tv Bloomberg Technology Bloomberg November 30, 2016 12:00am-1:01am EST
we have an update of the top stories, oil is covering near an all-time low. oil production levels, iran and iraq, insisting it will not cut out. saudi arabia is said to be ready to abandon a proposed dealer unless opec members agree unanimously to reduce production. said to bechin donald's pick for u.s. secretary. he is the second goldman man following stephen bannon's selection as chief strategist.
signs of financial stress and china are driving up deposit rates for its risk. ds global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. crucial opec talks eating underway in the talks eating underway in the anna and we have a mixed picture. shanghai seems stronger and the yuan a bit stronger say. this is bloomberg. ♪
emily: you are watching "bloomberg technology." ireland has its youngest billionaire. focus on energy week continues. runill ask the ceo of sun it donald trump with the clean energy industry in danger. donald trump has chosen elaine chao to run the department of transportation. it will give her oversight of an industry that has seen record --ety recalls and efforts to self driving cars. >> we are at the early stages of a revolution in education
technology. automobiles and real-time. we want to make them safer overtime. emily: what does the 20 twice of a lane -- what does the choice of elaine chao mean. kevin,, let's start with her -- why do you think donald trump picture -- picked her. kevin: she was a department of labor secretary in the george w. bush administration and she happens to be married to mitch mcconnell, the kentucky republican. who is a political pick somewhat well-known in republican circles.
as far as her positions on infrastructure, for example, that is unclear. that is going to be one of the top priorities from a policy perspective. -- that the trap administration is going to want to pursue. fairly ambitious infrastructure plan, one spend -- wanting to spend over half $1 trillion. what we know about his plans for driverless cars? kevin: there is much to know. when you look at in particular, elaine chao, as this pic and where she stands on some of those walk year transportation -- wonkier transportation issues, we don't know. here's what i can tell you. the alliance of automobile manufacturers, which represents all of the large automobile
manufacturing companies in the world, they put out a statement today and called elaine chao a "superb pick," so when you look at that perspective, the auto industry is viewing this as a win. i can tell you that talking with sources on capitol hill, democrats are not likely to put up a fight against elaine chao. emily: hillary clinton had plan to continue some of the policies that secretary fox put in place. example, a wireless infrastructure so cars can speak to one another. we sell anything about elaine presidentord under bush that would give us indication of how she would approach new technology? she's been philly receptive to new technology, particularly as it pertains to a -- she has been particularly receptive to new technology. i would argue that she will come
at this from a free market perspective and will come at it again, when you look at the statements that are coming out from trade groups, from the business sector, they have all been favorable for her. i think in terms of some of these more regulatory issues, a waitare taking away -- and see approach, but she is not viewed to be politically hostile. this is someone known in washington circles, she provides certainty to the business community and the business sectors reacting with confidence today at the pic of elaine chao. it was just made official a few minutes ago from the transition office. emily: earlier today, donald trump did nominate georgia congressman john price for health and human services secretary. about health care
technology in general, and they said that federal funding will be very important in driving initiatives forward. any idea how the congressman or president-elect trump feel about that kind of technology? kevin: this is where it gets interesting. and financialorld worlds have a dipped a little bit, that's following brexit and the election here. a top surrogate for donald trump in the health care field. he was an early endorser of a donald trump at a time when it was not politically popular to and he was the architect of the republican alternative to the affordable care act. insect --tands on finsec and other things, but he
-- that remains to be clear, but he is argued against the obama administration. this signals the president-elect trump is adamant about repealing and replacing obamacare despite that 60 minutes interview where to moderate of several aspects of it. top is a signal that his rallying cry on the campaign trail to repeal obama care is something he intends to follow through on early on. emily: our politics reporter, thank you for that update. we are going to continue to follow potential cabinet appointments over the next several days. coming up, we will be taking -- company that just raised $150 million in its latest funding round. the strategy, next. this is bloomberg.
emily: tomorrow on "bloomberg tech," we will sit down with the yeo of mechanics after the went public. new shopping record according to odo the inside. spent 12%spelt -- more on monday than last year. the focus on online merchants is it an edge as retailers move away from traditional brick and mortar. ceo of a stripe jointly.
