tv Bloomberg Technology Bloomberg November 10, 2016 12:00am-1:01am EST
electiondonald trump's as u.s. president, republicans have claimed a mandate for their agenda to replace obamacare. protesters have been on the street across several asian cities. , decrying theeld president's crude comments about women and attacks on immigrants. a testing is not trump's victory, though. he said he left trump's victory party in the wee hours wednesday morning and that's a bout $1
about $1- bet billion on u.s. shares. it -- i'mhappy about still happy about it. >> investors are betting donald trump spectre he -- investors betting the new administration will have a more soft approach to yield. global news 24 hours a day, powered by more than 2600 journalists and analysts, this is bloomberg. asian markets rallying hard. the recovery rally, up about 3% in the region. the yen is weakening. this is bloomberg. ♪ chang and thisy
is "bloomberg technology. get a big boost as trump wins the white house, but some tech stocks are down. plus, after most of silicon valley lost the bet on the u.s. industry, we predict the next four years in tech. and twitter operating chief adam bain is saying goodbye. what it means for twitter after playing a starring and controversial role in the u.s. election. first to our lead. market reaction to the u.s. presidential elections, one of the biggest reversals in stock market history. the dow jones industrial average ended the day just shy of the record close. yet a handful of tech stocks missed out on the rally. amazon, microsoft, and facebook shares dropping amid speculation of what a trump presidency would mean for all of these companies. now investors are wary of what the next administration means for them. analystnd now, an
bloomberg's global head of markets. thank you for joining us. keith, you did not vote for either candidate, but you have been very vocal about both of them. i know you founded the never trump movement. meandoes a tr presidency -- trump presidency mean for silicon valley and the future? >> i do not think in knows with any degree of confidence. donald trump has different positions over the crop -- the last 18 months and anyone can tell you they do not know exactly what his position is. it will be an interesting for years. obviously the republicans wanted all levels of the government, and that is a little bit more predictable with what republican congressmen and governors will do. we should see less taxation, less regulation, improvement in flexibility for tech startups is basically the highlight, because government constrains the innovation of technology and there should be a degree of freedom we have not seen in a
while. emily: that said, a lot of uncertainty, especially around actual policy initiatives. bread, we know he feuded with jeff bezos on twitter. >> that is right. and he said he would lock the at&t and time warner merger. the paradox is he campaigned as a populist, but he is a republican, and he has surrounded himself with pro-business republicans like jeff sessions, chris christie, so you do not know how much should take him on his campaign trail words. he said microsoft needs to bring back manufacturing to the u.s. these are not things in the president's control. on the other hand, he talks about repatriation for overseas capital and lowering the corporate tax rate, and these are things silicon valley likes. we will have to see. emily: apple ended up slightly up. you actually wrote that donald trump could be good for tech companies in the long-term. tell us what you mean. >> not exactly in those terms, but what i meant is i think it
-- if we get the tax repatriation, it helps a lot of companies. you talk about apple. apple is more than $100 million outside of the u.s. you look at the large companies, probably have more than $1 trillion stashed outside of the u.s. when that comes in, where does that go? probably goes into investing in the business, if you can invest that kind of money back into the business. it will probably go into buybacks. it will probably go to m&a. there will be a lot of companies they can invest next year as we get more money back into the country. you could get buybacks, which investors like. you could get more dividends. a lot of those activities could come out of these decisions. emily: while most of silicon valley doubled down on hillary clinton, there was somebody, peter thiel, who doubled down on donald trump. take a listen to what peter thiel had to say about why he supported donald trump. >> i certainly do not support the specific language he has
used in every instance, but i think one thing that should be that the medias is always taking trump literally. it never takes him seriously. but always literally. i think of lot of the voters that vote for trump take him seriously, but not literally. emily: his comments about taking trump seriously but not literally have been repeated over and over again over the last several hours as people have been digesting the results. at the same time, you had so many people in silicon valley coming out and this really attacking donald trump -- a vista really attacking donald scerally attacking donald trump. a venture capitalist saying, hitler was basically elected. others are saying, tonight we cry, despair, fear. what does this mean for the actual relationship between the
