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tv   Bloomberg Technology  Bloomberg  November 28, 2016 6:00pm-7:01pm EST

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tereus, a pick for secretary of state, and his name has been floated as an alternative choice amid concern of mitt romney. petreaus.s >> he basically walked us around the world, and showed us a variety of challenges that are out there and some of the opportunities, as well, so a very good conversation. we will see where it goes from here. courtney: it is official. michigan, andon the state certified's victory nearly three weeks after the election. the margin is the closest presidential race in michigan in more than 75 years. and thousands of cubans lined up to mark the start of the week long services paying
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homage to former president fidel castro. house says president obama and vice president joe biden will not attend the funeral. journalists in more than 100 countries, i am courtney collins. this is bloomberg. ♪ emily: i am emily chang, and this is "bloomberg technology." cyber monday. threatening the one-day shopping reign, andyear donald trump refuses to quit tweeting, and female coders. even though there is
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unprecedented growth, there is still not enough to fill jobs, and sounding the alarm under president elect trump, but first, to our lead. cyber monday, online shopping a one-daye idea of online shopping extravaganza is fading, because more u.s. consumers are choosing to skip the doorbusters and shop anywhere they want, but this was the first day of retail history with more than $1 billion in revenue, a 33% jump from the year before. that has led some to say that this was the moment when shopping on a smart phone officially went mainstream. our bloomberg contributing editor and a director of research, john. john, i will start with you. john, do you think cyber monday and black friday are already things of the past, and if so, why?
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john: no. there is still value. i run the internet research group, and you see amazon has been pretty focused on -- they are calling it like the five-day of black friday through cyber monday, and they get a lot of traffic, and obviously a lot of sales. last cyber monday, they sold over 53 million items. they are running black friday promotions for 33 days at amazon, december 22, so i kind of agree that, yes, to a degree, it will be way more spread out over time. : david, i love my shopping. we know that more americans actually shopped over the weekend but, in fact, spent less. what do you think the implications of that are, and do you think it is that sales are just so steep now?
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it is funny that k iday lasts 33 days. black friday, you cannot fight the tide. convenience, pricing, selection, free delivery. online is just a machine that is getting better and better oils. -- oiled. with are those coming up interesting, creative ways, new kinds of products and services. there is not really a good way that the off-line brick and mortar world can fight back long-term. i do not think that means that goes away, but we are seeing a fundamental shift towards online and convenient. whether the overall sales are going to be affected by that, i think he will do spend more when it is easier, so long-term, i think it is good for the economy -- i think people do spend more when it is easier.
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emily: amazon is growing at a simply unprecedented rate. walmartamazon versus do, in particular, with black friday/cyber monday? john: they are expecting much better growth of this year versus last year. .8 fulfillment centers overall, they are adding 28 this year, versus 14 last year, and they announced on the third quarter call that they are increasing their for film and footprint i-30 percent year-over-year. plus 22% on average -- they are increasing their footprint by 30% year-over-year. we actually estimate that revenue will accelerate. there in commerce revenue. mmerce revenue, and
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we have got a lot of proprietary data, and we have noticed with andicals, with consumables groceries, accelerating purchaser growth. they are growing in huge verticals that are not core, like media and electronics. with this kind of growth, where are the cheeks in the armor? -- the chinks in the armor? the content is amazing, and as john was saying earlier, building a moat around prime to keep people from leaving it, and forgive me for quoting you, amazingly lown is on amazon prime. to me, they are profitable in
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the u.s., apparently, but they are spending so much money to expand globally at amazon, you wonder at what point will they have to sort of slow down the growth and really make an ongoing, profitable business? this is a company that loves to grow and does it as well as any company we have ever seen. john, we had another piece out today about amazon oning a harder review reviews on reviews and -- taking a harder view on bad reviews and fake products. john: we did something with my retail colleagues, and we were sitting there for hours, listening to the focus groups, and there was some concern about fake products, not only from third-party sellers. and like weaid, have written about in the last years, they are on a march to
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gain share and be the biggest retailer in the world, so they will get this cleaned up, and they need to. some ofthe focus group, the key reasons they rely on amazon is customer reviews, because you cannot try the clothing on and things like that. it is important. because, ultimately, it is all a trust factor with their customers, and they need their customers to trust them, though i am sure they will be fine. they: and, john, what are trends you are expecting with amazon and other retailers, deals, etc.? john: amazon, the issued a press release days ago. on their own electronic devices, 15% to 30%. they are on their handle -- echoes and kindle fires. apparel. there are a bunch of deals, so customers will get a good deal. a price leader.
