tv Bloomberg Technology Bloomberg June 19, 2017 11:00pm-12:01am EDT
alisa: i'm alisa parenti in the students that -- thed this afternoon u.s. strongly condemns today's terror attack at a london mosque. a van rammed into a group of ramadan worshipers last night the u.s. said it will provide any assistance to british officials should it be necessary. the driver is under arrest.
as sean spicer could be out white house press secretary. two people familiar with the the white house is considering hiring a successor. and japan is investigating an alleged delay in reporting the deadly collision between a u.s. navy destroyer and a container ship. the accident happened about an hour before the philippine crew reported it. dayal news 24 hours a 120 analysts -- over 2400 analysts in over 120 countries. ♪
♪ i am emily chang and this is bloomberg technology. tech titans gather at the white to talk about the growing divide between washington and silicon valley." sheryl sandberg opens up. she gives us her take on innovation. blue apron prepares to go public ever the shadow of the amazon whole foods deal. we look at how the megamerger news could rattle plans. first to our lead, tech executives are currently at the white house for the first meeting of the technology council of america.
president trump senior adviser, jared kushner is a chairing the tech summit. the tech giants will help the administration unleashes the creativity of the private sector. >> we begin by analyzing and auditing our current infrastructure. it turns out that federal agents data centersrate that can be consolidated and migrated to the cloud. : we are also expecting president trump to join the meeting at any moment this hour. we are joined from washington. what has happened so far? this is been going on for a few hours. >> we have seen several technology ceos meeting with some of the top advisers of the president including the vice president over at the white house. they have been talking about how to modernize government, new ways to bring the expertise of the private sector and try to
translate it into success. trying to make government more like apple, more like amazon and more responsive to the citizens it serves. that is what they have been doing for the last few hours. they also talked about the h-1b visa program -- and the problems the technology ceos has with what trump has done anywhere from immigration to comment to the visa issue. it is going to cap with president trump speaking with some of these ceos face to face. number of ceos have not joined this council. they are there today as part of a one-off working session. people like tim cook strongly disagreed with the president on issues like climate change. is president trump really going to be receptive about what they have to say. ceos want to have
a seat at the table. they are just coming to the table to talk to the president and try to have year. ear.o have his includingsome ceos the tesla ceo who decided not to participate in the president's counsel because of disagreements like climate change. some of the ceos that were present today was to make sure they have an open mind toward meeting with the president and a lot of them were saying they were grateful to have the opportunity to talk to people like jared kushner who has the trust of the president and maybe a little bit more open about their positions on things like climate change. emily: thanks so much for that update as we wait for president trump. concludes,meeting
what does it mean for the relationship between technology and washington. to break it all down, out celeb joins us now. >> a strong showing for a group of leaders, many who were quite vocal in their presidential opposition to trump during the election. >> there are issues which are important to their businesses. the immigration question for others and the offshore cash holdings and their ability to recapture it that money -- to repatriate that money. they hope that when these issues come to the table they can steer it in a amenable direction. there, im cook was spoke to him about why he did not join the council officially. >> i do not find these councils in general and committees to be terribly productive. about nots not
wanting to advise on something that i thought we could help or we had a point of view that should be heard. i am doing the latter, i cannot imagine a situation where i would not do the latter because i think it is in the best interest of americans do it and i and first and foremost an american. emily: he was there as a one-off, why? he wants to have influence on issues that are important to him. it wasn't so much to do with tech policy, how the decisions made by the government affects how the government runs, -- decisions made of the government affects how the tech company runs, it was the opposite. if you look at it, do you need top ceos coming once a month or
four times a year to buy on vy on these, -- to issues, grass not but this could help going forward. emily: some of the issues he talked about today was cybersecurity and inscription issues. it is interesting who was not there. >> mark zuckerberg and elon musk. they had engagements where they could not make it. there were a lot of executives who didn't make it. it was interesting to see who the attendees were. there were people from t.stercard, the ceo of sa that is a german company. emily: are we seeing a change in the approach of the technology ceos to washington?
