By President Trump in his cabinet. The Trump Administration has not released a report. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im alisa parenti. This is bloomberg. Bloomberg technology, is next. Emily im emily chang. This is bloomberg technology. Coming up, disney pulls the plug on netflix and unveils plans in the pipeline to roll out films on its own streaming service. Joins us to discuss todays Earnings Report and the way forward. Plus, a potential lawsuit, and even a wikileaks job offer are part of the fallout after google fire in the engineer who wrote that controversial diversity memo. We have all the angles covered on this developing story. Lending club could be shaking off its losing streak. The ceo joins us to discuss the online borrowers improving fortunes and a near record Earnings Report. Lead. To the President Trump ratcheting up the war of words with north korea after reports in washington that north korea had successfully developed a miniaturized Nuclear Warhead that could fit on its missiles. The president spoke to reporters in new jersey. Trump north korea best not make any more threats to the united states. They will be met with fire and fury. Like the world has never seen. Threateningvery beyond a normal state. Emily the president s comments also come days after the Un Security Council targeted sanctions on north korea. Joining us from washington, rob levinsohn , Senior Defense analyst for bloomberg government. What do you make of these comments . Very serious comments from President Trump, and the impact they might have a north korea. Reporter yes, they are very serious. We are matching the north korean one forc, sort of one. The worry is that we really dont understand how the north koreans interpret things like this. This can only probably escalate tensions between the countries. Emily with potential testing going on right now, what does that mean . Reporter unfortunately for the united states, theres not a lot of great options here. We really dont want them to continue testing these results and missiles and threatening the united states, but our options are basically negotiate, engage in some sort of military operation which could escalate into a fullscale war, or learn to live with a north Korean Nuclear capability that can range to the u. S. None of those are palatable options. Im sure the president and National Security staff are going through that trying to figure out what to do. As secretary of state Rex Tillerson is traveling throughout southeast asia. He made comments about north korea. What more are we expecting from other parts of the administration . Reporter i think secretary tillerson is going to continue trying to build support among allies. We had a strong action from the u. N. It was a unanimous vote in the security council. As the president said from the beginning, the key here is china. I would be interested to watch what statements come out of or rather from beijing, with the latest revelation about the miniature nuclear weapon. Emily we will be watching news out of beijing. So levinson, thank you much for that update. Lets move on to earnings, which continue to roll through. One media giant and two Online Travel firms reporting after the close. The disney ship sales are getting, but the big story is it is cutting ties with netflix and launching its own direct to consumer streaming service. We are joined by cory johnson, and with us from london, caroline hyde. No more netflix. What does this mean . Cory i think this is a big deal and we need more clarification from disney. Lets remember that when netflix contract, it was a hit. They had to change their Business Model and go with a lot more original content. The markets were more forgiving. But netflix became a very different business. Netflix has still had some of those great big hits. The biggest movies out there, they were saying, we will have the avengers. We will have our own partnership with disney with daredevil, and plannings, for a movie that they would hope would rival the avengers. Now its up in the air. I would be curious to see what disney has to say about it. Looked, a little defensive, saying we will still do business with our former andner, but doing business having their best movies and content on the platform are two different things. Looking at headlines now. Netflix says they continue to do business with disney on many fronts. Bob iger on the call right now saying that is and pixar will not be on other web services, that disney is already working on new films and shows. Does a new streaming service from disney look like . Cory they have tried this kind of thing before. Weve seen other companies try to do this while garden approach. They see the power netflix has. Lets not forget their competitor in amazon, which is rapidly growing and spending billions a year. Netflix is spending double the amazon is. They see the power in the marketplace. There is a fear that disney will lose what theyve got. Disney, more than any other content Company Going back in terms of film and broadcaster, has kept a Walled Garden and limited how they would distribute things, going all the way back to the days of the hs when they wouldnt put their stuff out as much. The only Similar Company was lucasfilm, the same with star wars. They think they have the power to do it all on their own, but we shall see. Emily we got a big headline would be about espn. There are concerns about subscriber losses. How is that going . Cory the real headline out of the earnings werent so much about whats going on at espn. The change didnt happen a lot in the percentage of revenues. Even in the percentage of the profits of the company, still pretty solid. Is veryance on espn vague. Very big. E furthermore, when you look at profitability, the profits from espn, it is very profitable product. I thought it was interesting , it made upmepark for the increase in profitability from theme parks. It was the anniversary of the opening of Shanghai Disney. The cost