white house and silicon valley? could there be retaliation? >> donald trump is addictive. he is running a general election campaign and still talking about lying ted and low energy jeb. he is nixon-esque. i grew up and picked up on some of the fears people hide about nixon's retaliation. there's almost no doubt that the trump administration will retaliate against the partisan involvement of a lot of tech companies. a lot of tech companies went way out on a lamp, well beyond what a normal fortune 500 company would do. this is actually pretty crazy. i think they will learn the lessons. there is a reason wall street is not close to the democrats. -- not hostile to the democrats. they give a lot of money to the democrats, even though the interest in wall street's are different than the democratic company. i think technology companies will learn they cannot take partisan opinions without consequences. trump will deliver the hammer. emily: eight years have been spent building a bridge between the white house and silicon
valley. the u.s. digital service, all of these tech leaders going to washington, talking about important issues. well all that work be undone? >> the smoke is rising. silicon valley embraced president obama. your credibility as a venture capitalist almost depended on the photograph of you and president obama you had in your office lobby. donald trump does not even have an e-mail. the future of all of those initiativeis in doubt, and i think the community has to get serious now, and maybe a trump administration does too, about rebuilding the relationship. emily: you are close friends with peter thiel, working with him. does peter thiel become the center of the silicon valley white house connection? how does peter thiel, even though he has won here, rebuilt the bridges between all of the people that despise the decision
he made? >> i think now he is going to look like a genius. i have known him for years. he is half brilliant, half crazy. it is hard to discriminate between the two. it will pay dividends for him. i suspect he winds up going to washington and winds up with a substantial appointment with a lot of power. >> you did not see himself doing that, but -- >> you want to say that until you get nominated. emily: do you think he would work for someone else? >> yeah, i think as chairman of the fed, treasury secretary. those kind of positions would be very appealing and i think he would accept them. politics works that way. you take a controversial bet and you get paid. emily: what does this mean for jobs? obviously, the tech industry has been blamed for eliminating jobs, building the future built where jobs are eliminated. donald trump says, coal miners, do not worry. what does it mean for jobs? >> if you look at the tech
companies, when you have jobs at the cutting edge of technology, they are still in the u.s. they will invest more in that. it all depends on that. cash repatriation will be very good for industry. when you say i meant trump was good for the tech industry, i did not mean it in that way. what i would say is that some of these decisions that are giving tax relief can create jobs, and that would be good for the industry in general. emily: all right. thanks so much for joining us. my guest host will have a lot more to discuss. other stocks we are watching, sober companies slid in reaction to donald trump's election. investors anticipating a change in some of the energy policies that helped boost demand of the
energy under president obama's administration. in a week, silver city -- solar city and tesla shareholders will vote on two company controversial mergers. we will dig into that and the impact of trump's energy stances later in this hour. next, after a presidential campaign filled with hacking and privacy concerns, what is to come under the leadership of donald trump? ♪
emily: gopro shares tumbling as much as 10% in wednesday trading after the company says they are recalling 2500 of the new throws. a small number has been losing their power midflight. gopro saying no injuries or property damage reported. owners can return the unit for a full refund. gopro stock has already plunged 40% this year. the recall deals another blow to
the companies's already dim prospects for a holiday season. twitter chief operating officer adam bain, who built the company's business model, has left to explore new opportunities. anthony noto, the cfo, will and the his job, company is starting the search for a new financial chief. we have cory johnson. there was a tweet last night, someone suggesting if you have bad corporate news to announce, do it now. but here we are, talking about it. bain has been given a lot of credit for building the company's revenue model, and building bridges with advertisers. and you can see that in the numbers when you look at the value of a twitter user. the user growth has been pathetic, but the value has gone up more and more every quarter to reach those users. an executive change of twitter is really rare.
it never happens. emily: [laughs] cory: it's the same revolving door up there. but anthony noto took the job as cfo with a fantastic pay package. the you know what he got paid last year? emily: what did he get paid? cory: $72.8 million in 2014. last year was only about half $1 million. not so bad. that was the value of his total pay package in 2014 according to their proxy statement. moving up to the new job, no new financial filing other than the press release, so we don't know how this is going to change his contract. emily: noto, interestingly, we have heard noto has been taking on a lot more of the moral cheerleading and moral support at the company and he is become the heart and soul.
