Russian election meddling. Global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. From washington im alisa , parenti. This is bloomberg. Bloomberg technology is next. Emily im emily chang. This is Bloomberg Technology. Coming up, the u. S. Officially takes a step back from the global effort to save the planet. Our deep dive on President Trumps decision to withdraw from the 2015 landmark paris accord that helped and how the Tech Industry is responding. Plus, a new smartphone to challenge apple and samsung seizes the spotlight. We will hear from the company about why this socalled antiiphone is a musthave product. The internet of things to come. Chinese giant baidu partners with Automotive Industry heavyweights. Has announcedp United States will be withdrawing from the paris climate pact and that he will seek to renegotiate the International Agreement in a way that treats American Workers better. President trump im willing to immediately work with Democratic Leaders to either negotiate our way back into paris under the terms that are fair to the United States and its workers or to negotiate a new deal that protects our country and its taxpayers. Emily our environment and Energy Reporter for Bloomberg News joins us now from our washington bureau. First of all, walk us through the import of this moment. It is hugely significant. The u. S. Basically brought other nations to the table under president obama in trying to create this accord two years ago. The u. S. Played a leadership role in bringing it together, and there is a real question here of whether trumps decision to withdraw from the accord over the next 3 1 2 years will encourage other countries to follow suit and leave. So far, that doesnt seem to be the case. It might actually be emboldening other countries to step up and do more. Emily when he says he wants to renegotiate, when does that process start . Jen its really unclear. Theres no real formal mechanism for renegotiating this deal. If you are looking at the construct of the paris agreement, individual countries made individual pledges that they could change at any time, generally, with an idea that they would go stronger, that they would get stronger over time. But there is no formal mechanism to come back to the table and force other countries to reup their commitments, to strengthen their pledges. There is the possibility of separate action on Greenhouse Gas emissions outside of the paris agreement, but weve seen already indications that other countries are pushing back against this idea that there could be any kind of substantive negotiation. Hy,ly bloombergs jen dloug thanks for joining us with the latest from washington. The Tech Industry has already begun to respond to trumps announcement. Teslas elon musk announcing his departure from the president s council in a tweet. Climate change is real. Leaving paris is not good for america or the world. We also got statements from microsofts chief legal officer, meg whitman, and marc benioff, who said, deeply disappointed by the presents decision to withdraw from the president s decision to withdraw. Apple didgoogle, and sign a letter in may asking trump to stay in the paris climate agreement. We know tim cook called the president to urge him to remain. Joining us now to discuss, colleen regan, and our guest host for the hour, tech economy techonomy ceo David Kirkpatrick. What does it mean for technology and Business Leaders who may not have voted for the president , but were prepared to work with him, to desert him now . David i think theyve already deserted the president on most substantive issues. Its not like they are deserting him now. The gap between President Trump and Silicon Valley is a grand canyon at this point. More interesting to me is how committed business has become, not just Silicon Valley, but most big businesses towards Climate Change remediation. The issue of whether Climate Change is happening or not is not controversial among most Business Leaders. It is accepted. The a lot of progress is still going to be possible, even without the u. S. In the paris agreement, despite the fact that everyone agrees it is a stupid thing to pull us out. F lets talk about emily lets talk about this, colleen. How are businesses going to respond in action . Great question weve seen some action coming out of Silicon Valley from these Tech Companies. If you look at whats called the in defense ofher the Clean Power Plan earlier in 2016. Weve seen them since repeat the Climate Change that Climate Change is one of the most significant issues facing our generation globally. They are putting action behind these words. They said all four of these companies, which represent 2. 