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tv   Bloomberg Technology  Bloomberg  March 9, 2017 12:00am-1:01am EST

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>> it is 1:00 p.m. here in hong kong and produce a prices have surged back to pace in 2008. that has jumped 7.8%. nogress saying there's recovery wealthy be a bad have already peaked. pboc plans to use a stricter method for containing risk.
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they would either be given a full score thing we the requirement, or zero if they fall short. korea, soul -- global news 24 hours a day in more than 120 countries. this is bloomberg. a quick check of the open in hong kong. not the best day. more next. this is bloomberg. ♪
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caroline: coming up, google steps up its cloud business. we have all of the highlight highlights from google's conference. plus, training the next wave of u.s. tech one nano degree at a time. interest as a search engine with a more personalized touch. google sees reliability as a competitive advantage. at a company conference, dan green ranked google ahead of those companies as the most reliable copywriter for 2016. it is also attracting clients. it in the latest speech, he says he sees cloud becoming one of the core products such as search
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advertising. >> google cloud is a natural extension. we are just doing it for businesses. we need -- it means increasing availability and lowering costs. caroline: we also talked about machine learning and cloud technology. >> i think it is going to be tremendous. it is not only cost savings. it will open up new businesses. for example financial services and we can have better services. in terms of banking or in retail.
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we can have new ways of delivering products to customers. ai machine learning is huge. i deeply believe this is the driving force of a transformative time. >> is this why you went into business? >> i did not leave academia. i'm on leave from stamford which -- stanford which is a sabbatical and i think you are totally right. i've been a technologist for almost 20 years and i've been working ai learning and i have watched the growth into a major -- grow into a major force and i want to participate and contribute in the transformation. i thought hard about what can ai
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and machine learning contribute. the key i -- i don't want technology to be in the hands of only a view. cloud is the best vehicle. it delivers the power of technology to some of the people and businesses. >> as a machine learning and ai show what they can do, the question of ethics. is that something businesses are keeping apace on? >> i think it is an important topic that we should invite the whole society to participate. every time there's a transformation and civilization, the technology becomes a force of change in the way we live and work, conduct our businesses, do regulations. this is inevitable. the important thing is that all
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parts participate in the discussion. i care deeply about this. >> we talk about google cloud. is the price going to continue to drop? >> i'm not a business person so not going to talk about price because i don't think i have many things sensible to say some of i want to talk about the competition is not just going to be price, it will be the product we offer. it is going to be what we can give to the customer that they need. we know the customers are going
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to need powerful, easy-to-use ai and machine learning tools and that is what i will be focusing on. caroline: how do you think google cloud and ai machine learning is better than the rest? >> when you look at google as a company, google has the deepest bench in terms of ai tablet and technology. before i jerk -- before i joined google, i know my google colleagues produced some of the most phenomenal work in machine learning and ai. the work they've been doing, health care, winning ai competitions. many things. i think google is amassed -- outmatched in its ability in ai technology and machine learning technology. caroline: that's what continues
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to track people such as yourself. i have to ask you about the ribbon you are wearing. i look around and it is not a particularly amount of females. >> you are being charitable. >> you talked about ai being a sea of do -- dudes. >> we should acknowledge the diversity issue in ai and it continues to be an issue. it is not just gender diversity. caroline: what can businesses now that are led by men and looking to ensure they have diversity as well? >> i think it is going to be a
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full spectrum. i don't think there is one magic way. the company should improve their culture, help women to support leadership. the company should be supporting diversity. i think there should be an effort. caroline: that was key scientists of google cloud in machine learning. google cloud chief diane greene took the stage to stress the importance of diversity and google's workforce. take a look. >> we strive at google to have an environment where no one needs to raise their hand can open a matter what it is completely safe to do that. i look forward to the day when
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this audience is maybe 50% women. it is more fun to have diversity. caroline: facebook's ce -- coo also wrote even though women work more hours and more days, we only earn a small percentage of the world's income and less of the world's property. saying with a put it, nest is looking to work on a cheaper version. it adjusts temperature based on usage patterns would sell less than $200. an alarm system, digital george -- doorbell and security camera all in the works. potentially good news for a unit that struggled when it came out. still to come, new sec chair on his views from media megadeals to net neutrality rules.
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we will head to washington next. all episodes of bloomberg technology are now live streaming on twitter. 5:00 p.m. in new york, 2:00 p.m. right here in san francisco. ♪
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caroline: disney ceo bob iger is staying put on an advisory with donald trump. the netlist requested he leave the panel, saying his participation suggest he supports strums policies. >> i did not your do not believe that my membership endorses or supports any policy of the president or his administration.
