tv Bloomberg West Bloomberg September 9, 2016 11:00pm-12:01am EDT
>> let's begin with the check of your first word news. condemns northal korea's latest nuclear test as a brazen breach of resolutions. he called on a security council to take your -- urgent accent -- action. this was the north's fifth atomic test in eight months. john kerry met in geneva with his russian counterpart. officials are downplaying chances of a cease-fire in syria civil war.
he is thinking of calling it a day on the ongoing talks. transfer gives the green light for the north dakota pipeline. the company rejecting requests from native americans and protesters. construction on the $3.8 billion pipeline it -- stalled after one tribe follow -- filed suit. pelosian and nancy gathered on the steps of the capitol to commemorate the 15th anniversary of the 9/11 attacks. bloomberg will have coverage at 8:45 a.m. new york time. ♪
i'm emily chang and this is "bloomberg west." coming up, warnings about exploding samsung phones getting louder. officials saying shut them off immediately. we will explain why his often -- explosion is more mysterious one week later. and he is helping a new -- of being a new acquisition will clear the road to the world's most congested city. but first, eight central-bank scare in the worst selloff since brexit. the dow fell more than 300 points after a federal reserve official warned that waiting to -- too long to raise interest rates overheats the u.s. economy and could risk financial stability. we have a breakdown of the -- reaction. walk us through it. >> of all the weakness tech was a new means positive.
given the big losses this is one of the groups that held the a -- of a little bit. to give a little perspective, this has been a group that has done pretty well. since the february low, this is a group that has done fairly wheel. -- fairly well. today, a bit of a dip. but they are up 10.4% versus the s&p 7%. moving down relative to the rest of the stock market. not so bad in the grand scheme of things. i think that speaks to the desire for investors to get into some of the companies largely in the tech sector that will do well if the economy continues to improve. but here's the real story. this is the story of the unraveling bond trade. this is a big one that happened today.
investors are looking for its dividend yielding stocks is getting hit real hard today. at least 3% down. the question is whether that will continue and if we continue to see yields in the bond market rising the 10 year yield jumped the highest since june. that will hurt the sectors that depend on the lower yields as investors seek at regular income. this is the correlation between stocks and bonds. bond yields. plunging today into negative territory which means bond prices and stock prices are moving in the same direction. that has meant a good thing because they have in bull markets but if there is a scare and we get some fed hawkish behavior for a surprise in september or anything that signals more in the future this will continue to be a a serious weakness. getting close to record highs. this is why this could continue.
it is not just about the utilities and the staples and high dividend stocks. they are now contributing to the low-volume etf's that have become popular. these are the size of the moves versus the low-volume etf's. they are supposed to drop smaller but they did not today. this green bar shows the powershares ats. they both lost more than the s&p 500 not really completing their objective. that has been a popular trade and it will be important to see if it continues to be week going forward with more fed speculation. emily: thank you. breaking it down for us, thank you all of her. turning now to the biggest tech stories of the week my let's start with samsung. the u.s. consumer product safety commission is urging users to turn phones off immediately and if you are charging one, stop.
this after aviation authorities around the world advised them not to use them during flights or put them in check luggage. it hoping to get a head start on apple's new iphones. david in new york is here with me in the studio. he covers apple. forbad does this get samsung? >> this is terrible. samsung changed their cadence of releases when they are releasing phones to beat apple. the week of the big launch of the iphone seven they come out with a phone that is literally exploding. there are dozens reports already. it was bad enough when they said they would be recalling the phone internally, replacing units that are affected and units not affected to everyone who bought a note seven and the u.s. government getting involved and making it official, could not be worse timing for the
company. emily: you had a contrary in view. what is your take? >> i did before i heard they were being completely recalled. in my opinion, it was a few -- explosions but it was not going to destroy the companies reputation. based on the most recent developments in the last few hours i am with mark. i think when you're latest, cutting edge product is a total disaster and truly dangerous to use, that is going to affect the company's reputation. i would not be surprised if they start inspecting phones getting on planes to make sure you're not carrying one if they are this dangerous or if they are perceived to be this dangerous. that is really serious. and it is, you could say somewhat tragic given that they have in some ways a better physical design than apple does. but they are not going to benefit from it because of this crisis and what is a tragedy. really. -- emily: itdoes
certainly does, what do you do if you own one, how is samsung handling this recall? >> samsung is working internally to working through the carriers. every carrier is handling this of it differently. some are offering replacement phones up to the same value, offering perks. emily: could you replace your galaxy note with an iphone? >> theoretically. we could get the money back and put it towards crediting an iphone seven or iphone seven plus. samsung is contacting people who have bought them whether or not they have one. that just to get the replacement model out. we should emphasize, there is no good way to look at this. there has not been a consumer tech product such as a smartphone in the middle of this key product cycle that is literally exploding, potentially hurting people and hurting lives. the fact that airlines and the faa are getting involved in telling people not to bring it on a plane like it is a weapon is absolutely unprecedented.
