tv Bloomberg Technology Bloomberg November 14, 2016 6:00pm-7:01pm EST
president obama: we are indisputably in a stronger position today than we were when i came in eight years ago. my instructions would be to run through the tape. we must make sure we finish what we started, that we do not let up in these last couple of months. courtney: former goldman sachs minuchan has been selected to be secretary of treasury. the securities and exchange commission says mary jo white will leave office at the end of the obama administration. white was appointed by president obama in 2013 and her term does not end until 2019. a united nations spokesman with more than 54,000 people have fled their homes because of the military operation to retake mosul from islamic state. about three quarters of the camps are sheltered in
set up by the u.n. inbal news 24 hours a day more than 120 countries. i'm courtney collins. this is bloomberg. bloomberg technology is next. ♪ cory: i'm cory johnson. this is bloomberg technology. routg up, the postelection continues. analysts see what a trump presidency will mean for silicon valley. mark zuckerberg strikes back. th to critics saying the social media site swayed the election. more details ahead.
tech stocks lead, continuing to slide in the wake of donald trump's election. four-day drop since february. they are wondering if president trouble both through with his policies outlined by kennedy candidate trump. they say they will take a different approach with apple iphone sales which are down more than 5% over the last four days. techng us now with what might look like is david kirkpatrick and james. amazon, alphabet, among others. dave, you said terrifically this morning about potential impacts. was in siliconht
valley, we have so many great companies from intel to google, founded by people from other countries that we depend on visas for these companies. why do you think immigration will not be the most important thing for silicon valley? david: we agree it is a bigger deal. when you think about immigration, what does trump really want to do? his talks at rallies -- it is about creating jobs here. when you think about what the technology industry is doing, they are not as much as his enfranchised as american workers as they are in hiring the best of the best. james: at the same time, when you think about supply and demand -- there is a lot more demand for these technology jobs than supply. that is why we don't see h1 vib
visas being a top priority. david: my thought when i hear that -- i assume you are saying if he takes his trade actions, iphones will have tariffs put on them or whatever -- my opinion is that simply will not happen. if he were to take many of the trade actions he has promised, the global economy, and particular the u.s. economy -- cory: like nafta. david: there are so many things. this is a very delicate balance, the value of the dollar, who holds our debt? whether we buy imports or not. if he really messes with that in any direction too much, you risk creating a disequilibrium that can be damaging to the economy. damaging to the people that elected him. i'm sure you will have
relatively smart people that will remind him of that. cory: a note that was nowhere near as good as yours this morning. tony had an interesting note where he focused on taxes and repatriation. i thought one of his interesting takes, a look at the s&p 500 and taxes, non-tech companies pay a lot more in taxes. this is a duh because a lot of s&p 500 companies earn a profit. the tax rate paid by non-tech 17.9% of thews average tax for tech companies whereas 24.6% of the rest of the companies would suggest a tax cut will not actually help tech companies. maybe this makes some sense.
maybe the rebalancing with less tech because it would have less sex s iuccess. james: you have to bring the cash back. we have millions of dollars sitting overseas. if we can do it in a way that is not just done on a single basis, but rather a perpetual basis where we know it is not a one-time thing, but prolonged. i think there are opportunities. they tell me if they had the opportunity to bring it back, they would. several years ago, ebay tried to bring it back but they couldn't because everybody was up in arms. david: that is great for these companies. prices maybe dropping if that happens and it is great for the american economy. cory: which is to say wall street could be stupid here. shocker.
the company that has the highest tax rate and the most amount of money overseas is apple, the very company that could benefit the most. david: i think there is an overreaction. there is a lot of uncertainty, but there cannot be something that would destroy everything that has been established. trade, yes, but if it is done with the proper tax incentives to actually encourage that behavior, it probably will be a lot more muted. james. david: that is one thing is the repatriation of those profits. if you don't like uncertainty, it is a dicey time, no question. my own view, i'm just not feeling apocalyptic. article byhis great a really smart guy saying this is the same mood after the election of nixon, reagan.
