Potential administration amounted to treason. Global news 24 hours a day powered by 2400 journalists in more than 150 news bureaus from around the world. Bloomberg west is next. Emily coming up, legendary investor and entrepreneur peter thiel speaking out about everything from Marissa Mayers to the bubble that maybe everywhere. Plus, Mark Zuckerberg lays out an audacious 10 year plan involving bots, drones, and Virtual Reality. It may be the most exciting business at square and is also risky. About lending to Small Businesses and her time at yahoo . My exclusive interview with peter thiel. We spoke earlier today at the 2016 conference and had a farreaching conversation. He spoke about everything from Marissa Mayer to his fear of china. Women in tech and the bubble that might be everywhere. How he really feels about college education. Peter the court thing has been focused heavily on Silicon Valley. Shouldwondering if we try to look at some places outside Silicon Valley. Yet a travel a crazy amount to do that which is why most Venture Capitalists dont want to do it. Thingswe be doing more in other places . Is there a point where the cost of living get so prohibitive that it actually makes sense to look at things outside . Or are the effects just so powerful that they dominate everything . The last few years, the effect has dominated. That is a question we are looking at. I do thinky that two thirds or three quarters will be next generation , i. T. , consumer internet. The enterprise software, all these kinds of categories. And we will continue to try to do things in all of these noni. T. Areas. There are very big challenge is investing in those areas. They tend to be fairly contrarian and fairly underexplored. Emily you just tired your first woman partner. What is your take on the continued lack of women on the Venture Capital industry . Why arent there more . And what is the industrys responsibility . We all have a responsibility to do more. We have two women in senior roles, but we all need to be doing more. I think that the context of this debate comes up. The disparities are really big. You had these really glaring disparities and something about tech that matters a lot. Its not like a huge disparity in chess players or math professors. I think its always in this broader context. People tell me that Silicon Valley focuses on this too much and i tell them its because Silicon Valley matters so much in the disparities are really big. Was looking at the unicorn list of 150 startups. Them estimate, only two of out of 150 had women cofounders. Very importantas to Silicon Valley and is excepting bids to buy all or part of the company. You said yahoo is not a tech company anymore. What is the most plausible scenario . Peter it is still a very big Media Company. I think marissa has done a terrific job there. Its just been incredibly hard company. Probably the best one theyve ever had. Jerry was very good. And then marissa was far and away the best of all of the other people. I think its in the context of how good marissa was. Even marissa cant quite get this restarted. You already have the best person you can get, then the logic is that if its not working, look at other possibilities. Its a very difficult space where there is always this old media, new media dynamic that is quite tricky. In the old media, you want to be in a place thats really old. Doing radio, billboard advertising, or things so far away from new media that there is no competition at all. The parts that are most challenging are the ones that to newatively close media. Newspapers and magazines felt similar to what you could read on the internet. And you who was a new Media Company in the 90s and is more of an old Media Company. Still quite close to new media which is the most challenging place to be. In to ther five years tail fellows program. Youre giving the commencement speech at Hamilton College this year. What are you going to say to those graduates . How have your views on education involved . Peter i have to be careful what i say. I never said there is a onesizefitsall approach. People mischaracterize my view that everyone should drop out of college and start a company. I dont think everybody should be starting companies. Lead more people to start good companies. The super track dynamics have gotten us to a educationlace where has become a substitute for thinking about the future. And the k12 system is geared towards college. Ive doesnt and in college. Hopefully you work for a long time after that. Way. Here is a strange we live in a society where there is a lot of anxiety about the future. And we have education to deal with the anxiety. If you get into the right college, you will be saved. If you dont, you are in trouble. Corrupt as the Catholic Church was 500 years ago. Charging people with a system of indulgences. And then you basically tell people that if you get a diploma, you are saved. Otherwise you go to hell. You go to yeah lori go to jail. [laughter] on thisto push back idea that the only way you get church 500 years ago or today, the only way is by getting a diploma from college. , there wille future be many kinds of productive things for people to do. Is not to start a new church. Its not to have an alternate onesizefitsall thing. I think the future system will be much more heterogenous. Many more ways for people to be successful. He also spoke about the candidates. He said if he was involved in politics he would and i quote, blow his brains out. Alibaba with a deal to buy deal is on a group, the amazon of indonesia. It gives them access to six Southeast