Sales jumped over 50 thanks to robust system. Now to our lead story. President trump said he is ending two advisory committees after they have seen significant leave from companies following his inability to reject the hate statements made in shots phil, virginia. He has decided to end both. It is a big turnaround from a tweet that trump posted on tuesday. Several ceos left the Council Earlier this year following disagreements over the president s approach to immigration and climate change. I think the president is clearly struggling with lots of issues. First of all, i think the president is sort of a sociopath. I think he is revealing under pressure more of his characteristics. At the end of the day, when he gets attacked, he gets he will punch back. We saw this on the debate stage, and none of his opponents were willing to punch back and put him in his place. Now, this is playing out on an international stage, and it is really not helping him should helping him. Emily where do you draw the line on free speech . People do not have the right to be violent, instigate violence, and they do not have the right in the United States which offends them should defend them. In 1977, when i was a kid, the president of the United States denounced them, and it was a oneday story. Right now, the president is not willing to take sides. Free speech does not give you the right and it does not protect you from people having an opinion on one side or the other. Emily what do you make of the calculations that these ceos are making when they say they are out of these Business Councils . Over the weekend, i do not think this was a partisan issue. They were leaders from both parties very explicit in denouncing what happened in charlottesville. So this is not a partisan debate. It is President Trump and a small sliver of republicans who republicansinstream and moderates. Emily what is your take on how Tech Companies should handle speech like this such as racist twitter accounts or youtube shutting down he Group Channels . I think most of the content companies have to be very careful. As they start deleting certain viewpoints, they do run some liabilities. Once you start taking down pieces of content, you are technically liable for the content on your site. Emily what if its nazi content . There is some constraints about the content such as inciting violence, that outside of that i do not think most Technology Companies can censor legally. So, i do not think content should be censored. Emily what is your take on the Google Engineer who was fired after he sent out a memo circulated widely in the company saying that there were biological reasons why there were not as many women in tech and leadership . He made several points and one of which i agree with. First of all, the point i agree with is the sort of same mindedness that is in google. Google has this culture were there have been these mailing lists with offtopic subjects. Emily take a listen to what the Google Engineer had to say the day after he was fired. Its hard to regret it just because i do believe that i am trying to make google and the world in general a better place by not confining us to our ideological echo chambers where only one side of the story can be heard. Emily so, ideological echo chambers, political views that are only one thing. What if that political view excludes half of the population . I think the company has the right to say that you cannot express a range of views on a variety of topics. For example, it would not be inappropriate to publish a wide christian crusade document. However, i think google is playing with fire when it comes to saying certain views are acceptable and not. It might be more acceptable in saying that religion, politics, and other views such as those are not welcome in the company. There was a discussion about abortion, it would distract people from the work, and so ceos would have the right to say that they are not going to be discussing abortion during company time. Emily should he have been fired . No. If you look at googles culture, fundamentally, i believe from what i have read that those mailing lists are pretty wideranging. Insofar as that happened at a Different Company that had less of that president , it would be perfectly fine to fire summary for distracting people. Emily cisco narrowly beat out estimates for earnings and revenue in its latest results. Right now, the company is touting a major victory in the Network Business moving from hardware to software. The quarter of the country predicted revenue in the quarter may fall as much as 3 . The bloomberg daybreak Americas Team spoke with the ceo about the efforts and the current local climate. We said we are going to begin to shift to a more soft square a Software Subscription model. We have made unbelievable progress. Just this past quarter, 31 of our revenue was from recurring which is up from last year. We have our software deferred revenue which grew 50 and eclipsed 5 billion for the first time. Two quarters ago, it eclipsed 4 billion for the first time, so that is moving rapidly. Of our Software Business, 51 of our Software Business now is from subscriptions. So, we have made a great deal of progress. I am pleased with where we are, and i think our team has made great progress. In terms of a longterm investor in cisco, what are you telling me to look at when i am certain it is going to turn around . What is on the dashboard there to show me that it is working or maybe not working . First of all, we provided some new metrics that indicated that this transition is working. Metrics like this recurring revenue, Software Business in