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tv   Bloomberg Go  Bloomberg  May 30, 2016 7:00am-10:01am EDT

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never go you are watching bloomberg television. let's get to first word news. futures contract fell by the most in two weeks after federal reserve chair janet yellen said friday that an interest rate increases likely in the coming months. japanese shares rose while the shanghai composite closed flat. treasury bills, notes, and bonds closed worldwide today. lowyen sank to a more month versus the dollar, and japanese saw the highest close in may after an aide to prime minister shinzo abe said a tax increase next year will probably be delayed.
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euro area economic confidence rose for the second straight months in may, beating estimates. the highest level in four months. boosted bywas strengthening consumer sentiment and improvements in the retail and construction sector. greece's gdp contracted by 4.5% since the prettiest quarter. economic data for the country shows that quarterly exports fell since the previous quarter. economic data showed -- markets are closed in the u.s. and the u.k. today for the and spring bank respectively. the dax is still higher, up .3%. the cac 40 is pretty much unchanged. there are some stocks we're watching driven by m&a news. bayer is gaining after "the
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sunday times" reported they may put forward a new improved offer for monsanto as early as this week. stocks one of the best reporting. let's switch of the board and see what is happening in fx markets. it is a delicate -- a day of dollar strength, poise for the biggest monthly jump since september 12 14 on janet yellen's comments. at the bond look markets because we saw treasury yields rise after janet yellen spoke. the 10 year rose two basis points per you can see the yields move higher in europe as well. finally, looking at commodity markets -- gold really has taken the brunt from the prospects of further rate hikes from the fed. gold is down for a nice day, its longest losing streak in a year.
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tt i -- wti and brent are below $53 -- wti and brent are below $50 a barrel. stay with bloomberg rate coming up next, it is bloomberg "studio 1.0." ♪ emily: he got his start as a journalist with a front row seat to steve jobs' inner circle. and wrote the seminal book on the early years at apple. then, michael moritz decided to try his luck in venture capital. he went on to become one of the most heralded investors in silicon valley history, joining the boards of google and yahoo!, then, a few years ago, took a step back for a rare health condition he has never revealed. joining me today on "studio 1.0," sir michael moritz, chairman of sequoia capital and co-author of the new book "leading." sir michael, thank you so much
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for joining us. sir michael: it is a pleasure. emily: you wrote this book with another sir, sir alex ferguson, the legendary former manager of manchester united. he is one of the revered names in football, or as we call it, soccer. what drew you to this project as a journalist turned tech investor? sir michael: i always followed united. not as a raving fan. but as a young boy, i started to follow them and i followed them through the years. but then, working in silicon valley, working hard to help build sequoia, i was very curious about organizations that had succeeded for a very long time, and performed at an extremely high level. and particularly those organizations that had been run by one individual. and there just are not that many of them. emily: you both, in your careers, have been tasked with taking undervalued assets and making them profitable. sir michael: he grew up in
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scotland, and i grew up in wales. both of us sort of have an outsider's mentality. and also, i think, a fair amount of a big work ethic. emily: he is credited with transforming this faltering club into a $3 billion public company. what was key to his success? what are the lessons for men and women in business here? sir michael: i wish i had done this, or thought about all these topics 30 years ago. because i know i certainly would have been far more effective. one is patience. two is a long-term view. three is developing people inside of the organization, particularly young people, and bringing them along. because if you are successful doing that, you build great consistency, loyalty. and it is easier to instill the
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sort of levels of performance that you want. emily: you boil down the traits to a distinctive leader to just two. one is obsession. and two, capacity for dealing with people. sir michael: you might look at jeff bezos, or larry page, or mark zuckerberg. these people are obsessed with, at the beginning, the products that they want to build, and then their company. and i think the very successful people are great at building teams around them. microsoft, for example, in its heyday, had a very stable management team. the same has been true at apple. emily: you are so well known for your time chronicling the early days of apple. you spent time with jobs. you were in favor with him, you were out of favor with him. i wonder what you learned by watching steve so closely about what makes a good leader and
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what makes a bad leader? sir michael: for steve, the product was never good enough, whether it was a computer or a phone or a tablet. he was always thinking about the next thing. i think that is the distinctive hallmark of a truly great leader. is that great is never great enough. emily: there were a lot of qualities about steve that, you know, are so controversial. is the jobs model a good one? sir michael: i am a huge admirer. was a huge admirer, am a huge admirer of steve. and it is very easy for people to sit and snipe. i am no psychiatrist or shrink, but i don't think any of us really understand the emotional consequences of being put up for adoption, and how that affects your life afterwards. and what people also do not see about steve -- and i am not trying to whitewash the fellow -- is that this was an individual, very capable, when
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he wished, of showing great empathy and compassion. steve is the most remarkable person that i have met. emily: just out of curiosity, where did you leave it with him? sir michael: sadly, unfinished. polite on business terms, but that was about it. emily: you wrote the famous "time" cover story about the machine of the year. and you were a journalist at the dawn of the pc revolution. i want to talk to you about some up-and-coming leaders in technology. the sort of archetypes. brian chesky. you are an investor at airbnb. and travis kalanick at uber. sir michael: brian exemplifies the wonderful traits of a leader. he is obsessed with his company. for him, there is always another hill, mountain to climb. he pushes his team very hard to do the impossible.
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he has a very long-term view of his business. and he has got a lot of energy. he's got a lot of optimism. about the prospect. he is a fantastic leader. emily: what about travis kalanick? sir michael: travis is somebody i do not pretend to know well. emily: he is so controversial. sir michael: controversial -- have you met anyone who is not controversial that has done interesting things? emily: having known three decades of leaders in silicon valley, do you think you have to be arrogant to be successful? sir michael: four decades. emily: four decades. excuse me. sir michael: lots of leaders make decisions about going in directions that may be is not popular in the organization. and sometimes, it spills over into arrogance. i'm different from how i was in my 20's. bill gates, who is in his 50's, is very different from what he was in his 20's.
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everybody learns a lot in their pursuit. so, the understandable energy and enthusiasm sometimes spills over to arrogance, and some people in their 20's tend to get softened over time. emily: you wrote this book before jack dorsey was named ceo of twitter. and you say the only silicon valley company that grew from "strength to strength," as you say, as it swapped ceo's, was intel in their first 30 years. so, do you think twitter can become the second in history? sir michael: i think it is far better to bring a founder back who still feels a real sense of dedication and ownership with the company then going out and than going out and hiring an outside hand. jack has not been bashful about saying that the product of twitter needs improving. that is where his strengths lie. as the product improves, presumably, consumer satisfaction and the business will improve as well.
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emily: how do you see this playing out? does this bubble burst? or is there a soft landing? ♪
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emily: as you said, you grew up in wales and you somehow made it to silicon valley. what kind of kid were you and how did you get here? sir michael: i got here through no grand plan. i went to college in britain, and this was the britain of the mid-1970's. it was not a particularly enticing place if you were a young graduate looking for opportunity. so i came here and was very lucky to get a scholarship to come and study here. and then after that was lucky again to get a job at "time" magazine, who eventually sent me out to silicon valley. i'm a history major, knew nothing about technology. eventually, through a stroke of great luck, a fellow who had
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started sequoia, don valentine, took a risk on me. emily: what are the qualities that you think you had as a journalist that made you a good investor? sir michael: i am not sure that i am a good investor, because we always keep making mistakes. the investment business, the venture business, some of the other businesses we are in in sequoia, it is a very humbling pursuit. as soon as you think you are good at it, you get chopped off at the knees. journalism, though, was very pretty helpful. because you are often parachuted into stories that you know absolutely nothing about. you have to get your bearings extremely quickly. you've got to deal with imperfect information. and then you have to have a point of view, if you are a journalist, or you make an investment decision, if you are investor. you are trying to read people. you are trying to gauge sentiment. i found the fact that i had been trained to make up my mind about
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a confusing set of information extremely helpful. emily: andreessen horowitz has really perpetuated this idea that good vc's need to be former founders or former ceo's. of which you are neither. sir michael: i think it's difficult to tell from someone's background whether or not they will be successful in the venture business. we have a lot of company founders at sequoia. but there is also room for lots of other people to succeed as well. being in the investment business is also different from running a company. people like us, we are not running the company. we are trying to help these companies as much as possible. the other thing that people miss is that we are working very hard on building our own organization, because unless you have that at the heart of everything, you cannot make
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consistent investment. emily: you say in the book that the minute you think you are winning, that is dangerous. and sequoia may be the most successful venture capital firm in history. what do you do from within to evolve the firm and stay on the edge? sir michael: it begins with consistency. showing up for work every day. i know -- emily: a lot of people show up for work every day. they are not sequoia. sir michael: it is true, but it sounds simple. it is easy to start easing back and not working quite as hard. and not seeking the same level of success, not having the same hunger, getting arrogant, becoming complacent, believing that you are as good as your press clippings, which are never true. we still act like this in the belief that we are only as good as two things.
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one, the next person that we hire to become part of sequoia. and the second is our next investment. emily: if the headline of sequoia's slide deck was "r.i.p. good times" during the financial crisis, what would the headline be today? sir michael: "gravity has not been repealed." emily: what do you mean by that? sir michael: that things eventually will fall down to earth if they are not properly constructed. emily: so how do you see this playing out? does this bubble burst? or is there a soft landing? sir michael: it is a more rational time than 1999, because i don't think there is a sort of universal feeling that every company is going to be a massive success, and people are a bit more discriminating. and some of them are going to come a cropper. emily: "come a cropper." is that a british phrase? what does that mean? sir michael: they will fail. emily: they will fail. sir michael: it is the law of
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corporate and business evolution. if people get too big for their britches, if the company is run poorly, if the money is wasted, if the product or service does not really fulfill its promise, the companies deserve to fail. emily: how protected are late stage investments in this environment? sir michael: many late stage investments are not investments. they are just well-disguised forms of debt. many of them are very well protected because of the terms that investors have put around them. emily: the ratchets. sir michael: the ratchets, the liquidation preferences. these are not really equity investments, they are debt. emily: but is that a dangerous trend? these ratchets and the guarantee that investors will get a certain amount back? sir michael: if the companies do not perform, yes. it is high-risk poker. emily: what about the risk of down rounds and delayed ipo's?