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they are a price follower. it is really more about, as david said, and we have written a lot about it, too, the convenience factor. 50 million prime members in the u.s., tens of millions internationally, and that is really the biggest driver of their business right now. john, thankight, you, and david, you are sticking with me. story we are watching now with a lawsuit being sued by a venture capitalist who claims that ceo elizabeth holmes lied about their blood testing technology. s hadawsuit says that holme overstated. remove her, they said that they were able to run tests with just drop of blood at a fraction of they said-- remember, that they were able to run tests with just a drop of blood. coming up, we will get a cyber monday on the ground outlook
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from one of the fastest-growing e-commerce sites. the ceo weighs in. this is bloomberg. ♪
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emma lisa: now to a story we are watching, passengers treated to now to ade -- emily: story we are watching, passengers treated to a free ride. all data encrypted. the hackers demanded roughly $70,000 worth of bitcoin, and the hacker has threatened to release stolen information if the agency failed to fix its vulnerabilities and pay the ransom. holiday shopping. we saw a spike in online
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shopping, but the amount the customers shelled out actually dropped. about $10 lessnt over the weekend versus a year ago -- consumers spent about $10 less over the weekend. largest online retailer for furnishings, and talked, niraj shah, about whether it is more important to focus on the margins or to keep customers coming back. >> do we run a little thinner? sure, but, frankie, our margins are quite good -- frankly, our margins are quite good. , if it is ayfair barometer, what does it tell you right now about what consumers are spending? niraj: we have been running three times growth rate, so because we have been running 20 to 30 times the growth rate of
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the entire industry, it is a little hard for us to read the consumer. we were a little nervous based on the other things we were hearing from other retailers, but i think what is happening is a shift on line. we have been seeing incredible results so far this holiday. i think the consumer is doing fine. i think the difference might be shifting online. reporter: donald trump and the kinds of trade agreements he might make and how that might impact your business? wayfair, we do not really take any critical stances because we service everyone, but whether there are in the -- import duties, there have been many. is vast amount of decor imported into the united states, and it is not just us but all of our competitors that are importing it, as well. we try to source as much in america that we can, made in
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america, but i think it ends up being great for america that we pursue -- it will be fine for forarer, -- four wayfair -- wayfair, we can best fit our customer. anchor: saying that now is the time to path between now and the inauguration to see if there is a new plan or tax cuts -- now is betweens -- to pause now and the inauguration? we have been growing. last year, we did over $2 billion. this year, we will likely do over $3 billion. things our customer will benefit from, these are things on the logistics side and the urgent dice side, and we are seeing gains -- on the logistics side and on the merchandise side, we
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are seeing gains. investing now. congratulations, and i know you are hiring a lot for the holidays. would immigration or some other rollback policy or a of some of the affordable care policies, would that impact your business? no doubt thats there are some policies that would affect our business, but we are very progressive. we were offering things well before the affordable care act, so we do not wait for the legislation in order to take care of our folks. i think a lot of what might change will not affect us at all, but we will figure out the best route forward. reporter: when you look at expanding, which i know is a goal of yours -- specifically in the u.k.
