tv Bloomberg Technology Bloomberg May 30, 2017 5:00pm-6:01pm EDT
search continues for a new fbi director. they are meeting with a former assistant attorney general. an arizona republican senator, john mccain, says trump has unsettled allies. not alonestralia is in questioning whether america remains committed to upholding peace and justice around the world. the supreme court will consider giving states more freedom to people whorolls of have not cast votes. an appeal in the state of ohio, they will consider reinstating that. and the lone survivor from last week's portland triple stabbing has been released from the hospital. he suffered a neck wound after coming to the fence of two young women. jeremy joseph christian attacked the women, and the men intervened. two of them were killed.
former governor jeb bush is no longer interested in buying the miami marlins and has ended his pursuit of the team. by more than 2700 journalists in more than 120 countries. i am a lissa parenti. this is bloomberg. ♪ emily: i am emily chang. this is "bloomberg technology." fires an, uber engineer, in its dispute with waymo, and the road ahead for cars.riverless and getting crushed by walmart in sales come why investors on thee to double down
growth trajectory of the e-commerce giant, amazon, and biggest rivals, how the chevy volt stacks up against the competition, and what mechanics found after stripping down a car, but first, to our lead. uber, announcingof it has fired the former head of its self driving car unit, anthony live in dell ski -- ski, who wasndow recruited by uber in 2016 after a long stint. it was alleged to be stole trade secrets and patents for the development of self driving technology. invoked his fifth amendment rights, which has made it more difficult for uber to defend itself. reporter isxecutive here. brad, why now? really abouthis is
14,000 files, files that were allegedly surreptitiously downloaded by anthony from waymo . the judge said he had to turn over these fires, and -- those files, and he declined to comply, perhaps because something about them was incriminating, so it is interesting. it turns what is really a w-party case into really a three-party case. we have waymo and uber. uber'sdoes this hurt case? whetherare waiting for or not this meets the criteria set up for the injunction. the judge could come out and say, ok, you fired him. we do not have any evidence. they said previously that the waymo case was pretty strong, but there was no smoking gun, so it seems like uber's lawyers
know what they are doing. right now, it is really clear. emily: and is there any chance ewandowski could be prosecuted? >> prior to their february lawsuit against number, he hired his own lawyers, criminal defense lawyers. emily: now, he says he has been forced to choose between his job and his constitutional right. does he have an argument there? not a legal expert, but, you know, perhaps. cars: so uber's driverless , do they really need him? become so identified with uber and their driverless car efforts, but you have the person who has replaced him of the driverless car division from
carnegie mellon. they have hired other folks. one from the university of toronto. in toronto,. lab and for uber, the optics of this look so bad that it will be increasingly difficult for uber to hire folks. there is amark, trial on track for october pit what is next year? brad's point, experts say they are years if not decades away, so there is a chance that number might turn into more of a partnership model. he might try to reach out to more carmakers, and, of course, is in talks with waymo for a partnership there. this case with the a lot of movement. they also have the massive investigation into their .arassment issues
they have to do with a lot of other cultural issues. brad: let me add one thing. there is always the possibility that these companies settle. there are reasons for them to work together. it does appear that this case has really been about the founders, also about larry page personaly brin with a vendetta against one of their owski,ees, anthony levand and perhaps it is the beginning le -- allies asg opposed to adversaries. the mother that was killed in the horrific hearts accident, so our go out to them at this time. i do want to ask though, brad. the sexual harassment investigation, the results that are coming this week or next week, i we expecting any delays?
as i know, eric holder, the attorney general, was set to deliver his report to the cooper board of directors. it was not expected that a report or a redacted version of it would become public until next week. i do not know how much it will slow down the investigation. emily: do we know which way the investigation is leaning? no, we do not, except that we know that he talked to hundreds of employees and that he delayed the report because of the response that he had gotten. i expect it is going to be tough for uber. emily: all of these issues piling up, how does it impact the uber brand? in this timidity, very much so, but when you step outside the bubble, -- perhaps in this community, very much so, but when you step outside the it is affecting people's
lives and other ridesharing companies. it is a weird paradox. hiring has probably gotten more challenging. it is affectingbut this is a sa company that people love and that they have made a bigger part of their lives. emily: all right, we will be watching for more on this sexual harassment situation next week. brad stone and mark. 29-year-olding a russian man facing charges of hacking american companies, including a linked in and drop box, being extradited to either u.s. or russia. he was arrested in product in 2016 and has denied any wrongdoing. prague.s arrested in urged him torities falsely testified that he was part of the russian hack on the democratic national committee in exchange for money and a life in the united states. coming up, the race between
emily: out of europe, an investment firm bought a 5.6% ericsson, valued over $1 billion according to regulatory filings. the move will likely push the wireless network for to accelerate cost-cutting in its underperforming businesses. they have signal plans to appoint one of its managing partners to the board.
