tv Bloomberg Technology Bloomberg June 14, 2017 5:00pm-6:01pm EDT
wounded and in critical condition after a gunman opened fire as republicans practice for the annual congressional baseball game. a second congressman sustained minor injuries. was james hodgkinson from illinois. capitol police. a gunman who opened fire at a ups in san francisco was an employee according to local police who say three employees were killed before the shooter killed himself. police say he was armed with an assault pistol. president trump amended his travel ban to address arguments being made that it would expire today. the 90 day band won't start until court orders blocking it are lifted. in london the death toll from the massive apartment tower fire is up to 12.
they are pushing to cars and the competition is taking notice. janet yellen forged ahead with tightening monetary policy despite concerns over weak inflation. how will it impact the tech ecosystem, then sure, and how could that trickle down? lou andus now, jeremy the first the sea investor in snap. fed officials raising rates, the third time in six months. how does this impact venture capital? tox micro always comes macro. we are always looking at these early-stage companies. are lessapital important than do we believe in the team, do they have a unique
builtt, can they've something that will create new habits for people? >> saw they raised with hundred billion dollars to invest in tech. there is so much capital built in the system, how does that change the landscape for you? >> it really is the latest stage companies that are going to be affected. financings were almost a substitute for public offering. it is impossible for a company to put $100 billion to work. >> do you see an impact on valuations longer-term? >> i don't think so. over the next few years, we have going to see fundamentals of the , and technology changes that create new disruptions. that is going to be a bigger
impact than anything else. investorre the first in snap. snap shares are near their lows. ?an they fend off competition do you see innovation in the pipeline? >> one of the things snap has done a terrific job of has been to focus on its vision of being a camera company. additional functionality through the camera, outward looking lenses is something that continues to push forward. the other thing is making it easier for companies to spend money on them. advertisers are finding more ways to spend money on them. those are two important factors. emily: there are user growth issues especially abroad. do you think they can re-accelerate?
? >> evan has been consistent talking about a focus on the developed world markets where the opportunities for advertising are the greatest. >> you and i last spoke when we were trying out snap spectacles. you were sharing your pair with them. they haven't really gained the traction some people expected. what are your thoughts? time evan characterized the spectacles as a toy. you should think about it in the context of a camera company. more experiments and tried to figure out different ways to engage with users. i think you're going to see more interesting product launches ahead. >> when it comes to other
exciting consumer facing investments that is your focus. are you seeing opportunities out there? or is there a drought in terms of the pipeline? >> we believe consumer technology has become popular culture. the key driver is not the technology itself but the insight into behavior that can precipitate a new company. we are saying that disseminated not just from silicon valley but companies with those insights in new york, los angeles, anywhere in between. illinois, to 10 is saying. one of the things we are excited about is the democratization of entrepreneurship. it is easier to build an app now. ofis generating a new wave interesting companies.
partnered with apple. why should viewers give this show a shot? >> one of the things that is compelling is that for this new generation if you are in tennessee and interested in building a nap you don't have a good view into the silicon valley ecosystem. what sort of questions you might be asked. the last 20 minutes of each episode gives people a vehicle into what it is like to engage with a venture capital firm. thande investments in more a dozen companies and it gives people an opportunity to watch what those conversations look like. where did we asked for questions for more information? where were we ok with the risk? for an entrepreneur trying to
raise capital to realize the opportunity, it is going to give them a dry run as to what that is going to look like. can't wait to give it a watch. thank you for joining us. donald has announced his intent to nominate jessica to fill the democratic slot at the federal communications commission. of 2016ed until the end when lawmakers failed to take up her the nomination under president obama. the agency is working to reverse obama era regulations including the net neutrality rules. she put a significant focus on the plight of children without access to broadband service. e3, thep we had to biggest gaming event of the year. newendo is revealing
she discussed her vision to bring the university into the future. >> you need to understand technology. we have tried to cast an open gate. sign, studies challenge people by saying if you are not going to be einstein you double long here. we have a completely opposite attitude, which is try this out. we want to give you a path to succeeding. the biggest videogame conference of the year. e3 is underway. announcements,st the xbox one asked. and nintendo in particular stirring up serious competition unveiling pokémon and metro ride.