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sir michael: it depends on the performance of each company. but we have gone through this period where the valuations in the private market are far in excess of what they are in the public market, so you have one bucket of bubbling water and another bucket of fairly cool water. if those two buckets are commingled, the temperature will even out. emily: what kinds of businesses do you see will be the first to go belly up, and what trends do you see that will last? sir michael: the businesses that go belly up are the ones that are run by people who deny reality. and do not use the money that they have raised very wisely. and think that there are a whole bunch of shortcuts to success. those things will come a cropper. but companies that are run prudently, that have got really good discipline about them, that have the right ethical compass from the top, and also that have
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very distinctive products. those are going to flourish. emily: let's talk about on-demand economy. you were an early investor in webvan. you're an investor in instacart. there are questions about the model. sir michael: the one thing we got right about webvan, although we made a lot of horrible mistakes, was the consumer demand for this service is just through the roof. which is what young instacart is finding today. instacart, for example, it does not have huge factories or distribution centers. it does not have its own vans. it does not have all of the capital infrastructure that was required to build webvan. and it can manage a workforce through these incredibly powerful smartphones. and it is incumbent on instacart and its wonderful founder and ceo to make sure all of the economics makes sense, which it
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will. but the company is providing a fantastic service to consumers, who just swear by it. emily: any concern about competition from uber? sir michael: we are always aware of competitors, particularly a company as successful as uber or amazon. but you can't define yourself by them, or run afraid. because then you are following. instacart is a very complicated business that is very difficult for any company to mimic. emily: how bullish are you now about alibaba and chinese internet companies? ♪
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emily: i know you were really bullish on alibaba's ipo last year. how bullish are you now about alibaba and chinese internet companies? sir michael: despite the bedlam that we all read about, i will say something that will strike you as odd. i don't think anything has changed about china. the underlying consumer demand is very strong in china. the internet companies there, their business is very good. it is strong. it is healthy. it is vibrant. and we have built our own business there over the course of the last 13, 14 years -- emily: quite a robust business. sir michael: a very robust
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business, run by some wonderful people. and it's no accident that seven of the 20 most valuable internet companies today are chinese. because over the next 20 years, there is going to be far more business done between the technology companies that get started in china and get started in the u.s. than there has been over the last 20 years. emily: what does silicon valley have to learn from china? sir michael: i'm always struck by how eager people running chinese companies are to learn about their american counterparts. how frequently they come to the united states, how jammed their schedules are when they come here. i wish that the ceo's and founders of silicon valley companies did the same thing in china. because i think we could learn a lot from them. and in mobile in particular, the products are different. the services are different. if any silicon valley company
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aspires to be a global company, china is going to be a very big part of their future. emily: now we are seeing airbnb start its own china-based company with a chinese ceo. sir michael: and linkedin as well. emily: linkedin as well. what does it take for u.s. tech companies to succeed in china? sir michael: we try not to make the mistakes that we watched others make. so the first thing that you need to do is go there and admit you know nothing. you need to understand the market is different, and you definitely don't staff your company in china with people from america or europe. you also need to understand that there is a very different work ethic in china. people just happen to work a lot harder. so it's a whole new level of competition. emily: sequoia is very successful, but you have no
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women partners. what do you think your responsibility is there? sir michael: we think about it a lot. i like to think, and genuinely believe, that we are blind to somebody's sex, to their religion, to their background. we probably have more different nationalities working at sequoia than pretty much -- it's a very cosmopolitan setting. the fact that we have embraced china, we have embraced india, we have operated in israel for a long time, i think shows that. the real question i think that you might have is why, for example, are there not more women? we have many more women working in our china business than we do in our u.s. business. why is that the case? i think the issue begins in the high schools. and where women, particularly in
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america and also in europe, tend to elect not to study the sciences when they are 11 and 12. so, suddenly the hiring pool is much smaller. emily: so you think it is a pipeline problem? because some would say, "well, you are not looking hard enough." sir michael: oh, we look very hard. in fact, we just hired a young woman from stanford, who is every bit as good as her peers, and if there are more like her, we will hire them. what we are not prepared to do is to lower our standards. but if there are fabulously bright, driven women who are really interested in technology, very hungry to succeed, and who can meet our performance standards, we will hire them all day and night. emily: 2012, you took a step back from day-to-day operations. how are you doing? we are seeing you taking on new boards. sir michael: yes, it is great. emily: what has it been like for the last two or three years?
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sir michael: i've enjoyed it. i did so for a variety of reasons. that i talked about at the time, which we don't need to revisit. and i act as, i hope, a helpful team member. i am not involved in the management of the business at all. i am involved in several companies, some of them very young. and whenever somebody wants some help, at sequoia, i am more than happy to do it. go to india, go to china. we have a couple of investments in europe i am engaged with. but i also have a bit of time to do things like write a book with a wonderful man who managed a fantastic soccer team. emily: yeah, you could be sitting on a beach right now. sir michael: i can't imagine anything more boring than sitting on a beach. i think the vibrancy of life comes around new experiences and being around young people. emily: so, what is next for sir michael moritz? sir michael: i have no idea.
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[laughter] sir michael: something will show up. emily: sir michael, thank you so much for joining us today on the show. it has been really great to have you here. sir michael: good. thank you for having me. emily: thank you. ♪
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>> happy monday. let's get straight to the bloomberg first word news. treasury 10 year future contracts fell by the most in almost two weeks after janet yellen said on friday that an interest rate increased is likely in the coming months. japanese shares rose while that's shanghai composite closed flat. economic confidence rose for a second straight month in may. it came in at 4.7, the highest level in four months. it was boosted by strengthening consumer sentiment in the retail and construction sector. a chinese billionaires group is
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offering $4.4 billion to buy out and privatize a hong kong listed property unit. it is a high valuation for the business. martin sam has died at 59 years of age. the former ceo zero insurance took his own life in switzerland on friday, the company said in a statement. he step down as chief executive during a shakeup in september. theets are closed for memorial day and spring back day holiday, but let's check in on the markets now, starting with european equities. not a huge amount of movement and the stoxx 600, but the taxes up 4/10 of a percent. m&a news, which is why i picked out these stocks could. , .
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postnl gaming after they failed to agree on terms of combining. that is one of the biggest gainers on the stoxx 600 today. ther heading higher after sunday times reported that it may make an improved offer for ma monsanto as early as this week. it is a story of dollar strength today. the euro is heading higher perhaps on better-than-expected data. sterling is pretty flat, but we are seeing a weaker yen. take a look upon markets and we are seeing bond yields move higher in europe after janet yellen's comments. treasury yields move higher on friday, but those markets are closed today. if we look at commodities, gold has released felt the brunt of expectations of more rate rises from the fed. down for the ninth day, longest losing streak and a year. nymex and brent crude falling lower. that is the bloomberg.
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coming up next is "really brilliant ideas." do stay with me. i will be bring you updates every 30 minutes. >> the contemporary art world is vibrant and booming as ever before. it's a 21st century phenomena. a global industry and it's very right. looks at anideas" artist unique power to challenge, astonished, and surprise. in this program, u.k.-based artist danny lane.
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♪ >> danny lane is an american artist working out of a large studio and west london. he makes epic work in glass od.el, and woul >> danny's work is elusive. makes checks of the .magination coul an army does not have of pr people to represent him. he is a maverick who rarely does media. >> he is interested in challenges could not for what it brings to him as far as fame or money. >> despite his low-profile, his
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artwork is high in demand and he has a unique approach to life as we will discover. he is larger-than-life. he works on a massive scale but an intimate scale. >> he is technically pioneering. >> he's a very important sculptor. i do not know anyone else who works quite like him. >> i always worked live, drawing with the material. however, the essence and all the thought comes from the free drawn approach. i have to have a pencil in my hand in order to have an idea. and it is important to explore one's own dark or territory. this working in and around this thing of these shards of glass,
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i use a sort of image of a face, an eye, with some radiation coming from it. i have always worked on what i call an easel technique of putting a piece on the wall. somebody who comes from drawing and painting is familiar with. krishna murti said, if you see the buddha on the road, kill him, because if it looks like something i have seen before, well, there is no point in discovering penicillin twice. narrator: danny was born in urbana, illinois, but traveled around the states with his scientist father and art historian mother, spending a formative part of his childhood in new york city. danny: i used to spend time on the steps in soho at late-night
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parties our parents were going to, full of artists. it was a beautiful time. you would see jimi hendrix walking down the street, bob dylan and joan baez having their debut performances around the corner. new york was very free and open-spirited. as a child, we'd just take the subway all over the city. i would go to art classes at the museum of modern art and make small sculptures. it was so full of life. i mean, it was a real renaissance in american culture. probably never to happen again. i dropped out of school at an early age. i had quite a good life in the counterculture, traveling across the united states. great experience of being arrested. as a 14-year-old, i used to be out on the street leafleting to protest the war at numerous times, going to all these big protests in washington.
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one of the most important parts of my development were the last four or five years that i lived in the united states. and that is really what drove me to the u.k. narrator: danny sought a new direction and purpose. he was drawn to england at the start of the punk era. danny: mid-1970's was a period in england that was very interesting. you do have to bang people over the head to shake the truth up. i think we need our bad boys, we need our rebels. i am missing the rebels. you know, nowadays, it's horrendous. it's a nanny state. what's that going to get us? i think risks are healthy. narrator: the counterculture was all the rage, but what drew him to england was the art of stained-glass windows. danny: i intuitively became fascinated with glass. you see a harmony between all of the architecture, the sculpture, the glass.
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everything had a tremendous craft, art, and design value. narrator: his tutor was world-renowned stained glass artist patrick reyntiens, whose work featured in the rebuild of coventry cathedral. danny: a true renaissance man. i would say he is the only person remaining who is a genuine medieval stained-glass artist. the technical processes in making stained-glass are extremely archaic. they are 10th century. patrick, who saw me struggling with this, said, you know, danny, this process, if you can in any way engineer things so you can just go to art college and study painting, study drawing, this will change your life. and all i did throughout art college was draw, and draw, and
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draw, and paint. but primarily drawing became the most important thing to me. narrator: this fine art approach would stay with danny and would shape his work to come. ♪ ♪ narrator: american sculptor danny lane came to england to study fine arts and stayed on, building up his client base. his passion for glass would never leave him. it's a material that endlessly fascinates him. danny was now on his way to becoming one of the most
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distinctive artists working in glass sculpture. rod: you can't write the history of sculpture ignoring the use of glass, and you can't write the history of glass sculpture without giving danny lane a major position in it. he has the ambition of a renaissance virtuoso. that is clear in all of his work, and in the sheer inventiveness and versatility. that will make his work last. danny: risk is part of life. it's what brings a human being to attention. fear is not just fear. it brings all of your focus into one place. narrator: always seeking a new challenge, danny has been constantly inventive with new ways to shape glass, a material which is beautiful and dangerous at the same time. danny: i began to use this hammer and chip as a method of
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shaping glass, and it brought light into the material. so this flaw became a very important signature in my work for many years, and still is today. i have tried to get away from it, but it is so beautiful i cannot leave it alone. something that has prismatic shape and organic -- there is just no way to form something like that. the material itself is the drawing. narrator: back in the 1980's, contemporary design was on the rise. and danny began creating unusual furniture pieces using glass. danny: i produced a number of objects -- glass chairs, which nobody had seen before. these were more sculptures of chairs, something you would buy as a symbolic piece. these things began to get seen. that was a time the public first began to see my work.
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>> i got to know danny lane when he was in camden lock, in this commercial market, some pieces that were quite spectacular. they had at the same time this kind of roughness that was quite foreign to design, especially at the time where people were still thinking taste equals period furniture. it was something completely new, something undiscovered, uncharted territory. narrator: liliane's gallery soon put on a one-man show of danny's work. this attracted curators from the london's victoria and albert museum, the largest dedicated to art and design. liliane: the v&a was interested in the stained-glass chair, which created a refraction of light in a strange way. you have this ambiguity about glass where you could see through but not quite see through.
