tv Bloomberg Technology Bloomberg November 30, 2016 6:00pm-7:01pm EST
finance are steven mnuchin has been chosen as treasury secretary. trump selected wilbur ross to be secretary of commerce or the president-elect has narrowed his choices for secretary of state down tofour. jason miller says mitt romney and former new york city mayor rudy giuliani are on the shortlist. the transition official says trump is considering former cia director david betrapetreaus. andh palin could land a job the new administration under consideration for the decision of secretary of veterans affairs. u.s. federal prosecutor -- keeps his job. he tells reporter he is staying on. trump is said to have offered him the job during a meeting today. nancy pelosi also gets to keep her job. the house minority leader survived a challenge from congressman tim ryan of ohio to remain the top democrat in the u.s. house for the 115th congress for global news 24
hours a day, powered by more than 26 hundred journalists and analysts in more than 120 countries, from hong kong, i'm christina harvey. this is bloomberg and "bloomberg technology" is next. i'm emily chang and this is "bloomberg technology." it workforces looking to turn a profit. we will put the action camera company in focus. test but innings investors may have missed the call. we will ask the ceo why shares are down at the cloud company. after a series of roadblocks from regulators, one of the most famous hackers in the world shares his secrets of driverless car tech with the masses.
he will tell us why head. our top story. gopro announced restructuring plans and it's cutting its workforce by 15% and shutting down its entertainment division with the goal to turn a profit inside. a few months back, the company was singing a different tune. in septembere ceo and he was optimistic about the future. >> we've got a terrific vision for the company. if there was an opportunity that helped us accelerate our vision and realize gopro on some massively larger scale, then we thatable to alone, might be something that is interesting but we are doing such a great job of executing against our vision ourselves. we are excited about the future as a standalone company. emily: joining us now to discuss the latest move, brad erickson. you have a neutral on the stock. you said you wanted to wait to see, reception to the new cameras, the drone. now with this news today, how does that impact your outlook? brad: you know, it is interesting. a pre-announcement general he
drives somewhat of a change. from our perspective, the news morning from gopro really was not that much of a change. the 335% sales growth relative to the year ago quarter that saw 1.2 million units, we think the number may need to even be higher than that. getting out of the entertainment business, that business was not driving that much revenue. so, really no impact there. the workforce reduction, they had already really guided to the opec target for 2017. telling the market today that they are going to let 15% of the company go is really just the mechanism by which they will achieve this target. from our perspective, there was not a ton incremental today. emily: they had to recall 2500 drones, after some of them lost power midair. they are facing a class-action lawsuit over this. how concerning is that to you? these are products that are
supposed to be the future of the company. brad: certainly it is a concern if you are an investor. around the drone, there isn't all that much expectation built in. investors are not giving them much credit there. so, if they can, with a product, i do not think it is looking great for this holiday. if they can get something out next year and drive a little bit of traction to that market, that could certainly help. in the near term, the company's message seemed to be a prudent one which they are narrowing their focus and concentrating on capture devices, which is the best course of action at this point. emily: so, let's talk about the cameras. what is your outlook for the holiday quarter? you have got new competition. different competition, spectacles for example. how do you think the new cameras will do this holiday? brad: we have done a lot of our loan greece -- our own research. we think the hero five black is
in line with expectations. we think the session is probably lagging expectations somewhat. our estimate is a bit below the street. we're looking for about 1.9 million units on the streets closer to 2.1 or 2.2. so, we think things are likely theome up a bit soft in holiday quarter. gopro's stock is sold short. it causes a lot of volatility. do you see the company shaking off that short interest? brad: it is difficult with these types of hardware based models. if a company goes out and sells a ton of cameras in the holiday quarter, that is awesome. the problem is we have to turn around and do the same thing all over again in the march and june quarters. that's the sort of ongoing struggle with these hardware type models. we do think there is a sustainable market for action cameras going forward, but the issue becomes is that, if they
continue to see price erosion looking out to 2017 and they faced further unit decline, i wouldn't expect that short interest to decline meaningful -- emily: how optimistic are you about the company returning to profitability next year? brad: i think they are selling a good product at 40, call it 40 something plus gross margin percentage. so, if they cut their operating expenses enough, sure, you can run this company at a profit. the issue then becomes if you are running profitability on a sort of stagnant revenue level, there is no growth for the future, and tough to find the incremental buyer of the stock. emily: we will continue to follow. brad erickson, thank you for stopping by. another story we are watching.