i remember i was going to leave the country when reagan was elected. these things settle in and the republic survives and probably the tech industry, too. cory: james, you also highlighted other issues. james: i'm optimistic. things that are in the back of the mind. et neutrality?n he hasn't taken an issue. we want everything to be equal. if there is a turn of that, what that could do is empower the companies but also increase the likelihood of acquisitions. the second thing is on jobs versus robots. if you are talking about job creation, we are moving towards an automated world where everything is being taken over by robott it could slow down
n.e implementatio cory: interesting times. it is a great mystery to see what is going to happen. i'm glad you are both here. david will stay with me. we will say you later this week. for now, thank you. techg us a look at what kevin is are held by which money managers and which institutions like tech and which don't. stakes to the company. investors are divided on the outlook of alibaba. tiger global adding shares. the decision to cut amazon and double down on apple. coming up, facebook attempting to come to terms with its huge influence as a news platform after the u.s. president was
dealnews.her bit of turnings close to buyi online searches into purchases. they are making further moves into making profits out of hi its massive image library. the person who wants led the google image search i business. mark zuckerberg says the notion of a facebook effect on the presidential election is a crazy idea. a more complex post response -- "i'm comment we can find ways
for our community to tell us which content is meaningful but we have to be extremely conscious about being arbiters of truth ourselves." david kirkpatrick is back with me right now. whom he said was ato crazy idea at the conference. cory: this is the heart of what facebook has been from the start. the heart of the internet -- should it be a place where people are responsible of what they put out or is the host responsible? david: it has been always towards the former. a platform -- the content comes from you and me. what happened is this scale of facebook's impact on society, the scale of services it offers, to just be that
anymore and i think they know that at facebook. i think there is a little bit of an existential crisis like who are we and how do we live up to what we are now? because it is easy to forget people can bad mouth facebook or criticize them -- this is a company with nearly 2 billion users globally. that has never happened before for any company, industry. personal data on all those people. all of them are sharing news of all kinds about themselves, their brother, their dog, their country, the pothole on their street. that is a new environment. they have a lot of systems in place. i think they have done a good job managing it, but they need to do a better job. point, we have a clip from your conference. let's check with mark zuckerberg actually had to say. mark: personally, i think the
ona that in a fake news facebook -- it is a very small --unt of the content influenced the election in any way is a crazy idea. cory: i don't imagine him telling advertisers that the advertising is very little impact and nobody actually pays attention to it. david: yeah, but, it is a matter of the percentage of new stories was less than 1%. i think it is interesting to ask yourself -- ok, if facebook were the arbiter of truth, how do they do that? truth is a very hard thing to define. you know how much fact checking it would take to ensure it was true? like three days worth. it is not easy. i don't deny that facebook have to do much better. i think they are taking this whole thing greatly seriously.
they are somewhat taken aback by the pushback they are getting and they are working to figure out how they should respond because they feel they have to do more. i think zuckerberg's note over the weekend shows that. cory: in the new york times suggests it was not only zuck, but a manager at facebook had a freak out over this. do we need to change our policies because we may have contributed to spreading false information? david: that is happening at every major news organization also. that is one of many things they do. the new york times, the washington post is freaking out internally. they are getting a lot of pushback from the readers and they are having an existential crisis because everybody got it wrong. they are thinking are our systems wrong? facebook is the biggest, richest and most in-your-face. cory: reuters reporting that
google is working to restrict ads from being placed on fake news sites. facebook is not doing that. david: the kind of thing they could do is get authentication somehow for media properties. these people in macedonia where they are making up news organizations. cory: there was a small handful of people creating hundreds of posts that were kebut generating a lot of clicks. they were very popular on facebook and they made money. macedonia made money and facebook make money off of this. david: true. it would not be that hard to have some sort of authentication for media organizations that would prevent that. i think that could be done and i bet they do that in the not so distant future. cory: we shall see. david kirkpatrick will stay with us.
the u.s. government will require new hybrid electric cars to make noise when traveling at low speeds so pedestrians, people that cannot see, they can hear the car coming. the new rule to help prevent 2400 pedestrian injuries a year. could uber get the last laugh in china? tighter regulations on ridesharing companies could make business a lot tougher soon. we go to hong kong for the details next. this is bloomberg. ♪
this is a strategic fit that will maximize our strengths. &dmsung's global scale, r capabilities will provide harman the resources to broaden our portfolio, expand our reach and accelerate the production of industry first positions. cory: it is only been a few months since the china giant bought out uber, but now the city are planning to enforce tigheter rules and selecting what kind of cars drivers can drive. from hong kong is lulu chen and still what is david kirkpatrick. what are the rules proposed in terms of both the residency and the vehicles themselves? u: the largest cities have
ruled out tighter policies requiring only local residents, for example in beijing and shanghai, to drive these car hailing apps. all the other cities say they have required locally registered cars to run on the roads. they have tighter requirements on what types of vehicles can run on the roads. especially for the private car hailing business, and that is a significant part of the revenue. when we spoke to drivers, they say the government and didi have not sent the messages saying not to use the apps if thery are not locally registered but there are police raids these days. cory: i've had it with traffic. is this really about traffic and the government's response of increasing traffic in regards to the app?