cory: as a dartmouth football player. emily: exactly. but i believe adam bain had that role in earlier years. jack dorsey tweeting now, her breaking to say goodbye, any day but especially today. so much love and respect for adam. a partner and a family forever. cory: and a former employee. anthony noto, really interesting guy. dartmouth football player, rising in the ranks of the dot com era. came back to goldman sachs as one of the lead tech bankers in san francisco. he went back-and-forth between the east and west coast. he went to twitter. he stays at twitter with a much bigger role. his company is really at an inflection point. they were unable to sell themselves, they were unable to add users in any substantial way. that is a problem for this company. if they had this great success,
maybe adam bain could take credit for it. emily: they are looking for a new cfo. cory: i am saying here. emily: great responsibility. cory johnson not going through the revolving door. thank you. still to come, the election sent record tracking through social media sites like twitter and facebook. they have also been blamed for the rise of political divisiveness. whose responsibility is it? more on that story later this hour. this is bloomberg. ♪
emily: one of the biggest losers of the 2016 presidential election, polling. almost all of the polls of political insiders had hillary clinton strolling into the white house. popular polling sites like nate silver's showed clinton with a 538 72% of taking it all. it was more of the conservative assessment. how did big data get it so wrong? joining to discuss, read it may
dit cofounder red and a former policy director of prime minister david cameron. steve, we will start with you. how did they get it so wrong? >> i think there were two big data failures. let's take them one at a time. first of all, polling. emily: by the way, you were on the show saying you've felt the re was a good chance of a brexit like outcome, meaning that you felt it was a good chance the polls were wrong. >> i do not look to be here saying the person that says, i told you so, but we can discuss that. there were two types of big failures on the data front. first of all, in the polling, the polling models basically missed two big groups of voters. one was the secret trump voters. those are people who basically were going to support trump, but in response to the moral shaming going on by many on the other side saying, if you were support trump you are a racist, they did not want to admit it.
the second type of voter they missed was those that were invisible previously because they had not participated in politics because they did not believe any vote they made what make a difference. they were the new trump voters, believing he was a different kind of leader that might shake things up. the other big failure is in the turnout. this was the real heart of what went wrong with the clinton campaign. they have this incredibly sophisticated, data-driven machine built to turn out the votes in very, very specific ways and specific places but it turns out if you do not have a message and a leader that people really believe an, all of the sophisticated data will not get you the result that you want. emily: steve, do you think that some of those voters were on reddit? >> i am sure they were on reddit. while clearly there is a methodology issue with the polls that were done, if you spend any time on reddit in the last year, last night's results were not surprising.
we have a lot of users that support both candidates, but the users for donald trump on reddit were much more engaged than other users. we saw, on average, donald trump supporters voting six more times more often than supporters of other candidates. that engagement translated directly to turn out in the result less night. >> if the product is broken, marketing cannot fix it. the democrats have a superior marketing machine, but the product was not as good. emily: steve, how do they make sure this does not happen again? >> i honestly do not know. emily: exactly. >> it's interesting, because almost every election you see this going on with the polls. for the reasons that you give, the way people are engaging with each other and society, they are much more fluent in their views. i just wonder if the whole thing
is out of date areas one thing i will say, there is a way of looking at the failure of the marketing machine in a positive way, not necessarily in terms of the outcome. i'm not making a judgment about that. but if we do go to a world where actually it is not just about grinding out the vote through incredibly sophisticated targeting and the sort of soulless, mechanistic approach, but actually forces candidates to really inspire people and to develop a plan that people really can believe in, and they are not just relying on the data-driven techniques. that might lead to a healthier political system all around. emily: brexit was driven by immigration concerns, jobs, trade, which we believe is similar to why trump got elected. immigration is something they feel strongly about. google, tesla, elon musk, these are huge companies that were created by immigrants. what do we think the election of
donald trump actually means for immigration and the impact that will have on silicon valley? >> i have a contrarian view here. i believe the election will cause more immigration. if you go back about a decade ago, there was a lot of consensus in d.c. to increase the amount of skilled immigration to the united states, to allow anyone with a phd, a technical degree to emigrate freely. for a variety of reasons that may or may not make sense, but democrats, obama particularly, linked it to immigration from mexico under what is called comprehensive immigration reform. i think you will see this policy split back apart. republicans in congress will pass bills that allow people with skilled degrees to integrate freely to the united states, and then there is going to be more controversial discussion about what to do about immigrants from low skilled countries. emily: but hasn't trump said he wants to end the h-1b visa program which allowed skilled