meantime in the u.s., stocks returned from the holiday oneend, and the s&p 500 had breaking a seven-day street. abigail doolittle joins us now in york with more. , what stocks stood out today? downil: overall, finishing ever so slightly, but the nasdaq 100 actually finished fractionally higher, up more than 1/10 of 1%, putting it on its eighth wedding day in a row, the longest winning streak since february, and very exciting, -- putting on its eighth winning day in a row. micron was one such stock, with morgan stanley raising numbers area once again, he thinks the pricing their looks really strong, adding a bit of a tailwind to nvidia, but then we another stock going lower, and we had some of the chinese
internet stocks trading lower, helping to explain why the nasdaq itself finished down ever so slightly, but we have one other bright spot, and that is tesla with another record high. we have a great chart of this stock all of the way from the ipf back in 2010, and look at that. the stock is up more than 1800%. maybe just technical momentum, but those gains over the last years, emily, really speak to the investors cheering elon musk's vision and passion for the market. emily: all right, amazon testing the $1000 milestone. what happened? abigail: a lot of people were talking but amazon and alphabet. morning, just lightly above $1000, and here we have another great chart from amazon's ipo. look at that.
51,000%. this really reflects the company move into the clouds, the web services, plus their dominance in e-commerce. speaking of that, let's take a look at a chart in the bloomberg. 1376.s we have the market cap of walmart, so traditional works bricks and morta rs, and in the last two years, amazon has shot higher. not only performing well, but for the future that e-commerce will continue to be the rage seems to be crushing to some degree the retail sector, but very interesting, emily. this massivehave market cap, around 400 $80 billion, but this is another one. 0 billion, but this is
another one. the largest market cap in the world, and look at amazon, the fourth-largest at about $480, phabet ando have al berkshire hathaway, so those are the largest market cab comanies there. emily? you, abigail doolittle, for that report. by a guestjoined from seattle. what is your take in this? it is a big milestone, and arbitrary one but one that people still get excited about, and they are up about 41% so far this year, about triple the pace of the s&p 500, so it is definitely a standout stock, and categories, big
like apparel and groceries, that investors are hoping they will be successful there, like they have been in books and electronics, and then the other business line that is exciting investors is the cloud. this is another thing where they position, and those two things have investors excited. emily: i wonder, is it any one that is the whole driving this, whether it is cloud for prime or investment in brick and mortar or the fact that amazon has all of these that's placed in so many lines placedall of these bets in so many lines of business? >> they are pruners. cant shows promise, they put a lot behind it, or if it is a category at is worth sticking to, they can stick with it for a long time, and also, things like grocery and the cloud, grocery
has very low on my penetration right now, but it is an $800 billion category, so even picking up a small slice of that is still big revenue for them, and the cloud is the same thing. they are in a dominant position, and there is more of a shift. islic cloud spending expected to close in on $30 billion, so they are just in a lot of right places. are investors so positive about amazon but so pessimistic about walmart? well, amazon is executing and is in the right spot. walmart is a established. growing momentum is shifting online. overall, retail sales only a few percent this year, versus 15% online, so amazon is in the right place and is executing well, and it is moving into
grocery, which is walmart's sweet spot. that is where walmart gets about half of its revenue, so investors are just watching for amazon to take more and more of the consumer spend as a goes into more and more of these categories, including the mother of them all, groceries. inwhat about the experiment brick and mortar, the bookstore? how big do you think that is going to be? very measured, but they must be seeing something they like. they are getting in more cities, now, and then beyond the bookstores, they have driving kiosks in seattle. they just opened two of them, so they are experimenting with work and mortar. they realize they have to meet customers halfway and give customers somewhere to go to get things, that, again, the pace has been fairly measured, and that is going to be weather is a