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i think it is a privilege opportunity to have a voice in the room. caroline: speaking of president trump, he met to discuss immigration policy. critics of trumps immigration policies have cited steve jobs and example, as jobs biological father was a syrian immigrant. saying in washington, a new fcc chairman faces senate lawmakers for the first time since taking the role. he maintains the fec does not have a verve -- role in doing the at&t and time warner merger. still opposes graduation by democrats before him. joining us from washington, welcome to bloomberg technology. i want to cast my mind back a week ago. back on tuesday in barcelona, he
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i lined how he wanted an open net. >> the need for a free and open internet. it is something i think consumers take for granted. dealing thing what framework can we adopt that preserves -- caroline: he's not a fan of title ii classification and you back him up? >> that's right. the two ideas, and -- and neutrality are really essential. they have been bolted together
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by the prior fcc. there is a way to enforce net neutrality protections without having to classify internet service providers as common carriers. caroline: how? >> there are a few ways. i would point to the way the fcc adjudicates his commission complaints today in the video space. bailout independent networks to support and demonstrate they have been in the -- discriminate against. there is no reason that same process cannot be used to stop discriminatory acts in the internet space. caroline: one of the points you raise, you believe internet
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service providers have been held back from investing? >> i do. if you threaten isps with price dissemination -- we had a very specific price discretion from the 2015 open internet order. the isps cannot raise any funds trump the largest edge providers -- network, youtube -- netflix, youtube and google. there's always a lurking threat the fcc could undo the forbearance and a impose rate regulations on the prices isps charge. we saw a slight pullback in 2015. according to one study we saw slight pullback. the last time isps got to operate outside the confines of carrier relation, we saw a
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significant pullback on the order of around 5% of broadband capital in the united states relative to 2014. caroline: many feel people hold back investment because of lack of uncertainty. have a listen. >> when we put out our open internet rules, we built an extensive record and it was reviewed and affirmed strongly by the court. whether you can come back a few years later, this is going to be a long process. >> that quote cracks me up. i don't know if you watch the oral arguments when the sec lawyer tried to defend. he cannot give an answer.
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it was actually one of the more humorous parts of the hearing. there was no answer or circumstance or regulatory circumstance. the only thing that changed was the policies. the notion that there is something steep -- a steep justification to how we got reclassification is just a ruse. caroline: as politics change, many feel regulation might ease up. is the market right to assume? >> i think that is probably fair.
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i think the prior fcc tended to lean heavily on structural rules. they were not that concerned about what metric models might say, but instead they were -- the latest evidence suggests that being counting exercise does nicely mapped into price fx. i think the new chairman will have a more open and modern view when it comes to understanding the economic literature. caroline: we will see how many agree. wonderful to have your viewpoints. tomorrow, join us for an exclusive interview with jp morgan ceo, jamie dimon. we will focus on president trump's first 100 days. coming up, pinterest is adding a search engine. ♪
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>> online grocery store
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instacart -- the company has an valuation of $3.4 billion. pinterest is buying jelly. the q and a search engine at led by twitter cofounder. the acquisition could be a sign of pinterest interest in increasing action. bloomberg technology joins us now with the deal. how does this get folded into pinterest? >> it may not be. he says he has not made a decision how it will live on.
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what they do want to bring in is the expertise that him and his cofounder have about testing out different models for search. they fork with audio, photo, questions and helping pinterest move into search in a more strategic way. caroline: is it a good ending for jelly? >> certainly one companies go to raise money, this -- they need to also think about other options because in the past, it is typical to find an exit that values you at the same level these private market investors do and to get acquired by company like pinterest, i think that is a very safe landing for a company that has trouble finding mass popularity. caroline: --
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>> they were not going to be the next snapchat. i'm sure they -- they started in 2013. this is a good fit for what the team at jelly is really interested in and what pinterest has been investing more and more end. caroline: what about the direction of pinterest? they are becoming a search engine themselves. >> they have tried to shy away from being labeled a social media company. we need to look at what they're doing with some of their technology. one of the most interesting things they came up with is visual search. if i could take a picture of
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that shirt and put it through the algorithm, it would show me other shirt that look like the shirt you are wearing and that has a lot of applications. when i was at pinterest headquarters, i took a picture of kale. it showed me all these kale recipes. that is one of the ways they are trying to go into search. that is the technology we have already seen, very popular in asia. interesting to what jelly will bring to the table. he told me that he and the pinterest co-founder had deep conversations about the possibilities. caroline: great to have you on. coming up, our spruces -- an exclusive interview. check us out on the radio. you can now listen on the bloomberg radio app and in the
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u.s., sirius xm. this is bloomberg. ♪
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>> it is 1:30 p.m. in hong kong. demand for suvs in china is helping rebounding car sales. 1.5 million units for the month. concern. been some -- rs have the did to kick
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aol said it shopped around the for agreeing to be bought by verizon. google and facebook before 4.4 billionhe dollars transaction. shareholders are suing, claiming the undervalued the company. japan says one of the missiles landed just 200 kilometers off the coast. china says the u.s. should abandon its defense in sale. global news 24 hours a day. this is bloomberg. a quick check of the markets.