workers to come in? for a company like reddit, you have engineers from othe countries. >> it is true. where we compete with other companies is on talent. we need access to the best talent basis in the world. we have lost candidates because of the h-1b process. i hope keith is right, because because thatight, is an area where we always need to do better. emily: what are your thoughts of someone that worked in the u.k. for many years? >> with a policy point of view, this is something we have wrestled with. the impact on working people is really tough, and that is a serious thing you cannot ignore and sweep aside because it benefits that particular part for the economy where it is not a problem. getting the balance right is something they will have to strike. i have heard him talk about things like the craziness of educating people at universities like stanford and exporting them to other countries instead of building their businesses here. i have heard trump say that. while it is not at all clear
exactly the direction that is going to be taken, i think there are places for optimism. >> i think we are going to rebuild data models. i think we need to use new signals to get better productions. if you only use telephone calls , you will wind up with poor models, particularly ones that are biased against conservative counties, which is what we have seen internationally. but if we start using reddit signals, twitter signals in building a model from scratch, you may be able to rebuild data silence -- polling into data science. >> on the question of data, i think the really exciting opportunity is putting data in the hands of citizens. that is what we are doing, enabling them to really understand the candidates on the ballot, and also creating a platform that makes it easier for people to participate. if you are sitting there distraught at this result, there is really cool thing you can do, one take power into your own hands, run for office, get
arehousands of protesters gathering in cities across the united states, voicing their anger at the election result. you are looking at a live shot of oakland, california. formingalso seen crowds in los angeles, chicago, and other cities, rallying around crowds of -- cries of "our president" and open top trump -- "dump trump." named in singapore have joe low as a person of interest in a money-laundering investigation.
police have said that it relates to sophisticated money-laundering involving billions of dollars in other jurisdictions. the investigation into low started in 2015. nielsen says nearly 90% of chinese consumers may take part in alibaba's single stay promotion on friday. the company has seen sales job about 40%. increase of so-called social shopping may keep consumers on the website longer and boost sales. this is bloomberg. let's take a look at how this recovery rallied. a remarkable trading day is shaping up into the afternoon session. let's go to juliette. >> recovery rally indeed. look at the picture, very different compared to what we saw this time yesterday. you've seen australia close higher by 3.3%, the best day on the asx 200 in five years.
you are seeing a lot of very solid support coming through, lifting the asx 200, and dumping out ballplayers, the safe havens yesterday. nikkei fell 5% yesterday. solid moves coming through from material players as well, and export stocks getting a very solid boost. the hang seng in hong kong up by 2%. only one stock in the 50 is in the right yesterday, or 50 stocks on the hang seng index or actually lower. a lot of positive buying coming through. a very different story from what we saw during wednesday's session. you can see that sharply reflected in the today chart of -- two-day charge of the nikkei, on wednesday, and rising quite significantly today. the rbnz is saying this currency
is far too. strong for the economy. about one third of 1%, holding at 72.57 -- .7257. we will be live in london at the top of the hour. ♪ this is "bloomberg technology." i'emily chang. from twitter the snapchat, record chatter around the u.s. election, highlighted by trump's point of use of twitter. facebook and twitter have also been blamed for the rise of political divisiveness. with me to discuss is reddit ceo and coastal adventures partner. social media has been blamed for the rise of trump, but also the rise of an increasing sense of divisiveness across the country. to what extent are facebook and twitter to blame for the sort of
brutal nature of how the election played out? >> i do not think they are to be blamed it all. what technology has done is removed the goal of gatekeepers and intermediaries. this is from travel agents to other third parties, and now media does not have the role where it can screen and filter, because people are going to talk to each other directly. that is going to change the conversation, because the people that used to control the conversation and the structure of the conversation and decide what is in that out of bounds don't exist anymore, and that will fundamentally change the rules of the road and the kind of policy debates people are participating in. this is not unusual. when i was in history class growing up, we would talk about nixon and kennedy and how he won the election because nixon was sweating too much. which is a ridiculous way to choose a president, but that is what is taught in u.s. history.