-- joins me. as you know,stripe is -- accepts payments. as for this round, i think what is gotten investors really excited is the momentum we've carried through 2016. it was a year of building for scale and scale has come. in particular, a lot of big cubbies have been joining stripe -- big companies have been joining stripe. in addition, we have opened for ance,arkets, fr spain, singapore, japan. we've also lurched -- launched new products. 17, theok to toy
capital is to double down on the efforts, open up new markets and look at the scale to come. emily: cyber monday up 12%. how you continue to monetize and capitalize on the trend? as you mention, 12% year-over-year. yesterday was a huge day for stripe users. being an really about ally to startups and technology companies and giving them the tools to accelerate their businesses, go global, build marketplaces and platforms and pioneer new business models. is the difference justified and why? stripe and squared are different businesses. it has a very different user base and solving a different -- aem you'd foursquare
different problem. square, that is hair salons, coffee shops, things like this. taking advantage of new opportunities the internet great. what is the estimate or forecast for this year and how fast do you expect your number to grow? we don't report any financials right now is a private company. we've not confirmed any numbers. we are seeing a lot of great skill, driven -- great scale, .riven by emily: you have a lot of international efforts happening. n china, i know you are now
in cuba. now we have a president elect who says he was to curb trade end thena, potentially relationship with cuba. are you concerned at all? william: earlier this year when the president was making his historic trip to cuba, he reached out to stripe in particular. a lot of entrepreneurs were asking us to be there because of our atlas product. --ipe will all be about always be about economic inclusion. what it means with the new administration, i'm not the expert to talk about policy or macro conditions. that is strong evidence the new it ministration is pro-business. job creation and stoking the economy in general is a priority, so we are at least
aligned in that way. emily: is it something you are watching? you have interest in a lot of these companies that have become hot button issues. william: is something we are following. emily: where next? we are in 25 countries. there are 175 countries we are not in yet. we have a very strong business in europe and southeast asia and will be doubling down in those regions. mentioned are often as a forthcoming ipo candidate, any idea when that will happen and if the new political environment changes that? us.iam: nothing changes for we are very happy as a private company. we are capital efficient so we don't need to rush to public market. patrick have spoken to and john, founders of the company, the bloomberg index calculates they are the youngest
billionaires. from your perspective, what sets them apart as leaders? william: i think they've had from day one and extraordinary vision for strike. -- stripe. not just payments, but allowing entrepreneurs to build huge businesses online. it is that passion and longform -- long-term orientation. emily: thank you so much for joining us today. great to have you. bob greifeld has been running the show at nasdaq for the next -- last 13 years. while many in the business are cautious about president trump, he is more optimistic. he has to understand we are coming into the age of machine
intelligence, machine learning and the data that has the ability to change the employment profile of this country and really on a local basis, profound ways and ways we have not seen since the industrial revolution. >> so that fits in perfectly with donald trump's vision of america? is it back to what we saw 60 -- doesn'tr what have to be the 2.0 version? this, should we become more nationalistic or not is a topic for debate, but the changes in technology are the most important thing, and i think mr. trump and the rest of the administration will realize and focus on that. abouttalk a lot globalization displacing a lot of people and this leading to the election of donald trump beard you can argue that technology has displaced people jobs move on and if you
don't retrain people, you don't create quality jobs. >> i think jobs have moved to other jurisdictions because of lower wage. that is a fact that donald trump correctly recognized. i think the larger point is, you have the ability to have machines representing the lowest cost wage possible. you see machines getting to the point where they have manual dexterity. they'll allow them to do many things that were previously thought impossible for machines to do. we're going to have to deal with that reality. the obvious example is self driving cars. that will happen and what will that mean for jobs? >> what will that mean for jobs? trump wants to bring american job creation back to the glory days. how do marry the two so that you create jobs while advancing the economy? >> i think the passive bringing
that tos -- jobs america is a good path, but that pass alone will not be sufficient. technology by itself will change the nature of jobs in a profound going to be the biggest change we've seen since the industrial revolution. >> from my childhood, it was the , carrier, iy, ge think for you, international business machines rained supreme. see at nasdaq about job creation? i don't see it. >> there is a shortage of workers today for high technology companies. as much as we are talking about machines replacing people, today , if you have a higher education degree in a stem field, you have
more job offers. >> is secretary roth of commerce, is he going to integrationmart integration strategy for those vacancies? >> i think if you look at what the president-elect has said, he is said if we have the need, we will bring the people in. i think he will be good for technology companies and we will and enlightened policy certainly, when you go to silicon valley and there are literally thousands of job openings that cannot be filled by americans, the skills are not there, i think we will have enlightened policy to bring those workers in. emily: ceo of nasdaq. noted investor willie tilson spoke to bloomberg about his outlook on the market and investments, including his position on tesla. although solar city took a big chunk out of the stock, he is taking a cautious approach. i am so tended to short it.