5 trillion of market cap have set 100 Renewable Energy goals. On record asut saying that they are going to hit the target in 2017. We saw amazon be the number one procure of clean energyr in 2016 in the United States. Apple is even signing deals for wind farms in china in order to get clean energy for their suppliers. Very much behind this and its not just words. They are really taking action. Emily china has reiterated their support for the paris agreement. I want to take a look at the bloomberg. We have a map of the solar plants across the country. Green shows plants already in operation. Yellow shows plants that are planned. How does this map change in five years as a result of this, or does it . Colleen thats a great question. In some ways, you would expect to see the green up here even more heavily in those states in which solar is already very concentrated. Its important to talk about whats going on on the federal level, but its equally important in the u. S. To be thinking about whats happening on the state level, too. Just yesterday, the California Senate passed a bill to get 100 Renewable Energy by 2045. That still needs to make its way through the assembly, but there is activity going on at state level that will continue to drive wind and solar build. At the same time, weve seen costs fall dramatically, which means its becoming more economic to install solar in more areas of the country. From 2008 to 2016, we saw the coast cost of part of the panel fall by 90 . This is helping more states to actually invest in solar as well. Isly david, President Trump saying he is trying to protect american jobs. There are concerns about jobs in cleantech, jobs in new energy. Are we seeing this potential big Market Opportunity are we seeding this potential big Market Opportunity to other countries like china are we ceding this potential big Market Opportunity to other countries like china . David there is a massive longterm Business Opportunity in remediating Climate Change. If you think about what world war ii did or what wars due to motivate the company or country to really gather all its energies together and make rapid progress or look at what the depression did to create the w pa and all the infrastructure we created facing a crisis can be one of the most motivating things in the economy, and its happening in china right now. They are really aggressively moving forward on Remediation Technologies across the board with solar being a leading example. Quickly quick to point to Something Else relevant. In most states where they operate, the Tech Companies are the number one power consumers. Cloud centers are such a gigantic consumer of power. There was an article not long ago. The coalest virginia, state, the utility there is now shutting down coal plants and putting in more renewables, partly because microsoft and other companies are their biggest customers. And they are saying, we want renewable power. Emily this story is quickly developing. David, thats a very good point. You are sticking with me, David Kirkpatrick. Colleen regan. We will continue to follow headlines as we have them. Story, blueloping apron has filed for an ipo. The Meal Delivery service will be listed on the New York Stock Exchange under the ticker aprn. It reported a loss the First Quarter of the year. We will have more on this story later this hour. Coming up, the mastermind behind android has unveiled his latest creation, but is there room in the market for yet another smartphone . We will catch up with niccolo de masi next. This is bloomberg. Emily andy rubin is back and betting on a new smart phone. Earlier this week, the creator of android unveiled a new product from his new company, calling it the essential phone, and it will have some serious competition since the market has been dominated by apple and samsung for so many years. He says his company and products have the it factor and that appeals to the masses. Joining us is niccolo de masi. I need a little more than the it factor. What makes you think you can take on apple and samsung in a market where growth is slowing . Premium materials, craftsmanship, and passion is what we are bringing back to this space. Emily you dont think apple has that . I think there has been a little bit of incrementalism in the last few years. I think theres been a little bit of boredom setting in. Your grandparents have the same devices as your grandkids. We have a very distinctive device, obviously. Its got the first ceramic titanium and closer here we have the biggest screen and the titanium ceramic enclosure. We have the biggest screen. What i think will happen with our device is its going to evolve with you. Its going to allow you to make your phone meaningfully more powerful overtime over time. We will focus on only what is significant innovation and only significant accessories. This device, for example, we are selling for 49. 99. It will not only democratize 360 video access, but it is something you can affordably bring with you at all times and capture any important moment, whether it is a sporting event, musical event, your kids first steps. Emily lets start with the hardware. What are some custom components of the phone . Enclosurets materials. We are the only premium product using premium materials. We are not marking up our Building Materials by a factor of three. We think we need to be a pro Consumer Brand that offers are materials and our phone and all our devices at a great value proposition. Our full display is the first rounded screen. We have a camera notched through the middle of it. You can think about what we are doing in the long term of this device by looking at the back. We are using a fingerprint sensor on the back. We have an internal camera that has a black and white fusion color system. Our next device will actually swallow all the edges up. We are almost double beve lless at the moment because of the titanium. Frankly, its distinctive. We are bringing back the cool factor. Emily what sort of koffler software customizations are there on top of the androidbased . Base . Andys operating system has been around for a while. City 5 of the market. We think we know how to take better advantage of it 85 of the market. We think we know how to take better advantage