emily: now, at the same time, you have samsung and apple both ending the day low. sort of about the same. we saw apple having a rough week as well. why? >> well, even though these explosions are happening and it is ridiculous to say it but it is happening. there is a sense of platform stickiness. both apple and samsung know very well how to lock people into the platform. so even though samsung is getting all this negative pr and attention because of this issue , it is not going to destroy the company a couple years down the road. people are glued into their and otherd contacts content they have on their phones. people are not going to leave samsung to apple.
emily: you're not too impressed with it. >> nothing looks that impressive in the phone business. these are the cutting edge devices of the industry. the iphone seven and the galaxy note seven. the iphone seven was quite underwhelming in the opinion of many and from a design point of view basically nothing new. that has gotten a lot of flack from the tech press and ordinary users who are just looking at this and there is no product that ordinary users talk about more than the newest iphone. i would agree with mark that samsung has got people on their android version and they will stick with it for the most part. it could be that people start worrying about these smartphones period. if these explosions continue to happen, they have the basic battery technology and that is not so good for apple. not to say that there are any explosions happening on iphones at the moment that i know of. there have been occasional ones from time to time after all.
my basic thing on the iphone and apple's designs generally is past hisny is probably prime. there was nothing interesting in the latest integration design on the announcement. >> there is the suggestion that the same battery technology is in all phones, probably even the iphone. let me start with number two. apple said it is not using the same battery components that have been found to explode. but that means they could be doing double bit more to emphasize that we are not using the same battery tech. it is well-known that apple and have -- samsung have been partners on the component end of things. in terms of the comment, he had
this role change from the senior vp of design which is an executive managerial position to this chief design officer figurehead role in the last year. but you have to take a step back and think about how long these products are in development. the iphone 7, this phone has been in development since before the first iphone 6 came out. in 2014. these things have extraordinarily long lead times. there is no indication that his new role in stepping back has any connection to this design. apple knows exactly that they were planning a big 10 year anniversary redesign. they knew for five years ago that it would look like this and act like this. if you look at the whole smart phone market in general, no one else has anything else break through. the main competitor has a phone that is exploding and being banned from airplanes. if you look at the market from
the whole, there is no one who is beating apple to any remarkable technology. if we are having this conversation next year, if apple was not there then maybe it is time to talk about concerns for apple design team but not today. emily: another big story developing this week on the apple front. in addition to unveiling the iphone seven, they are fighting the purity -- european tax probe. and -- a investigation was launched after the u.s. senate to them off about apples practices. take a listen. actually, we do not have the soundbite but that is what she said that and david i would love you to respond to this. it was based on the u.s. investigation into apple's tax practice that sparked the eu
investigation. what is your take? >> it was a senate hearing that drew her attention and the european union's attention to the fact that apple was that had some unusual arrangement with ireland. that is probably true although in a way this whole dispute about apple's taxes strikes me more as an inter-european problem than the real problem for apple. apple has a big bill to pay but the dispute is between ireland and the eu and whether the incentives are appropriate in -- appropriated in the context of eu regulation, it sounds like a lot of money, 16 billion but this is a company that is the most profitable in the world. there will be paying a lot of taxes somewhere. i think maybe the story is a little overhyped. europeans are we ahead of the u.s. in general at looking at large tech companies and asking
the tough questions right now. even though it was a u.s. senate hearing that was talked about the tax policy. in terms of how are these companies behaving, europe and vestiger are pushing the envelope. and so many of the things they are doing may influence how we look at these companies here. think this is a remarkable and fascinating piece of you -- news given the response to how the eu is dealing with the tax issue. we saw lot of other figureheads can out and say this is not fair, this is going to stymie innovation. paul ryan without a statement about this. to hear this is for by a senate hearing is interesting. emily: i want to end on a positive note. is stock that did do well nintendo announcing that they would be bringing mario to the iphone. nintendo is a part owner. in the company that makes that
game. how long do you think nintendo can ride on the success is a company that for so long just was not where the audience is? >> you want to and on a positive note. i am not sure i will give you one. it is still unclear what the financial implications of all these nintendo developments really are. it is impressive they are getting modern. they have some pretty cool stuff happening. does it go to the bottom line? i don't know. stock maybe has gotten a little ahead of the actual companies story. emily: my guest host for the hour who covers apple for us, thank you for joining us. coming up, elon musk appealed to twitter for help in cracking the mystery of the high-profile falcon 9 explosion. we will break at what we know. this is bloomberg. ♪