i got destroyed on the big run-up and it has made me cautious of shorting it because i got burned before. partly it is because you can construct the most perfect their case, the company hemorrhaging money, the solar city acquisition will add to their losses, etc.. emily: coming up, facebook remains in the spotlight over fake news. should they be held responsible? this is bloomberg. ♪
incited violence. they provided examples of posts expressing support for terror groups. facebook says the allegations lack merit. in time, the ceo of axel springer, one of the biggest media companies in europe, says there should be resistance to mediate facebook. the, to remade in an exclusive interview with bloomberg. exclusivede in an interview with bloomberg. >> i stick to mark zuckerberg's philosophy that it is about connecting people, so it is a bit like a telco in the old days. it brings people together and facilitates communication. cap's and couple of years, it will be virtual reality conversations we have. publisher, it is not a content producer. it takes no responsibility for
content and should not take responsibility for content. it is a misleading debate. tell people what they have shared during a telephone conversation. i think it should be the rule of law, what is against the bestitution, that cannot published on facebook, but i think the whole idea that they should have a super editor, that would make facebook a global media monopoly and that would be in the wrong direction. emily: ceo there of axel springer. coming up, we delve into our weeklong focus on energy. residency means for solar. this is kluber. -- this is bloomberg. ♪
>> it is 1:30 p.m. in hong kong. here's an update of the top stories. stephen the nation is set to be the pick for treasury secretary. he is the second goldman sachs name in the administration. dined with the tycoon and said he is impressed with the team he is putting together. that is yet more evidence a rate hike is coming next month. jerome powell is saying the case for hike has clearly strengthened. he said unemployment and inflation are approaching the targets and moving too slowly could trigger an abrupt decision.
stocks and liberty are headed for their worst -- in five years. the currency hit a new low last week as new emerging markets sold, concerned that donald trump may signal a faster typing by the fed. the creation of a holding company was prevented as a way to improve shareholder value and -- from elliott management. samsung added that they would benefit from the split. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. let's take a look at the markets faring. juliet has the latest. let's have a check of the samsung shares. they have a record high since
1975. jakarta falling quite significantly. a key shareholder tweeting he sold out of the stock today. ore slips we saw iron from a two-year high. markets are mostly high coming season weakness coming through in shanghai and australia" by one third of 1%. we are seeing a bit of fluctuation in terms of the dollar-yen, but some movement from the korean coffee index. seeing the yuan strengthened against the dollar for a fourth consecutive session. korean steel is leading the gains, over 10%. hong kong is seeing fairly solid movement. the indexes up by 4/10 of 1% in late trade.
we are seeing a little bit of weakness coming through from ys.e casino pla we will be live from london at the top of the hour here on bloomberg television. this is bloomberg. ♪ this is "bloomberg technology," i am emily chang. we are focusing on energy this week. first up is solar. in the weeks following donald trump election, there have been endless speculations about what like infuture will look the united states. donald trump has promised to bring back, and jobs and scrap president obama's clean energy initiatives. solar jobs have grown 12 times faster than the rest of the economy. joining us now to scout the read lynn, andoad ahead, our editor at large, cory.
thank you for joining us. donald trump is a guy who has indicated maybe climate change is a hoax. how concerned are you about your company's future? renewables are absolutely here to stay. not concerned at all. people want it. just highlight what voters wanted, if we look at the federal election, where the energy policy gets that is really more at the state level. there were two places where there was voting based on solar, and that was in florida and nevada. in florida, the same voters that elected donald trump and marco rubio also voted to keep rooftop solar. rooftop solar is very of the moment. a creates the domestic jobs people want and brings affordable solar energy to people and brings competition. bipartisan set of characteristics.
