Transcripts For BLOOMBERG Bloomberg Technology 20170420 : vi

Global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. Im alisa parenti. This is bloomberg. Bloomberg technology is next. Caroline im caroline hyde. This is Bloomberg Technology. Coming up, teslas rocky road. We analyze the latest 53,000 car recall. The reviews are in and Samsungs Galaxy s8 has hit the market, but will the demand be there . How it stacks up against competition. The wrong kind of pattern recognition. Our deep dive with ellen pao and anita hill, two women who helped raise the alarm on gender discrimination and harassment. 53,000s recalling vehicles for faulty electric parking brakes that may not release properly. Manufactured between february and october last year, the automaker says the issue poses no danger but is being overly cautious. The company is also facing a classaction lawsuit for its malfunctioning autopilot. When it rains, it pours. Joining us, dana hull. 53,000 recalled how does that stack up to previous instances . This is the second largest recall tesla has ever had. They previously recalled 90,000 vehicles for a seatbelt issue. Its important to stress this is a voluntary recall. It will take roughly 45 minutes to fix. They are doing this out of an abundance of caution. This is an automaker gearing up to make the model 3. Caught a to have manufacturing but they want to fix quickly before it causes any trouble. Caroline talk to us about the model 3. This has fueled the share price in recent weeks and months. Car comingeedible to the market, but a lot of focus on whether they can really hit the numbers. Dana what you saw with the share price today is that the word recall freaks everybody out, even though auto recalls happen all the time. A voluntary one is very different from a mandatory one from the federal government. It notified customers. To do 3000 are affected. 53,000em are u. S. Are affected. Most of them are u. S. Owners. Is a fairlythis minor issue that has not impacted anyone that we know of. This is not takata. This is not gm ignition switch. Caroline we mentioned the classaction lawsuit, the malfunctioning autopilot. Is that something to be looking out for in terms of its share price . Dana that lawsuit was filed yesterday, and i dont think it had a big impact on shares. Technology islot constantly being updated. There is hardware version one, version two, and constant software updates. This lawsuit was filed on behalf of owners who were upset that they didnt get updates fast enough. We will see where that goes. I dont think it had a big impact on the shares, but im not quite sure what the resolution will be. That Caroline Caroline that recalled it affect things recall did affect things. Now to a startup that can help a business in crisis mode, such as tesla, deliver Better Customer Service and brand management. , ledised 36 million today by a venture firm behind slack and airbnb. Ansanelli. Is joseph im going to segue from tesla to you, a company that might be having some stress. How would you be providing an easier way in this stressful time for tesla or a company talking directly to its customers . Joseph whether its tesla or anybody else, the more proactive you can be, the more understanding and empathetic you can be as a customer with your customers, people value that. At the end of the day, people value that you take care of them. So much of Customer Service is when you have an issue or a problem. If you can resolve it in a way that makes people feel good we love the quote, people forget what you tell them, forget what you did for them, but they never forget how you make them feel. Make them feel cared for. Thats the key thing we encourage people to do. Tesla is doing this proactively and voluntarily, which we think is a good great approach which we think is a great approach. Byoline whether its voice, email, sms, you are making sure i am targeted every way. Talk about this money you are raising. Joseph we are excited to have them involved in the company. Greylock incubated the company about two years ago. We have been spending our time the past few years honing the product, trying to change the way people think about Customer Service. Past 100ok at the years, most Customer Service has been centered around this model. Number isr or ticket not very personal. What if we could start over and reinvent Customer Service and help Companies Center Customer Service back around the customer . Really make it about that person and not lifetime of the conversations that you have with them and that lifetime of the conversations that you have with them so you can engender greater loyalty. Perhaps an oracle or a salesforce. Nemies . Friends frie are you working alongside them . Joseph colon the products they the are very joseph products they have are very case and ticket based. Anything related to their service products, those are things we are typically competing with. They have core platforms, order management products. Those are products to integrate with. Its more of a cooptation in those areas. Caroline where are you at the moment . Can you give us a sense of who your clients are . Can you name any by name or tell us which sectors or regions . Joseph we are an Early Stage Company still. We are about 50 people in san francisco. Our focus is on the mid to large enterprise. We are working with companies in the commerce and retail sector, travel and leisure, hotels, and an airline, actually. Caroline