still reeling from the loss of its satellite bearing falcon nine rocket. space is -- space x is leading an investigation into what caused the fire accident but they are coming up empty. musk took to twitter with the update saying still working on the alcan fireball investigation. turning out to be the most difficult and complex failure we have had in 14 years. he retweeted a message from the company asking users to send audio, photos, or video of the event to use in the investigation. for more on what we do and do not know we are joined by a reporter dana hall and david kirkpatrick still with this. what gives this explosion an interesting twist is it was carrying a satellite that was supposed to deliver the internet for facebook around the world. what doing no about what caused this and what do we know? dana: what was unusual about this mishap is occurred on a launchpad when the rocket was nonoperational. when there are mishaps it happens after the rocket has launched area this is a routine
static fire were they were testing the engines. there are internet conspiracy theories that it was hit by a thrown -- drone. investigation is preliminary. that is what you saw that company and a line saying if you took videos send it to us. >> what is happening to the pending contracts? >> whenever there is a mishap you do not fly. there is no indication that nasa who is their biggest partner or any of their satellite clients have failed. it is up in the air when they will fly again. emily: we did speak to the teal group who did not think it would have a impact on spacex's reputation. take a listen to what he had to say. >> in five short years this company has become the establishment player within the launch service industry and to come so far in such a short amount of time and have had us few problems as they have had is amazing.
>> what do you think about how this impacts elon musk who has a lot on his plate when he is trying to merge tesla and solar city, dealing with explosions, he has a lot going on. is unfortunate for him that this has happened around the same time that the self driving feature custom want to die in a tesla car. i would agree with the most recent expert you just quoted about long-term, at the moment people are still awed by this man. you look at tesla, they have spacex are landing their easter rockets on stabilized or just in the open ocean to reuse them. that is extraordinary. you might say that both companies may be are so aggressive maybe possibly this shows that spacex might be pushing a little too hard to
fast which is something a lot of people have said about tesla. on balance, spacex is an externa -- extraordinary success story and continues to be. in terms of people pulling out, insurance is all over this business. people are not going to lose out too much, even facebook satellite will be reconstructed and paid for by the insurance companies, not facebook or spacex. i do not worry about spacex for the time being. emily: any indication that investors are starting to have more concern about elon musk in everything he is taking on? this has always been a concern but -- you have the investors who are die hard for him and not -- others who think he is crazy. any change? dana: the investor base is different. elon musk is the largest holder. fidelity and google have a stake. his earlier investors tend to be his friends who believe in him.
what is interesting is that last year, spacex had a mishap where one of their rockets blew up and six months later they landed a rocket back and then in april they landed on the drone ship so they have had mishaps followed up by extraordinary success. having another mishap is unfortunate but i do not think ell.s a death n emily: we will be right back. this is bloomberg. ♪
million, it is sure to have plenty of suitors. still to come, ford scoops of the san francisco started to tackle traffic congestion in the world's biggest city. ceo mark fields joins just to explain the deal next. if you like news check us out on the radio on the bloomberg radio and on sirius fm. this is bloomberg.
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you don't see that every day. introducing wifi pro, wifi that helps grow your business. comcast business. built for business. mark: i'm mark crumpton, you're watching "bloomberg west." let's begin with your first word news. secretary of state john kerry says the united states and russia have a plan to ease suffering in syria following talks, secretary kerry told reporters in geneva that one of the key points is for syria to limit air attacks on opposition targets, calling it beyond inhumane. they are calling for a cease-fire in syria beginning september 12. donald trump says he is not picky when it comes to choosing alliances in the fight against islamic state. the republican presidential nominee spoke at the values
voters summit in washington, one of the largest gatherings of conservative christians. donald trump: my administration on the other hand will work with any country that is willing to partner with us to defeat isis and halt radical islamic terrorism. and by the way, that includes russia if they want to join us on knocking out isis, that is just fine as far as i'm concerned. mark: democratic presidential nominee hillary clinton on friday met with a bipartisan group of former national security experts. following the session, clinton told reporters that when it comes to america's security, politics should be set aside. secretary clinton: i hope and intend that our conversations will continue because as i said many times, i believe in a bipartisan foreign policy. we won't always see eye to eye, but when it comes to questions of war, peace, and the safety of our country, we can't let party affiliation stand between us.
