Transcripts For BLOOMBERG Bloomberg West 20160915 : vimarsan

BLOOMBERG Bloomberg West September 15, 2016

Mark you are watching bloomberg west. Lets begin with a check of first world news. Medical records have taken center stage. Doctors ruled both are fit to serve. Hillary clinton released details from her medical exam today including treatment for pneumonia. Republican nominee donald trump gave dr. Awes a summary of his recent physical. A pastor in flint, michigan reminded donald trump he was not there to deliver a political speech. He was abruptly cut off when he subway from discussing the water contamination crisis to criticizing hillary clinton. The u. S. And israel has signed a new defense deal giving the military 38 billion over 10 years, the largest agreement the u. S. Has ever had with any country. It calls for israel to spend the money on usmade military equipment. The u. S. Will lift sanctions against myanmar. Their de facto leader met with president obama in the oval office. Prosecutors will interview Julian Assange on october 17. He is wanted for questioning over an alleged rape. He has been holed up for four years. Bloomberg west is next. Emily this is bloomberg west. Ubers self driving cars are officially on the street. And twitch has made gaming a group activity. Why social eating, yes eating to be the next big thing. First, to our lead. Uber Driverless Cars officially hitting city streets. Customers can help a self driving car in pittsburgh complete with a human driver just in case. The companys goal is to one day do without those safety drivers in the front seat. They will one day go away without those drivers. It is seen like the first driverless fleet on the road. Max spent the day testing out the service. Here is his report. We are here in pittsburgh. I am opening the app. Here we go. There is this pinwheel thing. That is the most important sensor mapping the road. It is basically telling the car were to go. In all, there are dozens of these sensors. Seven lasers. Radar. We have these lovely safety drivers joining us. The idea is to get people to understand what it is like. Im going to press this green button that says lets ride. There is a weird psychedelic map showing all of the stuff going on around us. The driver is hovering with his hands over the wheel. Here we are. There are cars going by. You can see them on the screen. Im going to take the drivers seat and experience what it is like to be a safety driver. This is area. It feels like the car has a mind of its own. You are fighting the tendency to grab the wheel. I have done literally nothing. I am just sitting here enjoying the ride. Emily max reporting there. He is with us to tell us more about his experience. Was it mostly a smooth ride . Barry smith. Almost boring. There was one instance where a it was very smooth. Almost boring. There was one instance where a car pulled out a little bit and it expertly just edged around it. That was the most exciting thing. Emily tell us what neighborhoods will be in and when they win expand to other cities. Max here is what we know. dozens, maybe two dozen cars in pittsburgh. 14 when i was at the office on monday. A handful of neighborhoods. Mostly downtown pittsburgh though they are expanding. I do think we are going to see Driverless Cars and other cities. I dont think it would be a huge leap to imagine that. Emily are these drivers your typical freelance contractor drivers . Or are they experts behind the wheel . In large part experts. Uber has 500 engineers. It is called the atc. Many of them from carnegie mellon. These are people with a great deal of training. I was allowed to sit in the safety drivers seat. It was relatively in controlled conditions. There was an uber employee sitting next to me with his hand on this red button. You can present to get rid of the computer control if something were to happen. Do they own these cars right now . Do they intend to own all the cars in the fleet in the future . They bought them from a ford dealership. These are hacked ford fusions. They went to a confused ford dealer and purchased them. Longterm it is not entirely clear. Uber is being tightlipped. They dont entirely know. But the ceo told me was they see themselves as providing a driver. A human driver or a computer driver. That is the core of it. My sense is they would rather not own giant fleets of cars but they would be willing to if it comes to that. They just want to be providing rides at the lowest costs possible and they will figure it out from there. We did speak to the father of self driving cars. He went on to run google self driving car unit. Take a listen. I am excited about this. It is wise to have a safety guard behind the wheel but im longing to get rid of the safety driver. Who is it . When do those safety drivers go away . It is a series of questions. One of which is the regulatory russian, when did we decide we are ok with it . It is also technological. What uber has said to me, it is not there yet. While we were operating in these city streets, they were ready to take over. In the shorter term we may start seeing true Driverless Cars in narrow circumstances. Maybe on a specific piece of the highway. Very carefully mapped, there really very cordoned off. They are not there yet. They are very hard for Driverless Cars. So much happens in the city. Its very hard to predict. Computers just arent able to calculate what it is in real time, reacting quickly enough. Emily we will be closely following this. You will as well. Thank you so much for braving that first car on the road. We will have more later in the hour. That is next, a head. The chief who put facebook on watch. Accusations that she is unfairly targeting u. S. Companies. Apple shares soaring wednesday. We will dig into what is driving the move and whether the iphone seven is off to a better than usual start. This is bloomberg. Emily an update on iphone 7 preorders. Betterthanexpected demand for the latest smartphone while verizon sees a normal range. Tmobile and sprint said they were seeing record interest in the new phone. Shares rose wednesday, this is the first time they did not release Opening Weekend sales. And it is 14. 