big standoff between walmart and amazon, is on the grocery front, and the brick and mortar grocery front with these driving kiosks, where you can easily pull in and have groceries you have ordered of yourut in the trunk car versus doorstep delivery, and that is where walmart has a big head start over amazon. is amazon has an achilles' heel, what is it? >> it might be what we just talked about, the work and mortar, and -- the brick and mortar, and they have their kindle readers, and the activated platform area these are things people have heard about but probably are more and will buying it if they can go to a store, see it and buy it. bottom shelf treatment in some of the retail competitors, like best buy and staples and things, so they really neither own place
to showcase their own products, and that has been their achilles' heel, but they have to alex that, because a big part of their advantage has been have the -- but they advantage, because a big part of their advantage has been providing things. emily: spencer, who covers amazon in seattle, thank you. we are watching that escalated a battle in the market for high-end computer processors, a company just item,ed a new powerful selling a new chip under a new brand aimed at gamers. they say their latest product has outperformed intel chips, and if you like bloomberg news, check us out on the radio. you can listen on bloomberg.com and on sirius xm. ♪
former secretary of state said in their positions that they did not question the him when he found her, alissa but about the matter. -- they did not question the holmes, aboutbeth the matter. and the u.s. department of homeland security says a report that the government is shelving is absolutely wrong. the trump administration has reportedly opted not to extend cabins to laptops in include incoming flights from europe. they currently banned them from eight majority muslim nations. homeland security secretary john only says they may ban them all international flights in and out of the u.s. admitted terrorist threats to bring down airlines, but a final decision has not been made. tivo, are up for
following a favorable ruling that could impact cable boxes. a judge found that comcast patents, andtivo both companies are expected to judge'sa review of the finding. it should be complete by september. coming up, on a tear, surging more than 100% in the last two months. ?hat is on the move and our new interactive tv function. find it on bloomberg. you can watch us live, and an interview, you can go back to it, and you can play along with the charts we bring you on air. this is for subscribers only. .it out on tv ♪
the move is part of an ongoing investigation into russia's election interference and connections to the trump campaign. vladimir putin says allegations of meddling in the u.s. are fiction. he's been with a french newspaper. he added that the people who lost the vote hate drug knowledge that they lost to a candidate with a better understanding of what people want. a 29-year-old russian man facing charges of hacking american companies can be extradited to either the u.s. or russia. this, according to a court ruling. the lawyers say he has deniers -- denied any wrongdoing. he immediately appealed extradition to the u.s. willinger ariana grande return to manchester sunday to fororm at a charity concert victims of the terror attacks. she just finished thinking last week, when a bomb exploded and killed 22 people. former panamanian dictator manuel valls you got died.
he served a 17 year drug sentence in the u.s., and was set to face charges in the -- in france.he spent the last few months of his life in a panamanian prison for the murder of political opponents. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm alisa parenti, this is bloomberg. it is after 5:30 p.m. here in washington. we are joined by paul allen. he has a look at the markets. good morning. looks like another flat started trading in australia. asx futures down by third points. we are waiting on the reserve bank of new zealand stability report. nikkei futures are also pointing down. expecting expansion of industrial production for the
month of april and may -- waiting for the bank of japan's bond repurchase for june. we may see tapering hiatus as they yields rise. about.t of china has the manufacturing index is expecting to go down to 51 in april.om 58 .2 the, watching out for repost out of china. i'm paul allen in sydney. more from "bloomberg technology," next. ♪ emily: this is "bloomberg technology." i'm emily chang. bitcoin has risen more than 100% in the last two months, but
critics say the digital currency is showing signs of a bubble. in the last week, bitcoin hit an all-time high only to slumped down. this is the kind of volatility ears worried. joining us to break it all down is olaf carlson. poly chain is a hedge fund back to buy andreessen horowitz.also, our editor at-large, cory johnson. >> we have seen really fast recently.bitcoin this is an uptake coming from an industry that hasn't been moving as aggressively and the public radar -- in the public radar, but now that the growth in prices is closely tracking fundamentals, we are seeing uptick. emily: some people say bitcoin is like gold, a finite resource, and therefore not as interesting. what's your take?