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is mainly off in the region very the nikkei is up by a third of 1% heard. the hang seng is down by 1% today. drop in the crude oil price. shanghai also had a weaker ppi. cpi coming in weaker than expected. that equity market dipped. not just in oil but also in other commodities. they have seen the iron ore contracts.
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they close down by a third of 1% in the australian sessions. live from london at the top of the hour here on bloomberg television. this is bloomberg. ♪ caroline: this is bloomberg technology. he is known to be one of the most innovative minds in silicon valley and founder of google x where he led various projects like google self-serving car and glass. the company just announced to nana degree programs along with 19 positions. we asked how these new partnerships will help students land jobs.
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>> we have companies ranging from google x two irobot in these are silicon valley type companies. there's a huge gap in the world between the talent that exists today and the talent you want. caroline: the timing is fascinating because it would just yesterday there was the executive order by donald trump. this is something that is dependent on by silicon valley to get the right talent. >> absolutely. amazing talent in this country. we have the best university system in the world. it gives people the typos skills -- we have more self driving car
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engineers than all university combine -- universities combined. caroline: how much has been there a -- been a concern a lot of the technology degrees in new schools haven't always had the employee an amount of employment that many had hoped? >> i believe -- we work really hard to keep our costs down and get people jobs. you make things like money back guarantees. it difference between us and every one else we derive our funds from those companies and higher those it is.
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we go to top companies like amazon and facebook. what will it take for you to hire a person? the following projects need to prove efficiency. caroline: talk to me about the rest of the world. we have seen tech talent coming from silicon valley. it are those people going to be remaining and creating jobs and moving into companies at home as the u.s. -- moving to the u.s. becomes less palatable? >> the same talent is needed around the world. every company is a mobile company because of internet and ios. our students find jobs in china and many other places. last year we opened up and saudi arabia. -- in saudi arabia.
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caroline: are there areas of the globe you would like to be? >> i want to be in every household. i would love to give many more scholarships. the reason is there is a huge in equity in the world. you have -- it is not the people are dumb it means they just don't get it. caroline: you've had some interesting competitions in china in particular. where do you think silicon valley needs to the worried in terms of competition and talent of technologists and technology
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companies? >> china has done at extraordinary job -- and its ordinary job. i think silicon valley will remain a disruption. i think people tend to eventually come here and work with us and others. there are many great chinese countries. caroline: will u.s. always be the number one market for you? >> i wish i had a profit. i love the united states.
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i love what we do here. you can really invent new things here and get away with it. we are in some ways the university of silicon valley. caroline: is the risk with the new administration? >> i am still in my wait and see mode. there are many things to be said on both sides, but i think everybody has the good of the country at heart and everyone i talked to really worries about how can we take great american workers and make them fit for 21st century technology? caroline: competition can often spark creativity and would seen
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any of competition between google x and uber. this is much in the limelight. how important do you think this is that individuals are potentially taking technology from other companies? >> i can't comment on court cases. you -- city is no -- udacity is no self driving car company. we've driven about 35 miles near san francisco. caroline: a story we are following.
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blackberries cars software was listed as a potential target for cia hackers. this following a massive document dump tuesday. software is one of several potential areas for a particular branch but also worked for spy agencies. later. that story coming up, why $50 million in seed money could go a long way in funding tech hardware even as companies like gopro struggle. this is bloomberg. ♪
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seed focus venture firm
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announced its latest $50 million. it comes when tech heavy hardware struggling. demand for gopro's hero camera waning. us is jeremy conrad. wonderful to have you on. this is a big step. you had $2 million as your first fund. $50 million for your third. congratulations and let me know how it changes. does that change your investment strategy? said $50 million is the right amount. we do pretty seed. we can throw it out a little more. also there is a lot of companies that need more tech to start. >> how much do you keep aside?
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>> it depends on the type of companies. there are two or three to one for every dollar. >> you have 40 or so? >> we just did our 39th investment. we have a couple we are looking at right now. they have gone to raise $300 million. caroline: talk to me about the exit strategy. you had two significant exits, but two out of 39, when does the pace start to pick up? >> we are seeing that we are five and a half years so we have companies doing well, but if you want the data winners, it takes a little bit of time. caroline: how competitive is it out there? particularly in hardware?