mark: unicef reports the food crisis unfolding in nigeria's northeastern state, the center of the -- is likely the worst in the world. 4.5 million people are in need of food assistance of at which at least a million are in immediate danger of extremely malnutrition. the flooding that damaged 11,000 homes and 100,000 vehicles in louisiana caused $10 billion to $15 billion. at least 80% of the damaged homes lacked insurance coverage. some of the nba's biggest stars become official basketball legends friday night. shaquille o'neal, allen iverson, and yao ming headline the class of 2016 which will be enshrined at the naismith memorial babble -- basketball hall of fame in springfield massachusetts. also joining them, michigan
state coach tom izzo and wnba star sheryl swoopes. global news 24 hours a day powered by over 2600 journalists and analysts in over 120 countries. i'm mark crumpton, this is bloomberg. ♪ emily: welcome back to "bloomberg west." i'm emily chang. now to a story we are watching, ford is acquiring charityots, a commuter ride start-up in san francisco. chariot is a shuttle bus service that crowd sources all routes via its website. it's pushing to position itself as both an automaker and mobility company. our mark miller spoke about the acquisition today. take a listen. >> cities are looking for answers and solutions and so we want to be part of that solution and so our series of announcements today is really around how do we work with
cities to provide them solutions to some of the mobility issues and offer us a good business opportunity. so we're announcing the intent to purchase chariot which is a crowd source shuttle service based here in san francisco which will be the cornerstone of us scaling that globally. we're announcing a partnership with motivate which will put up to 7,000 ford go bikes or bikes on the streets here to encourage bike sharing and finally, we're announcing the formation within our company, a group solely focused on working with cities, we're calling it city solutions to help them with their mobility solutions to solve some of the congestion issues. matt: chariot service is active it other cities as well. are you going to buy the company outright and what does the deal look like as far as the price? mark: well, we're not disclosing terms, but it primarily focuses
here in san francisco. it's going to be, we're going acquire the entire company including the management team and we're going to use that to scale to a number of different cities. we're actually announcing that in addition to san francisco, we're going to be expanding to five more cities globally over the next 18 months. matt: so you're going to work, though, closely with these cities. i know ford has partnered with cities in the past for these mobility solutions experiments, i guess it's getting to be more of an experiment now with san francisco? mark: absolutely. as we said when we announced our experiments a year and a half ago, we were going to use the experiments to learn. and we have learned a lot, matt. we have a number of experiments on dynamic shuttles and used that now to turn it into a business. that's what led us to say this is a good area to serve an unmet need and a good businessen opportunity for the company and it turns it into a real business after experimentation.
matt: so the chariots, i guess we are going to see them going around san francisco, i assume they're going to be ford transit vehicles. are they still going to have drivers? mark: yeah, they're still going to have drivers. the current chariot business today, they have about, oh, about 100 transit advance and -- transit vans and they run 28 routes throughout the city. obviously we're going to expand that and we think this is a perfect -- we have talked about how we're thinking about our business, of our core business of designing and developing great cars and trucks and advance and these emerging opportunities, particularly in mobility services. this is a great example of how we're using both and bringing them together and it's not about going from an old business to a new business, just a bigger business. so it really shows how we're moving from an auto to an auto and mobility company. matt: the old business already makes a lot of money, mark. i mean, you guys had record
sales, record profits. and yet the stock price continues to weaken, at least this year. is this an attempt to show investors that you deserve maybe a bigger multiple? mark: well, matt, as you know, we don't manage the business on day-to-day stock changes. we are just staying absolutely focused on the four drivers that drive value creation in a company. that's around growth. that's around reducing risk. that's around improving returns and about providing rewards for our shareholders. those are the things that we're focused on and things like what we're doing with chariot help in that regard. we think as long as we stay focused on that and delivering results that the market will reward us. but that's what drives us every day. matt: so with more people getting their transportation via chariot or other solutions like lyft or uber or public transportation, this is the way the company is going, you think this is the future for mobility?
