tv Bloomberg West Bloomberg November 11, 2016 6:00pm-7:01pm EST
last month's all too former aides evicted in the bridge gate scandal. journal" street confirms that donald trump is considering leaving some of the affordable care law in place. a plan to repeal obamacare and is thinking about keeping the provisions for pre-existing conditions and children's coverage. the boston globe says vice president -- ray buckley is considering a run for the top democratic spot. keith ellison is expected to make an announcement on monday. former maryland governor martin o'malley is said to be interested. for his time -- final time in office, president obama led the nation in observing veterans day. the president said that of those who have served and are serving, "we you are thanks, our respect
and our freedom. " global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 160 countries. in new york, i am mark crumpton. "bloomberg technology" is next. ♪ emily: on emily chang and mrs. "bloomberg technology." we will break down the reasons why the technological sector seems to have hit a wall. alibabaabama -- celebrates the shopping frenzy called single state. zuckerberg comes out, blasting critics.
first, investors scratching their heads over what a donald trump presidency will mean to business. stocks started the week with a rally with enthusiasm for a clinton when and after a plunge on election night, stocks posted big gains on wednesday and thursday as investors warmed to donald trump's win. section -- sector in the red is tech. there is concern that donald trump trade policies might cut 'sto eight tech -- big tech profits. kathy joins us. why is tech feeling the brunt of this, is because silicon valley chose the wrong side? it has toon't think do with that, i think the stocks he featured here have done so
well this year, so well in the last few years that once people understood we would see lower tax rates, deregulation, more of a pro cyclical market, i believe we saw a rotation more toward cyclicals and financials that have been held down by the slow growth economy in regulation. i think he was nothing more than that. if trump is going to make america great again, and i do agree with these policies, i think the stocks will have a good run. his thoughts on deregulation spill over into the tech industry? there are some parts of his potential policies that could actually benefit a lot of these companies, including his tax plan. cathie: absolutely. these are programs policies and these are growth stocks. we are very encouraged by what we are hearing. there was a stock today that i think illustrates what the potential of this whole sector
is. nvidia was up almost 30% today and it had already done very well. people are beginning to see how the analysts -- the analysts and investors are beginning to see how gaming has accelerated. machine learning is powering the data center space. autonomoushicles -- vehicles. we think nvidia is in the suites part -- sweet spot. we think it is a leading indicator for the whole sector. i know nvidia is one of your larger tech holdings. there is a lot of uncertainty over how things like trade, immigration and donald trump's the techht impact community. silicon valley spent eight years building a strong bridge with the obama administration. the white house by much embraced technology. do you have any concern that
when google or facebook want something done, once federal law and committed one way or another, they are not going to succeed? cathie: i think one of the messages we are getting in these early days from donald trump is that traditional lobbying is probably not going to work. he really is going to try to do the right thing from a free market point of view, to the extent that he has control over this. he does have a republican congress. i think in terms of trade, the fact that we have a republican congress, most republicans are free trade oriented. positiononald trump's will be shifting more toward fair trade, fair and free, as opposed to shutting down trade. i think that will be important. emily: what about m&a? we are getting some mixed signals.
he said he wasn't a fan of the at&t and time warner deal, and we are getting some signs he may be more in favor of m&a in general. what do you think? cathie: i think he is going to let the markets work. in terms of the at&t and time warner, i think he is concerned about media consolidation, given the way the media -- the way he felt the media treated him in the campaign. i think that was more of a one off in his general position. emily: lots to be determined over the next weeks and months. always great to have you here. as we've been discussing, concerns about president-elect is weighinge policy heavily on the tech industry, which for the most part was blindsided by his thick tree.
internet companies gave at -- gave to hillary clinton's campaign at 114 times you gave to donald trump campaign. i caught up with the blackberry ceo, a republican who advised george w. bush. here is reacting to donald trump's vow to do way with these is. hope if he looks at this, he will know that ending h-1b would really hurt literally across the board for all the tech industry. emily: but when it comes to donald trump's protectionist 45ws and suggesting a percent tariff on chinese imports, he did not think donald trump would follow through. >> it hurts everybody. i'm sorry to say this, i don't think anybody is that dumb. what do i know?