>> there is a certain dichotomy at the center of this. you look at social issues for immigration, they are opposed to what the demonstration has to do -- the administration does. deregulation is in their interest. they might not have entire correlations with what they say but they could work with his people. thank you for that update. now to a story we are following, the federal trade commission is a merger.g between draftkings and fanduel. they said they were disappointed with the decision.
coming up, our exclusive interview with facebook ceo of sheryl sandberg. what she had to say about advertising, and it online fight against inappropriate content like hate and terrorism. first we talked about the increasing influence of technology on jobs. >> technology is changing the economy, technology is replacing jobs and technology can also be used to grow jobs. it is our responsibility to help small businesses and large businesses around the world to yucheng technologies to grow their businesses so they can grow jobs.
hero in to delivery september and asked about the growing competition. will not be a first leg but a second or third leg. we have the benefit of being targeted as what we are doing. nily: sticking with ipo a $4.2ue apron is given billion valuation. it is expected to price its shares the next wednesday. after tech giant amazon aggressively pushed into the grocery sector on friday with the announcement of its intent to buy whole foods. our editor at large joins us now. alex, let's start with blue apron. the timing, interesting. a lot has changed in the last few days.
what does that mean for blue apron? >> it is another challenge they are going to have to justify on this roadshow that launched today. this is a company that operates in a space. the delivery is fueled by competition. it is expensive to operate in because most of the costs go to marketing. it is a land grab for customers. this is tricky for blue apron because whole foods will have the legislative power that is amazon. amazon customers will have access into whole foods. the top 2% of u.s. households are willing to spend a little bit more to get the quality that hold these promises. that happens to be the same group. --the cup 2% of households are willing to spend a little bit more to get the quality that whole foods promises.
when you think about where blue be, as growth is going to have to figure out how they are the ones mapping visit dollars from this high-end consumers and not whole foods market the amazon. a very different business from whole foods, amazon. how does that change things. they are very different businesses. yes, they serve food to consumers. lou apron is trying to market very aggressively. sending people just of the amount of food they need to make for a certain meal with that recipe you delivered on a regular basis. million juster $60 last quarter. look at how much they are spending on advertising.
the percentage of revenues is going way up. amount ofxtraordinary money to be spending on marketing. the name is better known but they are spending like crazy. is not to just get them in but to keep them. they have yet to show that ability. emily: almost every analysts we spoke to said expect more consolidation in this space. should blue apron reconsider the timing? >> we only have about nine days &a to be on the table. given where it is only cycle of this deal, if that was going to happen, it probably would have already. persons familiar with the deal spoke to me and told me management is focusing on refining its ipo pitch. they are pushing this idea of lifestyle, how it is so different.
the fact that it is recipes and prepackaged ingredients and that is so different from what a grocery delivery company does. they are pushing towards a adjustable market. only 1% of all grocery shopping happens online. these are areas that frankly, whole foods and amazon can help people get more used to bind their food off of the internet. this seems to be an ipo at this point but i will be keeping an eye on it. emily: we have reporting about how this amazon whole foods think will work. >> amazon denies the job cuts. the amazon style has been to do things at a very low margin. are,d as grocery margins whole foods have about a 5% operating margin. the focus for amazon in most of its business lines are very
different but it's overall profit margin is below 2%. they want lots of cash flow and use that cash flow to invest in their business. the same thing that whole foods activists and shareholders are looking for, -- they: can amazon dropped prophet sustainably. >> if they are willing to operate in a 2% profit margin they could run this business just for the cash flow, use this cash flow to expand all of their -- $15 million a year cash flow business. that is a pretty sizable return for them to reinvest in that business. they do not need a lot of profitability. emily: let companies could amazon possibly acquire next? androcery is really hard