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the v&a bought this chair and went on to commission danny lane for the balustrade of their new glass gallery in the museum. reino: we felt he is an interesting artist, always trying to push the boundaries, work in a bigger way. he seemed the perfect person to ask for this. it is functional in the way it prevents you falling off the mezzanine or the stairs, but it is also a fantastic piece of sculpture. so it really belongs here. it gives fantastic distortions and wonderful light play, and that is what glass is all about. narrator: danny's work was being collected, and he was fast becoming known for his unusual techniques of breaking edges and stacking glass held together by a steel bar, a method he calls shish kebabing. the success spurred him into new ways of sculpting. danny: this piece, angaraib, an
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image came on television of a child waking up on a rope bed in the sudan, and i thought -- my god, that is the type of bed i would like as a child, sleeping out-of-doors, waking up in the sun. i thought about structures that the american indians would pull behind a horse. they would take their family and all of their belongings as they traveled. there had just been a storm in london where i had seen a plane tree. i went with a chainsaw, cut down the tree, and got people in the studio to make several hundred of these. i just threw the glass on. and it all locked into place, just like that. alison: it reminds me, and this is probably not what he had in mind, of henry moore's sleeping figures, of a picasso reclining nude. there is no figure, but it has that suggestion of a figure. it feels like a body. danny: and it is quite possible to, you know, lie on it.
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it's not uncomfortable if you need to -- you could sleep on it. narrator: today, danny still makes sculptural furniture. and with each commission, like this oak table, he explores new ways to treat the material, creating unique pieces in the process. danny: we have big toys here. there is no point in making tiny things with all this space. we have this machine for twisting metal. and then think -- what do we make with that? i am actually absorbed in the process of the material. we are losing too much heat up there, so what we are going to do is pull this back. that live process, which is a very expensive process -- it requires a lot of space. it requires a lot of labor. we are going to bend an rsj, we're going to twist it in a
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knot, and basically we are heating this up with a couple bottles of propane and 15 bottles of oxygen. we are throwing some energy into it. it is the first brushstroke of a composition. we never know how far it is going to go. it is actually quite a lot of fun. go plug that. get your gloves. go ahead. ed: danny is nicely chaotic, someone with a sharp intellect who has got a quizzical mind, but also a natural feel for the natural elements. he has a slightly warped mind so these things are never quite as pure as a craftsman's approach, but it is crafty art. danny: one more. we are going to level out and then hook.
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mimi: very few artists still do their own work. danny still does everything himself. he is lucky. because if not, he would have to give the work out to a foundry or something like this. there are not many people who are doing this. for him to understand that -- it is really made by danny. danny: go until you can't go no more. hey, watch that fiber, dude. narrator: his constant need to experiment means he is always looking for bigger challenges. he has been commissioned to make huge public art around the world. danny's individual approach means he continues to be highly sought after by both private clients and giant corporations for creative architectural sculpture. danny: quite a piece of bending, isn't it? who is going to do the ceremonial piss on it? most clients come to me because
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that live energy, by tolerating that in the design process, we have to establish a trust. i trust them. they trust me. then, we will go for the tremendous adventure. bravo. we will do another one in a half an hour, ok? narrator: a recent commission for british land saw him create an unusual window sculpture. james: what he wanted to do was effectively create an eye-catching piece on the corner, on the edge of the road, that you would see as you come up from hyde park. we wanted it to give something back to the streetscape and the landscape, as well as obviously be a feature for the building. i think danny's first description was, imagine a plate glass window that someone has thrown a brick through the middle of. you could take the approach that that is a scary thing for an artist to tell you as a developer for what is
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effectively a big plate glass window. but actually, when we got under the skin of what he was envisaging, we got very excited. andrew: everybody loves the sculpture. it defies classification or description, when you ask people what it is. everybody comes up with something different. somebody will maybe say it reminds them of a dna strand. someone else will say, no, it is rock. somebody else will say, i see a waterfall. the answers are sufficiently varied that i think we can accept this is not something you can easily label. for me, what the work says about its context in microsoft is that it is a combination of art and science, art and engineering. that chimes beautifully with what we do here. narrator: a major theme running through much of danny's work is the divided structure, a split or tear in the body of the piece, a work of two halves. but none perhaps is more
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majestic than his monumental foyer piece at london's canary wharf. >> the technical side is amazing. the way that it has been set up, and you have the feeling that it is the sea which is opening up in front of you, is the scale. the way it defines the imagination, how such a huge weight can still give you a feeling of lightness. and i like because it epitomizes for me the immense quality that danny has. ♪
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narrator: danny lane may not be a household name, but he is a highly sought after and collected sculptor. he has produced large-scale public artworks and been displayed in london's victoria and albert museum. but the real motivation for danny is the urge to experiment and take creative risks. danny: this whole process is very beautiful. however, now i have gotten to a point where i also just want to make pieces. if you are just eating one type of food all the time, you start to long for another type. only now am i really entertaining the idea of
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exhibiting and doing shows in galleries. i want to go back into the materials and let the ideas flow. and what i have got here in the studio now are the beginnings of this new work. it's all probably necessary, because this plaster gives off a phenomenal amount of dust. it is like sandblasting. i am moving into a thing of cutting into these rough materials, and instead of using plaster to cast and print a shape, i think live into the material. narrator: danny's new direction involves experimenting with a series of entirely new sculptural works aimed for possible exhibition. these are uncommissioned, so danny has complete freedom over both the process and end product. danny: it enables the
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spontaneity, which gives the object its life, its aura, its whole sense of being. that to me is fresh. rod: danny forces you to try out different angles, different points of view. it is a very active, very physical relationship with sculpture. danny: we will take large chunks of glass, arrange them on this piece of plaster, put them into the kiln, and melt it and all these shapes will be made in positive form in the glass. it is quite an adventure. it is something entirely new for me. therefore, i am quite excited about it. it is very interesting. narrator: glass is placed over the relief before entering the kiln to melt into the plaster. danny: how do you turn this thing on? narrator: it takes 20 hours of slow melting, then two whole weeks to cool down, before danny and his team can check whether it has been a successful cast.
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danny: let's see what we've got in here. looking good. it is not cracked. what do you think? we did not get as many bubbles as i would have expected. the first time i have done this, so -- i'm not trying to make anything perfect. they would get cracks in them and they would break. but i am leaving those pieces broken and trying to figure out, how can i show this object? everybody working in these materials is scared of these breaks. ok, let go. let go completely. is it going to fall forward? let go, everybody. look, everybody, relax. look. watch. just watch. you cannot move that. i am focusing on things i can do
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within this context, right now. it's very exciting. the combination of these deeply-carved shapes and the actual reliefs, the undercuts, it's very harmonic, because it was done gesturally. these strange little fingers. all in relief. the way the radiance catches the light -- the glass, in fact, almost has a grain to it, like timber or something. it has a nice reference to very ancient traditions of stone carving. there is a lot to look at as the light keeps moving around. it is quite baroque, in fact. it is a real surprise. the fact that it is a surprise is a great release and pleasing to me because some of the better works happen despite oneself. it's a very good step in this
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new direction for these new pieces. it is very successful and now we can go ahead and apply it to different types of glass. respect of the unknown -- it's a healthy thing. it feels good. and that exploration that an and artist pursues is the same thing as what a scientist does. and when we discover something, we can bring it back from where we found it, and show it to the world, and hopefully that has value. ♪
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>> you are watching bloomberg television. we do have some breaking news for you. german cpi coming in now. right in line with estimates at 4.3% after a decline in the previous month of april. you're on year, the number also 0.1%.n line coming in at we have seen a stronger euro against the dollar and it is staying strong. most ins fell by the the most two weeks after federal reserve chairman janet yellen said on friday that an interest rate increase is likely in the coming months.
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japanese shares rose while the shanghai composite closed flat. treasury bills and bonds are closed worldwide today. the yen back for a one-month low versus the dollar and japanese stocks saw its highest close after a sales tax increase scheduled for next year will probably be delayed. japan's retail sales growth stalled in april, increasing the likelihood that a hike will be held. euro area consumer economic confidence rose for a second straight month in may, beating estimates. the gauge came in at 104.7, the highest level in four months. the overall figure was boosted by improvement in the retail and construction sector. by .5%. gdp contracted economic data shows that quarterly exports fell 3.3%. earlier this morning, france's first quarter gdp numbers showed growth accelerating to 0.6%.
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that the estimates. markets are closed in the u.s. and u.k. today for memorial day and spring backdate respectively , but let's check in on the markets that are open now. if you look at european equity markets, take a look at the dax up 3/10 of a percent. euro stocks are pointing higher. it is a story of dollar strength today. we do want to show you the euro and sterling is pretty flat and we have got a weaker yen. we have seen 10 year yields moving higher in europe after u.s. treasury yields are rising two basis points after janet yellen spoke on friday. taking a look at commodity feltts, gold has really the brunt of the prospect of more rate rises from the fed
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. we are seeing a weaker oil press today as well producers moved to review output. stay with bloomberg. coming up next is "studio 1.0 ." do stay with me. nejra cehic. i will bring you updates every half an hour. ♪ emily: he has backed some of tv's biggest hits -- "24," "er," "arrested development." then in 2010, he joined showtime and has led the network's resurgence in original programming like "homeland" and "billions." >> what we do has consequences. emily: now the star executive is taking over at the top, replacing longtime chairman and ceo matthew blank. joining me today on "studio 1.0," showtime's new ceo, david nevins. thank you so much for joining us today. david: got to be here.
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emily: great to have you. david: thank you for coming. you came here. so -- emily: so, "billions." what was it about this showed that made you think it could be a hit? david: it's a world that has been explored a little bit movies that not explored so much on television. it touches all of our feelings about wealth and class, which is a hard subject in america. so this is very much sort of in the zeitgeist and it deals with all of our complicated issues with the super wealthy. emily: you launched "homeland" and "the affair" and "masters of sex." when it comes to spotting a hit, is it all art? david: there is not a ton of science. first of all, it is some combination of who are you betting on? it is instincts about about people, instincts about creators and the actors who will be able to grow and create a role.
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good writing is at the core of it all. it is a good script that it's a good actor which gets a good director which makes for a compelling show. it is some sense for feeling where the culture is right now. what will people sit up and take notice with, which is ever-changing. emily: is it a gut thing? have there been times where people have told you know, it's not going to take off? david: we don't really do testing in any way. emily: really? that is kind of scary. you are taking a huge risk. david: we will focus group some things. it is 80 people. there is nothing scientific about it. i like to watch our pilots in different groups of people over and over. i can start to feel. i learned that from ron howard. ron would always watch his movie with bunches of different people. and i remember the first time he showed it to me and i tried to be polite and say it was great,
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he would not let me get away with just -- that's great. he wanted to really know what i thought and where it lagged, where things were confusing. so you do this over time. you develop a feel. emily: you have recently taken over for matt blanc, who was in this seat for many decades. david: not this very seat but figuratively the seat. emily: he had this job longer than any other executive in television has had a job ever. and now you are on the business side. david: this is the rare orderly transition in this business. it is carefully planned over the course of the last two years. matt has been the architect of it. he has been great about it. he is now the chairman and i came up through the creative side, then the business side was very motivating. to become ceo at this moment, it is when the business in such intense flux.