mark: you know, we're seeing, our view is the world is moving from just an ownership mindset about transportation to owning and sharing and so we want to be there for our customers. and that's why we're going to stay focused on our core business for those folks that want to own a vehicle and we're going to continue to give them great products but also at the same time for those who want to share, we think that's a big business opportunity for us. and it's who we are as a company. we have always been around making people's lives better by helping change the world moves. it's very consistent with what our brand is. emily: that was mark fields with bloomberg's matt miller. up next, how singapore is taking the concept of a smart city to a whole new level. we'll speak to the government official in charge of the city's -- reinventing the city states digital efforts. this is bloomberg. ♪
emily: if you ever traveled or lived in singapore, you might be familiar with a digital management system that allows singaporeans to access 60 government services including registering a business or paying your taxes. it's part of the city state smart nation initiative. the man leading the charge is singapore's chief information officer who joins me here in the studio, still with us from new york is david kirkpatrick. i'll start are you, tell us more about what this smart nation initiative is and how it is improving digital efforts? >> the smart nation initiative is about people. how do we improve the life of people in singapore through technology. it's really not a technology
driven as it's how to use technology effectively and really improving the lives of people and making it productive. emily: you had a major announcement a few weeks ago, there is a company that is debuting self-driving cabs in singapore before any other country in the world. how involved was the government in this initiative and why? >> the big part of involvement is how you make a framework easier for companies like this to work in singapore. we are very much in this environment and it's very important for the first mile and the last mile of transportation in singapore. the pivot behind what transportation is all about in singapore. emily: the c.e.o. told the "wall street journal" that singapore will be the first country in the world to offer a consumer service on a national scale targeting 2018. is that realistic?
>> yeah, right now within the limited area and that's going well. i think the results will prove itself in the next couple of years of if a national rollout is possible. singapore is an interesting country because it's small. it's like a living lab. these solutions can be easily tested and later on scaled and deployed to larger areas. emily: have you ridden in one of these? >> yes. emily: that's it like? >> there is a guy into there, too, it's just like any other vehicle, yeah. emily: some smooth or -- >> it's pretty smooth. i don't feel the difference between that and a car. it's pretty good, actually. emily: david, what's your take on this, singapore being the first in the world beating uber, google, apple to the punch? david: kudos to singapore for having a chief information officer. there are extremely few
countries that do, perhaps he knows how many there are. i bet you can count them on your hands at most. singapore is one of the countries and it's partly because its size has enabled it to be a little more organized that has put tremendous emphasis on technology for a long time and has seen the potential of technology as an economic driver. i have tremendous admiration for singapore. it's a major internet hub. there are all kind of start-up energy in singapore. i think it's something other countries and cities really should emulate more, many of them do watch singapore carefully. i hope that continues and accelerates because what is happening there is important and is the kind of thing that should be happening really everywhere. emily: are you hoping to partner with silicon valley companies, if so, what kind of companies? >> i think i'm here, this is my second trip in one year, actually.
the reality is san francisco and silicon valley is really a hot bed of innovation. we are actually linking up with companies and the new technologies to be applied in singapore. one thing is for sure, our view is that practicality is important, it's not just been technology. it's what makes sense to help us solve real problems on the ground. emily: talk about some of the other initiatives you have going on. you have other things in the public transportation realm, first responders. >> you know, one of the things that we realize improving mobility within the country is autonomousbout vehicles. a big part is optimization. we have reached a point in life whereby you really can't build more roads so what do you do? one of the things that happens, we realize it's getting more and more difficult for ambulances to get to cases quickly. you know to get an ambulance in
10 minutes is impossible in more -- most cities. we have created an app to crowd source first aid and medical practitioners. this app has 10,000 volunteers all around singapore and when a case happens, anyone with five yard radius will be paged on their phone for notification and you can just choose to respond. it saves numerous lives right now, we call it first responder. emily: it's fascinating stuff. we'll see if you can hit that 2018 goal that they have set for the country. the chief information officer from singapore, thank you so much for joining us. >> thanks, emily. emily: in tuesday on singapore, don't miss the interview 8:00 a.m. local time, right on bloomberg tv. coming up, airbnb is out with an 32 page anti-discrimination report detailing racism. -- race discrimination. and we're sitting down with the live gaming phenomenon on
emily: after complaints of racism and other kinds of discrimination, airbnb has unveiled a series of steps. bringing on a new head of diversity earlier this year, i spoke to the c.e.o. about the importance of it in april. >> we have to make people at airbnb feel like they're welcome , feel like they are imputed -- and included. they can't all look and feel the same way. the diversity idea will make you more successful. emily: i sat down with the author of airbnb's new 32-page report detailing the new rules to combat racism. senior advisor and former head of the american civil liberties union laura murphy joined me from washington, d.c. i asked her about the key findings in this report.
