tv Bloomberg West Bloomberg September 21, 2016 6:00pm-7:01pm EDT
at a meeting of the united nation's treaty counsel, secretary of state john kerry and the russian foreign minister presented strikingly different views of the country's civil war. the un's special envoy for all hearties trying to stop the violence. , theyceases to be made are to be saving their own country, there's a need for genuine readiness to negotiate and compromise and be president at the next talks. this is the opportunity we would like to offer them. mark: the u.n. announced it would resume a delivery in syria after they were suspended after a deadly attack on humanitarian convoy. says speaker paul ryan health have the votes it needs to override an expected thatdential veto of a bill would let 9/11 victims sue saudi arabia. president obama believes in the leave u.s. officials open to retaliatory lawsuits in foreign
courts. southombers flew over korea in a show of force aimed at the north. pyongyang tested its biggest war had ever. i'm mark crumpton in new york. "bloomberg west" is next. emily: i'm emily chang and this is "bloomberg west." apple's plan for self driving car is a tie with formula one franchise mclaren. how about electric scooter maker lit motors? plus a flurry of startups pricing their ipos is weak. we will look at how investors feel about deal activity in silicon valley. president obama highlighting how text is driving growth in africa. we will sit down with one of the
ceos of one of the country's most promising startups. a flurry of reports attempting to look under the hood of apple plus highly secretive heartland. people say the iphone matter is taking a strategic stake in mclaren. the financial times reporting apple may want to buy the company outright which would likely be its biggest acquisition since its $3 billion by of beats. mclaren denies talking to apple and the ceo said i can confirm is not a discussion with apple about any potential investment. we have learned apple is talk to buy lit motors and bmw audi are in hot pursuit. all of this is a secret. apple acknowledged of its heartland, so-called project titan. joining us is a william blair analyst on the phone from
chicago. in a bloomberg view columns portland. bloombergre is our apple reporter. let's start with mclaren. what discussions have taken place? know apple is in talks with mclaren about some sort of strategic investment. this would mean bringing cash into the business and taking a percentage of the company. chooseuld allow apple to one of the two paths, either building their own ring with another automaker and giving them the apple form. mclaren, itg with opens the door for a future apple-maclaren triumph. emily: this is a company we looked at in 2014. this is an electric scooter company. why would apple want a scooter company? guest: after speaking to multiple people's earlier with
the company, we have learned they are really proud of their patent portfolio and have 10 patents specific to self driving. one of the project is the self driving systems of this company and their custom combined with their engineering resources would be able to assist apple with that part. driving, the system behind that is critical. emily: of all the carmakers out there, mclaren is not into mass production. what do you make of these potential deals? guest: mclaren has been moving toward election -- toward electric and hybrid technologies. that is part of the picture but i think it's interesting because apple is not getting into cars to be another car company. a very challenging and intimidating business. they have to be doing it with a
fresh sheet of paper, like a naval to bring a new value proposition to mobility rather than just making a car. these companies reflect the fact that apple plus interest and then shows they are looking at this is a long-term thing. i don't think apple wants to put its badge on mclaren or i don't think they want to make a self-leveling motorcycle. i think it wants to acquire both patents and intellectual property and r&d capabilities which mclaren brings to the table. they want to take a high-end, cutting-edge approach to developing their own vehicles, whatever they end up being. emily: how are you sizing up this news given that cars in general are a low margin ?usiness we have no idea what apple is working on. good afternoon and thank
you for having me. i come from the world of the stock analysts in the gross margins and profitability is something i focus on. you are absolutely right. short of apple getting out a full-blown car with their and to of this tought business, any initiative that the margins or the top line would be welcomed by me and my peers. i think it touches upon a very interesting point. i agree about the ip and the technology. but when we look at what is going on with cars, i cannot think of anyone particular sector of our global economy witnessing some amazing transformation, whether it is electrification, fencing, infotainment, intelligence.