5 billion tax problem is back in the spotlight. Apple Sales International had apple Sales International employees, nod no premises and no real economic activity. It exists only unpaved for on paper. Therefore, there was no factual or economic justification to allocate almost all of the profits to the head office. Francine satergs down for a oneonone after those remarks and asked her to explain while the problem is specific to apples relationship with ireland and not irelands tax rate in general. In ireland, they have decided 12 at 5 . Others say 20, 22. That is completely on their own. What they cannot do is give selective advantages to specific companies. Because that of course tilts the Playing Field and makes it unfair competition. Emily joining us now is alex webb. Why are they debating this again and what happens now russian mark she is presenting it to the world. She then goes in front of european parliamentarians and says its going to be something for parliament to opposed to. What happens next . The next stage is the appeals process. Which could take a couple of years. They both plan to appeal against the decision. That will decide how much will be paid to the tax authorities. Emily folks in ireland are saying it is fair to be looking at unfair practices but not there to retroactively be changing tax practices. This is the thing that has a lot of tax lawyers wary about the whole thing now. All of a sudden they are not high and dry. They are going back a decade. It is raising questions about the willingness to invest in the region. Emily the apple case is just one of the commissioners many investigations. Amazon could face a similar ruling on its tax arrangement with luxembourg. They are under scrutiny for their dominance in search, consumer data. Google is fighting three antitrust rope. Antitrust probes. Take a listen. We have a number of google cases, three by now. You are welcome to be successful, we will applaud you all the way. If you start to miss use your dominant position to prevent others from having the same fight for success, then we get concerns. That is the example of the google case. May thing, while google is using is misusing its prominent position to promote itself to stay where they are and not to allow for others to compete with them in a fair way. What about uber. Looking at it with my colleague, transportation, on the one hand side it is great. On the other hand, there are issues comparing with traditional transportation, taxes. And if taxes are being paid. You are looking at the facebook merger. Our social platforms a concern . Our concern is only if competition is being closed. That is the important point. One of the things that the German Authority is looking at is in the gray zone between competition and privacy. Baseball, because they are so dominant, your football team, if you dont know when they are having their training, you go on facebook. Because they are so dominant, and a lot of places you dont know when your team is having their training sessions. That is a dominant position. Has this been used to minimize your rights when it comes to privacy. I think it will be interesting for everyone to follow and get the results of this inquiry because it is a gray zone. The germans are looking at it through both german eyes and european eyes. It will be valuable for everyone. You are expecting more cases. Data is one of the more important things. That is the new line of business. More traditional business going into data heavy ways of working. It goes into the car industry. It will be more data prone in the years to come. We will launch a public concentration. A Public Consultation about our merger trust holds in consultation in order to ask experts and peoples opinions if we got the right merger on board. Both knowledge and data is another kind of currency, and other asset, than just a turnover of a company. I think that is very, very important for us to be able to secure that there is competition, also pursed also post merger and some of the new industries. Francine one of the criticisms is you are targeting u. S. Companies. Will you target European Companies . We do our best to find the selective advantages where they are. Scheme thatat the year, to be illegal last half of those who had the benefits were actually european multinationals. So you find a both. Because we target no one because we have an obligation for equal treatment, no matter your nationality, your size, youre kind of ownership. You should compete on the merits. Emily that was market the sticker. That was margaret vestiger speaking to bloomberg. Still with me, alex webb, they did cover a lot of ground from apple to google. I want to focus on google specifically. They have multiple challenges facing them in europe and they are not particularly happy. Googles business is aggregating content. You look up a news story. It shows news results. You find a video or a song and it will give you those results. A lot of the way, a lot of song sneak into Google Youtube results and there arent any there is no Commission Paid to the artist. That as far as the European Commission is concerned is not fair. I am sure there are things where it says you cant find a song initially. And says, for rights reasons, it can be around a cant be on there. Then you look down to three pages and there it is. For the European Commission they are proposing a law which the problem would have to vote on. They will check whether there is content. They are saying this is unfeasible. Emily google has sent multiple executives to negotiate area eric schmidt has said it is difficult to work in europe. Explain the response to these accusations. Ultimately, what google does now is ramp up its lobbying efforts. It is essentially part of the European Union which is part of being mandarins. It advises to politicians who, with their regulatory proposals. These laws have to be approved by parliament. They can vote against it. That is their goal now. Google convinces them to vote against it. That is their goal now. Emily thank you for giving us that update and breaking down what margaret had to say. We will