still somethere are question about how donald trump feels about it. let's take a listen. he is not said very much since being elected, but let's take a listen about one thing he did say. jobtrump: i will cancel killing restrictions on the production of american energy, including shell energy and clean coal, creating many high-paying jobs. that is what we want and what we have been waiting for. emily: when you hear him say that, when you hear concern about tax credits being rolled back, what is the response? lynn: i think what he is saying is we are investing in infrastructure and jobs. we are investing in domestic jobs, and that is precisely what we are doing. the jobs in solar are growing 12 times that of the rest of the economy. the other benefit about rooftop solar is that we are really competing with the price of
retail power, which is why we will win long-term. it makes sense to use existing rooftop infrastructure and produce the power where it is deliberate. we're not really competing with centralized power sources, we are competing with the whole cost to transmit them to the home. on to the tax credits, i will say that the tax credit was a policy that was extended under a republican-led congress, that policy.orge bush-era that is what is so great about this industry, cost reductions a tonade subsidizing it of sense. it is bringing savings to the people. corey: when i look at what is happened to your company and places you are succeeding and others aren't, i have trouble
distinguishing between the companies. solar city has massively cut their guidance toward howdy megawatts they are going to install. they operate in many of the same markets wheresunr -- same markets where sunrun is. lynn: we haven't available market size that is much bigger than it is today. if you look out over 10 years with a cost reductions we are expecting, that can be 20%. that means we would deliver a 20% annual growth rate over 10 years. it has been consistent and this industry can sustain that. gete's been companies that in trouble, but one of the things i am most proud of, the six quarter was public, and we have drawn consistent growth. if you look at our performance here today, we are 50% europe year in terms of the megawatts
we have installed. --ly: the tesla-solicitor tesla-solar city merger has been approved, how do you approach this? lynn: i applaud the merger. welcome the innovation, we welcome strong companies, we welcome strong brands to educate consumers that solar is here and inevitable. it is a good choice for the home. we welcome them in the industry. have the that point, i summer stock chart on my terminal. just by typing in, we can look at your cash flow statement and we get to a youthful free cash flow chart. or maybe not so much. you're going to a lot of free cash flow. big losses better than it has been. how do you intend to reduce the
free cash flow burn that you guys have been in for such a long time? we have held our cash balance flat at $200 million for over four quarters. so if you look at that cash balance, it has held flat. not only have we done that but we have deliver that while we have growing the business. last your we grew 80%, this year it is 50%. we are investing in growth, investing in policy, investing in r&d, we have a lot of things happening in terms of how we are incorporating storage into the panels, and we are holding our cash balance study. you are seeing very strong contribution margins for every copy we have acquired. emily: you have partnered with a big korean company that makes lithium-ion batteries for home. when it comes to issues like curbing trade, which has been discussed, will that effective that effect -- effect you?
lynn: the price of the market has declined so significantly. one of the criticisms of solar is, what happens when the grid cannot take anymore export of power? you put the battery on the system with the panels and you hold that power and consume it at night or consume at a time and the day when power is more expensive. comes of innovation happening there, tons of suppliers, to test -- tesla continues to be us a prior -- a supplier. emily: thank you so much for joining us. always great to have you here. also, cory johnson joining us from new york. don't forget to tune in all week long. our focus on energy continues on bloomberg television. a story we are watching, uber is trying to convince europe's highest court that it is not a taxi service. 15 judges at the european court will decide whether uber is an app or transportation company.
this question has long the x lawmakers across the region. a decision could be months away. in the united states, uber drivers are taking part in a day of disruption, it is part of a fight for a 15 million -- $15 per hour minimum wage. massachusetts senator elizabeth warren waiting on twitter saying "no one who works full-time ." uld live in poverty alibaba prepares for an expected ipo in 2017, we presidentith alipay and vice president. this is bloomberg.
financial is looking to increase its split rate beyond china. with -- alartnered ipay partnered with the financial company last month. thank you for joining us. you are in town to talk about plans for global expansion deion asia. how are the plans going and how do you plan to make it happen? >> is a big world. we are very blessed to have a big user base in china, 450 million active users in china, and our first at the global expansion is to set up those consumers as they travel abroad. they look to shop, be tourists, and we look to serve them. we are very pleased that alipay
is accepted in over 80 countries. when chinese consumers travel, we can serve them. emily: there are five different sectors. give us a quick explainer. started as a payments business 12 years ago and have expanded the on that to tor today we do lending small and medium-size enterprises as well as consumers, we also offer insurance products, and we offer a credit scoring product, and we are expanding into multiple where welike a service provide users with the ability to do things like finding a place to dine. emily: there are reports that ant will be going public next year. i know you can discuss specifics, but any updates? douglas: not at this point.