discord between the central government and local administrations. at the local level, because the city government are in charge of issuing a lot of the permits for operations, this is probably a pushback from the cab drivers and the companies behind them where they take a cut from the operating revenues. for didi coming in and bringing millions more drivers, it is a blow to their business and that is probably where we are seeing this pushback from. cory: it would seem they have the inside track that the government would favor them. david: i will tell you another way where i can make uber feel glad they are not involved. the answer is probably to go with the point we just heard about the greasing of the palms of government officials and the local government and taxi industry. that is why they have to get out
of it. it just gets more expensive to do business and it becomes less of a super cheap alternative form of transportation. it is so hard for western companies to do business in china because of the winds regulatory regime. i think uber was super big to get out. cory: that is fine with me. there was a thought that one of the things uber was doing by selling their losses in china was taking a step closer to an ipo. i wonder if you get a sense of these companies cashing out there investors, growing up a little bit and becoming a publicly traded company, uber. david: i think in general that may be happening, but i don't sense it is uber as much as it is of the other companies. i think uber is feeling comfortable at being able to
raise capital at private valuations. if you look at facebook's situation, if they had never gone public, they would be able to do a lot of things to respond to situations that are putting them in a difficult situation now which they cannot do to keep churning the advertising crank to please wall street. cory: do you think this will get resolved at the national or local level? lulu: didi is providing feedback to the local bureaucracies. they say they are more open to moderating the policies. we will see how they negotiate with the governments. cory: we certainly will. it is quite a big story and could affect how the country develops. lulu chen, thank you very much. great story. david kirkpatrick, thank you very much as well. telling us about the
donald trump assured european leaders the u.s. will not back off its commitments to the nato alliance. deposit an spoke with reporters today before his last to europe as president. pres. obama: there is no weakening of resolve when it comes to america's commitment to maintaining a strong and robust nato relationship and a recognition that those alliances are not just good for europe, they are good for the united states. >> donald trump- has vowed to renegotiate the agreement. diplomats are calling for a more robust european defense and a worldr european voice in affairs. turkey's foreign ministry is issuing a travel warning for the united date, citing dangers linked to protest and possible theult by racists after election of donald trump.
global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. it is just after 6:30 p.m.. monday in new york, and 10:30 a.m. in sydney. paul, good morning. paul: good morning, courtney. the asx has been trading. not looking too good. off three quarters of 1%, leading the declines. a disappointing set of earnings. the reserve bank of australia released the minutes of its november meeting in a little under one hours time. of one and a half percent at that meeting. the world interest rate probability index on bloomberg suggests just a 4% cut from the rba in december. philip lowe will be giving a speech in melbourne later this evening. have a look at new zealand in
this morning. tower insurance off slightly despite the insurer saying its liability from the quake it yesterday or on monday is going to be just a little over 5 million u.s. dollars. the biggest drop will be rebuilding new zealand's highway. keep an eye on those big friends. more from bloomberg technology, next. ♪ --
>> this is bloomberg technology. i am cory. we spoke with her on the 10 year anniversary of the acquisition and she talked about 1998, larry page, they first set up their office in menlo park garage. >> i wish i could say i picked them out out of all of the students at stanford, come run to my garage. i wish i could tell you that, but it did not work that way. what happened was i bought a house and houses are very expensive in silicon valley and i was eighth didn't, so i wanted someone to help me pay the mortgage. they were looking for space, and they were just, the two of them had one employee. susan: space was expensive so the idea they could move into my garage quickly and easily at a
wastively low cost for them really appealing, and so, they just moved in. >> your mom was a teacher. you have two sisters. janet is an epidemiologist. tell me about a day in the life? susan: we grew up on the stanford campus so that meant on the neighbors we had were professors around us, which i think definitely influenced us because everybody was studying to do something and had a passion, and so, i am the oldest, and may be the more practical one, as the oldest very creative. i/o is loved making things and that is what led me to computers in the end. always loved making things and that is what led me to computers in the end. i studied a literature at harvard. i had no idea i was going to go at the technology at all. if he would have told me that
when i was a student, i would have thought you were completely crazy. i would do temp jobs, one week free and quality temp service and say "place me anywhere." a lawyer,it was that another time was at a garbage company to answer the phone. the third time, i got placed at theyrtup and i realized can use technology and they have these big ambitions and i realized that it's really cool and i want to be part of it. when i was a senior, i decided to take a computer science class at harvard because there is no other humanities senior taking a computerlass. it was really good. i got a good basis. home, i cameback to silicon valley and i was able to get a job and i have been there ever since. google's 16th employee. you work on doodle google, doodle, googlee