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it is a really exciting time to do it. we are now selling ourselves over the internet. there is a whole new way. we have a direct relationship with our customers. television has reached the top of the totem pole in terms of its place in the cultural hierarchy. emily: is this the golden age of tv? david: i think so. it is an overused term, but how can you say it is not? movies are no longer on a higher pedestal. television gets the highbrow conversation, the highbrow criticism and critiquing that you just couldn't do when it was "simon and simon" and "matlock." emily: you and matt blanc have steered showtime to near parity with hbo. what distinguishes showtime from hbo? what distinguishes showtime from netflix? what is the showtime brand? david: we are all doing very
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similar things. for better or for worse, the premium, high end area is where everybody wants to go. so what distinguishes a showtime show? i want it to be culturally relevant. "homeland" has things to say about america's place in the 21st century world. even "masters of sex," a period show, has a lot to say about gender and conjugated complicated relationships with sexuality. so, cultural relevance, entertainment value, characters with complicated, adult psychology. emily: some would say that you have all of these hit shows but you haven't had your major, major hit. what is going to be your "game of thrones?" david: i don't think you ever plan for the big hit. we didn't know what "homeland" was going to be. we are delivering consistent shows that people want to watch across the year probably better than anyone right now. but i would love to have a "game of thrones." emily: does it keep you up at
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night? david: no. no. we have got a lot of shows that are working. so, you know, we try to figure make each 110% -- each one 10% bigger than it is right now. emily: how do you view something like hbo? are they your nemesis? do you think of them -- david: no. the world is much bigger than showtime and hbo right now. there is fx, netflix, amazon, hulu launching shows now. there is amc and one million people are trying to get in the game. generally, what is good for hbo is good for showtime. emily: what is showtime's biggest threat? david: it is a complicated 21st century media world with a lot of people clamoring for attention, and we have to stay at the top of the list and
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continue putting out shows that feel like they have messages that will make people pay attention. even in the traditional universe, we are still only in 23 million, 24 million homes. that's through the traditional way. almost three quarters of the homes in america don't have showtime. we have a lot of running room. it is a moment of great opportunity. emily: how disruptive has netflix been to your business? david: they have seemingly unlimited amounts of money, that is a challenge to compete with. they buy our programming. so they are a customer. they buy our programs internationally. it's a complicated relationship. emily: have you ever considered throwing all of the episodes out there at once? like they do? david: i have thought about it, but i think there is great value in having the conversation sustained over the course of a couple months.
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so i think the world is going to come back to a little more measured. although different shows have different ways. when we put "twin peaks" out, we thought it would be fun to do it in a different way. who knows? that is something i will talk about with david lynch. there are all sorts of possibilities. but the idea of throwing it out, having a week of buzz or two weeks of buzz, i don't think that makes sense for us. emily: how me people are paying for showtime? david: i will tell you, it has grown pretty much every week since we have launched. well more than doubled since "homeland" and it has gone up again with "billions." emily: how many more seasons does "homeland" have left?
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david: the great thing about "homeland" is that it reboots itself every year. it is a new story and a new place. it's changeability works really well. i don't feel like we are at -- i don't know, exactly. but my guess is three. emily: three more seasons of "homeland?" david: it is really star and creator. alex and claire danes, they will make a decision when she is sick of doing the show or playing that character. when alex is sick of writing that show. do you think the story of america's complicated place in the 21st century won't be relevant in 2015, 2019 and 2022? of course it will be relevant. this just a question of how long we keep going. emily: what has it been like working with david lynch? david: once we got the deal done and got started, he is actually an incredibly efficient director. he is now more than halfway
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through. he is kind of a genius. watching him work, i have been down to the set couple of times. the crew is largely people he has worked with throughout his entire career. the actors, i'm not allowed to say who they are, but many of them have worked with him for their entire careers. so it is really watching a maestro. i am incredibly excited. i think it's going to be a work of -- dare i say, genius? i don't use that word lightly. emily: a work of genius? david: i should knock on wood, but i feel like it will be really special. emily: what about china? this is a question that netflix is being asked all of the time. ♪
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emily: there are more scripted tv shows than ever before. there are also more canceled tv shows than ever before. are we in a tv bubble? david: i don't really think so. a bubble implies that there will suddenly be a puncture and we will be down 25%. i definitely do not see that. it is possible to not succeed. microsoft, yahoo!, they went in and they went out. they decided after a certain amount of investment, it is not for us. there will be other people and
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there will be shows that can fail. that said, it is robust. the demand is there and the desire is there. we are in expansion mode and i continue -- you know -- i don't feel like we have too much. if you ask a showtime subscriber, they would not say we have too much. they would say, give me another great show. emily: is it scary that amazon can make a hit original show? david: anybody can make an original show. whether it is a hit or not, we don't know until we know how to many people are watching. emily: like "transparent." which, we do not know how many people are watching. david: it is a terrific show. i will say that. i personally love "transparent." so -- scary? i think it is democratizing. i think it is good for the creative process. it is good for the business i am
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in. it keeps us on our toes. it means we have to compete harder and better and make this a creative home for creative people. would i like to keep out the competition? i don't really have that instinct. i don't look at the world that way. we are in the club so we are going to shut the door behind us and no one else can come in this club it i don't think that is good for storytelling or creativity. for the consumer, it is not. that's not how the world works. emily: what are your plans for international expansion? i know you made a deal in canada. you just licensed your shows to sky. do you want to sell showtime streaming in other countries? david: it has been a big push that we have been making, that i have been making. we have more shows that work in the u.k. and france, compared to some of our competition. we made a big push starting in canada. starting in english-speaking international territories, u.k., sky.
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germany, italy, we just did australia. there is probably more to come in continental europe. and the showtime brand is starting to mean something. so, they are interested in buying -- rather than selling our shows in a one-off way, "billions" is over here and "dexter" is over there and those quote ray donovan" is on this and "rayould -- donovan" is on this network. we put them all together, same network and it makes a big difference. it is a factor of five and 10 times what were making. emily: what about plans to sell the streaming service independently? david: we haven't done it yet. we can. there is such interest in premium programming right now that we made a decision in the big territories to sell. but, you know, we will see what happens when these deals are done. emily: what about china? this is a question that netflix is being asked all the time.
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david: go figure, i think "billions" has a real potential in china. there is interest and the subject matter. there are conversations going on and i'm hopeful that billions gets a real deal in china that will be potentially the biggest deal ever -- for china. china is becoming a real market for us. as recently as when we were selling "ray donovan," we sold it in china for pennies and now, there is a real, real interest. the first major sale we have made in china. it is significant. emily: can you win the world without china? can netflix dominate without china? david: here is how i think about china. china has always been a terrible market for american television. piracy is so rampant. you know, the movie studios figured out how to do stuff in china, maybe, what? five years ago? now they are making real money and i expect there to be a lot
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of growth there in the next five years. and i think we have spent a lot of time talking about china. emily: what about apple? what do you think is apple's future in television? ♪
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emily: how did you get to hollywood? david: i just drove here.
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emily: in a volkswagen beetle? [laughter] david: in an oldsmobile. yes, my grandmother's oldsmobile. i came out soon after college. it was actually when i was in scotland. i spent a year in glasgow. i fell in with a bunch of hard-core film geeks who would have given their right arm to move to hollywood and i realized, i have no immigration problems. i'm not scottish. i'm american and i've got an american passport. i can just drive there. and i did. i wanted to be in the movie business. still haven't made it on television. it worked out well. television in the, you know, sort of between the 1980's and the 1990's, that was not the golden age of television. now, there is no place i would rather be. emily: you worked your way out. you worked at imagine with ron
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howard. he worked at nbc. you worked at fox. i am curious -- you worked at fox. i am curious about network television in particular. since "parenthood" ended, and i know you were behind "parenthood" and "friday night lights," i don't watch a single show on network television, except for "the bachelor." which i am embarrassed to admit. david: don't be embarrassed. i love reality television. emily: do you watch "the bachelor?" david: i have, but i've fallen off. emily: what are your favorite reality tv shows? "master chef," "project runway," i was watching "real housewives" for a while. but then it made me feel bad about humanity, so i stopped. emily: it takes a real man to admit watching "real housewives." what is wrong with network television? david: network television still gets big audiences. there are -- you can now, what is harder to hide -- five or
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seven years ago before cable was really developed with pay cable and when there was a volume of premium shows, you can now satisfy yourself living over here with "mad men" and "homeland" and "billions" and " silicon valley." you don't have to leave that neighborhood. but there are a lot of people who are very satisfied with the neighborhood that is the big "the big bang theory," chicago "blackish," -- interesting stuff it the networks are starting to innovate more. out of necessity. emily: should the cable companies be worried? david: they are under pressure to innovate. they are under pressure to
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change the way people -- the way they make their signal available. and the way people are able to watch them. and they are also, by the way, the main pipe to the house, .hey are serving broadband that is where the growth is coming from. emily: what about espn? david: espn is suffering right now from the law of big numbers. they are still an incredibly healthy cash machine and they are trying to recalibrate their growth. emily: what about apple? what do you think is apple's future in television? david: i don't know. if you had asked me a year ago or nine months ago, i would have thought that they would be -- have tried to figure out their own version of a bundle. a lot of people are rooting for them. emily: what happened? why didn't it work out? david: i think it was challenging to put the pieces together with the content
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owners. there were a lot of conversations going on about how and when. but apple is an incredibly innovative company and they make incredibly delectable products that people want. i think they have enormous potential to crack the television world. emily: in tv, could they end up being just a set top box? david: i think that is possible. yeah. or they could also be a tv or a component inside the tv or a box next to the tv, there are a lot of different ways. you know, but -- emily: have you heard about -- david: the fight over the living room, it has not been decided yet. who controls the living room and who controls the house, i do not think has been decided yet. the tv is a huge part of who controls the living room. who controls the electronics in the house. emily: what about the entertainment industry in general? where is the entertainment industry in five years?
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what are you watching? david: you will continue to see the blurring between movies and television. you're going to see television shows, stuff produced primarily for television that will play in theaters. occasionally, and out of home collective experience. i'm already feeling interest and people are coming to us with this. i guarantee you when we put "twin peaks" out, people will want to put that in theaters. so i see those lines blurring. but fundamentally, the movement is for bigger screens in your home. and that has been television's greatest strength. but the desire for great, complicated storytelling, the ability of people to process complicated narratives, it is only growing exponentially. shows are givin getting more complicated and more sophisticated. it rewards good writing and good acting. i expect that to only increase in the next five years.
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emily: david nevins, ceo of the showtime network. thank you so much. david: thank you. it has been a pleasure. emily: and for admitting that you watch "the bachelor." david: it was never my favorite. ♪
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>> emerging-market currencies are heading for their worst month since august. treasury bills, notes and bonds" like today. halted theumer decline in may. the inflation rate rose to 0 from -.3% in the last few months. here trying to revive price growth in the euro area.