can you name that airline . Joseph its not the one that you are probably thinking. We are building an enterprise class platform. Its for places that have hundreds to thousands of Customer Service agents. Caroline theres a lot of background is this an area you are looking forward to . Joseph derek two reasons why ggb there are two reasons why ggb was excited. They are interested in the way consumers in china engage with brands. Thats one of the things we think a lot about. When you think of 21stcentury 80,umers, anyone from 18 to the way we communicate is very different from the way we communicated 5, 10, 20 years ago. I think they saw that massive trend happening in china and they look like at a company and say you guys are going to take advantage of this opportunity as it hits throughout the world. Tooline theyre looking give customers direct access to businesses and vice versa. They launched bots. Is that a competitor or something you engage with . Joseph we just rolled out support for messenger, for example. That we want consumers and companies to be able to communicate back and forth in the same way we communicate with our friends. When i call my wife, i leave a voicemail, i use facebook messenger, i use an app. The key thing is, in all those conversations i have with her, its always about her on the other side. Its not about any particular channel. We are trying to enable that very personal, empathetic, helpful conversation between the consumer and the company. We dont really care how. We want to make it about the person on the other side. Caroline id love it if you on how ip remind me messaged my husband. Are a partner at greylock at the same time as being the ceo at gladly. What came first . Were you already a partner . Is this replicated elsewhere . Joseph ive been a greylock from five years. We have a history of incubating companies to pretty good success. Workday was incubated and started by neil, who now runs the company. Sumo logic. Its a little unique, in the sense that many of us were entrepreneurs, and now we are investing partners. If we see an opportunity, were encouraged to go and actually get companies started, because its hard to get differentiation in venture capital. Everyones money is the same. A dollar is a dollar is a dollar. You try to differentiate your domain, your expertise. If you can build some portion of the portfolio which is proprietary, it gives us a unique investment opportunity. If the Company Turns out to be very successful, we do quite well. We dont exclusively do that, just enough. Caroline maybe you will be snapped up just before an ipo. Wonderful have a new here, Joseph Ansanelli wonderful having you here, Joseph Ansanelli. Working asmmunity is one once again. Facebook, alphabet, snap, and more than 100 other tech giants have told a federal court that president trumps latest travel ban should be blocked. The Trump Administration has promised greater scrutiny for companies that employ Foreign Workers instead of americans. These Silicon Valley heavyweights filed a brief in court saying this new order with cause would cause serious harm to their companies and employees. Coming up, our exclusive with ellen pao and anita hill, professor of Brandeis University. This is bloomberg. Chair ajit pai said that he met with executives from facebook, cisco, oracle, intel, and other companies, but did not give details on the discussions. Pai is a staunch opponent of the Net Neutrality rules. Google is planning to make a change to its browser that could have huge effects on the digital ad industry. Its planning to add an ad blocker to chrome and possibly could turn it on by default for all users. Shares of facebook see its groth of ebay sees its biggest drop in six mo nths. All episodes of Bloomberg Technology are now Live Streaming on twitter. This is bloomberg. In recent years, the spotlight has been placed on Silicon Valleys lack Silicon Valleys lack of diversity. Companies have been working to become more transparent on their diversity efforts. They have poured millions into the initiatives with the aim of recruiting and retaining more women and minorities, but much of what theyve done has only shown incremental results. We sat down for inexcusable if seed of women who have epitomized the fight against Sexual Harassment for an exclusive with two women who have up it demised the fight against sexual who have it paid a mise who have epitomized the fight against Sexual Harassment and gender discrimination. Think one indication of the change is that 25 years ago there was not merely the public reaction that we have today not nearly the public reaction that we have today. Specifically with the bill oreilly situation, the corporations who have responded and pushed back on the idea of adding their name to this kind of behavior. You have a public that is enraged and is responding. Women are protesting. Women are telling their own stories. Its a very public and very different conversation. 