Asian markets. They focus on selling close in electronics. The british Supermarket Chain and the swedish investment group. The move is seen as part of the strategy to reduce reliance on the chinese markets. s big bet network might be antisocial. Why we would all be texting robots in the future. Russian billionaire, famous physicist, and the founder of Facebook Team up on a mission to find life in our region of outer space. It is not science fiction, folks. Details later this hour. Emily the chinese internet giant baidu is seeking a 1 billion loan. It was to borrow from a group of lenders. To syndicatetarted a loan of 4 billion last month. Both have enjoyed a rush of interest from the state owned enterprises for fear of default risks. At developer raising about 200 million, valuing the company at more than 3 billion. It makes apps for editing selfies and accounts for millions of monthly active users and is getting into facial Recognition Technology and smartphones. They are planning an overseas ipo as soon as this year. The companys annual Developers Conference is underway this week. Mark zuckerberg laid out a 10 that included drones, bots, and even a jab at donald trump. Mark zuckerberg we can give more people a voice. Instead of building walls, we can help people build bridges. People,ead of dividing we can help bring people together. Announcement was the highly anticipated messenger platform. Software that will enable businesses to use Artificial Intelligence to chat with Customers Using humanlike responses. Cory johnson caught up with the Vice President of messaging products for more. We have Weather Forecast bots that are different. Is it going to rain today . If you find the right bought at the right time, you can interact with buttons. If the developer once to make it available, its a really rich interface. Its an important distinction that most other people have not managed to build. It is a rich experience that comes to life because you can use the ui. You are supplying the tools by which developers will create businesses. Services that will run within messenger. If you look at what we have added in the last 12 months, we can tailor an uber or lyft straight from messenger. The ability to get news and interact with businesses and shops. All of those interactions you over the web or over the phone, it is a much easier and better way. Today, on stage, i announced the launch of the personal shopping assistant which is basically a bot that will make recommendations and you can swipe through the recommendations it makes for you. Isy all youre doing messaging. There is no one else bothering you . It is important that it that way but it is convenient you can tap on a bubble and you dont remember your username or password. A user number is usually gibberish. You can go tap on the bubble and be on with your life. As long as we keep a very high signal and high utility and make the lives of 900 Million People easier every day, it is all good. Cory what is the ultimate revenue driver. I have not heard the Cash Register yet. Today, there is no revenue. We want to build experiences that people love every day and we will build monetization on other platforms. Ecosystem,ok at the we have 15 million businesses active. And on the other side, 900 Million People using messenger and they send over one billion messages a month. There is already a lot of great organic interaction happening and making it easier for developers to add value. The head of messenger with our editor at large. We will continue the conversation with the head. Down as f8 continues. More on bloomberg west, next. Emily a story we are watching, doma working with credit squeeze to prepare for an ipo. They said the company would sell shares by the end of 2015 but they put the plans on hold due to u. S. Stock volatility. Competes with Companies Like tableau and good data. To the facebook Developers Conference, we heard from the head of messaging about their big bet on chatterbox. And ceo Mark Zuckerberg emphasized other focuses. Virtual reality and getting the next billion people online. Joining me to discuss is Angel Investor and ceo of operator, one of the Companies Working with messenger. And former evernote ceo. I want to start with you and this partnership. How will operator work within facebook . We have a live Product Available in november and we have a simplified version with that experience. We activate an experience that allows you to do in and to and shopping experience. Emily i need to get valentines day i need a gift for valentines day. At the menu ofg choices, type in things, and we provide recommendations. You just made one of your first investments. I think bots are going to be the next generation of technology that changes the world. Just like with apps, a lot of the early use cases are going to seem pretty trivial. That people think they are going to use bots for now probably wont have a big impact. Emily explain the technology. How do you refine the experience . This topic hasnt been brought up. Hear a lot of noise about bots and similar to the first wave of apps. When will we see a messaging first bought. And you start to see interesting innovations and derivative experiences. And we will have to sift through it and find something really powerful. Take a listen to what he said about Virtual Reality today. Workingkerberg we are with different dr platforms. I think Virtual Reality has the potential to be the most social platform because you feel like you are right there with another person. I recently got to try oculus and it is very early stage. What is the future