logical,u want to be you want to be a businessperson, you look the well-being of everybody including your own purple -- people. any trait in a globalized system like we have today, it is absolutely devastating, to say the least. it would put the whole world into a recession that would be hard to get out of. emily: blackberry ceo john chen. we will bring you more reactions from silicon valley, including mark zuckerberg on facebook's role in the election. we also pick up some of the themes with the alibaba president. that conversation, next. this is bloomberg. ♪
emily: alibaba has done it again. they toppled their single state record. sales on the site over the 24 hour promotional. climbed 32%. that is about 7.8 million u.s. dollars. about thehn chen success. >> the absolute value of what we are selling on the platform right now is not the most important thing. what we are focused on are the brandss of thousands of where selling on the platform and the experience they're having connecting directly with consumers and we are focused on consumers who are experimenting with new ways for them to interact with the brands. through ar, through vr, through live streaming, and did from wesley of not tried in the past. consumerseen fun for
engaging and educational. realizing that we have an opportunity to see the strength and resilience of our platform whether it is in payments or logistics. we are going to have to deliver more than 6 million packages. we are processing payments at 120,000 per second. this is a great test of resiliency. as you know, in my responsibilities for building alibaba globally, we will need these capabilities to make that happen. of thisne of the goals year was not just to attract international brands but to attract consumers from outside of china. how much did they make up of sales this year? are making a big push outside of china to markets like taiwan and hong kong but also in southeast asia where he bought a platform. businessur aliexpress
that sells products from chinese small businesses to more than 200 countries globally. that is also doing well. this is not about brands from over the world selling just to china, but chinese companies selling their products to consumers all over the world. emily: last time we spoke you told me the chinese economy is slowing but not slow. how does alibaba continue to buck the trend of a slowing chinese economy? single state last year, transactions grew by 60%. >> it is highly unlikely we will continue to grow at 60% each year because the number is becoming so large that it would be very difficult to do. but as you can see, we are at at least 30% plus higher than we were last year. bear in mind that this is against a 9% depreciation.
that takes quite a lot of the dollar number. it would be more like 33% from a rmb standpoint. we are today penetrating about 10% of the chinese retail market online. there is huge potential growth in that market. along with everything we are planning to do with our global initiation -- initiative. trump's trade policies might pose the biggest threat to alibaba of all the chinese companies. affect you?is >> we don't actually sell that much product into the united states. ,he number one a beneficiary the u.s. has the largest number to the chinese
consumer and other consumers around the world. --ber one, head of oliver ahead of all other countries. it's hard for me to imagine a reason why we would want that to continue. it's great for retailers like macy's and cosco, it is fantastic for jobs and wealth creation and all of the things that donald trump and many presidents are focused on. emily: mike evans there. for more on chinese -- china's event, we haveg our analysts. what you think of the results in the context of a slowing economy? >> i am not surprised because it is about three things. one, about cross-border, more u.s. brands selling into china, more westernized friends and consumers in taiwan are buying
chinese goods. you see shopping is entertainment. often shopping is boring. from hollywood and it makes it more fun. and the third thing is that it is global. this has shifted the last four years. this is what we have been talking about. emily: obviously one of the goals of single state is not just to bring an international brands but international sales. i didn't get an answer on how many of the sales are accounted for outside of china. any idea of how much success piercing their? selena: the vast proportion of the sales are from chinese consumers themselves. they have the aliexpress platform but it is relatively small. i've not received a breakdown
quite yet but i think a big theme of this year's single stay that you heard over and over again is we do not want to focus on the gmb numbers. it went from 60% to 30%, they know that. they don't want that to be the focus, they wanted to be on what hans mentored -- mentioned. emily: you've been involved with alibaba since early on. i'm curious about how you think trump presidency could impact alibaba and our relationship of china. hans: i thinking general will it happen is no matter what happened on the trait side, -- couldside, a country who -- company who the bypass the middlemen will increase production. to know what donald trump will do, but it seems like
getting a fair trade is more the direction he is going. we are looking for companies who can bypass the middlemen to do well. emily: explain this idea that perhapswould be disproportionately affected by trump's policies that he has discussed. that alibaba would suffer more than by do -- baidu. they have a more significant portion of their business that is cross-border flow of goods. there are some u.s. consumers purchasing from the wholesale and retail platform. there are people in china consuming goods from the u.s.. if donald trump actually implement did some of the things he has said on the campaign trail, for instance, slumping tariffs on chinese goods as high
a 45%, that would have devastating impact on chinese companies. it would also have a devastating impact on u.s. companies because china would likely retaliate. chen said earlier that escalation to a trade war would be dumb. what -- do you realistically think that donald trump is going to impose these terrorists and sanctions -- taiffs and sanctions. more we see more and companies from the u.s. would benefit from that consumption. i think any administration would look for way to make the trade more beneficial to the u.s.. emily: is it true you predicted
a donald trump win? we did have an internal discussion and we saw he had a good chance of winning. we have personal feelings, that is a separate issue, but there area for that. emily: you are right. always great to have you here on the show. thank you as well, selena. to joinp, peter thiel donald trump's transition team. we will break down what it means for the relationship to silicon valley. this is bloomberg. ♪
president-elect trump's transition team. it could have silicon valley have a say in the next administration. --ning me, the sack miter zach. what do you imagine peter thiel's actual role will be, how -- a voice will he and his will he have? he was named to a 16 member transition team. he was named to a group of almost an inner circle of top advisers. other members of the team include donald trump's children, jared kushner, stephen bannon. these are people who are very important and will probably be expected to have a broad, overarching voice in the direction of his transition.
