him anyway. Type ofot sure if these traditional endorsements matter anymore but it sure mattered a , a decade ago when he voted for barack obama. Biden hopes it will do the same for him. Emily sanders is still the front runner nationwide. Michael bloomberg, the founder of this network had a disastrous first debate. Some would say he improved in the second, but not enough. What are the chances of regaining some of the momentum he had . It is tough to come back from a difficult debate performance. He had a tough verse first debate, he did better in the second. Hes not on the ballot in South Carolina. We dont know because he is running a campaign we have never seen before. Not just the amount of money he is spending, but the fact that he is not competing in these first four states. As we get to super tuesday, this opens up big. A third of delegates are up. Next tuesday. I think that he certainly, because of the money he has and name recognition, he has a shot, but it is an uphill battle. Bernie sanders has a commanding lead over all others. He is at 45 delegates to buttigieg in second place at 25. It depends on what happens with biden in South Carolina. There are 54 delegates in south at stake, that could put biden over sanders if he gets all of them, which is unlikely. They are going to be battling it out. We will see what happens with all of these other candidates who are in this moderate lane, so to speak. Pressurely there is around them. At this point, it is a do or die moment. You either have got to perform or get out of the race and let the frontrunners battle it out. Potentially Bernie Sanders or joe biden. In terms of do or die, joe biden has long been building up to the South Carolina votes. How resounding does this need to be . Joe biden needs a strong firstplace finish. I believe for joe biden, South Carolina is it. If he doesnt come in first, i think he will sustain through to super tuesday. This is somebody who did not perform well in iowa or new hampshire. He did a bit better in nevada, but still a far distant second to Bernie Sanders. If he cannot win in a state where he is a leading, with a strong endorsement, lots of support on the ground, people are going to say, can he beat donald trump . Free democrats, that is the key question. I think this is critical for joe biden. I would also add tom steyer, who has spent so much money and time in South Carolina organizing. If tom steyer does not do well he is going to have to step away. Emily the u. S. President ial candidates continue to spend make online. Spend big online. Michael bloomberg, the founder of our Parent Company, far outspending rivals, followed by trump and tom steyer. But these numbers do not tell the full story as advertisement as the rise of a sponsored content has given loopholes in political advertising. , theke with mike schmidt founder of dovetail. Mike it is not new to me. I have seen tons of activity on sponsor content on all of the brands we work with. It is what i expected coming into the election cycle. We have been preparing for it and we have been thinking about intensely as a team at dovetail. We are a small company, so we have to be nimble and pick think about these things more intrinsically and we have to be careful about how we position ourselves in this space because we are a neutral third party. It is becoming a big Opportunity Zone for us and a big area of interest for us, we also ask ourselves what are our responsibilities as a neutral Third Party Data company and Workflow Company that treats this ecosystem equally. Emily where do you draw the line . Where should the candidates draw the line. If they are finding loopholes that are loopholes and abide by Company Policies . Mike the answer to sponsored content two reasons. One is the rising cost and Customer Acquisition on platforms like facebook and instagram and the diversity of advertising content. People want more places to advertise. At the end of the day, our strategy is to inform and educate. People are just going to do whatever makes sense for their campaign. It is hard to stop these things as a company like ours, but at the platforms like facebook, they have more responsibilities to crack down on content that is either fake, or misinformation or fake news. Specifically, there are Government Agencies that need to crack down on these issues as well. Paul regulation is a thing that comes up when discussing these matters. Do you believe there should be more, and which parts of sponsored content should it focus on . The platforms or the advertisers . Mike i think advertisers need to be held to a higher standard. If they are sending fake news or lying to customers on purpose, there needs to be more ramification for those types of customers, specifically on facebook and instagram. Whatsapp is becoming a new platform for advertisers as well. As we see more and more of these things come to fruition, we think about the responsibilities for instagram and facebook to collaborate with governments around the world. You see activity in singapore, your seeing activity in not only the u. S. With the elections. Furthermore i think zuckerberg , making his opinion in the wall street journal, it is looking to me like he is becoming more in tune with some of these regulations. I think that, over time, this is the tip of the iceberg and we will have more and more regulations as we think about the future of this particular advertising. In general, we are seeing improvements across the platform. Some people say it is not enough, some people think it is on pace