40%.has risen reggie, great to have you. when are these new games coming? >> we've got a great lineup of new games coming. franchise, we are going to be hosting a tournament here at our booth. the highlight is a new super mod it -- super mario game. consumers have big smiles on their faces. things are going well for us. we expect other games to be announced later this year? a number ofced here different games for nintendo switch. we have a new game coming out this summer.
there is a franchise we have announced a new addition coming later on this fall. we've announced well in .evelopment a new metro game we have a wealth of games. plus great third-party games from ea and bethesda, a lot of content coming not only for nintendo switch, but nintendo three dead -- nintendo three ds as well. it's interesting, our competitors believe it is all about processing power. nintendo believes in fun. our content bring smiles. our content focuses on a fun and enjoyable experience. for us the technology is a small
part of what we deliver. we deliver smiles and fun. >> mobile gaming continues to be a big growth driver. what are the lessons you have learned? mario on the iphone and android, we are selling this application and games that have never been able to enjoy nintendo content before. all of these markets are enjoying this application. mario is reaching new types of consumers. the game doing how to bring well, our content to smart devices effectively, that bodes well for our future efforts including our next application. pull ceo tim cook visited
japan last year. how did that go? >> it went incredibly well. as we were doing the planning for super mario run, we had our key game developer there. what we have been able to foster is a strong relationship with apple, with google and android as well. we offer these marketplaces a type of content that consumers love, that consumers have fond memories of. that is important to them. >> when can we expect mobile games to be a majority of nintendo's revenue? >> great question. today the vast majority of revenue is driven by our dedicated games business. mobile is one of two other key
platforms as we think about our growth. the relationship we are doing likeother companies universal studios is going to be important to us. are doingy what we with the licensed merchandise , these are all of the different areas nintendo is going to drive revenue and profitability into the future. emily: you have more than $8 million on your balance sheet. do you plan to use it on m&a? >> it depends on the opportunity and how we can do something that would add value to the business. we have been a highly profitable company. we are not eager to make any type of mood. to the extent it can help us drive our strategic focus areas there is the possibility. emily: what about virtual
reality? how bullish are you? >> here is what is interesting. ofa would say the amount content this year is dramatically down. we have said all along that virtual-reality needs to be fun and social. it hasn't and able to do either of those things yet. isthink augmented reality potentially a more interesting space. in the augmented reality space was important to our company. we are continuing to look at these technologies. in the realm of virtual-reality we are continuing to evaluate whether or not this is going to be an important trend for the consumer. emily: ok. and you as always for stopping by. one of the biggest
to move forward with their commitments to reduce carbon and push for renewable energy. , carter sharing has been expanding to let more cost of long the distance trips with passengers. now it is trying to do short distance trips. live from london with more. the blablacar founder. >> it depends on the countries that we see some growing super fast. we have a community in 20 countries. some countries are incredible in terms of growth. russia is becoming the country in which you have the most people carpooling. it is incredible to see it
becoming democratized. >> put that in perspective for us. >> that represents 12 million people traveling every quarter. scale, weu a sense of actually have more people traveling than [inaudible] scale, and countries like russia continuing to pick ridesharing over long distances you might usually take a train. you are adapting that model. >> you are successful and doesn't mean you should not explore new initiatives and make innovations and try experimentation. this year we have tried to things already which, we provide
our members a way to acquire a car in a losing mode for an attractive price. we have lots of people who buy cars every year. deal,e able to have a which is very interesting for our members. you can lease a car and get a super good price because you are a member. it is reserved for the ambassadors. >> edison international? >> it is in france. we will extend it when it is successful. we launched a new product, for shorter distances. commute trips you do in the morning and at night to go to work. the goal is to get more frequency, on a daily basis. >> talked was us about the taxing and france. technology week. sing up theying to praises of a particular hub but
what is it like in paris? >> next year we should synchronize. having the london tech week and the tech week in france with lots of seasons right now is not very convenient for europeans will we travel everywhere. we have to travel during the same week and it is complicated for a lot of people. >> note to organizers. we need to synchronize and have one london tech week or the reverse. maybe different in france. so, it is a booming system. >> you have a new leader. a new party. assuming lee a legislator that will be on his side. do you think that will make things better or does it not matter what the environment is like? >> it is early to tell.
vote foreen able to change and vote for a young president. this is sending a message we're ready for the next decade to change things and make them better. >> optimistic there. . emily: thank you. coming up, wrong moves as our next guest on the uber ceo taking a leave of absence from the company he cofounded. if you like bloomberg news check us out on the radio. on the bloomberg radio app and on sirius xm. ♪
12. authorities expected to rise. dozens were injured and several hospitalized. the fire broke out around the second floor of the 24 story tower after midnight. ireland's new prime minister took office today. the son of an indian immigrants, the first openly gay are leticia to serve in that post. kenny whos enda resigned. he replaces michael noonan. germany expects the schedule for brexit negotiations to remain in place. a spokesperson says officials have no indication anything will change. theresa may is working to reach democratic the unionist party. cuba is starting an electoral process expected to end with raul castro stepping down.