of it. Emily will thirdparty accessory makers be able to make things for the connector on the back . Niccolo we are big on open ecosystems. There will be Developer Network around that. We will have no free loaded free minimum fre load loaded apps. We will turn the back into the real stand word standard. Emily the home operating system you are also putting out the idea is to be connected for the home. The connected home has yet to take off. When will it . What do we need to get there . Niccolo andy and i believe that the home is at about the stage of derailment the phone was in of developing the phone was in 2004. We are intent on building out that horizontal play. In developed nations, its going to take the better part of a decade for us to go from single, just digital appliances is what people have in the home. We are try to build the first device to help you choreograph your home, automate, connect it all together, and were doing that without being another walled garden. Emily you think android is just fine. Will you ever build your own phone os . Niccolo in the short run, we think there is a lot we can do to add premium hardware to a great operating system. We feel no one has ever done full justice to the android operating system with the hardware. We are a hardware business when it comes to the phone with things like our 360 camera. We are a Software Hardware. On the phone Software Hardware full stack on the phone. Emily apple is working on a full speaker to take on amazon alexa and google home. Niccolo we are like the phone market in 2004 and 2005 when we were just watching the service of capabilities. There will be a lot of change. We are passionate on believing that in the long run Consumers Want stuff to work. We dont think the winning model is going to be, you have to use all my stuff for it to play well together. We want to provide a horizontal layer that enables you to pick whatever you want for your speakers, your stereo system, your tv, your lights, your front door locks, your baby monitor. Its a much longer tail than a mobile device market. A lot of sentimental value still to come. Emily thanks for stopping by and breaking it all down. Niccolo de masi, essential resident and coo. Great to have you back. Coming up, box is standing out in the crowded cloud space and generating cash. We will hear from Ceo Aaron Levie about the companys latest Earnings Report and what they plan to tackle next. This is bloomberg. Emily it was a banner quarter for box. Positive Earnings Results helped push the stock to a 52week i. High. Investors were particularly pleased the company maintained its goal of being cash flow positive, a big challenge for a tech firm looking to grow. Box Ceo Aaron Levie about the results and the companys partnerships with amazon, google, and facebook, and how important they are to the company. Aaron we have to make sure we are plugged into the different applications our customers are using. If you are using facebook for the enterprise, we want to make sure the content can be served up securely within that environment. If youre using ibms workflow technology, we want to plug into that software very seamlessly as well. If you are using slack for communication on teams, we want to make sure box can be the Backend System for that content. Getspplication that created or used in the enterprise, we want to ensure that we have a deep integration to power the content management and underlying Data Management within that app for our customers. Partnering is fundamental to our strategy. You have seen some pretty expensive partnerships expansive partnerships. Emily how does being cash flow positive impact the business . Aaron this is one of the biggest concerns or questions wall street had when we were going public. We were growing very quickly but burning a lot of cash. The big question was what was business going to look like at scale and was there going to be a convergence point. We told the market that q4 of fy 17, january that we just came through, we would be cash flow positive in that quarter, and we did achieve that. That was what we guided wall street to. For the full year, for fiscal year 2018, the year we are in right now, we also guided that we will be fullyear cash flow positive on a fullyear basis. We dont have to raise outside capital anymore. Over 200 million in the bank. Thats really positive. As we are growing still pretty rapidly with 30 growth on the top line, we are generating a very healthy core Business Model and we have very strong and healthy economics at the foundation of the business, which obviously is incredibly important to just running our company, but equally important to wall streets understanding of what we are building. Emily you have been critical of President Trump. When he was a candidate last summer, you signed a letter saying he would be a disaster for innovation. Box shares are up 30 . Has trump been a disaster for innovation that you expected him to be . i would separate our Business Performance from some of the policies that have been enacted. As it relates to Tech Innovation and the innovation economy, we really havent got much of a clear message from this new administration about what they believe are going to be the defining factors over the next decade and coming decades to really truly driving a high innovation economy. That would range from things like high skilled immigration, stem education, digital policy issues, like encryption reform, patent reform.