netflix is appealing to those binge watchers who do not have wi-fi. the company that boasts 87 million customers globally said ands making some tv shoews movies available to watch off-line appealing to customers in emerging markets where internet service is unreliable. netflix has been stepping up its push for more customers internationally and fighting off rising competition from other streaming services like amazon. coming up, he is known as the hacking boy genius who turned down a job from elon musk . he gives us an update on the self driving car technology. this is bloomberg. >> here we go. whoo! whoo! [laughs] ♪ >> don't hit the fan. don't hit the van. >> nice, very nice. [honking horns[ ]
$100: gett just got million venture loan for russia's largest banks it used that funding to expand and russia were at double the number of cities that operatein. loan is it an option for an undisclosed number of gett shares. it has more russian cities then uber. hacker george hotz shocked the auto industry when he showed up a working autonomous car jury rigged in his garage. he would on reportedly turned down a job and elon musk, founding his own company to promise to sell self driving car kits for $999. it came to a halt last week when
regulator says hotz a warning over safety concerns. he tweeted, "would much rather spend my life building amazing tech than dealing with regulators and lawyers." we'll be exploring other markets and products. hello from china. not so fast. hotz came back today -- to announce a plan to give away his software for free. you are giving away the software for free. and you have with you the hardware. you're giving away the plans for the hardware for free. that will turn any car into a self driving car. >> is qualified both of those statements. it supports right now select -- hondas and acuras. you still have to pay attention at all times but there are certain scenarios that you can take your hands off the wheel and not touch either pedal and the car will drive by itself. emily: ok, so, regulars were not
so happy about your original plan. how do they feel about this one? >> i don't know. i have not heard from them. the regular to response i thought was very reasonable. the problem was when it came. we were not selling a product. we were not even taking preorders for a product and they were already asking me for things like a user manual under oath. easier to just cancel and pivot. emily: haven't you really just upped the ante? >> no. we are not selling a product. regulates the sale of products using the interstate commerce clause. we are just making plans available for free on the internet. that is a how more -- a lot more like free speech. openingsn't it like pandora's box, telling everyone, here is how you can make a self driving car? you're basically allowing them to do something that is illegal. it is notff, illegal. you are responsible for complying with local laws and regulations.
my understanding is if an somebody in california went and built one of these, i am not a lawyer but i think that would be legal, because technically is only an adaptive cruise control and lane keep assitst. california has the most restrictive laws, similar like texas. that's why google and uber are testing them. emily: have you made any commitment not to test yourself? >> nhtsa does not regulate testing for the only thing i wouldhtsa is that we notify them before we are making a product available for sale. emily: what kind of interest have you gotten? >> we ust opened it this morning. emily: are people is excited? what is the response? >> already, we have people talking about building them, porting them to the old tesla that did not have autopilot. that is the great thing about it being opened. this other cars we do not support, pb can download our code-- people can download our code. emily: when you said hello f
rom china, what did you mean? were you looking into regulations? >> we were looking for manufacturing partners. i did meet with a few companies there as well. i am not going to say who. you know,the other thing about open sourcing this, there are so many more jurisdictions than a u.s. the u.s. government may not like what i'm doing that other governments may and hey, we would love to work with you. emily: is china more open to it? >> i don't know what to be honest, i do not believe that it would be easier to navigate the regulatory environment in china where i do not chinese versus the u.s. but i don't know. like: so, you know, folks you have been willing to challenge regulars but more broadly, people to not want to take that kind of risk. how do you think regulations are essentially holding back self driving car technology? >> i mean, again, i can really only comment on my specific case. they try to regular product that
was not even available for sale. they actually gave me 10 days to under oath provide them the user manual for a product i'm not taking orders for. usermake a mistake in the metal, they are going to martha stewart me. -- in the user manual. emily: you said elon musk offered you a job to build self driving car software for tesla, with a multimillion dollar bonus. you turned it down. you also said your software is just as good as the latest tesla autopilot. >> i've not said the latest, the previous. emily: how does it compared to the latest? >> it is of it better. all of their autopilot cars are helping to train the other autopilot cars. once a bunch of people start building is, they communicate with our network, we train, we improve, we ship out. emily: what is your relationship with musk today? >> have not heard from them. emily: no new offers?