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euro area economic confidence rose for the second straight month in may, beating estimates. they came in at 1.47, the highest level in four months. was built by strengthening consumer sentiment and construction center. the ceo of singapore assisted commodities trade in noble group is quite. the company says it has accepted his resignation with william randall replacing him as co-ceo. shares have plunged 60% in the past year with questions about its accounting practices dogging the company. markets are closed in the u.s. and u.k. today as memorial day in the u.s. and spring back holiday in the u.k. let's check on the markets. in european equities, let's take a look at what is happening here. dax of 4/10 of 1%. we have got some movement on m&a news. by arising after the sunday
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times reported they made it forward and approved officer for monsanto. isomberg reported the buyer choosing banks to finance that takeover. theyst and post nl said could not agree on terms for binding. post nl gaining on that news. currency markets all about dollar strength. we are seeing a stronger euro as well. falling to ayen, one-month low versus the dollar. if you take a look what is happening in the bond markets, we haven't seen 10 year yields rise in europe following the increase in 10 year treasury yields on friday after yellen's speech. the treasury market is closed today and look at commodities. gold down for the ninth day. wti and crude oil as well. is down fromt
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further rate increases from the fed. is the longest losing streak in a year. canadian producers are moving to a new output. stay with bloomberg. coming up next it is "studio 1.0." stay with us. ♪ emily: she is considered one of the most powerful woman in silicon valley. starting her career at motorola three decades ago. overseen the rise of the famous razr phone. in march she became cisco's 2008, first ceo. personally recruited by chairman john chambers. after seven years there, she is shifting gears entirely taking a , job at the chinese electric car start up nextev, aiming to take on the auto industry, elon musk tesla, and a crowded , market of car competitors, from apple to google. joining me today padmasree
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, warrior, nextev's usa ceo. thank you for joining us. we are in the exact same shade of yellow but it works. what is it like being ceo for the first time? padmasree: it is a lot of fun. i would say most of my time, these days i am spending recruiting talent. i feel like i have two breakfasts, two dinners, meeting candidates. i have been getting amazing talent into our company. i would say most of the time i also spend on the strategy. thinking about what the product should be about. it's an amazing amount of fun. emily: let me rephrase slightly. what is it like being a first time ceo when your competitor is elon musk? [laughter] padmasree: it is fun. it is still fun. i think i have a lot of respect for elon -- i have said this before -- and tesla. i think actually sometimes we
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give credit to an individual, it is more all of the people at tesla who were there before and have since left tesla from the early days and are still there, building amazing products. tesla as a company, they have changed three things profoundly. first, it was the first company to prove or to establish an electric mainstream vehicle. before tesla most ev's were seen , as toy cars. tesla, i give them credit for making this a serious vehicle. the nature of the transition for to be a digital platform. they were the first company to do that. and the third change was they made it a b to c company. emily: do you follow you elon? padmasree: i do not. i drive a model s, and i think
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about all the different things they could be better in it so i have a different perspective on it. i am excited that there are 70 companies looking at the ev space more. our vision is different from tesla's. our mission is not necessarily to build an electric car, it is to optimize the experiences around it. emily: what can be better about the model s? padmasree: for me, it is not good for passengers. it is a great car for california and the driver. a lot of the ui and ux could be a lot better. and the screen is underutilized. emily: you see a huge market tesla does not address. what does it look like? padmasree: china first. the market is growing for ev's there at a tremendous space. driven by the incentives that the government is giving, but beyond that, there is more consumer buying power, looking at buying automobiles.
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and family size is getting bigger because they have gone away from the one child policy. emily: so the nextev founder, william li, he pledged to build an electric supercar of sorts. and to launch first in china and then here in the united states. padmasree: supercar is different. we will unveil it at the end of this year. in addition, we are looking at mass-market vehicles for china. that will be in the market soon after. emily: when will we see nextev's in the u.s.? padmasree: stay tuned. next time. emily: you are on the list of the most powerful woman in the world and certainly in technology. when you are looking for your next gig after you left cisco, you had venture capitalists knocking on your door. you were talked to for the twitter ceo job. i would love to know more about your process, what you are, and -- what you explored and how you ended up with nextev. padmasree: when i left cisco, i
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was not leaving cisco. i was looking for the next adventure. my focus was not to get away from cisco, but to run to something that was exciting. the reason i wanted to leave cisco in order to look for that was i feel there are times in the technology industry lifecycle that big changes are happening. i feel like right now is one of those times. i wanted to be at the beginning of a massive change rather than in the middle. i was interested in the transportation and in education. both of these industries have not gone through change. i met william. over breakfast, we were talking about how the auto industry has a huge potential for change. i got super excited with his vision. it is aligned with my thinking. nextev. emily: what attracted you to him?
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padmasree: this is the third startup he is doing. he is a consumer internet entrepreneur. he understands the pacing with which internet companies move. he has an understanding of the automobile market place in china. and he really believes in building a global company that is deeply rooted in core values. all of these things are similar to my aspirations. i want to build a global company. i have always considered myself a global citizen. i also believe the companies that succeed are those that have deep values. and agriculture. i am passionate about creating that. there is a lot of similarity in my thinking and vision. emily: what was it like being a female engineer in 1984? ♪
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emily: i want to talk a little more about you and how you got
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here. you grew up in southern india. tell me about your upbringing. padmasree: i grew up in a small town in southern india. it is probably a big town now. this was years ago. my father was a lawyer. my mom was a math major but she stayed home to take care of us. i was always interested in math and science growing up. i would say maybe i was a curious, troublemaking, precocious child. i would do experiments at home. i would drive my mom crazy. one time, i wanted to see what would happen if you melted plastic. i ripped open a plastic dish and actually lit it on fire. i am terrified now to think i did this. emily: what was it like being a young girl interested in studying stem in india? was there a tension between boys and girls? padmasree: not so much in education, but in engineering.
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science was different from engineering. there was not much, i would say, encouragement -- there were not many women engineers. there were a lot of women and girls studying science. so i wanted to be a physicist. i joined my undergrad degree, started as a physics major, and switched after one year to engineering. that was unusual. i have to give my father credit. he encouraged me to pursue being an engineer. when i called him and said i want to be an engineer because i want to see how things work. that is when i switched and i went to a pretty hard-core technical school. emily: the indian institute of technology. padmasree: it is pretty hard-core. it still is. in india, it is one of the top engineering and science universities. when i went, there were very few women. i went to the campus in new delhi. there were five women in a class
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of 250. yeah it was intimidating. , after the first week, i called my family and said i want to come home. emily: what did they say? padmasree: i got sympathy from my mom. my mom was like if you are not happy, come home. because it was at the other end of the country. it was a different language that was spoken there. i did not speak hindi. emily: telugu? padmasree: yes, i grew up speaking telugu. in new delhi, the language most spoken was hindi. i did not speak hindi. it was almost like moving to a different country. it was a major city. i grew up in a small town. i think i got more love and encouragement and sympathy from my mom. i got a lot of love from my dad, but i got tough love. he told me you are not coming home yet. you chose your path, and it is up to you to make the journey interesting. i always remember that quote. it is something i feel is still with me.
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emily: then you went on to cornell to get a masters in chemical engineering. padmasree: correct. i came to the u.s. to do my masters with $100 and a one-way ticket. that is all i had. actually, a suitcase full of books, because they were cheaper to buy in india than the u.s. i came to do my phd. my plan back then was to finish my phd and then go back and teach at iit. that was my journey. but then i started working in the u.s. and stayed. emily: what was it like transitioning into the workforce? padmasree: that was interesting. i started working in the semi conductor industry in arizona. my first job was at motorola semiconductor. motorola was a great company back then. i learned a lot. i became a manager early on in my career. became a leader of people, which i think i naturally gravitated to.
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i led a team of engineers and decided to pursue more management and leadership roles in engineering. emily: what do you think is your defining legacy there? padmasree: i think doing the razr was amazing. it changed the phone into something that had personality. and name. it was much more personalized and people loved it. it was a high for the company. i worked with the then cmo. we came up with the "hello, moto" campaign. it was like truly this amazing intersection of great design, amazing design, marketing, and engineering. that was the highlight of my career. what i got frustrated about was the fact that we could not transition the company to move to a smart phone. we had amazing technologists working on this but our business , model was not where the brand was close to consumers.
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because we were selling phones to carriers and were removed from the consumer experience. and apple, a consumer company, much more close to how users would like to use their devices, created the iphone and optimized their experiences around that, which led to the beginning of the big shift to the mobile internet. today, motorola is not one of the big brands. this big transition happen quickly. emily: i want to go back to 1984. that was the year -- a big year for the mac. also a year that some people point to the start of when computers started being marketed more towards men. and the number of women in computer science courses started dropping. i wonder what was it like being , a female engineer in 1984? padmasree: it was a rarity. i think it was one of those
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things where i felt -- it was sort of a mixed view. a felt an amazing -- a deep kinship to other women engineers. to this day, i feel it has shaped who i am as a woman leader and women engineering leader in the tech industry. i think the other thing it topping or brought to light, i would say, the fact that it is important to have self-confidence. people notice you. i think these things either i learned them because i had to survive tough environments, i learned them because it was the only way to work, i do not know. that it has been a profound life lesson. emily: do you think that is something that set you apart from other women who were doing it? obviously, you survived. padmasree: i can't say whether they did or did not. it helped me. to date, i feel like i need to give back and help women,
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especially women engineers. they look for advice like "do i stay?", "what are the things i need to do?" for me, i did not have a lot of that back then, because there was no one reaching out and sharing their experiences. i wish i had that. emily: did you ever feel that you needed to act more like a man to be successful? padmasree: when i first joined the workforce, people would not take me seriously because i either looked too young, was too young, i wore bright colors -- i started working. i came from india. emily: i have seen you wearing saris. padmasree: i love bright colors. so i had to hide those away my first few years working. i would wear black and gray. i wore sneakers -- i loved shoes and could not wear them. i had all of these things that were nothing to do with my job.
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i was afraid to be who i was, who i wanted to be. i absolutely do that. actually when i became cto for , motorola, i went to the extreme extent -- i would color my hair gray just so i would look older, can you believe it? [laughter] now i do the opposite. emily: did you ever feel like you were treated unfairly? padmasree: i do feel people, i think, do not expect you to be confident, somehow. there is always this doubt. people are always skeptical. i have had situations where i feel like people are skeptical of my title or what i am doing because i am a woman. it is hard to describe it. it is not blatent or overt. but i did sense it. emily: is it fair for me to ask you how you balanced your work and family life? or is it not fair to ask that question? padmasree: i think it is fair to ask anyone that question, both
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men and women. i think men who have young children go through the same thing. the challenge is if you are a parent, how do you balance having a career and a family? i actually feel like the word "balance" somehow suggests everything has to be perfect. your home has to be perfect, your work has to be perfect. i use the word "integration." you have to be aware of the things that are important to you the aspects that are important to you. when my son was young, about that time i was running a factory. i had operational responsibility 7/24. my son was a baby. i would be constantly stressed out. i learned i needed to take time for myself. now, i meditate every day. that is my time for myself. i paint when i can, saturdays and weekends. whatever it is you feel you need to do to energize yourself and get your creative juices flowing
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again, you have to do that. emily: how do you see the market for self driving cars playing out? when is this mainstream? will my kids never have to drive themselves? ♪
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emily: so what is your assessment of the state of women in silicon valley today, whether it is big tech, vc, startups? in many ways, there is small progress and in some ways it has taken steps backwards. padmasree: it is disappointing. i do feel we have not made any progress. we need to make a lot more. it is heartening to hear people talk about it more openly. it is not so hush-hush anymore. it is ok to say it is a problem. people are acknowledging it is a problem and figuring out what we need to do. but i do not think we have seen any results or movement yet. emily: why have we not seen
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progress yet? padmasree: i do not know. i don't know if we are all just saying things but not really going to doing things to change. maybe it is an opportunity for us to work together to give out how to address this. i often take time out of my day to go speak at every single tech company. i have spoken at microsoft, intel, qualcomm, when i was at cisco. ericsson even. perhaps we need to think, as an industry, what we need to do. emily: you have an opportunity at nextev to build a diverse workforce from the ground up. what are you doing to build the culture and a strong company from the beginning? padmasree: i already hired my first woman engineer. she joined two days ago. she is amazing. i have already hired the head of corporate development is a woman. a stanford grad. she joined a few days ago.