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>> we find it to be pretty competitive, but that is why we are vertical lysed. we are really in bed with our companies so we want to do five or eight deals a year. when you're just starting the company, there's so much that can go wrong. we think having people who have been around the block at the table with you increases your chance of success. caroline: talk to me about vertical. >> one area you are excited about is robotics. things like industrial i.t., consumer electronics and with this, we call them applied center companies. we were looking at a company that is doing computer vision related to robotics. a lot of those companies can scale effectively. caroline: robotics is hard. goproe been talking about
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, fitbit fell out of favor. ,ow do you interested companies how are they not fatty? >> good long-term business models. i think on the consumer side, it is a question on what could have been? that company was around today or if gopro or did it had a bigger recurring revenue, they would be great. these are both billion dollar companies and the reason they were able to go public is because of their hardware. it lets him go public and give everyone liquidity. caroline: when you are looking at the market space are you looking more at be to be? >> if you look at the consumer web there tends to be fewer, , bigger winners.
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on hardware, you have apple. consumercan really do hardware right, they can be gigantic. the bread and butter is going to be these industrial companies. have you got many immigrants when you have the administration changing roles of the game? >> we have a number of immigrants in our portfolio. also just the start of the set. people who come to the united states get undergrad in the may have to go home. they work hard, they are thrilled to be here. we outcomes of cambodians in long beach. it is a tragedy to shut the door. companies tend to flourish and we will see how many you begin with the $50 million. that was jeremy conrad. tomorrow, join us for an
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exclusive interview with a pretty tech savvy banker jamie , dimon. the conversation will focus on president trump's first 100 days, on exit and on global banking. coming up, wikileaks exposes alleged cia spying techniques and samsung smart tvs are getting unwanted attention. more on south korea giants next latest debacle. this is bloomberg. ♪
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>> softbank is planning to sell holdings to the vision fund it is creating with partners. lead investors have expressed interest in including the chipmaker in their portfolio. they will get about $8 billion from the shares and it is separate from the 25 ilion dollars the company has all but
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it contributed to the fund. microsoft uses chips for their cloud service and this could challenge intel's place in the market. the software giant plans to use arm server chips to be discussed at its summit today in california. more headaches for samsung. according to documents released by wikileaks, smart tvs could be used to spy on their users. the claim is that samsung smart tvs have a microphone. i can pick up and track information while it appears to be switched off. is aware of the wikileaks report and is looking into the matter. samsung was not the only company name. apple and google also got a mention, but the south korean tech giant has already had other recent debacles. most recently the de facto lead
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ready to stand trial for charges of bribery and embezzlement. joining us from tokyo, peter alstom. how damaging are the wiki leaks reports? they responded saying they're looking into it urgently. >> there were many devices mentioned from apple phones to android phones, but this is the last thing samsung needs now. they are trying to get back on track after the troubles with the note 7 phone. they are poised to introduce the next smart phone. the wikileaks document shows the cia is a program called weeping angel that could monitor what was going on in the room. not a good thing for them.
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>> not a good thing when it is a product. meanwhile, jay y. lee going to court again. explain to us how much the investigation seems to have broadened out? >> today, these will be the preliminary hearings for the trial. it is not clear whether jay y. lee himself will appear or if the attorneys will appear in way out the timetable for the trial. one thing striking about the investigation is how quickly it is moving. the prosecutor was set up and task with investigating the allegations of trading favors and he was only given about 90 days to do that. he asked for extension of 30 days and the same administration of the president who has been
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impeached denied him the extra 30 days. they also won't let him into the president's residence so he is playing a quick game. the trial is going to begin. that will move quickly. caroline: how is asia responding? the investor base does not seem -- we see samsung at all-time highs when you look at the share price. could jay y. lee end up in prison? what does it mean for the business? >> it is a high hurdle to prove he was personally involved. samsung has denied any wrongdoing. they say they gave tens of millions of dollars in payments to a confident, but it was not an exchange. it will be a huge hurdle for the prosecutor to prove that jay y.
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lee himself was involved in this. we will see how it plays out. >> one last element to be playing out is a pr two the united states. it'll think they're manufacturing more in the u.s. >> that's right. this is not the smartphone business, but the appliance business. the company has said they are looking for new manufacturing facilities in the u.s. they may move some of the manufacturing of things like ovens and washing machines into the u.s. they said at this point they have not made final decisions, but we should hear something relatively soon. >> peter alstom, always wonderful to get your perspective. that does it for this edition of bloomberg technology. join us thursday for an in-depth look at snap.
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scrutinizing the financials post-ipo. all episodes are on bloomberg tv. this is bloomberg. ♪
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chinese producer prices soar the most since 2008 while the consumer price growth misses estimates. global rephrasing intact. manus: crude confidence bounces after slumping to nearly 50 bucks per barrel. u.s. stockpiles or midol markets that opec is not the only player in town. anna: talk but no action. mario draghi gives a rate decision and his assessment of the european economy. is europe's inflation sustainable? exclusive interview with jamie dimon. will talk to


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