subscriptions, and if you look at our Software Business and compared to other software companies, you might be surprised at how big it is. If you look at the growth of that deferred software balance and the percentage of our software company, we are providing a lot metrics being recorded on a quarterly basis help you feel better about it, but at the same time we are executing our initial models. Our financial models. In the midst of a transition last year, we had record earning cash flows and earnings per share, so we are executing on behalf of our shareholders as we go through this transition. Some of the biggest ceos in this country have distanced himself from the president of the United States following comments he made after the rally over the weekend. Is this an administration you can still work with . First of all, hello jonathan. The events of this past weekend, first and foremost, it is frankly incomprehensible that we are in 2017 and having these discussions. I think most of america and cisco absolutely abhors racism, and it does not stand for it, neonaziism and White Supremacy at all. We have made that very clear with our cisco employees. We still have a lot to do in this country. We need to drive gdp growth. If you look at where the country is in the latest numbers, there are other portions of the world which are starting to grow faster than we are. It is great that they are growing, but we need to be growing faster in the United States. We need job creation and tax reform. Regardless of what is going on, we cannot advocate the need to get those things done. Finally, from a country perspective, we have to find a way to focus more on the things that actually unite this country. The things that make us great and not focus every day on the differences of opinion and things that divide us. So, i think that is important. It is incumbent upon Business Leaders here to continue to work to make sure that what this country needs to be successful in the next few years, that we are still playing a role in making that happen. Emily that was ciscos ceo chuck robbins. Bitcoin continues to surge. What is driving the demand. We will discuss. Tech firms are stepping up the policing of hate speech online. We will talk about the review of their policies. This is bloomberg. Emily it is another successful rocket landing for spacex, the 14th to be exact. Mondays rocket carried a dragging capsule loaded with over 6400 pounds of cargo destined for the International Space station. The dragon will spend the next couple of days in orbit before meeting up with the station on wednesday. Bitcoin continues to show no signs of slowing down. The cryptocurrencies sword passed 4000 for the first time this week. The rally comes after a split last week which threatened to jeopardize its growing mainstream interest. Caroline hyde caught up with the president of an Online Platform which allows you to buy and trade bitcoin by linking into your bank account. We are seeing the market respond to a real improvement and leap forward in the technology which stands behind bitcoin. Segregated witness is essentially an improvement to the core protocol which can have bitcoin processing the same number of daily transactions that we have seen from the likes of visa and mastercard. What about geopolitics . Other geopolitics at stake driving the high . I think with other digital currencies, they are all influenced by the macroeconomic factors at work. A good example is what we saw just last week at fidelity, one of the largest brokerages here in the u. S. They are making changes so that coin holders can make a connection to their earnings and holdings. It is those types of International Exchanges like what is going on with korea, japan, parts of europe. These are all factors which influence traders in the price of bitcoin. Fidelity is one of the Institutional Investors which is ahead of the game when it comes to their digital currencies. They are mining their own bitcoins and also pushing technology to help users access their account. Why does there need to be more trust to be built with these accounts . The dream ceo of fidelity is going to be looked back on as a bit of a visionary. While others may not be moving quickly in this space, they are absolutely investigating it. I am on the front lines of speaking with these hedge funds and proprietary trading funds trading firms which are all asking us to help them understand what bitcoin could become. Asking us to help them understand the market. The watershed moment will be when we start seeing clear and consistent regulation which will heart start giving confidence to institutions to start trading. How do we become the most compliant institutional customer provider here in this space . Are you concerned about a hack which occurred back in may . It was a small one, i understand, but there are issues about liquidity. How do you set out to believe set out to relieve these concerns . To be clear, it was not a hack. We can see movements very quickly in the marketplace when customers place large buy or sell orders which is what happened in may or june. We are recommitting to providing stability, transparency, and the market integrity that institutional traders require. We have done that in the two fundraising rounds. We are continuing to reinvest into the team and Customer Support operations. The individual who lost some 8,000, that was not a hack . Oh, i see. What we call that is an account take over where individuals will get targeted to have their phone ported over whether passport or their password taken. We have a Prevention Team were we notified customers when we