we see the benefits of being a public company but we don't have a specific timetable you'd emily: have you been watching -- obviously there's a lot going on with the elections. some of president elect drums potential plans -- president elect trump's potential plans. douglas: it is a global consumer base. we are building the global business, which we think will do well in all sorts of different political environment. we're focused on those aspects. emily: the latest controversy , there was an attempt at social networking features, it ended up being a lot of photos of scantily clad women looking for wealthy boyfriend, other users were divided in two groups based on
credit scores. there was a big backlash. to think those features crossed the line? to think there is the damage to the brand? douglas: we take our network ,eriously, and our application and we are focused on serving the consumers and social aspects are part of what we do for those consumers. any inappropriate content has been taken down some any of those circles have been closed anything was created inappropriately in them. we think we've put that behind us and put that to rest. emily: what other social networking features are you considering adding? various sociale aspects to the business, because we started as a payment tool but expanded to other services, we want to engage our users every to shareink about how
that information with themselves and merchants. consumers tolow share the information with each other and with merchants. we want to continue to expand and have greater user engagement so that they feel more couple using the app and want to use a more each day. emily: have you see the competitive landscape changing, especially in china, when it comes to syntax -- fin tech? douglas: it is a competitive landscape for payments globally. it will continue to be. we are an open ecosystem. we work with different systems and intermediate use -- intermediaries and we bring them all to the app and our partners apps in other countries. we think that will enable us to
emily: in this edition of out of this world, starburst accelerator has raised a $200 million fund to invest in early state aerospace startups over the next several years. it is an expansion of what they already do to help space startups raise seed money and partner with existing companies. joining us to talk about the state of the state of -- the state of aerospace startups, the ceo of starburst.
he said you are focused on deep tech, what does that mean? >> it is a large number of technology, both are related to jets or flyingn cars. new types of materials, fuel cells, batteries, sensors, that type of thing. emily: the plan is to make a lot -- howstments at smaller far does $3 million or $5 million go? $20 million even make a small business. someere have been already success with these type of investments in these type of products, and we are looking at
startups that have three have in for years of existence and will go from a prototype to a master product and address a larger, broader market. emily: are they capital-intensive type is this is? -- businesses? >> some could be, yes. the first major investment c, we series b and series are looking at $40 million or $50 million. from the largeen corporate players is that there are more -- they are more looking at outside the traditional r&d center for innovation. , not just thehat legacy technology from the aerospace industry. they're looking outside of the boundaries to look for new
technology, smaller team, more agile, to integrate either into the product or to bring on more innovation in the markets. emily: you've said the u.s. is the best place to work on an aerospace startup, and i wonder about space in particular he cousin was a decades long break when it comes to federal funding and investment in space. the white house is just re-embraced it, will it still be the best place under president donald trump? >> what we have seen, regardless of the president, is that the industry, they have been very proactive in putting the u.s. money on the right bets. what we have seen is that more and more money, even from nasa, is going on smaller projects.
emily: we did a story yesterday about how china is investing more in space. there is also russia. the u.s. corroborates with china and russia more now. wonder, if the new white house pulled back on space investment, would that open up a dangerous door? could china and russia get ahead in a way that is not good? >> i don't think the white house will reduce their investment in space. and on see that coming. i think it will be the opposite. space will be a strategic place to be in and be ahead of the others, whether it is for satellites or communication technologies. emily: congratulations. thank you for stopping by. it is an engineering feat
decades in the making. a structure has been laid over reactor number four at share noble -- chernobyl. the shelter is said to be the largest land-based movable object ever made, designed to prevent radiation leaks at the site. over the coming year, using remote-controlled cranes, crews will work to dismantle parts inside. it is supposed to be complete in november of 2017 and should be airtight for 100 years. that doesn't for this edition of "bloomberg technology." tomorrow, we will sit down for an exclusive interview. and the member, all our episodes are live streaming on twitter. that is all for today. this is bloomberg. ♪