continue to follow all of these stories. The spotify ceo tweets out serious subscriber growth. Details next on bloomberg. Emily a story we are watching, spotify has topped 40 million paying customers. That is up from 30 million in march and double the number of rival apple. Most are using the free ad supported service. Salesforce says his company will hire its first chief diversity officer announcing he will redouble his fight against the laws he considers unfair to gay employees after lobbying against hundreds of laws considered hostile to lgbt residence. Take a listen to him explaining while he is pushing for equality. It is important to our employees. It has become an important part of who salesforce is. We believe equality is stretching across the planet. You can see how the world reacts where the best of all teams will go longer play in north carolina. Businesses will not shut up set up shop, like paypal come in north carolina. There is a broad indication for the Lgbt Community if you make these laws and create them, you will pay a price and you will get less investment. Youre going to get less basketball. Will we see any coordinated action against these discriminatory . You are seeing that. That is how we got indiana turned around. Mike pence sign that law into place. Almost every company came in and said we will not stand for this dissemination. Discrimination against our employees. Then it almost happened in georgia where the senate sent to the logical governor, but the governor pushed back when he saw how Many Companies stood against it. And now here we are, doing it again in north carolina. Im proud to see how the world has come up and said this is not a row. These laws are not going to be supported by the world. Emily salesforce ceo marc benioff. And broad stone. And brad stone. Coming up, Autonomous Cars disrupting the roadways in pittsburgh thanks to uber. I sat down with an Industry Leader whose company is looking to revolutionize the future of driving. This is bloomberg. England is bank of cast off the ring when it meets later today. Boj and the fomc hold their meetings next week. The arts for the rate hike seems slimming. Shares on a terror in tokyo shares on a tear in tokyo. Lawson says it has received a proposal but has not yet made a decision. Is recalling some of its 7 in shanghai. It is recalling 2. 5 million phones from other markets. Lets get the latest with the markets as japan and back online. Japan has been under pressure today. We are seeing a stronger yen, but also the rapport building up that the boj could move into negative Interest Rate territory when they meet next week. Seng is outside the region, up by 1. 5 . There have been losses in the energy sector. Of course, the crude sought the crude price continuing to 50 a barrel. Nigeria might up with their production as well. We saw less people looking fo for work. The has been an upset in jakarta and thailand, malaysia and singapore. Remember that china is closed today. Korea remaining closed for the remainder of the week. Hong kong will be closed tomorrow. Emily this is bloomberg west. I am emily chang. Turning to the Automotive Industry, uber has begun showcasing to the world its driverless fleet in pittsburgh. The ridehailing giant beat google, apple, and tesla to the punch, as each company races to eliminate human drivers. We caught up with another Industry Leader whose company is working on the forefront of electric car technology, nextev. Ceo padma warrior shared what she thought of the unveiling. Padmasree im a big believer in autonomous vehicles. I think it is the next big thing in mobility. I do feel in technology there is going to be a huge wave of innovation tt is fundamentally going to transform mobility. Selfdriving cars are in the center of this. Im a big believer in that model. It is still early to see how ride sharing involves. Who is going to manage the fleet . What will the Business Model be . Is uber going to own the vehicles, is ford going to own the vehicles . Who is going to actually own them . It is not clear to me. Ive been watching this space to see. But from the technology perspective, great move, very exciting. Emily so you drive a tesla for now, which is good for research purposes. What is your take on the autopilot feature . Padmasree im a big believer that autopilot is needed. It is safer than human beings driving. 90 of accidents are caused by human error. I think it is unfortunate that we have had a couple incidents with the tesla autopilot. The reason it is a bad thing is really it is creating a fear in consumers minds about the technology and that is never good. Having said that, with any new technology there is initially skepticism and fear. The more people get used to it and see that it is better when it guides you, it actually augments your own skills from that perspective. Im a big believer in the autopilot leading to full autonomy as the way to go. Emily elon musk they have released an update to the autopilot and elon said this would have saved one drivers life. There is a growing divide between folks like google who believe in fully Autonomous Cars now, and semiautonomous, which google says could be confusing. What is your position on this . Padmasree we are big believers in full autonomy and we are targeting full autonomy for the one we will launch. It is a matter of getting consumers over the chasm, if you will, getting them used to what it is like to be a fully Autonomous Car when a robot is driving you. It will take a while for all of us as users to get used to cars without steering and pedals. That is a ways away. We are getting increasingly more comfortable with the car taking over the driving function. The one thing we believe in which has been our focus is you have to be very clear when the car is driving vs. When you are expected to drive. There cannot be confusion. There is a lot to be said about how the ui is designed. When you are taking over as a driver, there cannot be confusion that you are relying on the machine. Hand on the steering, eyes on the road. When the machine is driving, it has to be whe

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