take a listen. >> some of the findings included the fact there is a problem with discrimination on the platform. there was not an adequate customer service support effort for victims of discrimination, people weren't properly trained, the company itself wasn't as diverse as it should be. emily: being devil's advocate here, hosts are not employees and they have a right to say who they want in their house or not if they want people to take off their shoes, for example, you know, how do you, how can you tell hosts what to do or what to think, you know, when they're not employees of airbnb? laura: they are not employees of airbnb, but they join a platform that is infused with values. one of the values, the primary value is belong anywhere. the company is asking people to
join airbnb with a commitment to treat people with respect and without bias. emily: why do you think that will make a difference? laura: well, i think there will also be policies in place where hosts are going to face sanctions if they only choose white customers over hispanic customers or black customers. they are going to have to commit to an anti-discrimination policy as a condition of using the platform. they are going to get higher search rankings if they agree to take anti-bias training. so there are a lot of carrots to incentivize people to engage in less discrimination. emily: unconscious bias is unconscious and so many of these things are simply built into the very fabric of our culture. how much of an impact do you think these changes from airbnb
will actually have in practice? laura: well, i think if you look at the lbgt movement 10 years ago, you couldn't talk about transgendered individuals, but with education and awareness, people now can say that and understand what you're talking about. the same is true with discrimination and bias. if people want to improve, they can improve. and if they're given the tools to make themselves less discriminatory and biased, airbnb will provide the tools to them. emily: you have worked with brian, he admits airbnb needs to do more. he even apologized for how long it took them to make his changes. what was yours experience in working with brian and his level of commitment because at the same time it also affects his business? laura: i think he is very
committed to addressing this issue. he came up with some ideas that are totally his, that are reflected in the report. for example, he has committed to anybody who feels they can't get a room because they have been discriminated against that airbnb will help them find a room at the same cost, if the only room they can find is more expensive, airbnb will make up the difference. emily: airbnb will limit the use of photos. why not limit the use of photos entirely? laura: you're going to see a person eventually. it's just a matter of when you get an image of that person. they've appointed at least a dozen people, engineers, data scientists, researchers, designers to work full-time on eliminating bias and building inclusion. and so, you're going to have a team of technologieses there who are going to experiment with bringing photos up later in the
booking process or not letting the photos take up the entire screen when you are first introduced to a potential guest. there are a lot of things that can be done with photos. but i think when you have a platform that is like a mixture of hotels.com and match.com that is very social in nature, that is about bringing people together, people shouldn't have to hide who they are as a condition of getting a room. emily: that was airbnb senior advisor laura murphy. still with me, my guest host, david kirkpatrick. david, obviously the sharing economy has opened up new issues around discrimination companies like airbnb and uber. these are issues that companies like facebook and twitter have been fighting for a long time. what do you make of these efforts that airbnb has taken? do you think they are strong enough and do you applaud them
for making these moves even though it could impact their business? david: well, absolutely i applaud them. there is some discussion around today whether they have gone far enough. certainly, they have gone farther than any company i can think of in any industry now that they're basically going to require any user, whether they're a host or a guest to sign a document basically saying that they pledge not to treat people with disrespect. regardless of race, gender, orientation. it's really extraordinary that a company should ask its customers to do that. i think it's wonderful. i mean, it's one of these amazing developments that underscores what a weird time we're living in, that the platforms are so gigantic, they are becoming social norm setters. they're global. this is a global platform as are some of the other ones that you mentioned. i wonder whether it might have some really wonderful social
ramifications beyond what it does for their business over the long term. i'm sure there are people who don't want to sign that document. but that's exactly why they need to make them do so or say go take your business somewhere else. i applaud it. emily: david kirkpatrick, always great to have you with us, my guest host for the hour. it is time now for this day in tech history. this is a good one. on september 9, 1947, engineers at harvard working on early electromechanical computers found the first-ever computer bug literally. the operator's traced errors in the machine to a moth that was trapped in a relay. the computer was debugged and computer pioneer grace hopper taped him to a notebook with a quote. first case of a bug being found. the notebook and the moth now reside in the museum of american history and we continue to call computer glitches bugs.