to change the industry. We can always do more. I am a innovator, i have to think that way. When i am thinking about improvements to the platforms themselves, how can we change the narratives for election cycles . How can we manipulate these platforms . I want to make sure we are helping be ecosystem. At the end of the day, we are trying to educate and think about how we can be thought leaders and how can we get to the right solution because this is a tricky subject. Is there a role here for Machine Learning or ai in combating the fake news . Mike of course. Machine learning is a core piece of our pitch here at dovetale. I think about Machine Learning and Artificial Intelligence all the time. Everyone is scared about the situations we are in with Machine Learning in Artificial Intelligence. I think it is about perspective. Do you think Machine Learning and Artificial Intelligence is going to make me work harder or , do you think we will have an easy way to collaborate in the future . Deepfakes alone, sometimes i cannot tell the difference. As we look at data systems, privacy, more and more of these data systems, how can we be more educated as a society, and how can we understand the systems more . In general, people dont know how Machine Learning works or how data scraping works or how obtaining data works. Of course, data is a huge part of our business at dovetale. Workflow, data, auditing, making sure fake news and bots all work into the fold, but in general, what we find in our surveys is most people dont know how this data is obtained, nor do they know that facebook is the same company as instagram. There is a lot of education happening in the markets, specifically around Machine Learning. They should be introduced at younger ages. More people should know how the systems work, and specifically how social networks make money. Emily mike schmidt there. Coming up, how Artificial Intelligence could help prevent the next outbreak. A Health Expert who has created an Early Warning system. And if you like bloomberg news, listen to us on the bloomberg app, bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. Hi were glad you came in, whats on your mind . Can you help keep these guys protected online . Easy, connect to the xfi gateway. What about internet speeds that keep up with my gaming . Lets hook you up with the Fastest Internet from xfinity. What about wireless data options for the family . Of course, you can customize and save. Can you save me from this conversation . That we cant do, but come in and see what we can do. Were here to make life simple. Easy. Awesome. Ask. Shop. Discover. At your local xfinity store today. Emily welcome back to the best of bloomberg technology. Im emily chang. The World Health Organization says there are now more cases of coronavirus outside of china then inside. A mapping tool in boston was the first outside of china to like the disease. At the time the system only ranked it seriousness as three out of five. Not hoping to sound the alarm before new threats emerged, on wednesday i spoke to dr. John brown, chief innovation officer who helped build health map. What is challenging about Public Health issues is getting enough detail in realtime. There is only so much Public Health agencies can do and for Health Systems to be able to track these cases. If you think about the digital exhaust, our interactions with social media and our search queries online, all of that information is valuable but it is messy. If we start tapping into that digital exhaust and get insights, you can pinpoint early events before they bubble up. With coronavirus the earliest signs came out of social media. That were talking about this mysterious outbreak. It was only a dozen people that ultimately became this major event we are seeing today. What we are seeing are the small signals. Emily what is it telling you about the coronavirus now . We have been using our tool not just to identify the outbreak but to track it as it spread. If we can start to map out cases as they are identified across the globe, we can quickly feed information to modelers, make projections and understand case fatalities. We are seeing a huge amount of cases that are emerging that may not have interacted with Health Systems. We know there are a lot of cases that are asymptomatic. We are trying to understand the spread in realtime to prepare governments and populations for the inevitable arrival of the virus. Paul in terms of usefulness, emily pointed out that the virus was only rated a three out of five of seriousness. By the time itd become clear how serious it was, it had spread. There is still some limitations to this as a tool. Absolutely. Ai is just a series of tools that Public Health has. At the end of the day it is really about the frontline workers. Experts that need to process the information. We were communicating early on with the who about these events. Theyre the ones that ultimately make decisions about what kind of response to take on. You have to understand, there are many clusters of respiratory outbreaks that happen on a daily basis that are unidentified. The challenge of looking at this event and deciding if they could turn into a global pandemic, it is a real challenge but it shows that these tools are identifying signals, they are getting communicated. Ultimately we have seen an incredible response both in china and the world stage. Paul to your point, before we started today, i was playing around with health map and i discovered the neighboring province in china got an avian flu