i can't take it -- i can think of any other thing. i think apple is putting a stake here and they're looking at it over the next five to 10 years and as the other two gentlemen some out, you could have very interesting and innovative outcomes beyond our normal sense of thinking of what is a typical car. emily: there has been a lot of upheaval at logic tight. we ever layouts and that perhaps have changed. the latest in terms of what direction apple is really going? work: when apple started on this a few years ago between 2013 and 2014, it was run by an executive who's a former until 1999 ford. he came to apple work on many iphone generations is very
focused on the car. bob mansfield, who retired from apple, returned when he left and organize the entire organization into three components of one vocus on self driving sensors, one focused on the hardware and the other on the software. you could theoretically see apple building a car platform rather than just a car. now, apple has two different roads where it can go. it can make its own car start to finish for can make its own platform. what we don't know is what apple is going to do and that will be exciting to see in the years ahead. emily: apple is not the first day smartphone or tablet but they came to the market with something better than anyone else is it possible in the car market when you have many companies that have a head start, whether it is tesla were
google for these more traditional automakers that are presenting themselves as forward thinking? guest: clearly, what companies like tesla and google have proven is silicon valley can provide the car industry with a real jumpstart. car industry has come somewhat modified and there's still a tremendous amount of innovation and it's a challenging business. but it has lost the excitement that characterized the first 50 or 75 years of the automobile. silicon valley is bringing them back but tesla is showing this is really hard to, especially if you go at it. --re a silicon valley and silicon valley company and will go anymore-way. production issues and quality issues tesla has and continues to face shows how challenging this is an i think what apple
has that other silicon valley a focus and appreciation of the value of many actually what it takes how much work that is. they don't do their own manufacturing, so a lot of people overlook the expertise they have in this area and its working to understand that is one of the things that separate apple from any other company in the valley. emily: this is a company that goes all the way back he jobs. does apple over wall street more of an explanation or our investors is going to have to put up with the secrecy? in a nutshell, they can be secretive if they want. one of the secrets of apple and one of the fascinating aspects of apple was the ability to surprise.
context, outside surprises, downside surprises, they we don't call in the thought are things we see move at. seen a little more leaks but we see stock getting priced in. they should not reveal her hands right away. emily: i'm sure we will continue to be surprised. thank you so much for weighing in. our bloomberg columnist, thank you all. turning to a story of the following -- defending a controversial ruling that would require ireland to collect more than $2 billion in back taxes from apple. she was unfairly
trainer site on american companies. david harassed about all of those claims earlier today for >> i don't have control over taxation. what we do is enforce legislation that goes all the way back to 58. our founding fathers thought we control and any trust in order to have a fair competition and a level playing field. david: apple says it paid an --ective tax rate in 2017 2015. how do you square the reason why are the estimate so different? we have arember obviously apple numbers because when we do this kind of work, we go on the information we get i hope weompany for will be able to publish as much of the decision as possible. if now in the hands of apple in ireland and if they want to
redact some of the things in the decision if they find them to be confidential, i think it's better for everyone to put it out in the open the decision because then you can check as well as anyone else. david: i wonder how difficult it is to get your hands on data like this? help forthcoming are they? brexit czar to the question asked that said. for them, none of this was public. the secret was the sample data in the apple data and tax rulings in question. david: what has the level of dialogue than life question was there a robust dialogue? how would you characterize the conversations ahead of this decision? >> i would take it is frank.
it works as a relationship between us and the irish government and the cooperation has been constructive and open. we disagree on the results of the decision but to enable it to take place, they have been accommodating. penaltiesld they face larger than this or larger? a dollar company, it would have been much more of a number even if they could do the same thing. david: you met with treasury secretary jack lew and said it was a frankness that should you have. the treasury department submitted a white taper ahead of the decision and wrote a letter head of the decision as well. are you optimistic there will be some middle ground here? i think we will continue to disagree on this decision. veryse of the fact we have
different legal traditions, i have learned in the u.s. that it is absolutely the order of the day for a business to negotiate the decisionhere is situated. you have the clash of understanding about how this should be played out. emily: that was the eu competition commissioner standing her ground with bloomberg's david girl. coming up, a startup that a big on africa's tech talent and earning a visit from mark zuckerberg in his recent trip to nigeria. this is bloomberg. ♪
than $3 billion over the next decade work on during the. the facebook ceo to the stage at a initiative event on wednesday. mark: this is a big goal and we got this was really aggressively got started. but we spent less few years going out and talking to dozens top scientists and experts believe this is possible. bill gates also appeared .n stage of the things that's great about doing science right now is the enthusiasm and doing science. often, philanthropists and that past may have funded a hospital for some specific disease focused but now you see a lot of philanthropists the value of bring the solution from an early stage.
