A pakistanifour dr. That delivers critical care. Global news 24 hours a day. This is bloomberg. Cory i am cory johnson and this is Bloomberg Technology. The bad week takes an ugly turn. The company accused of stealing intellectual property from google. It all unraveled with an email. We will tell you that story. Peter rawlinson has a next act, inventing a new electric car. Youve got to see this cool ride. Goes were no other Student Service has been before. And oscar nomination. But first, to the lead. We began with one euro crisis p. R. Ber that got worse crisis for uber that got worse. Board members were unhappy with the investigation. Waymo filed a lawsuit against uber claiming it still designs stole designs a discovered when waymo was accidentally ccd in an email. Eric newcomer joins me. Tell me what happened. As google tells it, a supplier sent them an email. They opened it up and see this Circuit Board that looks similar to their own system except it is labeled ubers auditing. I think that is where they begin to get tangible evidence. Cory i will call it google. A lot of brand confusion. Cory google gets this Circuit Board in an email and it is the wrong file meant to be sent to uber. Knows the guide was one of the important developers quit and started his own company which was quickly acquired by uber. Right. Anthony is now the man of the hour. We learn a lot from this lawsuit. He talked to uber before he started auto. , hisogle points out selfdriving trucking startup has taken over all of ubers autonomous team. They are in charge of the self driving cars in pittsburgh that were kicked out of San Francisco and all of that. Cory lets go into more detail about what came out of the lawsuit. About this was not a case of documents being backed up or they were on a usb drive. This is weirder than that. The picture they pay is much more intentional. This is anthony going in and downloading 14,000 files onto his hard drive and then taking those with him. And then changing the operating system to effectively reformat the drive. Cory he has a company laptop. He brings in an external drive. He pulls a bunch of stuff onto the external drive, disconnects and downloads a new operating system on the laptop to erase all traces because if there is any company in the world you can fullback technology, it is google . He stopped using that laptop and moves on to other ones. That is the case. Spent manyns, google thousands of manhours putting together these different designs. I love that they talk about the unused designs, the ones where they went down the wrong path. Lidar. Ets talk about it is not relating to a polygraph machine. Is akin to radar, radar using lasers. These are the lasers the selfdriving cars send out to get a picture of the world. Google did some work to figure out its own way to sense where theything was an position tree, the dog running across the street, so they would have an advantage over other selfdriving car makers. Cory lots of companies are using lidar. We will have a company on later in their easier to drive car with all sorts of tools. These were particular designs the company was trying to own over all of the competitors in space. Is either trade secrets. This is are they these are their trade secrets. This is how they are supposed to have an edge in turn this into a business. Im not a lighter expert lighdar expert. To gets it positioned the most information efficiently . And then theres the matter of price. We have not talked about the supply chain part of this. You have to acquire the pieces used to manufacture this and figuring out the proper supply chain gives an advantage over another company to have to spend months figuring out the supplier network. Cory i was born in michigan. When i was a little kid, cars were everything. Everybody else was in that business. There are all of these little companies. There was room to start up companies to create the windshield wiper or the light on the mirror. It was a different company. Now you have got not just google and uber and tesla. But you have delphi, ford, g. M. And they are all hiring in Silicon Valley going after the same talent. It is hard for a small selfdriving car company to stay independent for long. What is interesting is we dont think of uber as a small startup anymore. If this were a tradition of case, people would be more disturbed google was going after uber for trying to make moves. For his crazy here is it is a true trade secret case, an employee stealing what google alleges our trade secrets. Cory doesnt google have an investment in uber . Uber uses google maps. Uber is still reliant on googles maps. They are trying to move away from them. Sort of a friendlies fe renemies turned into pyrenees at this point. Pure enemies at this point. Cory place that rewards theormance over fairness, suggestion is it has run amok. You have a woman being harassed her boss and she has told is told the employer is a heart performer high performer. The suggestion is the ends justify the means none of that is fair. But that is what this looks like. They are two very different cases. Uber is owning it and investigating it tried to figure out what is going on and how culpable they are. Eric holder is insisting he is independent and has full prerogative to question everything in the company. On the selfdriving car part, uber is defending itself and saying they did not do anything wrong. This is a crazy lawsuit, we will fight in court. Inhink the responses situation are very different in the cases. Cory uber is a big swinging company. They go after things in a very different way. Grateful for their service and the entertainment value they provide me. Thanks for keeping us straight on all things related to uber and beyond. Capitalizing on u. S. Expansion. In announced an aggressive push to 54 new cities including birmingham, alabama. That puts it in nearly 300 cities nationwide. 