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she is now on my staff and my leadership team. i will continue to do that. i want to have a very diverse team, have more women, but also one to have -- the team i want to build, i want to be multicultural. multiple domains. i want to get people from the auto industry, people not from the auto industry, to work together. and multi-generational. will be a very diverse team. emily: nextev has a big challenge ahead. you are trying to break into a market where tesla exists, gm and a lot of traditional automakers building electric cars. then you have apple and google trying to get into this market. uber. how will nextev stand out? padmasree: it is good so many companies are getting into the electric vehicle market. this is an old old industry. the auto industry is almost 100 years old. a is a sign there is
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transition going to happen. you probably saw at ces, there was a lot of talk about auto. it is unusual for companies to talking about innovation and development at a consumer electronics show. it reminds me of 10 years ago how cell phone companies were talking at the consumer electronics show. that tells me that my instincts about what is the change that is going to happen in the auto space is probably in the right direction. some companies will focus on autonomous driving completely. some are purely creating an ev. our focus is on creating a vehicle that is more affordable. not just super expensive for a certain class of people. emily: how affordable is it? padmasree: more affordable than a tesla. emily: is that $50,000? less? padmasree: we have not disclosed the price yet, but it will be more affordable. secondly, to optimize -- bring
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all of the mobile internet thinking in. optimize the experience of what you would do with a car, the services that would be delivered on the mobile internet. bringing the transition in the computer world with mobile and cloud into the fact the vehicle will be different and will be be an ev. combining the two, that is what we are focused on. emily: are you going to work on autonomous driving vehicles? will they intersect? padmasree: we will, but that is not the central pieces to what we want to build. emily: the model s does have autonomous features. what do you think of it? padmasree: it is a great thing. some of these advanced features will become standard over time. a few years ago, abs and remote door entry were new stuff. now, most cars have that. it is not really about one
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feature or one technology, but how do you optimize the experience around the car. the car should know who you are, what your preferences are. it should know i prefer to take 280 and not 101, because every time i drive from where i live to san francisco, that is the freeway i take. i should not have to punch this in. it should learn this. this is thinking from the mobile internet space. that is what we mean by optimizing. emily: first of all, how do you see the market for self driving cars playing out? when is this mainstream? will my kids never have to drive themselves? padmasree: it will be here sooner than we think. there without a lot of regulation battles that companies are fighting. but we will get there. full autonomous driving, your kids will probably see that. we will see it soon. emily: how do you see the audo industry being different 20 years from now? will the big players be google, apple, tesla, nextev, or will it
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be gm, ford, toyota? will we see a completely different -- i am not saying those companies will disappear, but will we see a different hierarchy? padmasree: you will see newer players that will be significant players. it is a big industry. it will never be a winner-takes-all industry. it's a $2.3 trillion industry worldwide. in addition to cars, the value chain itself will change. so it will become more of a consumer-driven product then it is today. there will be other new players, perhaps, and some of the old players will figure out how to change themselves. emily: padmasree warrior, thank you so much for joining us. it is been great to have you. ♪
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>> you were watching bloomberg television. let's start with breaking news. numbers coming in from nissan motors. the latest line coming in right now is that it is to pay a -- a little earlier we got fourth-quarter net coming in at 61.8 billion rupees. the estimate was 35.3 billion rupees. fourth-quarter revenue also coming in at 806.8 billion rupees. the estimate, 735 billion. that is your breaking news, get straight to the bloomberg first word news. treasury 10 year feature contrast -- contracts fell after
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janet yellen said on friday and interest rate increase is likely in the coming months. emerging-market currencies are heading towards their worst month in's august. treasury bills, notes and bonds are closed worldwide today. german consumer prices unexpectedly halted their decline in may. the country's inflation rate rose to zero. that is the eu harmonized number. thedata offers good news ecb policymakers struggling to revive price growth in the euro area. that comes ahead of the thursday policy meeting. a chinese billionaire is offering $4.4 billion to buy out and privatize its hong kong unit. it speaks to higher valuation on the mainland stock exchanges. ceo took his own life
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in switzerland on friday. the company said in a statement. he stepped down as chief executive during a shake up in december. the markets are closed in the u.s. and the u.k. today. for memorial day and spring break holiday respectively. let's check in the markets. let's that would european equities. if we take a look at what the dax is doing, heading higher. same for the cac 40 and moving on the m&a news. that they failed to agree on terms for combining. a surprise announcement following speculation of a merger. and shares heading higher at the sunday times reported an improved offer as early as this week for monsanto. currency markets, dollar strength. we are seeing the euro moving higher, perhaps some of that better-than-expected data. a weakeryen. and the bond markets we are seeing 10 year yields and china
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after janet yellen said or suggested there was a prospect for more rate hikes this year. stay with bloomberg. coming up next it is forward thinking. it helps make sense of the global problems of tomorrow. ♪ narrator: the challenges facing our world are growing all the time. how do we build stronger economies with equal opportunities for all? how do we build a sustainable world for generations to come? how do we protect our cities and harness the power of technology for our common benefit? humanity has always been good at forward thinking. in this series, using the latest bloomberg research and analysis, we will make sense of the problems of tomorrow.
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inequality, sustainability, urbanization, the gender gap and the demographic time bomb. and in this film, the march of the machines. what effect will artificial intelligence have on the world of work? will lace -- will a machine soon be doing your job? does the rise of the robot mean the fall of humanity? the world is changing. today, we stand on the brink of of a fourth industrial revolution, one that will transform the way we work, the way we live, and even what makes us human. >> there is a group of technologies that are combining to create transformation across almost every industry at the moment, and those technologies include things like artificial
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intelligence, 3-d printing, robotics, big data, and life sciences in terms of genetics and medical engineering. and these things are combining in a way that is bringing about a host of transformative changes across industries. >> i would describe the fourth industrial revolution actually quite similar to how i would describe the past three. and that is technology that leads to massive gains in productivity, and massive gains in productivity means substantial improvements to everyone's quality of life. narrator: the world has been through revolutions before. the advent of mechanization, then electronics, then the digital revolution profoundly changed the world's economy. but this revolution could be even more disruptive. >> i think in previous revolutions, you could really talk about them as industrial
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revolutions, changing how things were made, factories, heavy industry in particular. here you are seeing transformation across a whole range of not just industry but services and new business models that didn't exist before. what is different of little bit about this particular revolution is that it gets into a whole range of things people that were only ever possible for humans to do. jobs that were human jobs before are not going to be human jobs anymore. narrator: at the heart of this fourth revolution is artificial intelligence, the ability of machines to match and surpass the cognitive ability of their human creators. >> what is happening now is a big deal. it is making a big difference in the way people live, the way they interact with each other. it is sort of obliterating distance. it is in some ways removing humans from tasks that we once thought were the sole province of the human mind.