25 years ago, we had a president who actually supported Clarence Thomas and the public went along with it. This time, with the president supporting bill oreilly, the public is not buying it. Caroline the public sentiment has changed. In 2012, you were up against your previous employer and you took them to court. Do you feel things have changed for the positive . Ellen i think people are now believing it when people bring up their stories and experiences. That started with anita and everybody who followed in sharing their own stories. People are recognizing there is a bigger problem, that there is discrimination and harassment in the workplace and it happens to anyone. Its no longer what did the victim do wrong. Its really, wow, this is a problem that needs to change. Its a very different perception than 25 years ago, when people were less educated, i think. Caroline how is technology making a difference . Is texting is tech scene showing slightly better numbers when it comes to females in the workforce, but still evidence of sexual discrimination when they are there. Blacks and latinos are still lacking in Many Companies. Systemic is a very problem. It started decades ago when the earliest companies started becoming successful, started by mostly white men. Those white men made the money to invest in other white men. It is an epidemic of pattern matching. Its the white men who are successful, so thats who im going to invest in, and those are the only people with opportunities. It is something that has happened to women, racial and ethnic, underrepresented people of color. It has happened to people who are lgbtq. It has been every group that is not part of that core original founding set of fathers of Silicon Valley have been excluded. How do you change that whole culture to make sure everyone is included, not just a few more women or a few more black employees . But making sure you are getting the best employee for the job and giving them the opportunity to do their best work. There any best practices you are seeing that should be deployed across other companies . Are there any companies you are holding up into the light to show the way things could be done . Ellen there are some companies thinking about it in a very helpful way. They are starting to experiment. I dont there think there are like three things that will focus that will solve all your problems, but i think you need to think of inclusivity of all people, not just certain groups. Think about it comprehensively. Just hiring people, but making sure they are on board it, making sure they have oarded, sponsors onb making sure they have mentors, sponsors. The third piece is measuring. Companies that are taking the time and effort to see what levels of diversity they have will have the eta that will help them will have the data that will help them succeed. Can you share the data across your team and focus on these problems . Anita for me, one of the clear pieces of information that we should draw from the oreilly situation is that it is not just in. Tter of bringing people it really is a matter of changing the culture of an environment to make sure that, when you put all of these things in place, that you actually follow through with an idea of increasing and maintaining increased diversity. That doesnt mean that you just take old rules and old responses to issues and reapply them with the new population. It means that we have to really get it. What is it mean specifically for people of color to be heard . What does it mean for women to be heard . One of the things that i love about whats going on in the academy now is that we are also teaching about intersection intersectionality. We have looked too long at these issues as binary issues. We have women on the one hand and people of color on the other. Those are overlapping categories and the experiences are overlapping, and we are learning means. E out what that what does it mean when we talk about a woman who is a person of color, or a man who is a person of color, vs. Perhaps white people, white men who are in business . I dont want us to think just there are men on one hand, women on the other. Not all women are the same. Not all men are the same. We have to start looking at the nuances of how discrimination works in the workplace and what do we need to do to respond to make sure that we attend to nuances, oness especially for different groups. Caroline i want to understand the positive and some of the negative of having been pioneers in this particular area. We are seeing more women able to come forward and make their voices heard, but do you think women are still labeled as those who have spoken out . Is it positive, or is it still a negative . Ellen i think overall its a negative. You are a troublemaker. You arent conforming to the system. In Silicon Valley, as much as we think of ourselves as innovators, there is a strong pressure to conform. You can see that in the response to different events. For women who started talking about the problems in tech five years ago, it was very difficult for them. There are so many women who came out, talked about their experiences, and were not believed. For people to come out and take that big step and be challenged and be tormented on social media, that is a different type of abuse that we hadnt seen before. Caroline that was our exclusive interview with ellen pao and Brandeis University professor anita hill, speaking 25 years after her historic testimony in front of an allmale committee in congress. Coming up, baidu wants to be behind the wheel of your autonomous vehicle. We will speak with baidu forident on the plans driverless car technology. This is bloomberg. With xfinity x1. Family time is awesome show me the radio disney music awards. Just say it and see it with the x1 voice remote. And you can catch up on all the rdma buzz. With artist interviews. Past performances. And more available now on xfinity on demand. Xfinity