he is expected to remain ahead of the ruling communist party. global news 24 hours a day powered by 2700 journalists in 120 countries. this is bloomberg. we are joined by bloomberg's paul allen. good morning. >> we are seeing some weakness. often a sixth of 1%. we may see gold stock leading the decline. the unemployment rate expected to hold steady at 5.7%. that is notoriously unpredictable. one stock to watch is bhp. they will name a new chairman
either today or tomorrow to replace jack nasser. other things to watch, the new zealand dollar will be in focus with first-quarter gdp out of new zealand. off will rise to 7/10 of 1% the back of the disappointing balance of payments. more from bloomberg technology, next. emily: this is bloomberg technology. after worst selloff for tech stocks the market is trying to find its footing.
the companies that solve the biggest losses fell once again after the federal reserve meeting but after the $176 billion wipeout we have seen since friday, our tech stocks too expensive? james,, whoing in covers these stories. >> i don't think you can make the argument right now. they are more expensive than valuations we have seen but the growth rates we are seeing are superior to the growth rates we have seen previously. you can't make the argument that the valuations are justified. if you look at facebook and google they are 10% higher. >> what is behind the sellout? -- i doe seeing more
think as you look foreword, you do have the potential for a broader market selloff. of the estimates was with the trump trade, these bills passing through. we are delay after delay. what happens to the estimates? they: you see more bombs in road ahead for tech stocks. a long enough horizon, i think it is justified now. right now i'm neutral on a lot of these names. amazon and facebook specifically. google is the only when we see where the risk reward trade-off makes easy sense. the valuation is cheap. you are growing revenue around 20% like clockwork with these
new opportunities. over, put out a note on he has since resigned. taken -- he has taken a leave of absence. what is your reaction? >> in fairness, i did caveat i could be wrong on this. -- the reason we thought he would stay, they were able to hire top lieutenants even with him there. that was a positive. saw isiness from what we doing extremely well even with these hiccups -- that is an understatement. emily: pretty big pickups. >> mountains that they are trying to climb over. at the end of the day the business was doing well. if case can be made that
business will continue to do well, i think he might lose some leverage. employees are probably more inclined to think that he will come back. >> what are the chances that he returns? i'm campaigning against him coming back. from what i hear. the sentiment -- [indiscernible] the eric holder report was being read out to employees. he made an off-color remark along the lines of women talk more at board meetings, which studies show is not true. he has resigned. how much hope you have if these issues are coming from the top down like this? that the culture at boop can be improved. >> the good news is from what i hear, this is the first time
employees have started to feel better about the prospects from the commentary hr has been making. at the same time you can see this is not a travis specific issue. this is a fundamental issue across all levels of the company. i think there is hope. everyone can change. as long as you address it and why can't they improve? >> you are a about the future of uber's business with or without him. do you see uber sustaining that valuation? hitight now it could take a in the near term. even though we putting this behind us, there's a lot of headline risk associated with it. they don't even have leadership
emily: instagram is trying to make it clear to users when posts are paid ads. withinn tag a brand their post. if the brand confirms the relationship it will be marked as an ad. withroduct is being tested a handful of businesses and celebrities and will be rolled out more widely if it is successful. back to our coverage of e3. well movie and tv studios continue to be disrupted by digital entertainment, videogame companies have come through looking like winners.
if you look in the bloomberg investors are bidding up on these stocks on prospects for rising profit. the ceo and with asked what is driving stocks? >> there are a couple of things driving the growth. the promise of the business is beginning to be translated into the reality of how these companies are doing. the promise has been interactive entertainment is the most rapidly growing part of the entertainment's nest. consumers it is 37 years old on average, only skewing slightly more male than female. we have the explosion of new gen platforms. doublect that to nearly in the next few years. the launch of nintendo switch.
and the ongoing engagement of consumers in between big releases. consumers are only buying big video games now. they are staying engaged in the products they love. we are able to monetize that engagement. emily: some of the biggest announcements, microsoft's new powerful console, the playstation 4, how are you positioning yourself for these announcement? >> the machines are backward compatible. titlese effective for that are tailored for them. are also playable for titles already in the market. every time there is more technical rim for our creative artist to express themselves they are excited by that and weep it ourselves and making the qualityersive experiences in the business. a more exciting and
deeper canvas to paint is always good news for us. emily: big news was the delay of red dead redemption 2. what is the reason for that? >> we are always trying to put out the highest quality titles. while it is difficult to slip a title, when our teams feel more time is required to deliver the best possible experience, that is the decision that is made. it has paid off for us over and over again. we are in the business of delivering the highest quality titles to the market. emily: there's a chance ea is going to bring back nba live this year. how concerned are you about renewed competition? we are always looking over our shoulder. we don't take anything for granted.