notice things happening, and we have some steps we do internally where we have anything suspicious we take the tatts to lock down we take the steps to lock down their account and warned the customer as well. You have plenty of priorities, but what about the expansion of the crypto currency base that you currently accept . You are looking into bitcoin cash. Are there any more . We want to be thoughtful and provide a variety of Digital Assets which can be traded. Before we add any more Digital Assets, we want to get our current product to a place where customers are getting the experience they expect and we have a stable performance exchange. Once we accomplish that, we will start adding more Digital Assets. Emily that was adam white speaking with Caroline Hyde in london. Coming up, steph curry of the Golden State Warriors has been busy investing in Tech Companies. Where is he putting his money . We will hear from him next. Plus, alibabas earnings continue to dominate. Can they go toe to toe with amazon . This is bloomberg. Emily Pandora Media will have a new ceo. The company has announced they have hired robert lynch. He is the fourth leader in less than two years charged with reviving the struggling music company. The appointment is effective september 18. Two of the top players in the nba helped kick off the inaugural Player Technology summit in san francisco. The summit brings together top leaders in tech, venture capital, and sports to Exchange Ideas and expertise. We caught up with steph curry of the Golden State Warriors who cohosted the event. We started asking about steph currys investment in pinterest. It is something i like to use. For me, there is an opportunity there. A couple years back, i was waiting to get some skin in the game. Just to see the growth of the company and to have that feedback of seeing how the company is doing and keeping track on that. So, that was the company i started looking at with my Investment Partner business partner. It has been fun learning from that, and hopefully i can continue to grow my expertise in the investment game should you are all in the investment game. You are all over the place with investment companies. You have shaving and grooming product companies. And you also have some bond Trading Companies . Yes, it is a bond Trading Platform mobiley, over your phone. Bond trading has not really changed since the beginning of time. So, that was something posed to me as disrupting the market. So, i have had really good conversations with him about it. This whole thing started for me with an e trade account. I started looking at a bunch of Tech Companies and things like that. When you think of the history of athletes and investing, the bad stories are the ones that make the news, but there are some bad stories. Your father was in the nba many athletes have had fathers who were great athletes themselves. Your father was a fantastic basketball player, but they also raised their kids probably with lessons where we have come a large way from trolls oakley and his car wash investment. Now, it seems a lot more sophisticated. I think so. With the responsibility of what you do with your money, you want to start growing it in a responsible way. The Tech Industry is booming. If you can find open doors to that industry, it is huge. You can find buyers and posters you trust that can give you that information that you need. You want to invest in Tech Industries because it has that prestige. Emily coming up, tech firms are taking a closer look at the policies regarding hate speech. We will hear from the ceo of cloudflare about the bigger implications. Remember that all episodes of Bloomberg Technology are streaming online. This is bloomberg. Track your pack. Set a curfew, or two. Make dinnertime device free. [ music stops ] [ music plays again ] a smarter way to wifi is awesome. Introducing xfinity xfi. Amazing speed, coverage and control. Change the way you wifi. Xfinity. The future of awesome. Emily welcome back to the best of Bloomberg Technology. Tech companies from airbnb to facebook are going on the offensive against White Supremacists and not seize in the wake of the violent rally in charlottesville, virginia that left a woman dead. The Web Security Company decided to end its business with the daily stormer, a known neonazi website. Clout flare was criticized for providing service to alleged terror groups in 2013. The ceo joined us to discuss. The daily storm or was a unique incident and it was the exception that we needed to rethink the rules. Not just with clout flare but with the Tech Industry in general. This came on our watch list. A few months ago, we started to get reports that they were harassing people that were submitting abuse reports throughout platform. Earlier this week they were bragging on their Bulletin Boards that the people of clouflare were supporters of theirs. We think the content on the site was important of torrent abhorrent. Who can regulate what content is online . I sit in a privileged position, i can make a decision that they shouldnt be online anymore. Im not sure that i am the right person to make that decision. Emily we should take a moment to talk about what cloudflare does. We make sites faster, we help them stay online, we stop big cyberattacks launched on them and we see a huge portion of the internet. Most of our big customers are fortune 500 companies. We have small customers like the daily stormer that get attacked all the time, the reality of the internet today is that it has become a dangerous place. If you dont have a Major Network sitting in front of your infrastructure and you do anything which is