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in germany, these are the largest markets in the world. europe and north america are well over half of the spend in these categories, and that is what we are focused on. i know you are, happy to speak to the people, and i was communicating with a researcher earlier today who said he still does not believe this business model because it is not profitable and that at some point, you will have to raise cash. if you look at the interest in , it has been lower, but it has risen. what do you say to short-sellers right now? our view is to look at the long term care we were profitable for years, and that is one reason why my cofounder and i own so much. most of the short-sellers have not done much, and these are folks who wanted to short google and it became public and to short netflix when it became
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public. the fact that there is sort of a debate about whether or not befair is going to successful, that will be true anytime you have a disruptive business. think about the debate around amazon years ago. you are welcome to short our stock, but we are going to build a great business, and we think there will be a day when does short-sellers think it is time to buy our stock. reporter: do you need to raise money in the next three to six months? j: we do not need to raise money. i think that is something that the short-sellers say to create traction. ceoy: that is the wayfair and cofounder, niraj shah. coming up, the most recent tweet storm and his
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using the platform. this is bloomberg. ♪
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emily: president-elect trump continues to use twitter to communicate with the electorate, and he made the unproven claim that hillary clinton won the popular vote based on voter fraud. won if youwould have deduct the millions of people who voted illegally. he also talked about shutting ties with cuba. he said that the cuban people -- he would terminate the deal. makes the transition to president, it looks like he will not turn over his twitter account to staff. here is what he had to say. : yesterday, i think, one hundred thousand people, and i am not saying i love it, but it does get the word out. there is nothing you should be
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ashamed of. so just how should the most powerful person in the world make use of the platform? covers donald trump for bloomberg politics and joins us on the phone from trump tower, where she has been stinking up andntial cabinet people, david is here. jennifer, i will start with you. it certainly makes you wonder, what comes next? jennifer: yes, you know, i think what we are seeing right now is that the president-elect has not much, but he- very has not been totally hidden from the american public because he has been on twitter, voicing views that are clearly coming from him. staff --t sound like neither one of those tweets you read, they do not sound like
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they had much involvement from staff. about hillary clinton having a 2 million vote lead is only because of what he says is voter fraud by undocumented immigrants, and that just fits entirely to his persona of meeting always to be the winner and to defend himself and also to make unfounded claims -- of dinging always -- nee always to be the winner and to defend himself, and like the pushback from a reporter who could have said, wait, you are saying that there is voter fraud in massive numbers? how is that the case? evidence do you have? so he put it out there on twitter, and many internationally get up, and they may say in their headlines that it is false and that there is no proof, but it is still out
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there. like you said in an interview, there are people who are just getting their information from his twitter feed, so they believe that is correct. emily: a top election official in california responded to the tweets about voter fraud, calling those allegations absurd and also saying that those reckless tweets are unbecoming of a president. david, what could the impact of the most powerful person in the world be, being so direct and unpredictable, when he is actually in office? david: well, first of all, i think the idea, in eerie, of the president -- in theory, of the ing to thetweet public could be a good thing, like the fireside talks, but as jennifer points out, if he is buying fake news stories and
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repeating their assertions as if it is fact and not putting himself in a position where he can be challenged or corrected, that is disturbing and unprecedented, as so many things with donald trump are. i think it is important to byarate the use by twitter trump and the way twitter is being used. we have had leaders who do not understand technology, and yet, here is a leader who at least does. emily: others said that twitter should have kicked donald trump off because some of his tweets could have been called hateful or offensive, and that is exactly what twitter has been trying to crack down on. is there any concern in the circle of people close to trump about what happens when he is in the oval office? jennifer: yes, i think this is one of the challenges of the
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people around the resident elect. some of them are very much of p belet tgrump -- trum trump, and there are others who want him to be a more cautious politician, and that once he becomes president, more so than president elect, everything he says in public domain will be parsed carefully by the voters, andoreign allies and foes that that could be a risky thing if it is totally unfiltered. emily: jennifer epstein, staking tower, and david, you are sticking with me. next, girls who code. ♪ generosity is its own form of power.
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you can handle being a mom for half an hour. i'm in all the way. is that understood? i don't know what she's up to, but it's not good. can't the world be my noodles and butter? get your mind out of the gutter. mornings are for coffee and contemplation. that was a really profound observation. you got a mean case of the detox blues. don't start a war you know you're going to lose. finally you can now find all of netflix in the same place as all your other entertainment. on xfinity x1. >> on courtney collins and you're watching bloomberg technology. officials have identified the man behind the ohio state ,niversity attack today
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according to multiple reports, he was killed by police. he was at ohio state student and legal u.s. resident. officials say he drove into a group of people before going on an attack with a butcher knife. german chancellor angela merkel is announcing the tone of this year's u.s. election campaign, saying she will resist using popular rhetoric in her own bid for a fourth term. runconfirmed that she will next year. that prime minister -- the prime minister is weighing his chances. minister wonime about 67% of the vote. for the first time since 2009, when it became the world's first open currency country, zimbabwe is training its own money.