i think bill gates has been a leader in this area. and priscilla are stepping up and making a fantastic investment. of theirter the birth daughter, zuckerberg and chan pledged that 99% of their wealth toward philanthropy. speaking of that initiative, the firsty that claimed his andela andela investment was. the company secured it on in june and specializes in giving them full-time role that international tech companies. technology and its role in spring economic growth to center stage at the second annual africa summit. thank you so much for joining us. explain to us how it. i understand the acceptance rate and it's harder to get into than harvard. jobs for four years at various technology companies from
facebook to google. tell us how it works. guest: thank you for having me. it is. we create a for the brightest, driven development to work with the world. providing data summary around the application process. we combine it with outstanding education technology and are creating a cadre of africa oscars elite engineering teams. -- africa's elite engineering teams. emily: i find it in and hear interesting. explain that to. how many engineers are looking for work and looking for better training and hoping to get into the broader technology industry? guest: the way to look into it and the founding belief of andela is brilliance is pretty
evenly distributed around the world. part of the reason we started and inchange the ratio the, connect great engineers with tough companies. it turns out there are a bunch of really talented at, technologists and oaks in the across the continent which is 1.1 billion evil and the youngest continent on the planet. there are quite a few folks interested in this space. mark zuckerberg visited on his trip to nigeria and i'm curious what you learn from him? how has it helped you? mark and i spoke early on about andela and the education space. mark and priscilla were interested because of the ability to unlock human capacity and expand human capacity around the world.
he knows little bit about software development and we did intonow when we were going early discussions that there was a chance to help him on his tost trip in africa experience some of those developers that it has been a fun journey working with them on it. africa has been plagued by blackouts and power disruptions. not good you are in technology. how have you navigated these challenges and what needs to be done for things to get better? components ofre that that are true but the reality of africa today is much different. we had a better internet connection in nigeria than i do in manhattan, right now. so there are challenges, no abouton, but if you think an event and how you are going to build out the infrastructure and how you are going to work around those challenges, you can
make an things happen. intend to do you scale itself? you increase that number? over a billion people is a big number. andela is not going to be facebook. not the intent. of rhodes scholarship with these engineers in africa. when we think about scale, it looks more like training 100,000 extra gray developers over the next decade. change the wayn the tech world views talent and what an engineer looks like. fascinating stuff you are working on. thank you for joining us. coming up, we speak to the company of a cofounder cited as one of the most eagerly anticipated ipos in the pipeline
removing the device from the luggage and leaving you behind. investigators say they are sought as witnesses, that. investigators say they are trying to determine if a model hobby acted alone or had accomplices. the american chapter of the american civil union -- american civil union wants footage to be released of a black man being shot by a lack police officer. protests followed. authorities say he had a gun and refused commands to drop it. family members they was unarmed. the justice department is reviewing the incident president obama is promoting trade and investment between the u.s. and africa. he spoke at the business form here in new york. africa is onma: the move with a middle-class projected to grow to more than a billion customers. the u.s. africa business
forum is cohosted by bloomberg .hilanthropies global news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries. it's just after 6:30 wednesday in new york and eight: thursday -- 8:30 thursday morning in sydney. my colleague, paul allen, has a look at the markets. paul: new zealand trading for 30 minutes. at shares inlook montero, currently the share price unchanged despite reporting a 65% surge in profits. an environment of a global milk glut with milk prices very low but on terra doing well on it value-added products.
share prices have been recovering over the course of the year. the nikkei is closed in japan today but futures indicate good i've seen string in the new zealand and australian dollars during the overnight as a result of the fed keeping rates on hold. the reserve bank of new zealand also keeping rates on hold, governor graham wheeler saying the currency. for bloomberg tv in sydney, australia. west."this is "bloomberg i'm emily chang.