the future of awesome. And to find out how to catch exclusive videos featuring rdma host jordan fisher. And the ardy goes to. Watch Disney Channel presents the 2017 rdmas. April 30th on Disney Channel. Alisa im alisa parenti, and you are watching Bloomberg Technology. French president Francois Hollande says the attack in paris today was likely a terrorist event and wants a Defense Council meeting at 8 00 a. M. Tomorrow. At least one officer was killed. So was the alleged attacker. The assault comes three days before the first round of france boss president ial election frances president ial election. President trump is doubling down on his pledge to press canada on a changed to its dairy system change to its dairy system. Trudeau saysr canada is not the problem for u. S. Dairy producers and will stick with it system. Call for an investigation into the death of eight people during venezuelas antigovernment protests. Two young adults and the National Guard tied. The European Commission says everyone involved needs to act within the rule of law and human rights. French polls show Emmanuel Macron in the lead in the runup to sundays firstround vote. Second, butn is polls also show the other two leading candidates are still in contention. Fillon cancel the Campaign Trip after the paris shooting. Saysan state truly tv Mahmoud Ahmadinejad has been disqualified from running in next months president ial election. Hads Supreme Leader advised him not to run. Global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. Im alisa parenti. This is bloomberg. It is just after 5 30 p. M. Thursday here in new york, already 7 30 friday morning in sydney. Adam, good morning. Adam good morning. Its looking like a positive start to end the week here across asia. Australian futures picking up slightly. Pickingei 225 as well, up. A positive start as markets get going. From an equitys perspective, its been a tough week. It will be good to see a little positivity coming through. Fxwise, keep an eye on the yen after that weakness was spurred by the kuroda comments. Aussie, also feeling the pain over the last few days, pretty much stabilizing around the . 75 level. Elsewhere, keep in e onhe euro keeping an ey the euro which has so far been unaffected by the paris shootings. Haigh for Bloomberg News in sydney. Caroline this is Bloomberg Technology. Im caroline hyde. The race for fully Autonomous Vehicles is at full speed. One chinese tech titan is making a major move. Baidu has announced it will challenge internet competitors. Designs and ae complete Software Solution for carmakers. Joining us now in an exclusive interview, yaqin zhang. You bought a u. S. Startup. What part of Artificial Intelligence do you really want to own . If you look at, in the last few years, we have developed a real capability in learning, speech recognition, video, computer vision, and also for autonomous driving. We continue to acquire technologies in 3d object recognition. There are a number of companies we are looking at. Im also very excited to open our autonomous driving platform this week. Developerse have the to use this open platform, the developer applications and services. This is the first time any company has opened the technology, the platform. We really want to accelerate development and commercialization of autonomous driving. This is a really profound and significant this is really profound and significant. Caroline commercialization where do you fit in the commercialization of autonomous driving . Will you make your own Autonomous Vehicles . Will you be working with other Car Manufacturers . Who owns the data and reap the rewards . Thats a good question. We are looking at making sure we have the technology rights, have the right partners to make that commercially available. And softwaretform and hardware and data and the car services. We will develop and maintain the right type of algorithms, the models, and development tools, and also all the highdefinition mapping for the industry. As you mentioned about the platform, the open platform, we actually borrow the apollo. Landing many years ago. It requires eclectic wisdom and investment of many people and Many Companies to benefit. Will carmakers in the longterm want to see you keeping the data . Will you have to share it with them . Because the value is in that data . There will be a different kind of data. We have a tremendous capability in data collection, data analytics, machine learning. Those data, some of those will be shared. This is the whole industry. The data from users, data from mapping their pois. All this data. You have to respect the users privacy. Data is valuable, technology is valuable. But more important is to have an open platform that all the industry players can share and work upon. It is a highly competitive caroline will you beat the er to of waymo and ub producing these types of Autonomous Vehicles . The First Company to open our Technology Platform to the industry, and we hope this will speed up the development. We hope that others will follow us. It is highly competitive. A lot of companies are doing similar things. For us to open this, people actually can View Technology and innovation besides the data, the models, the algorithms we are developing the sharing with industry will be a leap forward. Caroline i want to move away from Autonomous Vehicles and into Artificial Intelligence, the wider part. This is a real area that baidu is pushing. Who was af