of the opening went away, which meant more profits. They also had a really strong showing in europe. The french disneyland did so well a steer. They had a special event. Emily Shanghai Disney welcomed its 10 million guest this quarter. Im curious whether they can keep up the momentum. Caroline, you want to get priced lines. The biggest travel agency in the world. The company has been very inquisitive. They are ramping up advertising. What do you see . About theit was all Third Quarter forecasts. This is a behemoth in the traveling online sector. If they went hundred billion dollars evaluation valuation it is a 100 billion valuation. Earningspershare forecast came in below expectations. Its all about trying to fend off the competition from the likes of airbnb. This is why you are looking priceline suddenly put on shortterm rentals. Google has also been eating their lunch in terms of finding out price comparisons on holidays. The hotel and Airline Industry get into wanting to the market and get people to go directly to their own websites. Competition is becoming fierce. That is why we saw a quarter with a 25 uptick in the amount of spending of advertising. Priceline has been an analysts favorite. We will have to see is that changes. Caroline hyde in london, our editor atlarge cory johnson in new york do not miss. Disney ceo bob iger joining us later this hour with david westin. Is set to plan on unloading its subprime car leasing program. Whollyowneding, a subsidiary, shall be consolidated into a smaller unit. Ithin uber the 40,000 car fleet has an estimated loss of 9,000 per vehicle. The board decided to wind down the program last month after realizing the costs were much higher than originally thought. Coming up, the manifesto that has created an uproar in silicon valley. What happened to the engineer who wrote a memo criticizing googles diversity efforts, and why the story is far from over. This is bloomberg. Has fired the man a engineer who was at the center of an uproar in silicon valley. This, after he authored an internal 10 page memo asserting there are biological causes behind gender inequality in the tech industry. The author of the memo, says hes exploring all possible remedies. A decision by google has caused an uproar among social media. Critics say it is censorship and encourages employees to file complaints. Said to stopn teaching girls that the path to freedom lies in complaining to hr. Joining me is ellen huet, who has been reporting on this. Says, i teach my daughter is they dont have to accept misogyny. Aere has been a better backlash. How would you describe the firestorm . Reporter i would say there are two major camps. People who say that the memo was not it was just hurtful, offensive, did not belong at google, and he should have been fired. And people who seek google firing him for speaking up about saying that conservative viewpoints are not accepted, proving a point saying that he brought up these points that were not widely wellreceived and was fired for it. I think it was already a contentious matter over the weekend, and the decision to fire him meeting hotter. Emily what do we know about how google came to the conclusion he should be fired . The memo was out there internally for a few days. Reporter it took several days. And in the end, they decided the code of conduct, that his memo violated the code of conduct. Over the weekend i gave a statement that was a little more equivocal they said that they want. It could be a place where people can bring up alternate viewpoints, but also want to make sure people are not being harassed, and keep in mind antidiscrimination laws. In the end, the ceo said it violated the antidiscrimination law. Emily the ceo of google says it advanced harmful gender stereotypes in the workplace. That said, this engineer says he is pursuing legal action. Does he have a case . Reporter its debatable. Legal experts say its a hard. Ase to make are far shot cases that might work, but he says hes pursuing are looking into all legal options. He also filed a case with the nlrb against google on monday. Have spoken he may to hr last week about other issues. It seems like hes been making moves to try to lay groundwork for maybe some legal case. Emily one of the points we have not discussed is that the peerreviewed process at google is huge. A huge part of their culture. You review your peers. How did google move on from this internally . What kind of discussions are had . Reporter i think that. Youth systemreporter came up when employees were saying, this is why i cant continue to work at google if you still here. Is a cooperative workplace, and you work with peers, which determines your promotions. It is hard to separate an engineer who had become an internal pariah from the system, and many people felt if he continued to work at google, it would be a major reason they would quit. Emily google is also facing a lawsuit that is systematically discriminates against women based on pay. What is the status of that . Reporter our understanding is it is still ongoing. There have been minor wins or losses on either side, but it is still the department of labor trying to get google to give them more information about how they determine pay internally. Google says theres no gender pay gap and theyve done to own internal analyses. Theyre still disagreement on whether its true. Emily i know the discussion will continue. Thank you so much for that update. Globalup, there is a power war brewing for engineers with ai skills. We talked to a man looking to fill those vacancies. This is bloomberg. Emily chinese ridesharing giant didi is expanding again. They are investing in a ride hailing platform that operates in the middle east, north africa, and pakistan. This comes a week after didi made its first major push into europe by backing estonia has taxify. Currently operate in 80 cities across 13 countries. The use of Artificial Intelligence continues to grow daily, from the products we use and i come