finally i monday, setting up a range of $11 to $13 a share, setting prices for their ideas this week after one of the slowest years yet for tech listings. joining me to discuss the changing dynamics in the ipo market is the ceo of a new startup and our bloomberg news ipo reporter in town from new york. why now? they have been pushing the ipo four months. why is now the right time? guest: what happened early this year is the ipo climate changed early this year. lookingt changed from to growth for one where they started looking to profitability. so the companies held back their ideas and shifting gears. they are changing gears to attract investors and my
speculation is they took that time a couple of months to change gears. they have never been profitable revenue grew 80 5% year over year. what is the path to profitability and how do they get there? sure they willty come up with great results when they speak about their results in the future. what are investors saying? or theire evaluation road show right now, what they are pitching at is about the same level they were valued in their last funding round in 2014, about $2 billion in market value it seems like they are pulling with a scene with the number of the ideas and have chosen to go out recently. they are pricing it conservatively, pricing it to sell.
investors are hungry for it but it seems like some of these deals are priced to get a pop on day one. i will point out i hear from my sources that the profitability is on top of mind for equity investors who say. add a $2 billion -- at a $2 billion market cap, is a window do you see it as a -- as an opportunity? i think is the right call. the important thing is to make it a success. look at where they are today. it's important to have a successful life you know, but the demand is there. didn't -- the market follows that demand. top 67e not
percent. his net leaving a lot of money on the table for the company and for you? guest: i'm not trying to undermine my job as the ipo reporter but the company future extent that thursday for the that amount being left on the table is so small in comparison of what the company hopes to grow into overtime. everyone wants to see the ipo market start to open. you have a succession of deals that can do well and arm, it incentivize dusters to get in. against the on wins and cutvmware competition. that's going to be key to the narrative so they can outperform going forward and should as long returns. emily: and make your job more .xciting
what they are raising is a small knot of equity. with the orton is the company does well long-term. just because they raise money at slightly lower valuation than they could have come in the big scheme of things, it is not a big deal. emily: do you think it will invigorate the ipo market? guest: it should. this year has been slow but successful ipos happen in the pop happens, more ideas become possible and more companies get brave enough to go out there and showcase what they have. toly: we will be expecting ipo to happen sometime next week. thank you for joining us. coming up, we will continue our ipo coverage. this week is turning out to be the busiest of year for public
he was considered the a close ally of the house ceo. they're looking to find a list by the time the down in november. continuing our conversation about ideas, when they traded in trading on nasdaq. andsitive first a trade this week turning out to be the busiest year for ideas. theing us to tell us about climate is the president for the western region and our bloomberg reporter who covers ipo's breath. lot morejust got a exciting. i know it has been a dry spell. what do you make of this week in particular? will this be an inflection point? guest: i think we're getting ready for exciting time here. the first part of the year was a dry spell. seen it coming later this week and we are looking emily: fall.busy
you interviewed the ceo of trade death. but when he had say. that's a fact that we are both profitable and the fact that we grew by 156%, we have a financial profile that the feeling to investors and when you look at the macro landscape, many ipos not been and they are looking for things growing at that sort of rate with profitability. because of that shortage, now is a time to go public. >> it has become an interesting mix because they have topline growth and profitability in cocktail is making for what the buy side really wants. equity investors are at a time where they want to buy into new issuance. there's just not a lot of companies that look like trade is out there.