outbreak. How do we weigh the seriousness of that . It is really challenging. Even within the u. S. , we are dealing with influenza. We know flu leads to incredible mortality. There is still a push to get people to vaccinate. There is a major ability for us to handle a new virus plus the seasonal viruses that have similar if not sometimes even greater impact. The point of these tools is to provide visibility, transparency, hopefully encourage people to take the right precautions regardless. All of these things are baseline Public Health you should be practicing regardless of what kind of virus is around the corner. Emily John Brownstein of boston childrens hospital. Artificial intelligence and self driving cars saw a big investment of this week. Toyota put more than 4 million into autonomous driving startup pony. Ai. The company has already launched a robo taxi service. We spoke to the ceo. In general, the field remains to be quite competitive. In terms of the current race, waymo, by launching its charging services in phoenix, arizona in terms of commercialization efforts, is probably perceived as the frontrunner. But the race is still remain to be very open. There is debate amongst all the companies that are chasing full autonomy. You tested in both china and the United States. Where are you getting the best quality of testing miles . Is it in china with complex traffic . Is it in fremont . Each place has its uniqueness in terms of traffic patterns. In terms of the density of our cases, definitely guangzhou, china, will probably get more happening during the daily routine of our testing. In general, everywhere the traffic patterns are different. Everybodys driving behavior is different. That is why we use the most extensive traffic patterns to train our models. To make it work universal and safer. Emily pony. Ai cofounder james peng there. Artificial intelligence is also helping to boost the imagination of consumers. Imagine trying on a pair of shoes or a necklace before buying it online. That is the focus of a startup which makes 3d shopping experiences. I caught up with ceo ashley crowder. We have seen that 3d assets give customers a better understanding of the product. Being able to see the product in 3d and even do a virtual try on with augmented reality has proven to not only double Conversion Rates but significantly reduce returns. Saving companies time and money. The issue is, to date it has been expensive and timeconsuming to create these 3d assets. We built a robust pipeline to significantly reduce the time by about 80 . Helping Companies Save time and money and creating these assets. Emily making it look better online is one thing. Being able to virtually try on a shoe is a ways off isnt it . Its not. It is here today with the advent of all of the new phones coming out this past year, most people watching watched the apple news release last year that talked about the multiple cameras on the phone. That is all to do better tracking, to do Virtual Reality try on. If you look at warby parker, you can virtually try on a few glasses. The issue has been helping companies scale. Its one thing to do it for one or five products, its another to do it for 25,000. When you look at Companies Like adidas and nike, they launched 25,000 products a year. Our Software Helps people do this at scale. Emily adidas, nike, microsoft, lexus, mercedes. These are your customers. Give us some specific examples of how technology is helping them. A great example is shah jewelers. They have over 4000 jewelry products. There is no way they could hire 3d artists to recreate all 4000. They use our software to digitize their entire line. Another example, we started a been a providing turnkey hologram solutions. Companies like dji would send us an 800 megabyte file of their product. It is too big to put on your website, it is too big to put on your phone, and that would traditionally take weeks of time to strip down. Our software can do that in a few minutes. Emily the goal here is to straddle the online and physical world. Lets talk about the hologram, again, something that has four many years seemed futuristic. As you say, it may be closer than ever, if not here in some places. Talk to us about how your Technology Works in this instance. When we started the company, phones were not capable of ar yet. We provided turnkey hologram services. We provided all the content. Brands would want to leverage their celebrity endorsement deals and show off products. When we got to these products, every client from lexus to adidas, nobody had the proper 3d assets. Thats when we saw this area to innovate and help automate with software. Thats what we are really excited about, now that we have all of these platforms. We are helping people create and distribute those assets at scale. Emily ventana cofounder ashley crowder. Coming up, we continue our look at how the coronavirus is affecting global markets. Our conversation with Elevation Partners cofounder is next. Later, grubhub goes above and beyond its rivals. We are going to have the story. This is bloomberg. S is bloomberg. Emily now to our continuing coverage of the coronavirus. U. S. Equities struggled to regain footing this week on threats of the virus to Global Supply chains. Tech undoubtedly caught in the crosshairs. I asked the cofounder of Elevation Partners about this. Hes the auther of zucked waking up the facebook catastrophe. He joined me tuesday. This was a disease they thought they had contained in china, so people were breathing a sigh of relief. The markets