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people took to the streets to protest the money. the ims said experience aserinflation as high 500,000,000,000%. global news, 24 hours a day, in more than 120 countries. on courtney collins, this is bloomberg. monday hereter 6:30 in new york. by paul allen with a look at the markets. good morning. aul: good morning, courtney. results off a little more than 2%, on reports that craft will put its proposed merger of international assets on hold. there are reports the arrest of 16 employees in china is a factor in this decision. aboutre price pushed back $80 overnight, the highest level since october 2014.
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on therth keeping an eye iron ore space, particularly rio tinto. .3% onat the moment off reports there have been talks to sell a billion dollars worth of australian coal assets. rio is being looked at by the european -- u.s. security and exchange commission. a little bit of data out of japan, the jobless rate expected .o stay on hold more from bloomberg technology, next. ♪ emily: president-elect trump campaigned on the promise of jobs.
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we know there is already significant demand for tech workers. in 2015, there were 500 rows and unfilled computing jobs in the united states and only 40,000 new computer science graduates to fill them, according to her report. still with us, david kirkpatrick and are bloomberg exhibiting editor who join us from new york. you're out with an all bad talking about how trump plans to create jobs, bringing back old manufacturing jobs. you say this approach will not work. why? the jobsd to focus on of the future. what we see across the country are young women who want to learn how to code, because that's where the jobs are. our group -- our report showed their 500,000 open jobs only only graduate 40,000 computer science graduates last year.
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only 10,000 of them were women. business executives say that's her number one problem, they cannot find enough engineers fast enough. technology has infiltrated every we need to retrain our workforce. i always said, my father would say you have three choices, you can be a doctor, lawyer, or engineer, because that's where you can make a good wage and work your way up into the middle class. we need to have that conversation with young people right now. emily: we know that dollar condos have to use twitter. how concerned are you that the gender gap under a trump administration, and president obama seemed to have recognized the importance of this, but are you concerned that the ginger -- gender gap could get worse? >> we will work hard to make sure it doesn't get worse. there's a lot of conversation on the right and left that all of a sudden diversity and inclusion over matter and it was the
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emphasis on diversity that turned a lot of voters often this election. that is absolutely wrong. we cannot rollback. has hadhat ivanka trump a big focus on paid leave and on women and girls. i hope this administration will continue president obama's commitment to making sure that women and girls and people of color are not left out 21st century jobs. emily: david, jump in here? david: i know that you ran for congress in my district. i was a big supporter. in order for the kinds of change that you are advocating to really happen, don't we need not just the president but a congress that gets behind this? do you see any real momentum in support for this kind of thing in the congress that we do have? >> david, first of all, thank you for your vote. you are absolutely right. cannot do this and the states
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have more power and control over thinking about what were teaching our children, how to make sure computer sciences in the classroom. kids.taught over 40,000 i talk about our clubs in pennsylvania and nebraska. rust belt.over the many these areas where they've lost manufacturing jobs and auto jobs, we have families that no longer work in the car industry, their homes have been foreclosed on and the only shot at the middle class is making sure their children have a shot at the middle class. so i am hopeful, we need to spend a lot more time talking to members of congress and helping them understand why this is important, and that time is running out. we cannot afford to go one more day without making sure that computer sciences taught in every single school and that every child learns how to code. later, we've taught
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40,000 girls and we will teach 100,000 a year. we will continue to do the work and scale, but it will be helpful if both federal and state and local governments understood the magnitude of this need toand that we all start working on it now. emily: so many people talk about the problems in the pipeline and there's no doubt there are problems in the pipeline, but moretech companies be open-minded and open the pipeline and open jobs to people have thatnecessarily specific computer science degree, but could learn, or have a different kind of degree. where are you seeing the most resistance at the top when it comes to tech companies and employers, it all sounds great to say you are supporting women in tech, but what it really comes down to is how you are hiring. >> we are holding them accountable. and arere a tech ceo