emily: we've talked a lot about how silicon valley has been so vocally against donald trump. peter thiel was a lone wolf and his support for donald trump. do you think peter thiel will become the center of a silicon valley connection to washington, or that a big chill could set in between the valley and the white house? zach: it is hard to say. so many aspects of donald trump's policies are to be determined, even where he has been public about taking position on something, he has often taken a contrary position at another time, and depending on which advisor you ask you could get a different story. there is so much about this transition we don't know yet. one thing we can say for sure is that a big part of silicon valley's concern about donald trump is his stance on
immigration. that is something that peter thiel has not talked about much either way. his support for donald trump, he is talked about his opposition to getting into foreign conflicts, and he is also clearly someone, even though he was the first openly gay person ever to address the republican convention, he said he is not interested in identity politics and stuff but that -- like that. he said that he is proud to be gay and a republican most proud to be an american. emily: how was the rest of the transition team shaping up? we know mike pence will be leading the team. talk a little bit more about the other voices. just because you are on the transition team doesn't mean you'll have a role in the administration. some of these people will pick others and step aside, but you have to imagine that some of the
people who have been his closest, most in the truncheons -- trenches with donald trump will have a big role. people like rudy giuliani and newt gingrich. stephen bannon, reince priebus. emily: all right. i know you will keep us posted. thank you so much for giving us that update. coming up, mark zuckerberg speaks out about claims that they can news in facebook's news feed played with -- played a role in the election results. you can listen to us on the bloomberg radio at and on sirius xm. this is bloomberg.
vocal supporters, expected to land either a cabinet position or senior advisory board. >> all i do is give my advice pre-donald has been my friend. all of my work has been out of great loyalty and friendship to him. greatgoing to be a president. i'm glad i could play a small role. 4 mike pence will pence willke serve as transition chair. newt gingrich will join the executive committee as vice chair. it could mean a recent of relations between the u.s. and ukraine. the president says he hopes the new administration will be a strong supporter. the eastern european country has received support since russia and crimea -- annex crimea.
european commission president president-elect rockne's to take lessons on europe. trump once called belgium a village somewhere far away and alleged americans have no interest in the continent. he says he needs to be taught principles by which your options. he says there be two years of lost time until he travels the world. president obama says there are lessons a divided nation can learn from its military as he led his final veteran's day observances. he said americans should be united in our great diversity. >> soldiers, sailors, who represent every corner of our country, every shade of humanity , immigrant and nativeborn, christian, muslim, jew and
.onbeliever alike, all forged tok: he asked citizens reconnect with the principles that are more enduring than politics. russia could create its own internet independent from the world wide web according to the country's communication industry. they may make the move to tight control over crossed at a border exchanges. , ip will regulate domains addresses and points of traffic exchange. .obert vaughn is dead he was known for his role in the television series the man from u.n.c.l.e. from new york, i'm mark crumpton. facebook ceo mark zuckerberg is speaking out against the idea fake news influenced the u.s. presidential election.