cory: i think gold is fascinating, personally. that it's true the way bitcoin is constructed that it is meant to be finite.. it is harder and harder to mint coins out of -- that are out there. the scarcity value is an important part of the bitcoin plan. it has been from the beginning. for people in the bitcoin community, they feel this excitement. they know all the deals. they can't believe their parents don't understand what they are doing.so when they see the price that they can see as a validation as what they've been working on. an element of a gold like fervent belief and rapid speculation. when you show the five-day chart, you saw the really dramatic one hour 20% selloff in bitcoin, you can see it is speculative. while the long-term value of bitcoin may be in the eye of the beholder, the volatility is in
the eye of the speculator. emily: i've been talking to investors who say bitcoin is old news. the new hot crypto currency is sdram -- called that it will bypass the market cap of bitcoin by the end of the year. emily: of all the predictions he could have made, that is what he chose. first of all, explain how they are different. bitcoin has a programming language you can interact with the protocol. it is limited. in etheruem, developers building applications on the protocol, it is easier to work with. richer --e is a much
it has driven the price growth. emily: let you agree with what fred had to say? >> i agree. emily: you think the market cap will agree? >> i don't know about that aggressive timeline, but i think in the long term. i would extend it one year. emily: interesting. corey, what are your thoughts? the: it's interesting in way it uses a distributed network to embed security and ownership of ethereum. i think it's fascinating from that regard and could have different use cases. still using the general concept of block chain. the other problem is it is harder to use bitcoin. one of the big issues in the
bitcoin world is how hard it is to close the transaction. the speed of closing a transaction in bitcoin is getting exponentially worse. it's been happening coinciding with big rises in price, but it's hard to do in dealing bitcoin right now. we are showing a try that ship -- shows how long it takes confirmation. it is getting slower and slower. it may be a problem and that it actual coin itself so that bitcoin cannot get out of its own way. there's been a lot of discussion of this in the bitcoin community. the fixes have not worked. the proposed fixes are challenging the nature of a coin -- bitcoin. unless there's a solution, there , because real problem the transactions cannot get done. emily: what about the safety issue? we just covered this big wannacry, they were
asking for bitcoin because of the anonymity. will that change? technologiesese offer a new suite of use cases that were impossible beforehand. -- thators and that includes good actors and bad, like the rest of the internet. emily: other any other crypto currencies to watch? >> yes. many. i like ethereum tokens built on top. i also am a pretty big fan of some of these more novel types of signatures. things like z cash. emily: wendy do you think these will go mainstream? when will the average novice consumer be paying for things in bitcoin or ethereum tokens? >> we are still in the infrastructure face. i do think within one to two
years we will see the first of the applications that are user facing. .mily: interesting poly chain capital founder and ceo, thank you. emily: cory johnson, our editor at large, thank you. the i.t.irways says systems are up and running after a computer meltdown over the weekend snarled flights oliver europe. nearly 600 flights were canceled affecting 75,000 passengers. -- the chaoscop may cost millions. they will hold an investigation to get to the bottom of what happened. coming up, the electric carmaker has been growing in fits and starts for years, but could the chevy volt either tipping point industry? one analyst ripped up the car to find out. we'll hear from him next. this is bloomberg. ♪
vietnam mason have its first technology company go public in the united states. developers and investors signed a memorandum of understanding to list on the nasdaq. they declined to disclose the time in our size of the ipo. they have shipped to more than 230 companies. they have a rise of as much as 70% in shares from last year. ahead of the anticipated release of the tesla model three, the
auto team at ubs got a hold of the newest competitor, the chevy volt. not only did they buy the car, but they took it apart to give a breakdown of the features and cost of the vehicle. from -- colin joins us from new york. you got a team of engineers to break down the entire car. tell me about the process. >> it was a very exciting process. we partnered with the evidence lab, data scientists, and talked about how the chevy volt would be the first mass-market with over a 200 mile an hour range. this would be an interesting test for the u.s. and globally. since it is so important, we partnered with a company that is an expert in automotive provided and detailed cost analysis of the entire powertrain, which gives quite a unique edge in understanding this phenomenon.
emily: provided give us the higf how the volt -- bold compares to the tesla model three. >> we will get the full details, but both are around a similar price point. the base tesla model three will be $35,000. like, oncell be more you get a $7,500 credit, it will be $30,000. similar price point. the range will be very similar. both over 200 miles. they are very interesting comparisons. tesla will be more upscale. we put a mark cost in the powertrain. options would be closer to sort of a bmw three series. emily: you estimate that gm is losing $7,400 on every car. there are estimates tesla will be losing $2800 on every model three.
how do they stand the losses and close the gap? >> the big driver will be battery cost. we're only assuming gm will sell about 30,000 bolts a year. that's a low number, so the costs are not spread out over a lot of units. the big driver going forward their battery costs are going from over $200 per kilowatt hour today, and it will be around $130 per kilowatt. we assume certain components have a good step function on the ed powertrain. that will help the above average cost decline. that narrows the gap from about $3000 premium to around 2025.m by
when you look at the total cost of ownership, lower fuel, lower maintenance, the economics, where gas prices are higher in europe, it makes sense. emily: what is your projection for the growth in the market in general? >> we raised our global forecast because we did find the cost today are lower than we expected. we do expect battery costs to accelerate. a lot of experts we talked to around the battery. by 2025 aboutng 14% of vehicles globally will be ev's. a lot of that will be driven by europe, with 30% penetration in europe. and the u.s., we are more conservative, only 5%. lowerk at it with much gas prices. this will be much more of a luxury vehicle. one of the reasons we are cautious on tesla is we know all
the german luxury guys will be coming with their own ev's. that's mercedes, audi, porsche. competition has been intensifying on the e side. emily: as more companies produce electric vehicles, what does it mean for the auto industry? >> it will be an important transformation. when you think of the automaker, the whole system will be overhauled. that will be a difficult challenge. at the end of the day, we think the return on investment for capital will be consistent with what we have today. i think there's an important role for traditional automakers in the future. on the supply base, we highlight some things that will benefit. we highlight delphi really has good content. more content than they have on the combustion engine. it could be a positive if you are a well-positioned supplier.