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desperately looking to hire programmers, you may not care whether you are hiring women are people of color. you just want to get talent in the door. we think that is absolutely wrong. if you want to innovate and solve problems, you're trying to figure out how to get more women to the polls and you have no women on your engineering team, you cannot solve that problem. we see this all the time with our girls finding solutions to wear zika is going, to finding a cure for cancer, to make sure their voices are part of every solution were trying to look for. companies cannot be agnostic cords -- toward gender or race. we are holding them accountable that timeframe when many of them are getting the message that we don't need to focus on diversity and inclusion. that is absolutely the wrong message. you cannot leave girls behind. been someone'ss
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talk about culture and retention issues in silicon valley itself. -- nowve steve bannon you have steve bannon, if you look at some of the things breitbart has published, some the articles i found, here is why there ought to be a cap on science,dying math and ating women just suck interviews. what is your response when you hear those kind of sayings? >> it is wrong. it's making women think they are not smart enough, not good enough. it's making them all out or leave after couple of years. girls who code has always stood up to the fact that women are incredible coders. there is not an attitude issue. society has pushed women out, and we will continue to fight that. emily: thanks so much.
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david kirkpatrick, you are sticking with me. samsung is looking for a way to boost shareholder returns. more on how they plan to bounce back, next. this is bloomberg. ♪
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emily: turning to samsung, still batteryafter the note 7 crisis that will cost the company over $6 billion. the company has seen two raids on its offices as part of a scandal involving the president. our managing editor joining us from tokyo.
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peter, i will start with you. new headlines from samsung about what it is planning, reviewing the possibility of creating a holding company, planning to raise the 2016 dividend. talk to us about the highlight. >> the headlines are just crossing the wire right now. the big news out of this is that samsung has decided is going to return more cash to shareholders, specifically through dividends and share buybacks. it has set in the past it wants freeturn 30%-50% of its cash flow to shareholders. the amount of cash it has on hand has increased so they will go to the top end of the range. is it their dividends are buybacks. it will begin by increasing the dividend for 2017 by 36%. it will move from a twice a year dividend to a four times a year dividend. in addition, by next year they will nominate an independent director with global experience
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to their board and they will look at structural changes including a split into a holding company and an operating company. emily: david, you believe that samsung governance structure is archaic and cannot survive in this day and age. david: thank you for characterizing my views. i am amazed that samsung has ane as well as it has, secretive, family control company that's caught up with all the relatively questionable governance issues that korean business in general suffers from, and they are now hit by the double whammy of having a disastrous product development that will lose them at least $6 theion this year, plus environment in korea where the relationship between government and business is highly suspect because of this extreme corruption scandal that is happening with the president and
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involves samsung among other companies. i think they have to go a lot the new newswhat suggests they might be. one outside director is not enough. as elliott has proposed, they need to go public in the u.s. to have the transparency that comes with the kind of companies they are competing with, which is google and apple in companies like that. that is why the main reasons they had this big problem with the note seven. it was an inexcusable corporate problem to have. emily: peter, would you agree with that, and now that were two months from the recall, do we have a better idea of how big an impact the recall will have on samsung over the holidays and in the long-term future? peter: certainly the note 7 crisis is a big blow to the company and its reputation and it hurts them in the holidays where it felt like they had an opportunity to compete with
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apple. we talk with samsung shareholders before the news came out, and they were speaking out publicly for some of the changes that elliott was proposing. they agree that corporate governance at samsung has not been very strong. there are interwoven holdings of the company and they need more outside directors. one investor was saying he thinks there is a direct connection between corporate governments and the poor performance with the note seven fiasco and getting drawn into the political scandal within south korea also. they want more independent voices on the board and want to open at the company and push for some of these changes. they will be happy with the move to return more cash to shareholders that they would like to see more independent voices on the board. emily: peter, thanks so much. strike.alking about
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money, andaised more its cofounders have become ireland's youngest billionaires. joining us is tom metcalf. tell us about the owner strip -- ownership structure they have. >> the founder and owner holes 29%, which for a unicorn is pretty impressive. 14%, aat they both have 9 billion dollar company, so they had a pretty good thanksgiving weekend. emily: how does this compare to snapchat and uber? they are raising billions of dollars. emily: is it because they have so much control over the company?