our nba title is the highest rated sports title of new generation consoles. we are really proud of that. is current consumer spending up 70% year over year. there's a lot to be proud of. there's a lot more we can do. that isve the title coming up this fall is going to be nothing short of extraordinary. you and i have talked about the prospects of virtual reality and you have taken a wait and see approach. what are the biggest challenges that you see that remain to virtual-reality going mainstream? i'm an outlier in expressing some concerns about whether virtual-reality would be an appropriate market for the entertainment business. there he exciting
technology for military uses, for health care. for entertainment there is some challenges. market is still small for us and our competitors. if there is a market, if consumers want the our experiences we stand ready and have the technical abilities to bring those titles to the market. i am skeptical. emily: why are you skeptical? there are any number of issues with regard to what is currently the vr experience. the experience is solitary, it can create discomfort. nausea. there are all kinds of problems associated that make it somewhat inconsistent with the way people consume entertainment and interact with entertainment.
under waivers them safety regulators according to the alliance of automobile manufacturers. they were asking congress to clarify statements of roles and regulations that implicitly require a human driver. driving cars,lf after years of toiling away in elaborated onok the company's plans in the automotive market in our exclusive interview. >> a thanh amis is something that is incredibly exciting for us. we will see where it takes us. we are not saying from a product been to view what we will do. but we are paying straightforward that it is a core technology that we view is very important. emily: our interview with tim cook spurred analysis. others are taking notice.
carl joins us now, the parent company of the kelley blue book and auto trader. thank you for joining us. yet, but stilled high level. somewhat vague. >> eventually it could lead to the apple car that we have been thinking about in hearing for five years different rumors. in the near term it will lead to collaboration between apple and current carmakers similar to what waymo is already doing. justould see a world where like our phones are androids or apple phones, we could have a circumstance where our cars, technology are powered by apple or google-based technology and
operating systems. >> as apple potentially goes to market do you see them partnering with a manufacturer or more likely coming to market with a car of its own? all three in sequence. i think they will partner with an automaker and start to make them power their own baton of his vehicle systems and eventually they could become a designsoducer of car that the automakers make for them, making the automakers a tier one supplier for apple. emily: there are two mobile operating systems that are dominant. do you see the same for cars or more? >> that is a great question. we could end up with more initially. we could end up with somewhere between five and 10 at the
initial stages. to two oret down three, like our phones are now. that is likely what we will see in the next 10 years. emily: apple is far behind when it comes to cars. this is something google has been working on for a long time. can apple catch up? can.think they it is not a hardware situation or an automaker were you have all of these suppliers. if you have the brain trust and the focus you can get there quickly. you have to be careful how you do it. you don't want to take information from other companies. players are claiming that what -- that is what happened to them. they have changed direction on how they want to execute it but i don't feel like they are starting from ground zero at all. they have a lot under their belt. mentioned his
excitement around electric cars. he doubled down when he heard these comments from tim cook saying tesla has a lot of competition ahead. do you agree? >> i do. there are plenty of well-funded long-standing players on the tech side, on the automotive production side, and tesla is a newcomer. they are trying to figure out how to have long-term funding that is sustainable. they've got plenty of challenges that go beyond developing a self driving car. someone like apple can focus on this. they've already got their current business model in place. emily: tesla already has cars on the road. apple has nothing as far as we know. has done that in an unsustainable way financially.
at some point they have to make enough cars to be profitable. until then they can make a lot of claims but nothing looks sustainable. a lot of what they have got accomplished other players can do as much or more. they are just as capable as tesla is. emily: what about a company like gm? what does it mean for a more established automaker trying to take on these tech giants? >> that is a great move for general motors. ultimately you need the three major elements of this to work. you need the car with a lot of internal space. you'd need the technology that directs the car when there is no human involve. gm has the car and a lot of the work on the technology. they can partner to get the rest of the way. the third like is the
regulations and the government helping it all come together. that one is harder to predict. if those three things come together things will happen quickly. gm is a long way along the race in this to get to the car. they have a lot of things moving in the right direction. emily: tim cook got the auto industry talking. thank you so much for joining us. that does it for this edition of bloomberg technology. all episodes are live streaming on twitter. check it out. is all for now. this is bloomberg. ♪
>> from our studios in new york city, this is charlie rose. charlie: we begin with politics. jeff sessions was before the senate intelligence committee and he was called to testify about is recusal from the russian investigation and his role in the firing of james comey. the exchange was combative and some challenge his version of events and others accused him of stonewalling. >> the american people have had