anytime there is a new platform, people who adopt to that platform are going to thrive and people who do not are going to suffer. you are seeing the first social media president. the argument be made that facebook is making more editorial decisions then it would admit? mark zuckerberg said they are not a media company, but i saw one article that said facebook is harming our democracy. they should admit it. if you think about all the news facebookth prioritizing the information with an algorithm built by humans, sometimes those things are click bait-y, or misinformed, are plain wrong or inaccurate, and that's what people are watching and reading on facebook. >> i think what you see is facebook not choosing the news. on social platforms, the users are choosing the news. what the internet gives you now is the ability to choose what
you hear and with whom you discuss it. emily: but does facebook have a greater responsibility to filter that news,to curate especially if the news is wrong? >> i think the role of the platforms is to facilitate the access to the information. that is what we do best. the users can choose what they want to see, and that's ultimately what they will do. >> ultimately populism is sometimes dismissed, but people use it as a label of results, ideas they don't like, but people are voting with their time and attention, and these platforms are giving them the opportunity to disseminate views without going through traditional gatekeepers, which is actually quite empowering. you can be anywhere in the world and come up with a good argument, good idea, interesting development, and you have the ability to shape the rest of the planet. that is actually quite a positive thing. there's also no evidence that the average voter today is more or less informed than the average voter 10 years ago or six years ago or seven years ago. there has been no study that
shows people are more confused and more ignorant in any capacity. emily: we have been talking about the impact on policy, the impact on business, but a lot of what drove discussion and interest in this election was around social issues. hillary clinton, earlier in her concession speech, talked about not quite raking that glass ceiling, but setting an example for young women. take a listen to one of the biggest takeaway lines from her speech. ms. clinton: to all the women, and especially the young women, who put their faith in this campaign and in me, i want you to know that nothing has made me prouder than to be your champion. and to all of the little girls who are watching this, never doubt that you are valuable and powerful and deserving of every chance and opportunity in the world to pursue and achieve your own dreams. emily: now, a lot of the discussion on social media has
surrounded sexism, sexual assault, racism, reproductive rights, and you have so many women and underrepresented minorities out there wondering, what does trump mean for them? >> give kellyanne conway credit for the first woman to run a presidential campaign successfully. there is a lot of bias to these arguments. similarly, hillary outland most senate campaigns in democratic states. so there's no evidence of that in any of the data. emily: steve, as someone who runs a site that gives everyone a voice, how do you balance, and this is something that not just reddit, but twitter and facebook have had to do, balancing hate and harassment and violence with things that are truly contributing to a healthy conversation. how do you balance that? -- our roleto play
to play is that of a facilitator. we want people to be able to express themselves fully on that platform. sometimes we do that in ways we do not like, but where we have a role to play is making sure they stay within bounds, making sure they are not harassing each other and that they are actually having a conversation. we think it is important to expose all the viewpoints so people know what is going on in the world. emily: it is so ironic that donald trump used twitter so expertly and yet he does not even use e-mail. do you see him embracing technology as part of the administration? the actual products? >> i think it would be dangerous if he does. he's clearly impulsive, and that's not a great thing for the president of the united states to be. there is a reason why the president generally speaks off a teleprompter. it's not because obama can't speak extant erroneously. extemporaneously. national security and foreign speeches are screened through
many filters so that no one makes a mistake. i think it is dangerous to get the president direct access to the american people in real time and not just about donald trump. i think it would be important for most americans to have that kind of instant feedback that all of us get addicted to. emily: we will see if they can keep them away from the feed. thank you so much. one stock we are watching, trip advisor plunging as much as 19% in wednesday trading after its latest earning report. third-quarter sales missing estimates as the company undergoes a rocky transition to making money from hotel bookings rather than referral fees. tripadvisor's ceo says even though the process is taking longer, multibillion-dollar opportunity. coming up, donald trump will now hold the reigns over the nsa, so what will privacy and cyber security look like under his leadership? ♪
emily: after months of campaigning, donald trump overcame all odds and became the 45th president-elect of the united states. the new gig comes with a number of responsibilities including control of the nsa. this is a presidential campaign filled with hacking primarily directed on the democratic party. so what will cyber security look like under donald trump? >> i think that is the question we are wondering about today. the reality is, first, we can all take a deep breath. theres probably not going to be under enormous amount of change. but i do think we can look at two things. what he said as he was to put a