20ng up, peter thiels billion Data Mining Company is spreading its tentacles across europe. All episodes of Bloomberg Technology are now Live Streaming on twitter right now. Check it out. Every weekday, 5 00 on wall street, 2 00 on west coast. This is bloomberg. Cory the sec put strict rules on Charter Communications in its time warner acquisition. Hes looking to ease the requirements which might be disconcerting to people that thought they were necessary. They had demanded charter build broadband connections to 2 million new locations including 1 million and places already serviced by competing providers. Therding to fcc official, was a dropped part of the requirement the Company Already agreed to. Move shows they may seek to revise or eliminate other conditions on charter as well. The Data Mining Company known for being rich and part one secretive the less private and secretive, not unlike its founder. Us onher cofounder joined what they are up to. This is a fascinating company. We dont know a lot about it. May be because the first customer was the c. I. A. Or n. S. A. It was the c. I. A. Part of the reason we dont know much about it is it is not an apple on your phone. This is a geeky Data Mining Company. Disparate setsf of data from all over the place and minds it for meaning mines it for meaning. The net result depends on who is using it and for what purposes. They have government customers and a bunch of commercial ones were recently. Cory the story the Company Tells about itself is meant to sound the oracle. Oracles first customer was the c. I. A. It went on to sell to Corporate America and become the backbone of every company from c. I. A. To bloomberg that use oracle. It seems this is a secondary notion of that. Now you have all of this data. Palantir can figure out what it means. A little different in that what it sells is not so much the database. It is about connecting all of oracle to other peoples databases and silos left over from the 1980s and 1970s for the government and connecting it together and mining it for patterns where humans might overlook it. For example, lets take its use in the special ops division in afghanistan. It pulls together information about a terrorist, for example. Drone footage, information gathered about individuals suspected of being terrorists dating back decades, as well as weather conditions, and on the ground footage as well taken live from cellphones. Cory cellphone data, drone imagery, video data, old textual stuff. It can take all the stuff and create order where there is not any. Exactly. It can do the same thing for her bickeringer shes, out who is buying it, how much, what the weather is like when sales are great. How that tracks with marketing and advertising. Cory lets look at europe. They have been growing like gangbusters. They had tripled their business there every year for the past three years in large part because of that growth they are on track to be profitable this year. Cory is this real . I have not used it. We hear about these things. I wonder how the stuff gets used. I cannot think of any Great Technology i have heard about and reported on until i use the thing. Data inot actually find this spreadsheet or whatever. That is a good point. That is one of the reasons they keep engineers on site for the setup because theres a huge amount of customization that comes into play. It is not just a set it and forget it software program. It does not work unless the data is flowing into their platform and people are using it properly to ask the right questions in the proper way to pull out information they want. Havese of that, they have had a high burn rate because theyve had to employ all of these humans. Cory is it going to be easy to use like a Microsoft Powerpoint or will it be like crm that was so hard to get up and running that customers spent millions of dollars before they could turn it on . That depends on the customers as expertise as well as how well the training goes and the like. Cory we shall see. It is a fascinating notion. It could be an interesting company. We appreciate your coming. Two companies are deepening ties. They are doing a joint investment venture. 54. 5 stake in one of the existing subsidiaries and spending 609 to do it as both groups step up investments in the Technology Sector and consider expansion in the united states. The deal reportedly expected to take effect on march 1. The stock we are watching, hewlettpackard enterprise. The biggest share plunge since october of 2015. The same time the company officially and else a split. Cutting the fullyear forecast. Whitman pushing executives too hard. The Company Looks to free itself from crummy businesses and looks for better businesses to grow and. We will explain. This is bloomberg. Cory are on track for big growth this year. Banks are worrying the rules are being written and startups are using the advantage of an unregulated area. Joining us is bill harris, a you. Ime guy, i called i have been a guy for a long time, too. Interesting times where you have Companies Like j. P. Morgan talking about using consumer data they get from their customers to offer new financial products. And some concerns from authorities about how personal information is being used. What do you make of this . I think it is fascinating to watch. If it was not so harmful, it would be kind of funny. We are seeing a texas twostep. The big banks and brokers are doing two things. Number one, they have descended on washington and are trying to repeal or delay the fiduciary been something that has worked on for six years which is very simple. It says if you are selling a retirement account like a 401 k or Something Like that, you need to do so with the best interest of the customer in mind rather than just lining your own pockets. Cory imagine. Imagine. That is number