there is a high possibility amazon is going to completely screw this up. they have opened up a lot of problems they had to shut down in the past. the question is, are they going to be ambitious and do things like launching grocery delivery, or three things online -- ordering things online, there are lots of things they could do in this business but i would not be surprised if they may hold whose work, grow the business and he's the cash flow and expand in other areas when the time is right. emily: we will be watching. thank you both. coming up, our exclusive interview with facebook ceo of sheryl sandberg as she attends of the biggest global gathering of the ad community. we talked about how facebook can create jobs in the modern economy. and news coming from tesla, the company close to an agreement to
charlie: class power, the ms hasiption is for gy announced a $7 million funding round. investors including crv, general catalyst and others included in this round. class has had a double its member base and has grown to 35 million to date. global ad executives are convening in france this week to talk about how brands can take it manage of new technology. it is happening at the annual innovation festival. ceo's sheryl sandberg is the
most anticipated guest. caroline joins us now from london with more. what is sandberg's main message? about the message is power of the small screen. the power of targeting. she spoke particularly passionately about facebook and how it can help businesses grow, helping companies to accept new customers and build communities around their brand. >> what we are seeing is more adoption, there are 70 million small businesses that are using facebook on a monthly basis. that is our free product and 5 million advertisers. on instagram, we have 8 million instagram business profiles of which a million people are advertisers. are investing in mobile because that is where people are spending their time. aboutyou feel optimistic what these undercurrents show
you about the u.s. economy, about the global economy in general? are we seeing jobs being created, brands and spending money -- brands spending money? >> our goal is to make sure businesses spend money and get a return. what matters for marketers is if they spend on marketing, it brings in cash both online and off. we also see small businesses play an important role in the global economy. the majority of job creation around the world is actually small businesses and even the most off-line small businesses can use the power of technology. when i was in europe, i went to berlin and visited a company that is a furniture manufacturer making wooden furniture. the sun came into the family business, he did not change anything about manufacturing but started marketing on facebook and they grew their business and now they have opened five more
locations including outside of germany creating jobs and growing their business. innovationcan power both at the core of the business and can support business out there. >> when people worry about past tech eroding jobs, are you seeing the other point of view? >> technology is changing the economy. technology is certainly replacing jobs and technology can also be used to grow jobs. it is our job to help businesses large and small around the world use technology to grow their businesses so they can grow jobs. at the current time when we are seeing perhaps a drive towards job growth, we are also seeing valuations of technology companies go through volatile times. does that ever affect you and the way in which you look at the world? to workb every day is
on growing facebook, helping more people use facebook and instagram and messenger. more people get 90 from the products and services and more business is. i feel like as a business leader if i focus on our business, that is where my focus needs to stay. >> just the beginning of our exclusive conversation with facebook ceo sheryl sandberg. we will hear her take on the ad market and what her company is doing to combat terrorism activity. and if you like bloomberg news check us out on the radio. this is bloomberg. ♪
>> it is 11:20 9 a.m. here in beijing. 11:29 in tokyo. president trump has condemned " afterrea " brutality the student release from prison dive. the 22-year-old was a deal for admitting trying to steal a propaganda banner. doctors say he was repatriated with severe brain damage but the cause was not clear. the imf says the japan's improving economy offers the
chance to take a bold structural reforms. government says it needs to increase private investments. japan is enjoying its largest economic expansion in a decade but the imf warned a to weakening 2018. white house secretary sean spicer may be in line for a new job. he has been president trump's spokesman since the beginning but there have been months of speculation that he may be fired. he may be moved into a more senior strategic role and they may bring in a new press secretary. the administration also needs a new communications director. global news 24 hours and do powered by more than 2700 journalists and analysts in 120 countries. this is bloomberg. ♪ thesian stocks looking to tech rebound, gains in some
markets. japanese shares of over 1%. we do have all the shares sliding today -- aussie shares sliding today. swings for chinese shares ahead of the msci decision. the yuan weaker for a third straight day. overnight --hong kong stocks are racing games, coming off of the session lows here. consumer staples of the biggest drag. there was a rally in casino operators like galaxy entertainment. mixed picture for hong kong property players after the real estate market is said to be in a dangerous situation although he said the current situation is different from the 1997 crisis.