task force in place to look at the issue. that can be expected of a candidate. the second is there could be that could be the one we need to watch closely, because particulary post russia, which i know you're going to bring up is there has been some retaliation reported in the press. emily: what kind? >> we have gained access to the infrastructure. the question is, will that continue, will he want to use cyber offense more often than has been used in the past? i think that is where the unknown is. emily: you are saying that the u.s. is going to hack russia? >> i am not saying that. what is been reported is the u.s. has tried to retaliate for what has seems to transpired with the wikileaks. my question on the table with regards to donald trump is, how will he use cyber offense? that is an interesting question. i do not see him making much of
an impact on privacy. emily: do you worry for your safety, our safety? >> nixon clearly abused some of his powers. god for bid he had some of the powers president trump will inherit. i think it will be a lot of fans converted to believing and limited government. there have been a lot of democrats and liberals ignored, -- ignoring concepts of the constitution, and obama has pushed very far on that dimension, and i think there will be a consensus to pull back what the executive branch is allowed to do, which is probably healthy. emily: let's talk a little bit about russia. president putin congratulating trump with his win. how much do you think the hack on the democrats, wikileaks, how much do you think that actually influenced the outcome of the election? >> i will leave that to the political prognosticators, but i will stick with security. i think what was interesting about it is the fact that it looks like a foreign intelligence service went ahead
and partnered with an organization such as wikileaks to disclose the information. emily: and got away with it. thus far. >> it appears that way. emily: more accomplished what they had hoped. >> i think that is with the speculation comes in related to the prognosticators. we should focus on what that means going forward. i think that is what we will continue to see, which is cyber will be used as a tool. we already know it is a tool of economic espionage. we know people are being targeted inside organizations to take sensitive data. the reality is someone internal has access, and that is what we saw with the john podesta leaks . they knew who to target, how to target. what we really saw is that can happen more and more. emily: the u.s. relationship with russia has been incredibly tense. what do you make of a potentially friendlier future? what does that mean? >> i'm not sure being friends with russia under the current leadership is a good idea. i will probably be accused of being mitt romney in 2012, but i
think russia has some bad ideas. somebody needs to stand up to them. i do not know if that will be donald trump, but hopefully it will be the republican congress. emily: what about encryption and privacy issues that companies like apple have a lot of our data and have been fighting to keep it private, and trump has been very public that he did not like how apple handed the encrypted iphone situation. the white house in general wanted apple to break open the phone, but apple did not. could trump force companies to hand over more personal data? >> i think that is the interesting question. what it appears is that he is going to be much more prone law-enforcement, so he could be a lot more aggressive going forward. we need to remember there are still other branches of government that need to be engaged to enable him to be more aggressive. he would have to get a subpoena approved to gain access. i do think this is where an idea
where senator warner and congressman mccaul's commission is to study encryption further. i could see that gaining some length, but i think of all the priorities he has coming up, going after and changing the way encryption is in this country, i would say that is not going to be at the top of the list. emily: what about other countries? the u.s. has an agreement with europe called the privacy shield which sort controls the transfer of data that can happen between europe and the united states. could trump undo that deal? >> of course he could. it would be an executive branch activity. but the reality is that is unlikely. that is being implemented, it has widespread public support. and the reason he would undo it is to gain more access to eu-citizen data. at the same time, he also ran as somebody who is very pro-business and wants to encourage our companies to be successful. i think the question we are asking is, what is to come? the reality is we do not know, but my sense is we will see a lot more status quo than we expect. likely what is happening is the
normal study that happens during any transition of power. emily: all right. thank you so much for stopping by. this is where we will say goodbye. thank you for always bringing us a lively conversation. up next, we will be talking about solar stocks sliding as investors brace for new energy policies under a trump administration. what it means for the future of tesla and solar city. this is bloomberg. ♪
emily: one stock we are watching, searching in the wake of donald trump's election, investors say the restrictive merger environment under the the new administration. president-elect trump will be in charge of nominating new leaders which previously favored a wireless market and blocked the sprint merger with t-mobile.