reflected that, and then it has broken out. We know this is more infectious than most flu type viruses. We know that there are past precedents like mers and sars. The problem is the last ones occurring happened when chinas economy was a lot smaller, and when our lines of supply to china were less influential than they are now. I think the markets reaction is the correct one which is, this is a setback. If you are a Tech Company Like Apple and your supply chain starts there and a big piece of your demand comes from there, you have to approach this with caution. We do not know what is going to happen. And we are at the end of 12 years of market runs, so we cant be terribly shocked if the market itself is a little bit fragile to a setback like this. I dont know it is going to produce that, but i think smart investors are looking at this as the kind of black swan we have not seen for a while. Emily in the meantime, you have a rocky Political Climate in the United States. The race for the democratic nomination. Bernie sanders confirming that he had been briefed by u. S. Intelligence that the russians are trying to interfere with his campaign. You have the Vice President , joe biden, on 60 minutes, claiming that facebook is battling accounts tied to russia that are trying to attack him. Take a listen to biden on 60 minutes. They are involved in this race and in my primary. They are going after me on facebook. They have already been taken down, because putin knows me and i know him and he does not want me to be president. Emily roger, you wrote the book on facebook, you have in part covered the fallout from russias interference in the 2016 election. How wellequipped is facebook now, is twitter now, to counter potential interference and continued interference . Roger i feel like i am on a quadrennial version of groundhog day, because exactly the same things i saw in 2016, they have me focused on the danger facebook posed for elections are happening again, from the same people. The Trump Campaign has a sophisticated disinformation operation that runs internally. There is a network that George Washington university has been analyzing of fans of Bernie Sanders that was created before the 2016 election. Nothing happened after 2016 to shut these things down. Facebook certainly did nothing. They continue to operate without any kind of constraints. On top of that, you now have your boss, mike bloomberg, coming in with his own operation where he is flooding the zone with all kinds of things. The result of that is, even if the russians interfere it is not clear to me how much impact they are going to have because there is so much noise already. The challenge is this kind of stuff is really bad for democracy. We are not actually seeing real issues being debated at a point in time when these really matter. When things like climate change, health care, they ought to be Commanding Center stage. What we are seeing is disinformation clogging things, and it is really too bad. Paul we do have to mention that Michael Bloomberg is seeking the democratic president ial nomination. He is the founder and majority owner of bloomberg lp, the Parent Company of us here at bloomberg news. But i do want to ask to what degree social media and fake news, two sides of the same coin, can they even be disentangled . Roger not at present. The real problem we are dealing with here is the Business Model, which is based on attention. The whole idea is in order to command attention, you want to hit their emotional weak spots. For most of us that is going to be fear and outrage. The best content for appealing to those things, things that the algorithms surface, because people react to them the most, are going to be hate speech, disinformation, and conspiracy theories. Exactly the things you do not want to have during a president ial election, frankly, during any kind of democratic election. As long as the Business Model stays in place, google, with youtube and its Search Engine, facebook with instagram and twitter, are going to be a clear and present danger in these elections. Paul what kind of mark would you give facebook and twitter so far when it comes to addressing the problems we had in 2016 . I imagine not a terribly good one. Roger i think facebook has made many small changes, largely cosmetic changes, which is a lot better than what we have seen from google, which has done, for all intents and purposes, nothing. Youtube in particular, as well as gaming of the Search Engine at google, those were huge issues in 2016 and nothing has been done to prevent that from happening in 2020. Then at twitter they have tried to do a bunch of things, most of what they have done has not been helpful. There are really obvious things twitter should be doing because journalism, politics, and celebrities all live on twitter, so disinformation there has an amplifying effect that is really dangerous. Twitter has shown itself of being completely incapable of dealing with it. Emily so what is your outlook for 2020 . We have the coronavirus happening. We have potentially massive economic impact. We have a u. S. Political election happening. We do not know how that is going to turn out, so how does that impact to some of these names, especially the big tech names that we follow . Roger quite clearly, the strategy employed by facebook and google in particular, where they basically take the position that they are equivalent to a sovereign nation, therefore should not be regulated, that that has worked out fantastically for investors. So stocks, until