to the jobs it is creating. In 2016,study says investments in ai were between billion. On to 39 another study says that just in the u. S. , there are more than 10,000 job openings in the field. To fill thoseking jobs is here. Today he published his vision for a series of online courses designed to help people become ai experts. Great to have you on the show. Tough to us about how these courses work. Anyone that wants to break into a i can go ai can go into the site and sign up for a course. I think it has the power to transform, just like electricity did 100 years ago. I have a lot of engineer friends that want to break into ai. That knowledge has been hard to access. Anyone who wants to break into ai has more power. Emily there is confidence when it comes to Online Education courses, especially when it comes to technical skills. How do you stand out . Content. K it has great it really high quality. It is something that really lets theres not that many well curated causes out there. Emily theres a big shortage in ai talent. Tell us how serious it is. If you take seriously that ai is new electricity, think about how many electricians our society has hired. We can take advantage. With electric power, the house goes out, units it a lot. Ai powerede an society. Have aevery child to great education and health care in 10 years. The only way to get there is to build great ai. Emily you work that i do on the competition between the u. S. And china for ai talent. How serious is the competition . I think the u. S. China competition is a false dichotomy. The u. S. Lancelot from china. More and more, china learns from the u. S. The marketable do it, the better off we are. Emily but we are not sharing resources. There is a finite amount of people. I think the number of people that know ai is not finite. , itachine learning course has had 1. 8 Million People signing up. I hope that with these learning courses we can bring equally large numbers of people. Emily we had been talking about the lack of women in tech, more code. Learning how to but its not just about coding. Its about getting women into specialized fields. You see in overrepresentation of men in these fields as well . Cofounder in my house, and one a one male female. Emily what about the courses . I think the courses online do give equal access to all genders. I think so far, technical courses still tend to be more maledominated. I think its important work for all of us to do. This gender bias or gender unconscious bias, is something we should work on. Emily how important is it given that ai could be the new electricity, to have input from a diversity of perspectives . My advice to every woman and man, if you want a new job, this is a great time to jump into ai. Emily andrew ng, cofounder of very much. Hank you coming up, the latest Earnings Reports. How the peertopeer lender was able to turn the corner after the surprise ousting of the former ceo. If you like bloomberg news, check us out on the radio. Listen on the Bloomberg Radio app, bloomberg. Com, and on series them sirius xm. This is bloomberg. Mark im Mark Crumpton in new york. You are watching bloomberg technology. Lets begin with a check of your first word news. President is responding to north korea is warning when it announced on monday the u. S. Will pay dearly, for imposing new sanctions in retaliation for their weapon program. President trump north korea best not make any more threats to the united states. They will be met with fire and theory like theory like the world has never seen. He has been very threatening beyond a normal statement. Mark former u. S. Secretary of state john kerry is among thousands of observers in kenya today, as the country votes for its next president. The incumbent has an early lead against the challenger in a race said to be too close to call. Will remain president of south africa after a motion of noconfidence failed in today. Ent he had survived six previous attempts to unseat him, but todays was the first to be held by secret ballot. Foreign ministers from 40 nations met in peru today to decide on a response to venezuelas political crisis. Newident nicolas maduros and allpowerful Constitutional Assembly decreed itself to all other government institutions. Death tollay the from a powerful earthquake in southwestern china has risen to seven people. 88 others are reportedly injured, 21 seriously. Reports say it measured of magnitude 6. 5. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im Mark Crumpton. This is bloomberg. It is just after 5 30 p. M. Here seven 30 wednesday morning in sydney. Im joined by adam haigh with a look at the markets. Adam good morning. Trump rattling the u. S. Session, looks washed through to asia. We are looking at the nikkei 225 futures down around 0. 5 . That came through to australia and south korean markets as well. South korean markets taking a little bit of a tumble yesterday as rising tension north of the border, but also pmi is pretty weak, and the tax hikes are taking stocks. Down the aussie dollar Holding Around 75 . I bloombergs adam haigh in sydney for you. Emily this is bloomberg technology. Im emily chang. Onlineof peertopeer lender lending club are surging the most in two years. This comes after the Company Posted its second highest quarterly revenues in history monday in its history monday. 35 yearoveryear spike. The impreza report coming about about a year after the formal afterre ceo was ousted his lack of disclosure surrounding a personal investment. Knowng me is the lending lendingclub ceo. Long year. As been a talk about what the recovery has been like. Its been about investing in the foundation of the business and putting in the right controls, bringing investors back to the farm. A critical piece of that is banks. Many fundingthat much of the funding came from banks. Emily when it comes to the scandal, do you feel like the company is back . I think the results we delivered this quarter and what of havingked about investors back on