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>> all the investors are clamoring to get in. they will take less than lucian. and airbnbout 23% has 42%, pretty incredible given they praised $1.5 billion. emily: and what do they intend the money from the latest round of funding to be used for? >> they are expanding internationally but also building new products. you never know what the funding environment will be like and they have a pretty good deal right now. take the money while it is out there. emily: thanks for stopping by. to thank david kirkpatrick for sticking with me throughout the show. david, thanks for being here. tomorrow we will speak to the stripe cfo, an exclusive
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interview right here on bloomberg television. ,lso tomorrow, the nasdaq ceo 6:00 a.m. in new york, 3:00 a.m. in san francisco, on bloomberg surveillance. china is looking to compete with the u.s. and russia in the race to space. into their private space ambitions, next. this is bloomberg. ♪
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emily: japan's obsession with keeping water and maintaining its tech prowess has reached a new level. panasonic is revealing its new megaphone that can issue commands in chinese, english, and korean. >> please form a single line.
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the device is basically a aartphone paired with hand-held loudspeaker. the company is betting that police and other seeking to control crowds will be eager to buy it. panasonic is a need to make -- aiming to link it to a cloud in translation service. china is spending billions on its space program, building a rival to the u.s. and russia. entrepreneurs are investing in the space race. tom mackenzie has more on the story from shenzhen. take a listen. >> here in a desert closer to beijing, china space ambitions are taking flight. the one time capsule is called traveler 2, connected to a giant helium balloon.
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it's designed to climb into space, 20 kilometers above sea level. the company be signed -- behind the project has lofty ambitions. commercialize man's near space travel by 2020. first they have to test the light system and the life-support system. you've probably heard about the monkeys and dog sent into space. the traveler will be transporting this little guy. hailed asan is china's elon musk. he wants to make space travel accessible to as many people as possible. tickets belowep $100,000 per person. make people goto to near space. you can go by rocket or some other technology.
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, but werazy process so it's likeop it taking a space elevator. the ambitions dovetailed with with's rush to compete nearby nations. the company aims to build and operate its first space station by 2022. it wants to send an astronaut to the moon by 2025 and land and unmanned vehicle on mars. intosent to astronauts orbit for china's longest mission yet. company, it ise backed by state money. the final front tier is still dangerous, and a long way off. half an hour after launching
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just 12 kilometers above the earth, the systems failed and the mission was aborted. the fate of its crew is sadly unknown. china's spacee on race, visit and check out the full feature story with graphics. bmw just announce it's to spend money on startups to cash in on the changing landscape of the auto industry. the luxury vehicle maker will invest as much as 500 million euros over 10 years. the fund started in 2011 and will add self driving technology and expand its reach from the u.s. to europe and asia. another story we are watching in germany, more than 900,000 customers were kicked off line following a cyber attack that targeted internet routers on by deutsche telekom, according to a government statement out late on monday.
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it impacted a number of cities including early in, munich, and hamburg. the company is not ruling out the possibility that its routers were tampered with, but said there was no indication that customer data was stolen. that does it for this edition of bloomberg technology. 10 in tomorrow, we will talk about the latest in the solar industry. remember all episodes of bloomberg take our live streaming on twitter. that is all for now. this is bloomberg. ♪
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>> from our studios in new york rose."his is "charlie charlie: mikhail khodorkovsky is here. he was russia's most famous political prisoner until president clinton pardoned him in december 20 13 -- resident putin pardoned him. by then he had served 10 years in prison. he now leads a foundation called open russia. they are laying groundwork for human rights in russia. it is written that he is the most influential russian to ask critical q


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