interestingly, president elect trump has nominated elaine chao to run the department of transportation. do you have any inkling of what she might mean for this industry? >> i looked into her policy positions a little bit. i could not find that much. the woman who he chose to do, to the lead transition committee on transportation, she came from a libertarian think tank who criticized california's steering wheel and pedal policy. for being overly restrictive, which i agree with. there has not been a single death in autonomous vehicles to date. you can talk about the all a pilot -- the autopilot one but that is a lot more of a cruise control system. to try to regulate something that has not only never caused a public safety problem but also could potentially solve a huge public safety problem, to me, seems premature. emily: let's talk about the tesla autopilot death you just referred to. there's a debate about semi-autonomous versus fully autonomous, what is safer?
what do you think is safer? what do you think most cars of the future will be fully or semi autonomous? >> there is a long path to get to fully autonomous. i do not believe that there is a path to fully autonomous cars without going to semi-autonomous. i think tesla's plan for attacking the problem is brilliant and going to succeed. if tesala is the ios. we want to be the android. we will be the ones getting the 80%. , one of thee hotz most famous hackers in the world. great to have you on the show. coming up, new -- one of 2016 allete te -- aelite tech ipo's turns. the ceo joins me next. this is bloomberg. ♪
describe the massive scope of the plan. >> by 2025, our society will zetabites of data. in fact, we are running out of words to describe the number of bites we're gathering-- bytes we 're gathering. our role is to make sure that the data is converted into actionable, helpful insights and intelligence. emily: and sticking with cloud computing, nutanix is out with its first quarterly report as a public company. investors sent shares lowered and wednesday trade as the company posted a wider loss. joining us from scottsdale, arizona from an exclusive interview, nutanix ceo dheeraj pandey. thank you for joining us today on the show. a strong report, but investigators did not love it. what is going on? >> i think it has just been 24 hours since the results. we look at things on a longer-term, next three-month,
six months, 12 months. that is the way stocks should be looked at as opposed to 24 hours. emily: so nutanix shares soared post ipo but they are down from the peak. a surprise amuch lot of people in the market in a was talk that perhaps shares were initially mispriced. talk to us about your vision for the hybrid cloud, and how it plays out in the realm of microsoft and amazon and google which are at war for territory here. >> think about it right now, there is one real leader in cloud and that is aws. microsoft has done a lot of work with -- 65, their office application cloud. be tested atill to scale. in the very early days
of thinking about what products, in the very early days of thinking about what products, what services it will build in the cloud itself. one cloud is amazon. even that has not been tested for the global 5000. we have some really large customers, 10, 15, 20 of those that probably drive the majority of the revenue from. so, what is going to look for the global 2000, the global 5000, which spends probably 80% from these 5000 companies. and they have complexity of different kinds, which is not towards the long tail of -- customers at amazon or these internet companies amazon has. i think that is where the real cloud is going to be. what you do about operating in 100 countries, hybrid security, and everything has to become hybrid and the operating system has to straddle the two sides of the aisle. this is a massive computer science problem. a massive user interface divine problem that no one has scratched the surface of yet. emily: how do you see the cloud and the hybrid cloud evolving? where are we and five to 10
years when it comes to the cloud? >> it is very similar to, in the last guest that you had on your program talking about how you go from current cars to semi taunus to fully autonomous. it is a similar journey here. it is not like computers will become a rented. there is value in renting. you would do not want to rent hotel for three or five years if you know you're going to live in the place. you're not going to rent a car for three or five years if you know you need a car for five years. i think there is going to be this yin yang between owning in renting that will shake itself up in the next 3-5 years. emily: do you think that owning will go away at some point? >> i don't think so, because if you think of going back to you own a house, car, it is not like these things are going to go away simply because there is uber and airbnb." to do similar.