images. susan: when you join a startup, you have to do whatever the start of needs you to do, but also because if i did not have a fixed role at first, i was always looking for the opportunity, so, there is an opportunity. nobody else is working for example on image search, so no one else is working on image search. images would be really cool. you know, today, that is a really popular search, so i think, doing lots of things and having the freedom to move around the company enabled me to see a lot of opportunities and grow them. sincehas been 10 years google bought youtube and you wrote the original justification plan, as i understand it, that convinced larry and sergey to buy the company. susan: i did a spreadsheet. in youtube.ved there was one video that we had and that video convinced me, and
showed me that people all over the world can create content and the entertaining. so, the video was of these two students in their dorm room and their roommates in the background doing his homework and they are singing to the backstreet boys and they are incredibly funny. i still laugh when i watch it. that was our first hit. and i realized that people all over the world can be creative and funny and that other people want to watch it, and i thought "wow, if it continues like this and continues to grow, this is going to be a big phenomena." much,tube has becomes a but i hear it could be so much more. susan: growth has been amazing. people who useon youtube every month. that is a big number. variety did a study where they went and asked teens, "who are your stars?" in 2015, they said that eight of the top 10 of their stars were
youtubers. >> what is the personal stamp you want to put on the company? susan: it has been really fun. being at youtube, i love the creative aspect of it, i love the weight entertainment entertainment is being opened up to everyone and i care deeply about the values we have, this freedom of expression and the fact that people all over the world can use it to tell their story. when i think about what we want to do with youtube and where do we want to grow it, video has never been easier to create or to watch. and so, we think about ourselves as a new platform for the next generation of media companies to be able to create content and distribute it to the world. we want to work with traditional media companies so their content can be redistributed to all the millennials on the platform. >> some analysts estimate the value of youtube could easily be
a settling company. why is it not a standalone company within the alphabet family? susan: it is an important part of google and we benefit from a lot of things being part of google. we run on google and the structure. we benefit from google's team that sells our inventory. we are a company within google and so we have all parts of the company, sales, marketing, engineering. , we have some of the benefits of being within google. we are able to be a standalone brand within the company. >> up next, more of our exclusive interview including susan wojcicki's thoughts. this is bloomberg. ♪
technology. i am cory johnson for emily chang. turning back to our interview of susan wojcicki on bloomberg studio 1.0. take a listen. susan: the main thing for me has been to focus and prioritize and so, i am really good about saying "this is my work time." when i am in the office, i am really focus on what i am doing and prioritizing. i always think about how do i get from point a to point b as quickly as possible? i don't have forever. andnnot stay till midnight work weekends. it caused me to see some of the shortcuts, some of the new opportunities because i was thinking about, how do i grow the faster? let us forget about all of those other things that are going slowly. i do not have time on that. i have to focus on the big ideas
and we have to get them done now. that is really good intent because tech is about growing big ideas quickly. and so, i use my work time to focus on that, and then when i get home, i try to focus on my family and my kids. my husband is very helpful. ialistically, to be fair, as have risen in my career, i have been able to have more help at home. the hard part, and when i really struggled with, was when i had my first baby, i did not know what i was doing it works, it did not know what was going on at home, did not have support at home or work. that is when it is the hardest. who say a set of women this is really helpful for me and other women who say, "you know what, i have made a conscious interest was not to lean in. i want to spend more time with my family, not working." , think those women sometimes
you know, find it offensive or disagree with it, but you know, look. i think of it as a business book for women, and so, not everyone wants to be in business. not everyone wants to lena and. cheryl was really open about that in her book. this book is not for everyone. there are many women who have to be working. to ask for a salary, go advocate for yourself, and so, i think that it really applies to a lot of women who want to work or have to work. >> what about places where there are still barriers? you cannot lean and if the door is -- lean in if the door is still shot. susan: the reality is those things get changed by having more women in the workforce, right? so like, summer camps. when i was growing up, i don't remember there being summer camps. we stayed home all day and did nothing. now, there are so many
choices. computer cap, our camp, design camp. they're all of these parents who want kids to do activities during the summer, here is an opportunity for you. du think it problem is that women are so underrepresented in technology? susan: it is a big issue for the world because we are missing voices, innovation from women who could be creating all of these great products and ideas and services. i think tech is missing out. it is a problem for women because you look at it and say, women have made a lot of strides in the workforce, and here is this huge economic driver of change, and women are not participating in it. tech is what is driving the new job. it is what is driving change. it is driving influence. it, then not part of they are not part of that
cory: is is "bloomberg technology," and i am cory johnson. ando back to emily chang susan wojcicki. how much is youtube willing to spend on content? learning have been about creating shows, we have been really pleased in the shows we have created and the feedback we have gotten from our users. emily: what is the most