this interesting inflection point at the ceo got at in our conversation this morning. i would be interested to hear -- your background was in private market as well and you are familiar with the conversation going on with the optics around a potential down round or flat round when they go out. is playing out the companies listing in the last half of the year? guest: if you look get the one thing the ipo me, it is critical because as you are recruiting talent, you need to put real value in your equity by provide the liquidity for your employees. through theorking nasdaq private market to five with we have had a record year. are you excited about the wellte funding side as
guest: guest:? there has been a pullback in terms of expectations. those fundings will come with different liquidation preferences in terms. everything converts to common and there's a level playing deal. what do you see in the pipeline for the rest of the year? guest: we are excited to see companies go out and start exploring the public market. if you look at our win rate, we have run 80% of the tech deals that have come to market. emily:emily: talk about the competition with the new york stock exchange and how you see that evolving and what your guest:. is we are really invested here on the west coast. it's is based in san francisco where we educate the next great generation of entrepreneurs. and as that private market is a huge as of this, giving us a
chance to engage with these companies before they go public and when they are looking at an ipo and going public, our best in class service offering. and you guys, for the companies that have been waiting for watching, are they getting in? how are they feeling behind the scenes? guest: for the companies that are not profitable, have go out and look for funding. do they want to continue to tap ?he private market long-term, the liquidity that company can get in the private market is not in comparable to what you get in the public markets. ultimately, they are looking at m&a.lic event or it depends on their long-term vision. we talked about this a
little bit that you have all of these unicorns and all of these investors. get an investment, so hopefully it's a little busier but it might not be severe on the ipo front. and they will become a bigger views of this equation has emily: emily:.ty our bloomberg news of who covers i euros and jeff thomas of nasdaq, thank you very much. turning to another story we are world cup tech fund has decided facebook is cheap enough to buy. on average, they deliver a return of 16% according to bloomberg data. the certifying facebook in july. -- they started buying facebook in july. they believe any sale
deceleration is already priced in. following up on today's fed decision to keep key rates on hold. we will hear from former fed chair alan greenspan. then former blackrock ceo, larry think. coming up as reports swirl about applesauce plans for a self righting car, does the company have the mapping know how to find its way to market? this is bloomberg. ♪
john: we invest in every single deal that comes up on the platform. of every deal is our capital from a we call our to dol order that was what we were investing just a couple of million dollars out of my pocket and my friends pocket. and now we are at hundreds of millions of dollars a year. we need to raise money so we have matching capital. emily: our crowd has helped to facilitate funding to 100 startups since it was founded in 2013. appleman that way since its troubled life and the parodies. the's how bad is it lets come as bad? it's not iphone 4 bad is it? zune bad. me it is
my son sorry, it's apple mavs bad. helping it can be with industry leaders like e, the tech giant acquired a handful of stand and startups and reversed engineered the last one to find bugs in the algorithms. one of the deal offered real-time directions for and publicking transportation around the world. is apple mapping software finally up to speed and who is the leader in this case? my guess is the senior leader of giga meite applicator and founder of pop stop. thank you for joining us. is apple mapping be? -- is apple maps up to speed? think apple is back and
knee product offering is right on par with apple and the other map platforms out there. keep in mind doing maps is extremely difficult. the maps, the out rhythms the user experience for you to have a delightful experience, you need to be able to deliver on all three fronts and i think apple done a wonderful job with it you release. where would you rank it against competitors like google? waze or google maps that uber drivers are using. guest: google maps started quite a few years or apple entered the game. google for the most part controls most of the faith and build thatn to
expertise and is not something that can easily be done. really caught up with what the other competitors. think if they will get to a place with a can combine these capabilities with a potential self driving car that may or may not exist or will apple have to continue to step it up even more? it's an exciting time to be in the mapping space. lots of it requires spatial intelligence and a deeper data set around those points and movements. the more reliable and safe for the self driving cars, so even when we go to mars, i'm sure the company will be mapping mars. , far from not
having real expertise and focus, they have done a wonderful job catching up with the competition. have been talking about the u.s.-africa summit and spoke with the ceo. mark zuckerberg is an investor. what do you think makes this company so special? wonderfulela is a place for delivering social results. i'm sure jeremy talked about it but they essentially look, starting in nigeria, they look for nigerians and connect them international involvement and teams that work. createnderful way to income and employment for nigerians and africans in general, also being able to transfer skills they can use to
create other companies within nigeria. a sense of size, nigeria has a population of 180 million. the unemployment rate among , about half a0% million graduates go out each , around 250,000 of them do not have jobs. it's a huge problem. think, under jeremy johnson leadership has shown there is a way to deliver value and create social change as well. it is a wonderful company. emily: you are a multi-time on your startups. now you're running another company. we will have to have you back to talk about that. thank you so much for joining us
. time to take a trip back in time with the stay intact -- 13 years ago today, nasa and the mission or its spacecraft. it was the first spacecraft to orbit jupiter and spent eight years studying the planet. it was the first spacecraft to fly by an asteroid and snapped images showing that asteroids could have moons. journey by hurling it into jupiter's atmosphere at a speed of more than 30 miles per second. that does it for this edition of "bloomberg west." tomorrow, don't miss our interview with linkedin ceo, jeff weiner, right here on bloomberg television and bloomberg radio. ♪