just south of san francisco he facebookck that let false news run rampant and amplified the voices people wanted to hear incident providing a full picture of what was going on. he told our contributing editor echo chambers aren't a problem on the site. >> when it comes to news i think we are very transparent. every time we add a new signal we publish that. we explain why we are doing it. we bring people into talk to them. that is out there. that is a big part
of what we do. stories arounde this election. personally the idea that fake news on facebook of which there is a very small amount of
content influence the election in any way is a crazy idea. voters make decisions based on their lived experience. one part of this, we really believe in people. wrong when you trust people understand what they care about and what is important to them. you build systems that reflect that. ist of what is going on here people trying to understand the result of the election. i do think there is a certain profound lack of empathy in a -- asserting the only reason someone could have voted the way they did is because they saw fake news. if you believe that, i don't think you have internalized the message from supporters are
trying to send in this election. >> which is what? refute thet way to fact that this had no impact is why would you think there would be fake news on one side that not on the other? we study this. it is a small volume if anything. hopes his are not new on facebook. there were hoaxes on the internet before. we hope people can report that show the evict it and most meaningful content that we can. the idea that had any impact on the election -- >> i don't disagree with you on that. it's interesting several tech journalists specifically mention it as something that is of concern to them. i think they will be
glad you commented. what is the filter bubble, the concept, that people talk about
all the time. i may facebook expert as you know. i am often talking to people about facebook. i can't tell you how often they want to talk about this idea that they believe passionately somehow it is distorting the way the world works. >> we have studied this a lot. i really care about this. we want to have a good impact on the world. i want people to have diversity of information. we study it to make sure we are having that positive impact. the research that we have suggests this isn't a problem. i can go into that we have had it hard time getting that out. analogy ie historical think is useful. if you go back 20 years and look at the media landscape there were a few major tv networks. there were a few major newspapers that each had an
editorial opinion. those were your opinions that you got your news filtered through. you were received them from the media. what leaning you have on facebook politically, or what your background is, all research would show that almost everyone has some friends on the other side. 90% of your friends -- if you're a democrat -- 10% are republican. >> that is what your research has found? >> yes. you are going to know somebody who live in another state or another country. >> a lot people say i don't know anybody who supports the other person. i happen to. i'm glad you said that. >> i think they probably do.
what we have found, you can go through religion, ethnic background. all of these different things. cases, even if in most the majority of someone's friends might fit their beliefs, their are always some who don't. ,hat means the media diversity and diversity of information you get through a social system like facebook is going to be inherently more diverse than what you would have gotten from watching one of the three news stations and sticking with that, and have that be your newspaper your tv station 20 years ago. emily: mark zuckerberg speaking with our bloomberg contributing editor. what do you make of mark zuckerberg's comments? >> i think zuckerberg is making these comments that are a little bit against the common opinion about facebook. people have these experiences on
facebook that affect how they feel about the social network. i feel like i do see fake news in my social network, i do see a lack of stuff from the other side. >> and a lot of people who think the way i do. >> while this might be what they find in their research, the truth of the matter is they need to admit they are a media company to and take responsibility for in-swerve asian -- media distribution. they seem to want to distance themselves from that kind of description of what facebook is, and see themselves as a neutral party. emily: i have this debate earlier this week where i said facebook says an algorithm is
making these decisions. users are making these decisions. but humans make that out rhythm. >> absolutely. emily: should facebook take greater responsibility or make changes based on these comments? they said no. ,hat it is user determined algorithm determined. >> i think there is some truth to that. you don't want facebook to say we are going to decide what people can and can't think. that would be crossing a line. there are some things that they do already to enhance the quality of news people get. if you look at the news feed value, one of the things they want to promote is genuine content. if fake news is a small percentage of the articles on facebook, there are so many things they could do, to improve
the general quality of the news on facebook in that they do you clicklick bank -- derate bait. they could do the same with fake news where it is not that they stop letting people share it, it is that they know users have a bad experience when they realize they have been duped. so if that is what they have found in their research it seems like they could take a stand better than we don't have any affect on the electorate for the public. emily: it's a really interesting conversation. if you have a chance check out the entire conversation. thank you for weighing in. more on the election still to come including few predicted donald trump's when after the break we speak to the only major poll that did get it right.
emily: continuing with reaction about the election this week, go daddy has done a lot of work to improve transparency of gender equality in the workplace. i asked if hillary clinton could not break the highest glass ceiling, is it because society doesn't want to see women leaders succeed? >> i don't think so. not aeve it is predisposition of the american people to say i don't want a woman in that seat. what went down over the campaign was pretty unusual. i don't think it was about man
or woman. those were diametrically opposed positions. in tech more i have been putting my focus there is a problem at the pipeline level. we have been putting a lot of effort making sure all of the data we have is transparent, not women, butmen versus we have actually got as far as publishing our salary data on how much women make versus men against engineering type lines. we show what attrition looks like. one of the largest problems is that women have become more senior. the business isn't flexible enough. the environment isn't appropriate. when they have a second child it is difficult to juggle between two children and a job, and the
husband or the wife has to decide someone is going to stay home. flexibility needs to allow that, whether it is parental leave policy. ,hat happens if when you return a typical arrangement now. ceo.: the go daddy continuing with the election, one of the biggest losers was polling. almost all of the pollsters and predictive models had hillary clinton strolling into the white house except one. university of southern california l.a. times poll was the only to see donald trump win. he was leading more than three points. 46.8%. joining us to discuss the poll'' innovative approach, jill darling. thank you for joining us.