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these analyitic tasks that we thought only a human brain could do, algorithms can do, machines can do them. narrator: these are early days in the brave new world of artificial intelligence, but the potential benefits are vast. >> one of the liberating things of artificial intelligence, there are actually lots. if you think of driverless cars, which is one use of ai that people are talking about that , could have a really liberating impact. if you think about older people who can no longer drive, they are very shut in their houses right now, dependent on others for transportation. with driverless cars, they would be able to go about their daily life. then you are seeing with big data this may have a profound impact on drug development. you will find new pharmaceuticals being developed at a faster rate because computers can sort through the data that would otherwise be missed. for health in particular the
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advantage of machine learning data science is immense. those have an incredible chance to address very infrequent diseases and diseases which affect different parts of the population very differently. if we are going to cure cancer, is probably going to come through data science. narrator: but there is potentially a darker side to this technological revolution, one which could profoundly change the world of work as we know it. >> the technological revolution will cost jobs. it will cost jobs in the areas that see the biggest advancements first. a good example of that that is feasible over the near-term is truck driving. you have self-driving trucks, you don't need the 3.5 million truck drivers that you have now in the u.s. what is key, as part of this revolution, as the economy continues to evolve and new jobs are created, you need to make sure those displaced workers are given the skills to move into these new positions. that is what is key. will all of them be? no. but you need to make sure that
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if you lost 3.5 million jobs, how do you create more than that in another sector? i think in past industrial revolutions, that is what we have seen happen. hopefully, and i think it will, it will be what happens again. narrator: but what if this doesn't happen? martin ford is a software entrepreneur. he has peered into our future and sees the world where hundreds of millions of skilled workers are out of a job. >> i would say that if you look far enough into the future, there is no job anywhere in our economy, nothing that anyone does that is completely safe. that includes even artists and novelists, and you know, the kinds of jobs you would imagine right now are completely beyond the scope of artificial intelligence. millions and millions of those jobs are going to be lost. it is unlikely enough jobs will be created to absorb those workers. ♪
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♪ narrator: martin ford is a software entrepreneur who has a chilling vision of the future. his best-selling books have put him at the forefront of a movement which worries about technology, the speed of growth and the immense potential it has to change the world. this is the fourth industrial revolution, the advent of machines powered by artificial intelligence which have the potential to make redundant hundreds of millions of workers
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across the planet. it is a world which is nearly upon us, but which governments and businesses are only starting to comprehend. martin: well, the central idea in my latest book, "the rise of the robots," is that over time machines, computers, smart algorithms are going to substitute for human labor. i think that is inevitable. technology is eventually going to be able to do many of the things people now do and there is a chance that will result in unemployment. it is going to push people out of the labor force. many people are going to find it impossible to adapt to that because they are not going to have capabilities that exceed what machines can do. that is going to be a genuine concern both for our society and ultimately for the economy. narrator: some of those machines are already with us. martin: there are already algorithms that can interpret things like body language and respond to some extent to
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emotion and determine your mood, for example and so forth. this has big implications. imagine what that could mean for the example for advertising if an algorithm can determine how you are feeling and target advertisements at you based on that? some of the language translation think that it demonstrated are truly remarkable. imagine if anyone in any country who speaks any language would now be able to do any job because we have perfect machine translation in real time between languages. that has real implications for the job market obviously. narrator: we may be already be starting to see the effects on the wider economy. in the first decade of the century, the net total of jobs created in the united states was zero. martin: what we see is in the united states, we have been
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having what we call jobless recovery. clearly there is something happening there, and part of what is happening is that jobs disappear when a recession happens, and finally when recovery comes back, companies find they can leverage technology to avoid hiring workers. it is taking longer and longer for jobs to reappear. narrator: throughout history, technology has disrupted economies and societies. in the late 19th century, 50% of u.s. workers were employed on farms. by 2000, it was less than 2%. those workers found work in other sectors. but martin thinks this time, it is different. martin: what transformed agriculture was a specific mechanical technology. now we have a technology that is really just ubiquitous, it's across-the-board. artificial intelligence is something that is scaling across
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our entire economy. it is not just impacting one sector. it is something that is literally everywhere, and as a result, it means there isn't going to be any safe haven for workers. narrator: what makes the new technology so ubiquitous is the development of a new virtual world, the world of big data. martin: big data essentially is the collection and use of just massive amounts of data. big corporations are collecting all kinds of information about their customers, about their business operation, about the actual processes in industrial environments and factories. about the things that their employees are doing. all of this data essentially becomes a kind of feedstock for these stock algorithms. it becines the information that they used to learn and figure out how to do things. that is something that is going to be dramatically disruptive going forward. narrator: the total data stored on the world's computers is now
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believed to be well over 1000 billion gigabytes. and it is big data that is driving the most disruptive advance in technology, the ability of machines to think. one thing you that you will very often hear today is that computers only do what they are programmed to do. this is really not right anymore. the reason it is not right is basically because machines are learning. we now have this technology that allows smart software algorithms to look at data and based on that, to learn how to do things, to figure things out, to make predictions. it really is no longer the case some human being is sitting down and telling a computer exactly what to do step-by-step. computers are now having the ability to figure that out for themselves. you can imagine a future where every device, every appliance, all kinds of industrial equipment, everything communicates and talks to each
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other. and i think one of the things that will happen is that artificial intelligence will use that as a platform, it will scale across that. everything will become more intelligent. narrator: the last great technological advance saw robots replace millions of blue collar jobs on production lines. martin believes this new disruption will target the white-collar workforce as well. martin: once a computer learns to do something, then that information can be scaled to any number of machines. it is almost like you can imagine having a workforce of people, you can train one employee to do one particular task. and then you could clone that worker and have a whole army of those workers. that is a bit like the way artificial intelligence works. machine learning is very scalable. if you have the kind of job where someone else, another smart person, could maybe watch what you are doing and study everything you have done in the past and figure out how to do your job, then it is a good bet
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eventually there will be algorithm that will come along and do the same approach. that is a lot of jobs. narrator: many of the jobs which might be displaced are those currently occupied by educated, highly paid workers. martin: you can see really across-the-board anyone sitting in front of a computer doing some sort of predictable knowledge work, for example if there cranking out the same report, the same analysis again and again, all of that is going to be very susceptible to this. journalism is an interesting area being impacted by this. there are now systems that can essentially tap into data, and then they can transform that data into a very compelling news story. many people would read and they can't tell that it was written by a machine. in the future, maybe 90% of new stories will be machine generated. narrator: the number of jobs displaced has the potential to utterly transform the economic landscape. martin: there have been a couple
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of studies done, most notably by researchers of oxford university. they look at a number of countries and most of the results have come back suggesting up to half of the jobs could be susceptible to automation perhaps over the next 20 years. narrator: that is 60 million jobs in the united states alone. martin: that is a staggering number. obviously, we have a massive social problem. you have tremendous stress on government in terms of trying to take care of all of these people who no longer have an income. i think you would see the potential for massive economic downturns. you would run out of consumers. you no longer have people that are capable of buying the products and services being produced by the economy. narrator: a revolution on this scale would not just transform an economy, it would have immense implications for our society. martin: we could really have just what you might call
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inequality on steroids. the very wealthy people who own all this technology will do extraordinarily well. you would have the potential for civil unrest, even riots or massive crime rates. in the united states during the great depression, we had an unemployment rate of about 25%. back then, there are many people genuinely concerned that would result in the collapse of both democracy and capitalism. narrator: this situation amounts to just about the end of the world as we know it, a science-fiction nightmare straight from the movies. martin: there are some very prominent thinkers like, for example, stephen hawking and elon musk who have raised genuine fears of the advance of artificial intelligence. their concern is that someday we will build a super intelligent machine. imagine a machine that is 100 or 1000 times smarter than any living person.
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how it that system think? how would it act? would it have a use for us? it may decide we are a burden and get rid of us. it could present an existential threat. is that something to worry about? i think it is not a silly concern. it is not something we should laugh at or just dismiss. there is really no endpoint to this. there is no point where you can say this is as far as we can go and machines will never go beyond this. we are reaching a new era of time when things are going to operate differently. we need to adapt to that. narrator: health care is one area already adapting to this disruption. and in this field, researchers hope intelligent humans and intelligent machines can work together for everyone's benefit.
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♪ narrator: the fourth industrial revolution, the era of artificial intelligence has arrived. computers are mastering tasks once considered the sole reserve of humans and putting millions of jobs at risk. and now business leaders are wrestling with the potentially huge implications. >> in general, robots of one form or another will be become much more omnipresent in our lives. in a good way. they will replace a lot of repetitive activities that people are currently doing. >> robots will have a dramatic effect on the labor force. lower the cost of products.
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people will start to realize every manual task will eventually be done by a robot. narrator: martin ford's books have highlighted the threat to the job market. but even he sees areas where artificial intelligence could be beneficial. >> i do think that health care is one of the areas where the impact of artificial intelligence and robotics could be extraordinary positive in the future. the burden on our economy is growing at a remarkable rate in the united states. if we can deploy more artificial intelligence and robotics to make it more efficient, that will be a great thing. narrator: analysts expect the ai health care market to generate revenues of over $6 billion by 2021, 10 times its current total. young companies like hindsight in new jersey and anlytic in california are mining data to improve patient outcomes across a range of illnesses. and in new york, ibm researchers
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have developed watson, an intelligent software system at the forefront of this revolution. >> it can understand somebody's personality type. it can look at e-mail and tell you what is the tone of the e-mail, you know, what kind of messages are coming through. whether you intended them were not. if you want to read them or not. they can look at, for example, a big encyclopedia, extract the concepts among those concepts. narrator: watson operates in the world of big data, extracting knowledge from the billions of facts and figures from inside cyberspace. >> i look at the world from the point of view of the amount of data that there is and the amount of knowledge that is embedded or inside the data that we are not able to extract today. therefore we are not able to make the right decisions. so for the industrial revolution to me is the ability to have a much better understanding of the
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world through all of the data, and therefore making better decisions for it. narrator: ibm is currently running a research project in which watson augments the intelligence of medical professionals, helping doctors treat the most dangerous diseases in the world including skin cancer. >> melanoma is a very deadly form of skin cancer. it is something where early detection and intervention is key. so a dermatologist faced with a patient who has a skin lesion will make some assessment about the likelihood of a lesion being melanoma. so unfortunately today, dermatologists can make errors. some melanomas are being missed. and some skin lesions which are perfectly benign are being excised needlessly. what we can do here is essentially ask the computer to make a deep analysis over an
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image. so this image is then being sent to the computer and it is being automatically analyzed. and what the computer is telling us about this image is that there is a very high probability that it corresponds to melanoma. what we are finding in our internal retrospective research is that the computer can be as accurate as 95%. so this compares to the best clinical experts today that are between 75% and 84% recognizing melanoma. it is not a tool that would replace the clinical experts. rather, it provides them with additional analysis over the skin lesion images by providing reaches into large databases of similar lesions. narrator: this is a vision of a future where humans and machines work hand-in-hand, complementing one another's skills. >> i look forward to a time when
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every professional, in fact, two or three billion professionals around the world are all able to have their own personal cognitive assistant to help them do their daily jobs. that changes the nature of expertise. humanity would move to a completely different place and how we apply our knowledge and hour -- our experience into real-world problems and therefore make the world a better place. just like we have had machines that could augment people's muscles in the prior industrial revolutions, or can help people, you know, search vast amounts of information like the internet era. i look at the next revolution as machines augmenting peoples' cognitive abilities. that is how i think about it. narrator: martin ford remains cautious. believing artificial intelligence is going to fundamentally change the way we live and work, and challenge us like never before.
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martin: we are not prepared for the disruption that is coming. we are going to see things get worse before they get better, in particular, the impact on the job market and the impact on the incomes and the livelihoods for average people. so in the short-term, things could be pretty difficult, but in the longer term, if we do adapt to this, there are reasons to be optimistic. you can imagine an almost utopian kind of future where no one has to do a job that is dangerous or that they really hate, or is really boring. where technology takes on more and more of that. and if we can get to that point, that is a tremendously positive outcome. so i think all of that is really possible and it could be one of the best things that has ever happened to humanity, but it will require that we adapt to it. and that is going to be staggering challenge. ♪
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>> news in the investment trust industry. alliance trust confirms informal merger proposal. trading today as u.k. markets are closed, but alliance trust same the outcome may not be determined for months and that rit offer deadline is june 27. keep an eye on the stocks in the open tomorrow, for now, let's get to the bloomberg first word news. treasury 10 year contract felt by the most in almost two weeks after janet yellen said friday that the interest-rate increase is likely in the in coming
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months. emerging-market currencies are heading further worst month in august. treasury, notes and bonds are closed worldwide today. the again to a one-month low versus the dollar and japanese stocks all the highest close said the prime minister the sales tax increase scheduled for next you will probably be delayed. japan's retail sales increased after the hike will be held. the ceo of singapore's commodity trade group has quit. they say that the resignation brings replacement for co-ceo. their questions about the accounting practices in the company. chinese billionaire's wonder group is offering $1.4 billion to buy out and privatize a hong kong unit. that seeks a higher valuation for the business on stock exchanges.
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buyers are trading higher after the sunday times reported the company may improve their bid this week. the revised offer could value the u.s. company added about $56 billion. the $62 million bid that they rejected last week. global news 24 hours a day powered by a 3400 journalists and more than 150 news bureaus around the world. you can find more on the bloomberg go. markets are closed in the u.s. and u.k. today for the memorial holiday, so i want to start with commodities because gold has taken the brunt from a prospect of more fed the increases. down for a nine today. wti brent crude still down. they could recoup losses earlier. -- we at equity markets are seeing the dax up almost .4 of 1%.
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merger isn though the said to have fallen apart. coming up, "highfliers," which brings you into business minds of personalities. ♪ haslinda: hello and welcome to "high flyers," the show that gives you a 360-degree view of asia's business. today, we meet a father and son team with interest in any control of more than 30 companies. he fell in love with the city, but not the food. today, he is become one of the most prominent and forward thinking shops in thai cooking. let's meet david.