emily: any idea when chevy will make the car widely available and less of a focus on california? >> i don't have any official news there. i assume it will be ramping production like most vehicles. it only launched in the fall. emily: analyst at ubs, fascinating report. thank you so much. coming up, the man who was a mastermind behind android has unveiled his latest creation. why he says there is room in the market for yet another smartphone. a quick programming note. sitmberg's tom keene will down the -- with the federal reserve of dallas president. you can catch that on "bloomberg daybreak: americas," 8 a.m. eastern. ♪
emily: vietnam's prime minister is coming stateside, becoming the first southeast asia leader to meet president trump. the main point of the discussion is trade. exclusivelyn spoke to the prime minister and got his thoughts on a trail deal -- trade deal with the u.s., after president trump abandoned the tpp. >> we respect president trump's decision with regards to trade. we want to make sure we can convince him that this is a mutually beneficial relationship , and american consumers benefit and prefer the products the and him exports to the u.s. market. emily: the creator of android unveiled his latest product.
andy rubin, who developed the software that powers hundreds of millions of devices around the world, now has two gadgets of his own. a smart phone and a home device. is called essential, and it is betting it can take on the likes of apple and samsung. joining me is our gadget reporter. what did andy come out here? i have heard it called the anti-iphone. reporter: there are two products as part of a larger ecosystem. first is the smartphone. the essential phone. why is it anti-iphone? you can install any app. it is expendable. it is modular. there is a 360 degree camera attachment. emily: why is it different? >> it's different with the hardware. core of theoid software. hardware is nice. it has taking images, a ceramic back, comes in four cool colors.
every phone these days has a gold, white, black and gray option, but it does look pretty nice with ceramic and titanium. the screen is edge to edge like the new samsung phone and the i -- iphone eight coming out. emily: there's apple, samsung, google has phones, a whole host of chinese competitors. what makes him think there's room for another device? reporter: i'm not sure. there is a market for those phones. some of the chinese makers like there'snd xiaomi, another company called one plus that has $500 unlocked phones that you can put on any carrier. but this phone is really high end. is a $700 phone, part of a big ecosystem. is it going to make a dent in google's market share? i would bet against it. emily: what about android in general? reporter: i think it shows android is pretty much everywhere at this point.
refrigerators, microwaves, home appliances, and powers hundreds of millions, if not one billion devices across many platforms across the world. this essential phone is another. emily: how would you say this backs up against amazon echo, google home, and those two companies in ai? reporter: right, the home product, it has a new operating system built called the ambient os. anis probably built on android core. the difference is this is oriented. you talk to it, it gives you information. it is small like the echo so speakers. have big we understand apple is looking into this. emily: top to me about the set up. it automatically introduces itself to existing devices, current? and makes for an easier set up, which is one of the huge
problems, when people don't connect their phones to begin with, because it's such a headache to get everything online. reporter: i can't speak to how easy to set up is because i have not tried it yet, and they have not said when it will come out, definitely after the phone is what i'm greening -- but it promises to have all kinds of integration with home kids and other platforms. upmakes sense you can set it pretty much from the interface. emily: how optimistic are you? reporter: it would not be wise of me to get -- that against andy rubin. he helped create the sidekick. emily: some people don't remember the sidekick. [laughter] this old phone came out at the new millennium. reporter: while the sidekick was extraordinarily popular. it helped make t-mobile when that lunch -- launched over a decade ago. he did that come also android is
ubiquitous. for technology today across many platforms from cars, to fridges, to microwaves. it is difficult to bet against andy rubin.will it make a dent ? i don't think so. but it seems like there is room for another hardware player to make a premium system. emily: thank you for your opinion, i appreciate it. that does it for this edition of "bloomberg technology." wednesday we will be covering hp second-quarter results.we will have full coverage and analysis. that is all for now. this is bloomberg. ♪
from our studios in new york city, this is "charlie rose." isrlie: "dear evan hansen," that hit musical at the music box theatre in new york. it follows a high school student with severe anxiety to gets caught up in a social media fueled movement after a fellow classmate commits suicide. the "new york times," says start ben platt is giving a performance that should not be missed. "dear evan hansen," has been nominated for nine tony awards, including best musical. ♪