you know you're going to spend workload isd your is producible, it is much cheaper to own then rent. renting has this sort of extra premium that is attached to it in terms of pricing that you might just pull the plug tomorrow and somebody needs to make money off that option now any which is what happens with hotel rooms on rental cars and so on. emily: you went public ahead of the election. i'm curious what advice you would have for companies and ceo's considering doing this right now, especially enterprise companies, what might you do differently and what might you recommend in this political environment. new political informant does not change much there aref ipos, but some policy decisions that will happen in the coming, probably year or two around immigration, around manufacturing in the u.s. things of that nature, maybe what happened in the u.s. and russia become friends as opposed to enemies. i think there are a lot of things that are open now. business in russia and cis
states and so on. all in all, i think the i.t. experience taught me you want to have a winw-in relationship with investors. you want to really understand that your employees and customers and partners still as important as stakeholders as they were when you were a private company. over rotate on the new stakeholder and maximize the shareholder value when you know it is actually a second order benefit in the first order is employees, customers and partners. emily: dheeraj pandey, ceo of nutanix. an exquisite interview. coming up, o'mallek of true ventures talking about trump and silicon valley. this is bloomberg. ♪
controllers he had run out of fuel moments before crashing into the andes. the recording linked to a colombian radio station said the pilot was repeatedly requesting permission to land due to a total electrical failure and lack of fuel. only six people survived. beguncastro's ashes have a four-day journey across the country to a final resting place in the city of santiago. flags anded cuban chanted as the convoy passed by. the route traces the victory afterthat they took overthrowing the government in 1959. zimbabwean police resorted to tear gas and water cannons to break up school -- scores of activists protesting the new opel currency. it is the first time the country has managed its own currency since 2009 when entire savings and pensions were wiped out because of hyperinflation. the imf pegged at
100,000,000,000%. public call for women to be able to drive in the conservative kingdom. the prince twitted the demand, stop the debate, time for women to drive. in arabic andted english. saudi arabia is the only country in the world that does not allow women to drive. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am christine harvey. this is bloomberg. it is after 7:30 a.m. in hong where1030 a.m. in sydney i am joined by paul allen for look at the markets. good morning. paul: good morning. off to a bright start after 35 minutes of trading, up two thirds of 1%. of the energyll stocks leading the gains, beach sandozand send us a --
up. ore's steepest decline since march. up tinto showing some gains two percent after announcing the plan to charge a premium. this is the world most traded iron ore product. data out of on china. growth.owing signs of bloomberg technology next. ♪ this is bloomberg technology. i am emily chang. technology is like -- t echnologies are seen as
innovative. is the tech industry's lack of empathy a real issue? if so, how much will that miscalculation cost the industry? now, great to have you back here. you open to the piece talking about the quiet and depression that has swept silicon valley since the election. what do you mean? that in thel aftermath of the election, the response from silicon valley was , we could have done more or we could have given more money. there was a lot of sense of self-righteousness about as if we did not do enough. the point of election. there was a lot of debate on facebook and twitter and people who have called friends.