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he first opened its doors in london in 2001, and six months later, the first time restaurant received an honor. stop there.d not he brought the fusion back to bangkok, winning the title of asia's best restaurant in 2014, and he says there is much more to come. time for this high fire to join us to tell us about his culinary journey. ♪ >> welcome. but a pleasure to have you. yourave said before that mom was the worst cook in the world, so obviously -- >> abominable. haslinda: your skills are not
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come from her. >> no, i must've been adopted. haslinda: where did the cooking come from? a i describe it as almost time bomb because it came from nowhere. i had no interest in food before and no awareness really, apart saw, but at 22, i became obsessed with food. all of a sudden, i do not know what caused it, but i can cooksed, i really tried to and of course, i was my mother's child, and i started to learn. i used all the tools that i had, not just my time, hands, but my mind to try to understand as much as i could. that becameean food a piece of me. and you were trained
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in classic french cuisine. david: i was. that they were right when it comes to french food. withe persisted and cook the passion. it went from there. i cooked european food for about six years or seven years to some degree and i do not know if i had iecome as well known stayed with weston faded, but what did change is i went to thailand by a happy mistake. haslinda: it brought you to bangkok. david: indeed. just felt at ease. i loved it. i loved the edgy chaos that was so different from the certainty that sydney provided to me. i just enjoyed the approach to , and it was just so
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welcoming, delicious and enticing. haslinda: you fell in love with the city and not so much the food. david: i just typing was interesting -- i just got thai food was interesting. i moved back to thailand in 1988 and i still thought it was compared to us jim furyk, which had the hallmarks of great food. recipes thatthe stretched back for hundreds of ,ears, fantastic ingredients did jump a generation. my grandmother cooked with this inherited skill. she was the grandmother of a and she cooked an orangecalled
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curry. i can see it in my mind now, the dish. it was an orange curry, and it is fish served the most freshwater fishing can find. of cameronere lots believes, fresh red chilies, dried red chilies and i can see this, when i tasted that the seasoning, the poise, the elegance in each flavor was pasted in proper sequence. it just made me policy and think, my, god, this is so different from the street food and normal food that i had tasted so far. haslinda: she was trained. trained in, she was a palace, and there were many palaces in bangkok.
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150 to 200 palaces, and they were seen as finishing school, so women would go and spend a year or two or three years before they were married to become trained in the finesse of it stretchedecause that far. one of the important aspects of thai culture was food, so she had this remarkable heritage that she cooked and it showed. haslinda: your first restaurant in sydney and within six months, you won your star, how did that happen? look for those accolades, gratifying as they cook and a a restauranteur, i am independent and impervious to those things and you have to be because i have to deal with the matter at hand, which may be something,
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you know what? issue ande a service there is an indication and not the accolades. haslinda: it doesn't hurt. you had to shut a restaurant in london because of regulations. it was difficult to get the ingredients you need it. david: indeed. the way i cook is having ingredients. you can upgrade recipes, but without great ingredients, it is not worth it. in 2007, there were some issues across the board with getting ingredients. there was an embargo in place for the food coming out of thailand for one year and that devastated us and more than decimated, we lost up to 7% of the ingredients and it became irksome and awful. around all ofng
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london to find ingredients to weack together a menu, and would create something succulent and wonderful and fresh every day, but we were scavenging the streets trying to find something to put together, and it was just difficult and i thought, it is not fine. we are not able to provide the and food to the customers we can provide the best ingredients for food to give to the customers, so it was not there and it became pointless, so it fizzled out. >> coming up -- david: they loved that. ♪
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haslinda: in 2014, in bangkok, it was voted the best restaurant in asia. he said it was luck of the draw. david: it was. i think many of the voters had been drunk. [laughter] haslinda: you said many of the restaurants served up [indiscernible] david: absolutely.
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i am highly critical of what we it is not necessarily the results at times. , don't say that to the staff but as an owner, operator, the only way to improve is to see the errors and try to improve upon them, so i was taken aback when we had number one, so the judges said that this year. there are so many other restaurants around that were not in that top 10 and not even in the whole rating of that award, so it was very much the luck of the draw. haslinda: a white man cooking thai food, how did they speak to the idea of a foreigner claiming to cook authentic thai? know. i everybody is credulous, really,
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but at the beginning, right at was not cooking great thai food, but after 24 years, i did get some experience as an adult. of the nicest things that happened, there was a woman in the restaurant in london, a thai woman, and she left the restaurant after lunch she left it unhappily. you could see this gal on her face and in those days, i was ande concerned about this how they felt about the dish, so i walked up and she looked at me and said, i came in to complain but i can't. haslinda: that must have been the biggest compliment. david: it was. they found it quite unbelievable understand very much
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it. it has taken really not so much the restaurant in london or moved, but only when we to bangkok, so five years. to start and be accepted. haslinda: you are big on being authentic. than not then take because it came to the understanding that authenticity is in so many different things and for different people. wraps because i am an outsider and foreigner i needed to have some firm understanding of what haie food is -- what typ food is and have it with some integrity, so i did a lot of research and that is what you do to follow recipes and then give some of the recipe to an otherwise foreign hand. haslinda: you have written many books. one of which was 88 pages long, a combination of 40 years of work. david: more than that. it was four years behind schedule. [laughter] i spoke to her the other day in
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sydney and she still says, and i do not believe her, julia gibbs, i do not believe her and she says i was the worst author when it came to prepping dinner. i have the cook point understanding of writing the book and it was the starting point which may be tardy. haslinda: you talked about how you want to stay loyal to thai cuisine. david: faithful. haslinda: faithful, but the thais themselves undersell thai food. david: and this is a big problem. they are innately hospitable, generous and kind people and they did not present something that might be difficult or unpalatable to their guests. consequently, they misrepresent their food or reduce it because it is so much more than just beefr curry, chicken or or eggplant salad, but there is
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a vast majority. haslinda: i love that. david: delicious as they are, and they are, but there is a fast different tie that this -- incorporateduld be and a bad at home. eat and love that type of food, whether it is sure based with chilies, this, pork, or stirfried greens. they love those extremes and they enjoy it, but they are not yet [indiscernible] haslinda: give us a sense of the difference we are talking about. take green curry. how is your green curry remaining faithful to the thai cuisine and different from the green curry you a taste elsewhere in most of the restaurants? david: we make our own coconut cream. haslinda: as opposed to canned? david: yes, and we get fresh
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coconuts and that increases the cost enormously, but we also make our own curry paste, so you have two crucial components that are handmade and made to your own specifications and not made by some merchant who just wants to get the product out onto a shelf. their curry paste is made fresh, they have not been on the shelf for two years or three years with all the preservatives and salt trade that is part of that process. the ingredients are fresh, so fresh coconut cream, curry paste, cooked to order. it is the same recipe in many cuisines. andproblem in thailand sometimes outside of thailand is that it is hard to find coconuts are hard to get rush curry paste. you can go to the markets in thailand and it is available, but cannot do that if you are in birmingham or in the norse or in alabama -- or in the north of
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alabama or berlin, it is much harder to find the ingredients so they resort in restaurant kitchens using canned stuff, but a canned stock is vastly different from fresh stock, so to do fresh coconut cream and the curry paste to the canned variety, that people have to result to unfortunately. >> coming up -- david: almost everybody cheated and i found that hard in my industry. [laughter] ♪
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went to talkid, i about the shuffle went prominent chefs swap kitchens and you ended up in paris. david: i love paris. when we go to london, we crossed the paris every second or third weekend and i was delighted, but we managed to get a plate and i cannot imagine any two diametrically opposed restaurant with how easy going and relaxed we are in bangkok with
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this approach to things, so it is easy going. restaurant,ng the it was absolute perfection but they operate in a distinct way and old-fashioned way and very ph.nch way and -- oo it was more than a shuffle to become accustomed to it. they were very accommodating and welcoming, but it's a a while for them to begin to relax and just sort of see that we were getting into things and getting things done. there was a certain nervousness and in comprehension and the chilies, too, la, but the thing for me was to make the kitchen smile and laugh, which probably had not happened in quite a while. [laughter]
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in that shuffle, i remember there was stirfry and i told them they had to burn it, get wok into get the there and you have to have it almost reaching too far and they were doing it and laughing at the same time and it was flaming and i thought, these french [indiscernible] theknow, they think that is circus in french cooking, so if anything flames, it is considered ruined and it is thrown out. it was a shuffle for them, too. [laughter] haslinda: you and the other you had somed, ingredients that you are not used to. [laughter] of the heartening things about the industry is that they do tend to break rules. the shots shuffle was quite chefve -- the
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shuffle was quite elusive and there were two explicit rules and they talked about said, you cannot take anybody else with you, you are on your own and you cannot take any ingredients with you. haslinda: lo and behold -- david: i took went assistant and 65 kilograms with the ingredients with me. he was in bangkok and he took 85 ingredients and had to assistance, so almost everybody cheated. i found that really heartening that in my industry, we at least know how to break the rules. haslinda: you are passionate about cooking but you have considered stepping away from being a chef. david: absolutely. i have been cooking for so long and there are moments of disillusionment and we ask, what are we doing? i have had that on several
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occasions. haslinda: but a collector of english and british furniture. [laughter] david: there are a few fantasies that i have and i still have those interests and so on, but i still have the same innocent through and pleasure -- thrill and pleasure when i couldn't that i had at the beginning of my career. i am very lucky to have that. although, i would consider myself a bit of a failure, i have to continually cook and i still go into the kitchen and you see thatlarly now it is established and the type of food that i have been doing for most of my career, whereas the food at [indiscernible] so some of the
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standard street food step is delicious and a still enjoy eating, that i would think, i don't think i would like to take something so popular and now that.s exactly i am enjoying doing stirfry noodles, which i have never done before. is a great challenge, engaging because i am learning how to manage it properly. thatnda: having achieved you have for the last so many years, it is about leaving the legacy behind. david: it is the likelihood of achieving something, but one thing that i do wish to do is starting this wonderful heritage and tradition of thai cuisine. it is the custom where people have recanted their life, their interests and their time, so
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often you have this true of possibilities. it could be one or 2, 20 or 30, but there are several books and there are some old thai cookbooks. i have some friends who have a vast library of cookbooks and i want to put them online so that younger thai cooks can enjoy the heritage that they have, rather than those books sitting on the shelf molding away unopened, unused and not active. i think it is so important for them to know what their food was so that the cooking does not in the be anchored traditional sense. my approach is so they are aware of what they have and change i'st they do because tha have great culinary launches and
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you see how it blossoms in bangkok in the restaurant and sometimes there is food that is quite unusual and quite modern and uses many modern techniques that other grandmothers were not understand, but you cannot have access to that information but it comes to ensure that there is veracity to the experimentation in looking to the past and ensuring the present and future has meaning. haslinda: well said. david thompson, thank you so much. it was such a pleasure. [laughter] david: thank you very much. ♪
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you are watching bloomberg television. let's get to the first word news. treasury 10 year future contracts fell after the federal reserve chair janet yellen said on friday that an interest rate increase is likely in the coming months. the loud, emerging market currencies are heading for the worst month in august. treasury notes, yield and bonds are closed world today. german consumer prices halted their declining may. deflation rates rose from zero after minus point 03% in the previous months. good news to ecb policymakers struggling

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