tv Bloomberg West Bloomberg November 11, 2016 11:00pm-12:01am EST
>> let's begin with first word news. mike pence now leads donald trump's transition team. , whoplaces chris christie last week saw two former aides convicted in the bridge gate scandal. following his meeting thursday with president obama, mr. trump is considering leaving parts of the affordable care law in place. at least four candidates could be in line to head the democratic national committee. vice chairman ray buckley is considering a run for the top
spot. howard dean says he wants his old job back. keith ellison is expected to make an announcement on monday. martin o'malley is said to be interested. office,final time in president obama led the nation in observing veterans day. at arlington national cemetery, the president said of those who have served and are serving, we owe you are thanks, respect, and our freedom. global news 24 hours a day powered by over 2600 journalists and analysts in more than 120 countries. in new york, i am mark crumpton. bloomberg technology is next. ♪ emily: i'm emily chang and this
is "bloomberg technology." big tech is down for the third consecutive day. we will break down the reasons why the technological sector seems to have hit a wall. plus, alibaba celebrates the shopping frenzy called single state. -- called single day. and mark zuckerberg comes out swinging. 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 win and after a one-hour plunge on extended trading, stocks posted equally big gains. the one sector in the red is tech. facebook, amazon, netflix, and google all down.
joining us now for an investors od.e, kathy wo holdings aretop facebook, amazon, tesla. why is tech feeling the brunt of this? kathy: i don't think it has to do with that, i think the stocks you 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. emily: shouldn't 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. a taunus vehicles -- autonomous vehicles. we think nvidia is in the suites part -- sweet spot. we think it is a leading indicator for the whole sector.
emily: 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 views might impact the tech 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. i think donald trump's position 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 trump's trade policy is weighing heavily on the tech industry, which for the most part was blindsided by his thick tree. -- by his victory. 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. he shared mixed views on the incoming president. here he is reacting to donald trump's vow to do way with these -- to do away with visas. >> i 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 views and suggesting a 45 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? but if you want to be logical, you want to be a businessperson, you look the well-being of everybody including your own people. 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.
emily: alibaba has done it again. they toppled their singles day record. sales on the site over the 24 hour promotional. climbed 32%. that is about 7.8 million u.s. dollars. i spoke with mike evans and asked him about the shop-athon 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
hundreds of thousands of brands that are selling products 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. this has been fun for consumers engaging and educational. for us, we are 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.
emily: one of the goals of this 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? >> we 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. we have our aliexpress business 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 initiative. emily: donald trump's trade policies might pose the biggest threat to alibaba of all the
chinese companies. how could this affect you? >> we don't actually sell that much product into the united states. the number one a beneficiary, the u.s. has the largest number of brands to the chinese consumer and other consumers around the world. number 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 biggest shopping event, we have
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. you have stars from hollywood and it makes it more fun. and the third thing is that it is global. -- the third thing is mobile. 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 -- singles day 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, -- trade side, a country who could -- company who the bypass the middlemen will increase production. it is hard 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 alibaba would be perhaps disproportionately affected by trump's policies that he has discussed. that alibaba would suffer more than by do -- baidu. selina: 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 as 45%, that would have a devastating impact on chinese companies. it would also have a devastating impact on u.s. companies because china would likely retaliate. emily: john chen said earlier that escalation to a trade war would be dumb. do you realistically think that donald trump is going to impose these terrorists and sanctions
-- terrorists -- taiffs and sanctions. we see more and more 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? hans: 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 seemed to be area for that. emily: you are right. always great to have you here on the show.
emily: peter thiel's long that a donald trump is paying off. he has been named to president-elect trump's transition team. it could have silicon valley have a say in the next administration. joining me now from new york. we have gotten to know peter fairly well on this show. what do you imagine his actual role will be? zach: 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. zach: 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.
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you wouldn't pick a slow race car. then why settle for slow internet? comcast business. built for speed. built for business. mark: president-elect donald trump is rewarding members of his inner circle. rudy giuliani is one of his most 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. he is going to be a great president. i'm glad i could play a small role. mark: mike pence will 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 annex crimea. european commission president jean-claude says president-elect trump needs 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 -- europe functions. 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 nonbeliever alike, all forged. mark: he asked citizens to 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. they will regulate domains, ip addresses and points of traffic exchange.
robert vaughn is dead. he was known for his role in the television series the man from u.n.c.l.e. he was 83. from new york, i'm mark crumpton. ♪ emily: facebook ceo mark zuckerberg is speaking out against the idea fake news influenced the u.s. presidential election. just south of san francisco he pushed back that facebook let false news run rampant and amplified the voices people wanted to hear incident instead of 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. i have seen some stories around this election. i think 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. you don't go wrong when you trust people understand what they care about and what is
important to them. you build systems that reflect that. part of what is going on here is people trying to understand the result of the election. i do think there is a certain profound lack of empathy in 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? the quickest way to refute the 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. hoaxes are not new on facebook. there were hoaxes on the internet before. we hope people can report that
so we can show people the 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 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. all 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. here is the historical analogy i 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. regardless of 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. even if 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. people, even if in most cases the majority of someone's friends might fit their beliefs, there are always some who don't. that 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 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. that 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. even 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 derate click 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. this is bloomberg. ♪
ceiling, is it because society doesn't want to see women leaders succeed? >> i don't think so. i believe it is not a 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 just about men versus women, but 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. what happens if when you return, a typical arrangement now. emily: the go daddy ceo. 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 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. another big 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 somebody that question. we find out they were 100% clinton supporter.
then maybe they the comey e-mails break and 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. what we have is a way of, a 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.
53% of white women voted for donald trump. what are the trends that you saw? >> we found 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 in 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 voters, we have everybody who is an eligible voter in our poll. we wait them by their own propensity to vote. that way we are able to see if there is a surge among people who might not have voted in the past. emily: it is fascinating polling science. there'll be a lot of discussion over the next several months and years. jill darling, thank you for joining us. we'll be right back. ♪
emily: now to bloomberg studio 1.0. we sit down with the biggest and -- influencers in media. this week our guest is the ceo of youtube. i asked why it remains 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. we have all parts that a company 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 invest and grow the product, for 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 watching more youtube than cable. they watch it every day compared to 37% for netflix. what did the demographics look like? some say it focuses too much on younger users. >> to get a billion users to come to your website, you need different demographics.
i do think if you look at the 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 they want an ever they want. emily: the ceo of youtube. you can catch the full interview on sunday. that does it for this edition of bloomberg technology. and this very long week. all episodes now live streaming on twitter. you can check us out on twitter. that is all for now. ♪
the following is a paid program. >> the following is a paid advertisement for time life. >> who are you? what are all of these people doing in my living room? >> he was america's clown prince. his heart was pure gold. >> if i'm your better i would test if you were real. >> i am george. >> i am alice. [laughter]