andrew un, key leader behind that particular part of the business how damaging is that to baidu . How resolute are you and your commitment to ai in the valley . I love andrew and obviously andrew made a tremendous contribution to buy do baidu. We thank him for that and we wish him the best in his next endeavor. Has a said that, baidu lot of talent, technology leaders, Business Leaders in Artificial Intelligence. We have a large group of people working on my machine learning. In gauging and in Silicon Valley. Beijing and in Silicon Valley. We are continuing to look for talent. I was at Stanford University to give a recruiting talk, and i was very happy to see the packs of students who showed enthusiasm and interest in working for baidu, working on machine learning. It is very exciting. Believes this is the next era. Thats why we are developing an operating system for ai. We have applications we are making technologies that enable autonomous driving, and moving to a cloud for business applications. In the next few years, you will see products and services, from based on talent not only in china, but globally. Caroline its wonderful to have you with us. Thank you so much for your time, life from stanford live from stanford today. Has respondedcero to our story, saying they will offer customers a full refund within the next 30 days, even if they bought it as far back as a year ago when the product launched. This was after bloomberg reported wednesday that the packs of precut fruits and vegetables dont actually need to be placed in the juicer. They can be squeezed by hand. Who took over the position in november posted a response on medium arguing that, quote, the value of juicero is more than a glass of cold pressed juice. More. Verizon shares plunged after it lost 3007000 subscribers in the 0,7000 rter 30 307,000 subscribers in the first quarter. Find it at tv on the bloomberg. Dive into any of the securities our bloomberg features. This is bloomberg. Caroline verizoncaroline is one of the biggest decliners on the dow today after it said it 0 customers in the first quarter, the worst loss in more than a decade. Is a possible deal the only way to shake up the company and break this slump . Cory johnson joins us with more. Fascinating timing. We had the scoop from a colleague that perhaps verizon had been eyeing up some other potential competitors. Now the numbers indicate why they might be looking into this. Cory our colleague in new york hosted with a bunch of other editors an editorial appearance by the coo. Hes like, whenever i say is on the record, im a straight shooter. He answered the question and gave us that great scoop. You what hes thinking, including the expansive realms of his thought, including acquisitions. He also knew that this quarter was about to have these kinds of numbers, these big losses in subscribers. Caroline im looking at losses in subscribers. Pretty pitiful performance in terms of their share price. When we look at a particular chart, it shows you verizon december, white since 2009. Comcast, disney all outperformed. What have they got wrong . Cory the competitor environment has changed a lot. Its driven by tmobile, where the unlimited data plan has proven so successful with consumers. Verizon has operated on a model of lets own a lot of spectrum, be available everywhere, can you hear me now. The maturity of the Wireless Industry right now suggests there are other things bringing consumers. 307,000 customers in one quarter was substantial. Its less than 1 , less than 0. 5 of all their users. Nonetheless, quite disconcerting. Caroline im fascinated by the routes they are taking. Many have gone for content. Many making eyes at this area. Weve seen in france, orange, one of the big players there, saying they are going to unveil a bank, go down the thin tech fintech route. Has a history of trying some really interesting things. They have been doing that for a long time. We will see how long they stick with this bank plan. Verizon has already spent a fortune on content, buying aol, focused on having a content strategy. Finallydays when 5g arrives. That might be five years out. There are advertisers across all platforms. They see themselves more like a google in terms of the backend than just a phone carrier and a wireline carrier. If you think of the wireless model, it is still very much built on the Business Model of wireline. Block in subscribers, keep them as long as you can, derived those revenues. This is a very different model, but it has the potential for growth. They dont have that in the wireless business. Caroline what about internationally . China mobile came out with numbers as well today. Where are we seeing this where telecoms are a good bet . Cory this change in the Business Model where consumers are wanting to have these plans with unlimited data is a very recent change. Changed their mind about being steadfastly against that. This might be a temporary change, they are going along with the joneses, but it is really tmobile leading the charge. Caroline they continue to disrupt the market. Cory johnson, great analysis. He will be sticking with us for the next segment. Coming up, youre talking samsung pulling out all the stops ahead of the release of the s8. But our consumers showing any interest . But are consumers showing any interest . On friday, bloomberg. Urveillance, live joined by several guests. This is bloomberg. Caroline the ftc is cracking down on social