emily: it is still happening. guest: i took a week to step back and say, way, why are we not talking about what is the of why a large portion of our society want it a certain way and the more you realize it, it is coming from the place of people have very little hope. they have no jobs. the economic prospects are dark. and people are fearful. and to make it all about silicon valley is the wrong way to think aret it. i think we contributing to the big changes in the society. industryes us as this of change to take a step back and perhaps have a sense of understanding and empathy toward people who are -- who we tend to impact. mark cuban tweeted, we all need to give president-elect trump a chance, no one is bigger
than us all. i wonder, empathy to what extent? if some of these folks are in jobs in industries that are outdated, do we do this to the extent of holding back progress and holding back innovation? guest: i said we -- never said we should hold back progress. . am a big believer when we say empathy we need to understand what are the changes which are happening, where they are happening, and are there any things we can do in order to ease some of the pain? i am not talking about handouts or any of those things. i am talking about can companies like google and facebook and microsoft think about setting up smaller development units and -- in the middle part of the country or in the southern part likee country, how
chattanooga is trying to do innovative tech startups there. knock on jobs have a impact on the rest of the economy. it has an impact on restaurants and other services, construction. it is not going to replace every single job. it does give some direction of hope to people. and similarly, we need to think a couplerenchment of of generations of americans. i understand there are certain people who will not be part of the digital shift, right? there are a lot of people who are in their late 30's to mid 40's who also need to transition. i think we need to be thinking about, can we redeploy them in a different part of the workforce? before we do that we have to understand them. what areo understand
their fears and that is what i mean by empathy. emily: you closed the piece by saying, let's not start by reading on our facebook feed but latta trip to places where andre a reminder of haves have-nots. talk to you about facebook. i wonder, do you think facebook should be doing more to monitor fake or inaccurate news, should they be doing more to make sure we are not living in our own arele bubble or is that -- they a media company? it: i have maintained that is the platform's job to make sure that misinformation and disinformation does not scared of it especially if it is from dubious sources. them how they
implement it. if this is a company that can edelman censorship in china, it can do a lot more from spreading of misinformation in this country. we create our -- own bubbles. facebook did not create that. that has been going on for thousands of years. the roman senators always used to hang out with roman senators and it is the same thing. the technocrats are hanging out with the technocrats. i am one of those people. i cannot be self-righteous about that. i do think forget the facebook as an individual. we need to learn to listen to other people. i think listen better should be the #we should be talking about. emily: what about twitter? talked to the cofounder of -- her who said he used
saw a trump use twitter with a mixture of bewilderment and fear. his tweets are hateful so you should be kicked off twitter. should he be kicked off twitter? guest: if you think about the role they played in the election of the current president-elect, they were built for this. sources go direct. this is what the technology was built for. the social platforms of distribution of news at network speed. emily: should they take a step -- stand toward trump? guest: why should they? emily: if what he says while it's their roles. guest: has it? --ly: if what you characters care as abusive and hateful. different from
what they have been trying to cut down on. i am not trying to get into the whole political debate. my view is both facebook and twitter proof their true value as platforms for social to go direct in this election. 2008,k we forgot that in same facebook was hailed for electing president obama. we cannot pick and choose as to what the results and the outcomes are whether we like them or we do not. over -- ifilderment he is bewildered over trump using twitter, he does not understand his thought form or what he built. maybe he did not build it. we cannot get to self-righteous about this. read on the new yorker. always great to have you here on the show. more spending stats are coming out as the holiday shopping season it's in twos.
in. -- gets into full swing. as we have been reporting, mobile one out as the preferred method of shopping. 89 million shopped on their device versus 78 million on their desktop. we entered a strong season. up 12% compared to last year. coworker spaces are taking off in asia for small countries -- companies and entrepreneurs. we will catch up with the ceo next. this is bloomberg. ♪
co-working spaces have become a booming business in asia. company plans to use the from to expand its reach singapore. eo joins us. this is their business you have found it. why coking space and why singapore, how much demand is there there? thanks for having me. it is definitely an exciting time for a working. -- co-working. even the corporate's are looking at co-working. this is a way for them to be flexible, a way for them to learn how to be nimble. we are helping companies that are small to become big and big companies to remain small and
nimble at the same time. emily: is that competition? definitelys competition. we have focused in southeast asia in -- but we have ambition to go beyond asia. the product and the technology and the value added services we provide our catered toward asian companies, expanding regionally. i am talking about freelancers and sme's. emily: describe the state of the start up landscape in singapore and southeast asia. is definitely a good time to be in southeast asia especially in singapore right now. when i first started on my company it was very difficult to raise funds. but nowadays, i think the funding amount that is available to startups across the region has raised from $500
million to more than $1 billion in the last 12 months. you see a lot of startups coming in and you see a lot of startups getting more mature and we have been seeing a few unicorns humming out of southeast asia alone. emily: the new fund name, what do you intend to use it for? to allowe funding is us to expand next -- aggressively and quickly across asia-pacific. it is for us to invest back into our members and businesses who are with us and this company is expanding -- these companies are expanding. we have one in singapore, another one being held in singapore and in jakarta. we plan to have another 30 offices in the next three years. it is going to be fun and quite exciting to achieve all of that in a short amount of time. founded a also company called travelmob that was acquired.