one. Number two, they say the consumer should be able to figure it out themselves. Piece just say the second is they are trying to restrict the access customers have to their own Financial Data at these banks and brokers so how can the consumer figure it out on their own . It is to protect substandard products and high fees. Cory it is interesting. It is the worst you worry about. Obvious, you should not sell your customer something that will hurt them. You would think that. Industryle work in the look at a new rule as going to empower more lawsuits. It is not really protection, it is a regulation. Yes, it probably will empower more lawsuits. But when it does, it is probably a good thing. Fidelity which is by far the biggest provider of 401 k s in the world were sued by their own employees over the fees within their own 401 k plan. You know . Attitudeo change the of banks and brokers towards being something to where we are trying to work for the best interest of the client. Cory tell us about what personal capital is. It is not a roble advisor. We are not a roboadvisor. We get linked into that category. It is an Investment Service that you can buy online and it is all done without rhythms. We have software algorithms. We are digital. We mary that with human advisors. It is the way to go. It is the magic formula. Deliveryt defines what of Financial Services will look like 10 years from now. Cory it does take the notion that people want advice and do not want us to go online. Our friends take the opposite approach. They say the millennial customer does not want someone to talk to. They find they get in the way. They want to go online and get their money safely invested with low fees. I think for a lot of people, that is right. Roboadvisorsnk are Good Services for people who have relatively simple finances. Once you have complicated finances, once you are building your family, you are thinking about owning a house and retirement in putting the kids through college, when you are in that situation, you really need something far more sophisticated. Cory just 30 seconds left. When we have low fee structures possibilities like personal capital, like vanguard, like roboadvisors, do you think eventually the jamie will run upe world against it because they are running fundamentally higher fees . The whole world will have to adopt to the new realities of the fact we are in a digital age. Cory bill harris, always good to see you. Glad you are still around, guy. Mores raised 500 million in pronouncing. The Company Plans to use the money to expand internationally. The new funding brings the so total investment in the business to under 2 billion. Up, the engineer shows us his latest electric vehicle. The company is called air like the sneaker but it is bigger and faster. This is bloomberg. You are watching Bloomberg Technology. Lets start with a check of your first word news. Ohio Governor John Kasich says there is no animosity between him and President Trump, his rival during the g. O. P. Primary. The governor says he shared his ideas on potential changes to former president obamas Health Care Law at a meeting today. Ohio was among 31 states that expanded medicaid under the law. President trump says there will be no more big multinational trade deals in a speech to conservative activists, the president promised to take a tougher line on trade. President trump we are going to make trade deals but do it oneonone. If they misbehave, we terminate the deal and they come back and we make a better deal. None of these big quagmire deals that are a disaster. Just take a look at nafta, one of the worst deals ever made by any country having to do with economic development. President trump also blasted the news media for using unnamed sources and promised to Start Building a wall between the u. S. And mexico soon. The french financial Prosecutors Office has decided to open a judicial inquiry into aid given to family. The former frontrunner admits he hired his wife and children but says the jobs were real and the practice was legal at the time. Marine le pen is refusing to be questioned by police over a fake jobs scandal. She has rejected a nonbinding summons from investigators. They are investigating her use of european parliamentary money to pay for party work. The International Olympics committee is suggesting further adjustments are needed in the way olympic hosts are chosen saying the process produces too many losers. The changes could result in the 2024 and 2028 summer games being awarded in september. Los angeles and paris are the remaining candidates on a list that began with five cities. In what could be a major break for bill cosby, a judge ruled today that just one of the several accusers can testify at his trial. The 79yearold tv star is set to go on trial in june, accused of sexually assaulting a former Temple University employee in 2004. In asia, malaysia says a chemical weapon used to kill the exiled halfbrother of north korean dictator kim jongun according to a preliminary report the vx nerve agent was found on his face and eyes. He was killed in kuala lumpur last week. Andomats, colleagues, relatives gathered in moscow today to attend Funeral Services for russias longtime ambassador to the united nations. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. I am alisa parenti. This is bloomberg. Cory this is Bloomberg Technology. I am cory johnson. We have been discussing a rough week for over. Uber with a Sexual Harassment claim and waymo alleging the theft of trade secrets. It does seem like google is sort of kicking over while it is down. They have had a terrible week. Exposed anthony who left in generally january to start waymo cory he was profiled in the new yorker and the embodiment of Silicon Valley trying to do impossible things. Very brash, very ambitious. He started this at the university of berke