what do you think was the major differentiator of your poll? >> our poll is different from traditional polls in several ways. we talked to the same panel of respondents throughout the campaign. that allows us to see actual change taking place among the group of people we are talking to overtime. traditional polls talk to different people it's time they do a poll. -- each time they do a poll. they have to reach their respondents by telephone, which is a different process than when we have a panel lined up and they know they are going to be responding each week. that's one of the major differences. difference, and the way we ask our questions. a traditional poll asks an up-and-down question, if the election were held today would you vote for clinton, trump or someone else?
the way we ask it, we have a method to, we asked them to give as a percentage from zero to 100 that they will hope for each of those candidates. what we end up with is an interesting kind of measure of not only support but also a level of support and the measure of uncertainty. an example of how this might play out, one week we may ask sebody that question. we find out they were 100% clinton supporter. then maybe they call me emailed break andey e-mails maybe now they are 75%. if you have enough of those slides accumulating you're going to see that in our charts starting to go down. if you ask the same voter if they are going to vote today, with a vote for clinton, trump or someone else, they might say
clinton. , at we have is a way of fever chart of seeing how people are the about the candidate. emily: let's break down some of the categories. gender, race. you saw some interesting trends. one of the deciding factors was white men who set out in 2012, they came out to vote. forof white women voted donald trump. what are the trends that you saw? that all of the same things you are seeing in the exit polls, we don't have our final numbers and. we have one more step in our poll to get the actual vote from folks we talked to, which will give us a closer look. in terms of what people were saying as they headed to the
polls we definitely saw that percentage of the people who did not vote in 2012, a higher percentage than what have normally been expected, definitely did come. those categories are lower education levels, white and more in the outside urban regions. emily: last quick question. your poll did not get the popular vote right. trump won the popular vote on your poll. the rest were very wrong in other ways. how do you plan to change or methodology in the future? how should other polls change to make sure that the country is not so misled? >> one of the things -- i think our poll has the ability to -- since we don't use likely voter, we have everybody who is an eligible voter in our poll. we wait them by their own
emily: now to bloomberg studio 1.0. we sit down with the biggest and floors in media. this week our guest is the ceo of youtube. remainswhy it under the umbrella of alphabet when it could be a standalone company. >> we benefit with a lot of things being part of google. we run on google infrastructure.
they sell our inventory. with an youtube we are a company within google. companyall parts that a has. sales, marketing, engineering. we have some of the benefits of being within google. but then are able to be standalone brand within the company. >> youtube makes billions of dollars. you said it youtube is still in investment mode. how would you describe your goals, larry page's goals around profits, sure and long-term? >> what you want to focus on is growing the business when you are in a big growth area. you have to balance doing that, and in a responsible way. tv, from the prescription number , from a watch time, this is one of the biggest markets we have. the millennials, we are not seeing them watch as much tv.
we see this as an opportunity to , fort and grow the product youtube to be a great experience. we need to do that and a responsible way. emily: according to a recent survey, for the first time teens are worth -- watching more youtube than cable. day compared every to 37% for netflix. what did the demographics look like? some say it focuses too much on younger users print >> to get a billion users to come to your website, you need different demographics. at theink if you look millennial audience you see their behavior shifting from traditional tv to online. mobile is driving more usage. and on demand. this generation has gone up expecting to see whatever show
announcer: from our studios in new york city, this is "charlie rose." charlie: theodore roosevelt once said this country will not be a good place for any of us to live in unless we make it a reasonably good place for all of us to live in. the 2016 presidential campaign has challenged this country sense of unity as perhaps no other campaign. it was an election defined by both some progress and some unprecedented controversy. the race marked the first time a woman, hillary clinton, secured a major party's nomination for president. donald trump's unexpected candidacy roiled the republican party and ignited sharp emotions across the ideological