successful show? a gamer.utie pie," he does really funny commentary. you did a real-life game where he was put in real life situations like a game. emily: twitter, amazon, facebook are pursuing life streaming. our sport something you would consider? susan: we do a lot of highlights for sports. we did the whole football season. they did really well on youtube. the full game, right? they are very competitive. they are really expensive. areraditional media, also, competing for them. a lot will change over the next five years, but at this point right now, we are focused on those highlights so the users can see those key moments that happened during the game. emily: out you think things will change over the next five years? susan: as they have some ad models, subscriptions, they will be able to be more competitive
to compete for those sports rights. emily: the headlines talk about theube being at war with music industry. you have everyone from taylor swift to paul mccartney saying they do not like the way you do business. do you see a future where there is a middle ground where everyone is happy? susan: working with the music industry, i have learned there are many constituents in the music industry and they do not all agree with each other. labels and artists and publishers, so i remain really hopeful that as online models of both subscription and advertising become more developed, that over time, we -- toe to becom comes come to a place where everyone agrees on the future vision. we are starting to see the numbers really pick up. we are starting to see more revenue from advertising. we have paid out $3 billion to the music industry since inception. we have good growth numbers. overall, i think as more time
goes by, it will become more clear on what these monetization models are, and we will be more aligned. emily: how are you thinking about vr? some people think google needs to buy or produce its own vr? i think people are trying to figure out what is the best way because it is a new medium. we have a large collection of 360 degree video, so we are leaning in. we think it is a great way to have an experience where you can really feel you immerse -- really feel immersed and feel that story. emily: harassment is a problem for a number of different technology companies. the comments on youtube are not kind. what are you doing to get that under control? susan: i think that is a really important area. we are putting a lot of energy into it. we have community guidelines. anything that promotes violence, the, that would violate
community guidelines, so if there's something on our forum that violates the community guidelines or the user feels uncomfortable with it, they can flag it. que.oes to a meet thes not guidelines, we take it down. we are trying to do more, and so, one of the things we just did that i think is impactful is we created this program called "creators for change." there are creators who are actually taking some of these tough topics and doing a great job to encourage understanding, to encourage empathy. we gave them additional funding and have a fund of $1 million we gave to them. we are promoting them on social media. the idea is, how do we get creators who are so influential in themselves to help promote these positive messages of understanding and empathy across youtube? emily: do you think the internet will become a friendlier place? susan: all technology has good and bad sides to it, just like
the real world does. there are friendly people and difficult people. i have seen all the good that has come out of it, and i have seen the way people are able to connect with people like them on the platform that otherwise, they would not have been able to connect with. the goal is that as our technology gets better and we are better able to identify what are the right ways to enforce, do ane can continue to even better job and have, promote even more the good stuff on the internet. emily: where you think youtube will be in the next 10 years, more like netflix? to be the goal is next generation of media company . youtube started out with cap videos and people uploading cool things they found in their backyard, and then we had three gators and they started actually doing it for a living, and now, we have this new generation of creators who are building media companies on youtube. if you fast forward 10 years, you will see that there will be
a new generation of these media companies that have really strong followings. they are able to create amazing content. it is going to be global. they will be able to interact with their fans and all kinds -- in all kinds of amazing ways. i am looking forward to being a part of that. cory: susan wojcicki, youtube ceo. studio 1.0. looking at apple. breaking news. digital glasses. marco urban recs the story for us. mark, really? you have got to do this? >> google glass really came out too early. it was a $1500 device and it had a lot of the flaws. apple is exporting their own take on glasses. this would not be introduced until 2018. they are in the testing and assertion phase right now. it is about ar.
vr is in compass, enclosed environment of virtual reality. augmented reality would be more of the or street view or applications for both of the augmented reality futures the real-life environments. cory: it is interesting that are willing to pursue this at google. there are issues with google glass, not just about price, but also the impact it had on dumping of the glass-holes." >> they came out with several different bands and styles. i would be surprised if there were not several different styles and colors available for any user. cory: is it typical of apple to chase these things down? float trial balloons and the never pull the trigger? has done this in the past, explored tv, if all
television set pretty extensively and then did not release it. they chose to go with the box approach. all integrated. butsame thing can be here, according to our sources at bloomberg, apple is exploring this glasses product. cory: good scoop, mark gurman. that doesn't for this edition of "bloomberg technology." .he fastest-growing startups believe me, everybody is talking about this company at silicon valley. we will focus on president elect trump and how he could impact the security. this is streaming live on twitter. check it out on bloomberg tech and bloomberg twitter. this is bloomberg. ♪
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