recently, were trading at highs. Day, i think, are persisting in that model and will, until a government shows it is powerful enough to regulate them, and none has been able to do that until this point. What happens next is anybodys guess, because of the coronavirus in all probability it will turn out not to be the end of the world for us, but there is some measurable chance that 12 years into a market cycle, with china representing so much larger parts of the supply chain and demand that it does turn out to be a big deal. In an election year, if you had some kind of decline in economic activity, that is going to throw things up into the air. What is clear to me is we are not in the United States on a path that will lead us to the best election we could have under the circumstances, and it makes me incredibly frustrated because i have spent three years trying to call attention to the problem. Because everyone, it does not matter what your Political Party is, it does not matter what your preferences are, we should all want to have elections be fair and decided by americans based on real issues. Where we are really addressing what needs to be done. Because there is huge Economic Opportunity in every one of these problems we look at today. But we are not going to get to that if we cannot have an honest conversation about what we should be doing. Emily roger mcnamee. Still ahead, grubhub rolls out the perks to ensure its dominance in the food Delivery Market. We will hear from the companys ceo about the new launch, next. This is bloomberg. Oomberg. Emily the food Delivery Marketplace is certainly a crowded one. While many are slashing budgets, grubhub Just Launched a Membership Program full of rewards for its customers. But will it drive more revenue . I spoke with the founder and ceo matt maloney about his plans to grow market share. The grubhub plus program is an order of magnitude more exciting than anything else out there. Free delivery is table stakes. What we are doing is 10 cash back. That is incredible. That is a huge amount of money that we are giving to diners for ordering on our platform. It is an accumulation of a strategy that we outlined six months ago which was about supply. We doubled the restaurants, we have the largest Restaurant Network in the country and it is about unparalleled rewards. We have hundreds of millions of dollars currently available for redemption on our platforms through our perks program, our Restaurant Rewards Program and grubhub plus where we are giving 10 cash back. Were leaning into profits to steal share from everyone else in the industry. Emily your position in the food Delivery Market has been challenged by upstarts with big pockets from doordash to postmates to uber eats. How worried are you about the competition when they have a lot of cash at their backs . I dont think they have as much cash as they used to have. The private funding market has dried up post we work. It is hard to find Equity Investors to write 100 million plus check. We are profitable. We can sustain this business for as long as possible. We are cutting back on our profitability to be more competitive and do things like grubhub plus, where we are giving customers 10 cash back. Were attacking from a position of strength. While everyone else is slashing budgets to find profitability, and they are promising profitability later in the year, we have profitability and we are giving away unparalleled rewards to consumers. Emily as you say, grubhub has been profitable. You reported net income of 1 million on 322 million revenue for the quarter. But as you just said willing to, you are also sacrifice profits. Over going to see no profits . Are we going to see losses . What does that mean . Regarded the street for 2020, we are going to make 100 million net profit. That is arbitrary. We just said we want to prove to everyone we can still make a substantial a lot of money while being as competitive as we can. We pushed in the nonpartner delivery. We have doubled our restaurants. We are nearing 400,000 restaurants. We are doing these programs like grubhub plus. Where it is free delivery, 10 cash back, access to elite care teams, doubling the donations for members. It is an incredible experience we are throwing everything against the wall, pulling out all the stops for consumers because we know we have the best platform, and we want to prove it. Emily lets talk about the competition. There are a lot of players here. Many have said that all of these players cannot survive. Do you see consolidation in this business and if so, what makes sense . There are too many players losing too much money. Something is bound to happen. We have acquired 10 companies in the past 10 years. Acquisition is part of our growth strategy. By being as competitive as possible, by pushing the envelope and stealing share, i think we are creating opportunity to buy companies in 2020. Emily grubhub ceo and founder matt maloney. That does it for this edition of best of bloomberg technology. We will bring you the latest in tech throughout the week. Tune in every day at 5 p. M. New york. 2 00 p. M. In san francisco. Follow our global breaking news Network Quick take on twitter. This is bloomberg. Yousef today, the lender serves clients and processes more than one million transactions a day in Asset Classes from currencies to commodities. The hub in dubai takes care of customers in the middle east and has been operational since 2009. We sit down with the ceo of saxo bank, kim fornais, in dubai. Yousef kim fornais, thank yo