also moving, the alternative energy sector, because donald trump is a long-term energy -- climate change denier who has promised to undo initiatives by president obama. tesla shares slid along with solar city. investors concerned the demand may be hurt by the new administration. all of this one week before tesla and solar city shareholders vote to approve a $2 billion merger. so, what impact does a president trump have on the future of a company like solar city? the head of alternative energy joins us from new york. gordon, what are you expecting? obviously a lot of unknowns. >> there is a lot of unknowns, but i think what's important is if you look at what silver city reported, if you look at what their sales were, 1/4 of their sales are for the commercial and industrial sector. if you look at what they are representing as their price of three dollars, we know that commercial and industrial prices are about 30% to 50% below what silvercity is representing. we know that if you apply that
to the sga and spread that partially to the esp, there is no way their production costs are as low as what they are guiding. we think that is a bit misleading. in addition to that, the increase of the years that the systems are being depreciated over effectively lowered the depreciation cost. the point is, we think those are two items that are somewhat elusive, if you will, for investors. with respect to whether the deal closes, there is a new poll that clearly donald trump does not support solar. given what has happened with the solar stocks today, and also reports from some power and solar it, it looks like there could be some risk with that actually closing. emily: trump has basically denied the gravity of climate change going all the way back to 2012, a much talked about tweet. he said then, "the concept of global warming was created by and for the chinese to make u.s. manufacturing noncompetitive."
backater wheeled that saying he was joking, but he made it clear that he believes it is not a real problem. what does that actually mean for not just solar companies, but wind companies, or even electric car companies like tesla? >> i think it is quite negative. if you think about it, hillary clinton had a very aggressive plan to implement solar technology. she was looking to ramp up installations from nine gigawatts to 25 gigawatts through 2021. now that's off the table. keep in mind the chinese have ramped up significant capacity outside of china, so tariffs, even on product import into the united states directly from china, are not working. if you have weak demand in the u.s. and china and japan, we think it will have a very negative impact on prices in the united states. if you are a tesla shareholder, you have to ask, are you willing to vote for this deal? because there has been a significant change overnight in the overall chemistry of this deal coming to pass.
emily: as keith was leaving, i asked him what his thoughts were on the future of cleantech. coastal avengers has invested in a number of clean tech initiatives. he says he does not think clean technologies necessarily needs government subsidies anymore. do you agree? and he would invest in these technologies -- and who would invest in these technologies or even building these technologies if they did not think the government was going to support them? >> i strongly disagree. we can look at multiple instances germany, spain, france, taking away incentives , 90% drops. without the idc, the investment tax credit in the united states, which has the support of the house and senate, which the , withoutns now control that, you are going to get a significant drop in installations in the united states. we saw this in arizona. arizona basically cut their
support, and solar city basically left the state. clearly, we believe it is not true. and clearly with the republicans in control, we believe incentives will be scaled back aggressively. that can't be good for solar stocks. emily: florida voters, though they elected donald trump, they also rejected a measure that would have been a roadblock to solar power companies. of course, something we will continue to follow, especially as we charge that -- chart the path to the big vote on tesla coming up. thank you so much for stopping by. that does it for this edition of "bloomberg technology" on this momentous day. tomorrow, we have disney ceo bob iger joining us. remember, all episodes are live streaming on twitter. bloombergtechtv. ♪