of Virtual Reality beyond gaming . Over the next couple of years, it will be primarily about entertainment. Gaming and videos. But the real highquality experiences are the ones that are created entirely for vr. The first generations of things that exist outside and inside, they show you the potential but are not really fully fledged. Facebook announced a lot of brands like cnn and large retailers to educate the market about the potential of this media. It will take six months or longer for a very pure experience where you finally see something thats original. Emily Facebook Says they are not going to make cameras but they want us to shoot in 360 video. The prices will fall like everything else. Im not looking to shoot a lot of 360 video myself. But im looking forward to the first experiences. Apple fought live photos would be huge but it hasnt taken off. Take a step back about how they will have their next enormous franchise mvr is going to be where they take a lot of risk. The internet. Org situation that Mark Zuckerberg is continuing to invest. Is internet. Org paying off . I think it will pay off because it is starting the conversation about giving the whole world internet. It is going to succeed in the mission in the sense that almost will haven the planet that experience soon. It just may not be facebook. Should we be worried about facebook owning the internet . Think there will be a Single Company that dominates. Former ceo of evernote. Coming up, i sit down with the head of Square Capital talk about risk and wall street. Do she think the company should sell . Thats next. Mark i am mark crumpton. Lets begin with a check of your bloomberg first word news. Investigators visited the months firm used the musick Fonseca Law Firm today. Three suspects have been detained in connection with the terror attacks in paris. They allegedly rented an apartment that served as a hideout for the bomber who attack the brussels subway on march 22. Chinas foreign minister says the nation should stop hyping territorial disputes in asian the u. S. And other nations should stop hyping territorial disputes in asian waters. This came after concerns over the south china seas. Pat mcgrory has signed an executive order changing parts of the controversial law maintaining gender specific restrooms and access to government buildings and schools. He says he will file legislation that allows people to sue in state court over discrimination, something that had been eliminated by the law. Local news 24 hours a day powered by 2400 journalists in 100 50 news bureaus around the world. From bloomberg headquarters 150 news bureaus around the world. From bloomberg headquarters, im mark crumpton. Paul allen joins us with a look at the markets. Paul we are expecting games on the nikkei today after a much better session on wall street. New zealand has been opened just over 30 minutes and is performing strongly, better than 30 . In commodities overnight, including iron ore. For to skew for task you medals will be particularly in focus. We are expecting to see a used in revenue. 3. 2 percent slowing growth globally, but china was a bright spot. We will learn more about that later this morning with march trade figures do. We are expected to see the trade ,alance improved to 35 billion but look at exports. A Bloomberg Survey expecting to see them rise 10 , reversing 25 declines for the month of february. I am paul allen for bloomberg tv in sydney, australia. Emily with all the buzz around syntax, the conference is underway in san francisco. To thehe chance to speak woman spearheading Square Capital. I started by asking how she manages to mitigate risk while scaling up. Risk is critical. We Pay Attention to it every day. There are risks we see and manage. First, credit risk. We use Machine Learning models in order to underwrite our merchants so that we can provide them one, with alone in the first place, and make sure they are in a position a loan in the first place and make sure they are in a position where they have the capital. Depending on how seasonal their sales are, we are able to offer the right sized loan to a merchant. The overall sales goal for us is to help merchants grow. It is important to us from an overall credit point of view that it is the right loan to the right merchant. The second risk we see is market risk. That is really on the investor side. Obviouslyket site, we are part of wall street. We sell our loans to investors. We take a small portion of those loans on our Balance Sheet. We are not a Balance Sheet heavy business. We are very thoughtful about what amount of loans should be sitting on our Balance Sheet relative to what we sell to investors externally. Club shares are down more than 50 over the last year. They say wall street does not understand their business. Does wall street understand squares business . We are only recently a Public Company and we just had our first quarterly earnings. I cannot say whether wall street understands us or not. I think the thing we can spend most time on is building a Good Business and serving our merchants. A new industry, particularly on the lending side, and there is an appreciation and understanding of models that work and dont work this business. I think there will be a bifurcation as we come through the credit environment of Business Models that have stood the test of time over the last cycle and are evolving and our strong Business Models. Square capital is a relatively small part of squares overall business. Overall business. How big a business does this squares overall business. How big a business does this