media influence. It sent more than 90 letters to prominent insta graham users instagram users. It warned that common disclosure tactics such as putting sponsored are not sufficient. Onaxy s8 is coming out friday. There have been more than one million orders, a new record for samsungs home market. But will the demand be there in the u. S. . Growth in global shipment is expected to slow down. Here to discuss what consumers are thinking about the s8 ahead of its release, im joined by ben bajaran and cory johnson. I was reading online that there is a red hue to the screen being seen in korea. Is that a concern . How much are we pitting on the s8 given the debacle that was note 7 . On it. Eres a lot riding samsung has a reputation to repair. We did some research. We collaborated with survey mon key to do this quick study. The note 7 issues did not seem to be a barrier. Over 60 of consumers said that was not a deterrent for them to consider the s8. Among existing samsung owners, it was even higher. I dont think that is in the mind of the consumer, a loyal samsung owner, as big a deal as people made it out to be. I think the media is being a little more cautious than they were in years past and their review. They dont want to cory they dont want to say, we love this phone. Ben the reviews have been really good. I dont think people have been raving about the screen. You have all this great new screen size in a smaller phone, which i think people will appreciate. I dont think the note issues are as bad as people think, but i think samsung needs to ramp up their marketing to continue to increase demand against their base and new customers as well. Media cautious to get too excited about the galaxy s8. Cory i think its interesting. Google needs this to work, android needs this to work. The problems with the note 7 isnt just among android users. It happens at a time when we have seen the replacement, refresh cycle lengthening. People are replacing phones much more slowly. Samsung got a little bit of a pass because consumer dynamics are somewhat changed, but people with older samsung phones might not have updated as quickly as in years past. They got a chance to skip a cycle or half a cycle with one of their devices. They have a shot here to maintain their leadership in terms of sales. Caroline certainly, ahead of the game when it comes to the iphone 8. We were discussing with mark whatn, our gadgets guru, we are expecting from the iphone 8. A lot of it is similar to the s8. Another manufacturer has come out with curved screens. Ben we looked at what drivers are the things that consumers are mostly interested in. We tested things like bixby. That did not testify. Screen and camera were still the highest purchase drivers. This signals and overall design trend we will see. Beveled designs universally across all smartphone oems. That will start on the highend and trickledown. The value is for consumers who want as big a screen as possible in the smallest formfactor. For that reason, i think this the time design trend will continue. Caroline how important is this for samsungs bottom line . Is korea getting excited about it . When do we start to know whether this product is doing well . Cory we will know pretty quickly. Its important for so many of the suppliers. They are supplying this. We will see those kinds of results before we even see results from samsung because of the preorders. We will start to see those stocks we will get a sense when we see their quarter reports for the quarter underway currently. Caroline its interesting, the curved screen and the demand for that. It wins out by everyone copying it. Ben the supplier where weomm as well, are seeing tensions start to rise between apple and qualcomm, qualcomm gets benefit from vendors who sell at high it benefits qualcomm to have a win here, especially if they lose apple business Going Forward. One thing included in the study, who is looking to upgrade over the next three months to six months. 36 of consumers who plan to upgrade were very interested in the s8. I think that bodes well. Caroline will they hold out for the iphone 8 . Most of those people were existing android customers. Iphone is a very loyal bunch. Cory when people leave android or samsung and go to apple, they stay with apple. The retention rate is very high when it comes to apple. Wants this phone to be successful. Qualcomm is going to win in the competitors phones as well. They will always benefit from whoever wins. Caroline what do we expect in terms of Going Forward . Do you think the samsung s8 will meet expectations . . Ben we watch what happens over the first 60 days. You can compare that to how did it do in prior years. My expectation is that, i do think consumers will really appreciate the design trend that they are changing too, so i think we will see a bigger bump, but i think we have seen similar lines in previous years. Caroline thank you very much, ben bajarin and cory johnson. Thats it for now from Bloomberg Technology. From our studios in new york city, this is charlie rose. Charlie Elizabeth Warren is here. She is a senior senator from massachusetts, a former Harvard Law School professor. A champion of workingclass families and the middle class. She was rebuked by the senate for quoting Coretta Scott king. Here is a clip from cbs sunday morning. Republicans voted to silence warren for pugning the character of alabama senator jeff sessions. She was warned. She was given