i'm am curious what you see with the rise of airbnb and their own global ambitions trying to get into china as well. do you think airbnb can succeed in china? guest: i think everyone is trying to be successful in china. fors especially complicated a non-chinese company to do business there. there have been success stories. one of the biggest things about airbnb especially on the regulation side in china but all these companies are trying to they aret and i think here to stay. i see that to be an opportunity for this company to take on. emily: we asked this question rideit comes to uber and sharing. will this be multiple players or is it a winner take all market? how do you see it comes to
airbnb versus the other global players out there. do think one of them, that the winner will take all or do you think there will always be multiple players? if so, how many? airbnb is getting a strong brand but there are various players that are fighting it out. -- back, travelmob then, travelmob was competing with them. the sharing economy has migrated toward the working economy. that is why i am super excited to talk about spacemob, it is allowing the sharing economy principles to apply to freelancers and sme's and corporate. emily: johnny us today, thank you for stopping by. today, thank you
for stopping by. president-elect trump and ipads will make an announcement about carrier. that became such a hot button topic. that is expected 11:00 a.m. eastern thursday. we will be there live. coming up, we take an exclusive look into cityworks and how they signed deals with the u.s. army and ups. this is bloomberg. ♪
new games. the idea is to create a thesis option model and hope that developers will no longer need to worry about monetizing their game with ads or in at purchases -- app purchases. drones are going into new and unfamiliar territory. there is one type of commercial drone you may not see. the airorks works with force and ups. an exclusive work. -- look. trees atng among the peak foliage is an unfamiliar object. a high-powered commercial drone. >> what you're seeing here is our park system. aerialersistence reconnaissance edge medications platform.
>> if you look closely they are tethered to the ground. they are designed for surveillance act medication. >> it allows us to keep the bird in air and definitely. it is powering the system. it is allowing us to move up and down the tether. they can fly at 400 feet for up to 220 hours. cyphy is partnering with police, the u.s. army, and big events like concerts and marathons. >> this green you're seeing is coming off that camera. are seeing is coming off that camera. this is our payload. this is a cm-100 camera that gives you 30 times optical zoom. >> it is the latest startup. >> from the technology point of view we are flying like -- right along. the co founder of
roomba. raised $36 million. maker fluids first delivery with ups this year. medicine to a hard-to-reach island. >> i think initially going to inaccessible areas, that is the right place to start. deliveringdrones starbucks, coffee in the morning or bringing you your pizza at night and may be bringing you milk that you forgot at the store. faa cleared small commercial drones for take off last summer but the promise of delivery has been limited i short battery life. 45 minutes max. tether drones present a new set of challenges but for them it is a bigger picture play. >> the tether drones, they are much more drones
rugged and reliable. we get much more testing in and that will lead to much better, safer, more reliable delivery drones. >> big players like amazon and other startups are competing in the global market for commercial applications of drone technology valued at $127 billion by price hot -- price waterhouse coopers. >> we are starting to move into the private sector so we're seeing uses and the oil and gas space, telecoms, utilities. >> they plan to double the size of the company in 2017. >> it is an exciting time for drones and the sky is the limit. emily: they're at the test facility in danvers,
massachusetts. we have a great lineup of guests tomorrow. be sure to tune in. also we get our hands on the snap spectacles without having to stand in line for six hours. one of the earliest investors and snapped -- in snapchat stopped by. excited to show that when with you tomorrow. all episodes are live streaming on twitter. eastern, 3 p.m. pacific. we will see you tomorrow. this is bloomberg. ♪
announcer: from our studios in new york city, this is "charlie rose." good evening. i am filling in for charlie rose who is traveling. we begin with the economy. president-elect trump has outlined an ambitious economic agenda. he has proposed a massive public spending initiative on roads, bridges, and other infrastructure. he is expected to roll back regulations and introduce tax cuts not seen since the george w. bush era. today, trump announced to cabinet appointments, tom price, a staunch critic of obamacare to lead the health and human services and elaine