rising to a three-week high after hawkish comments from the fed representative. if he joins the bullish coarse, that kisses same the rally we are seeing in the dollar. ♪ ♪ emily: "this is bloomberg technology." i'm emily chang. facebook coo sheryl sandberg takes the stage at the annual ad festival this week as the social network increasingly dominates the multibillion-dollar ad market. along with the google. sandberg spoke exclusively with caroline hyde. tell us what she had to say about the evolution of facebook's ad strategy as the market shifts? caroline: the focus is still mobile. it is unrelenting at facebook. as they see this shift towards mobile, they want the content created by the advertisers for that medium. do not try to repurpose a tv ad.
make it for the mobile. we talk about the sheer amount of time people are now addicted to their phone and the opportunities this gives across the product. sheryl: the small screen is big. people have moved to mobile and businesses are catching up. it is now the case and that the average u.s. consumer -- and these numbers are duplicated all over the world -- spending about four hours a day, the majority of which is mobile. it is really an exciting time to be a marketer because people are carrying around in their pockets this device that lets you reach them all of the time. and brands, products, services have always been part of our daily lives. from the toothpaste we brush argued with to the shampoo reuse to the car services and the cars we drive. all of this is part of our daily lives. now marketers can reach us
hopefully with messages we want to hear as part of our daily experience. that's pretty amazing. the explosion of creativity at the advertising festival is about the creative community. how to re-create messages that that's how do we create messages that really resonate with people and that want them to be part of their daily life. caroline: this is almost playing into the discussion that mark zuckerberg started this year of community building. off-line and online. how are brands going to play into that? sheryl: communities are very important and we are focused on how we build communities that provide support for people off-line and online. brands are a huge part of that. airbnb has this great off-line experience where people can rent houses and then they created online experiences with facebook groups. even if you are not on, you can be connected to the people who are part of it.
caroline: what about the various products? you talk about airbnb making a good run of it at the moment. what about messenger? what about whatsapp? what about instagram? how are these products being adopted in the growth you are seeing? sheryl: people are using all of these different platforms. and facebook and instagram we have the two largest mobile ad platforms in the world and we are seeing people really use that to build their businesses. there is a young woman in brazil who started a company. their idea was to sell fashion accessories. they are using facebook. instagram, she was able to use her advertising and able to target those ads to people interested in fashion accessories. 79% of the business she had was through instagram. we also see the largest ad agencies, clients in the world figuring out how to reach people and create that work for
facebook, instagram. we are starting to learn a little more about how businesses into right on messenger as well. caroline: what about video? the real explosion has been what facebook really driven forward. adverts can come within videos and run on facebook. how is that being adopted? sheryl: marketers have always loved video because it is a great way to tell a compelling story. i think this community is increasingly understanding and we need to do better, is that you have to create the video for the platform. the first tv ads were people reading their radio ads. people can see but when tv evolved, it was created for tv. a lot of the first video ads in social space were 30-second tv spots which can work well. caroline: when you think of brands putting their money to work -- $70 billion is currently
spent on tv. how much of that will go to the digital space? sheryl: marketers should reach people on tv, on mobile, on the digital space. they should region people everywhere they go. how they reach people needs to evolve. we think we offer a very unique proposition for marketers because you can have the creativity of the medium, of sound, of light and pictures which can also do very specific targeting. you can target your current customers differently than new customers. people in the market for a car, people who look like they are in the market for a car, you can make sure the right message gets to the right person.
emily: caroline hyde still with us from london. our bloomberg colleague sarah frier has a new story about the facebook push into original content. is it about getting more tv ad dollars? caroline: there, it seemed as though sheryl sandberg, people are putting money into television, but you now have to put more -- more amounts into mobile. $70 billion is how much is spent on television advertising. i wanted to know if she thought that would move to digital. whether 2016 was the first year we saw digital ad spending overtake television ad spend. they are certainly trying to play catch-up with youtube and push the online content as a mode of television. it seems as though they are not trying to pull away from tv. they are going to do both. all these new ways and means of
getting the share of revenue, some of them are getting exhausted by the process. you have your video roll out and the advertisement goes halfway through, it is given to the content provider as well. emily: we will have more of your exclusive conversation with sheryl sandberg coming up. first, combating terror online and solving tech diversity problems. this is bloomberg. ♪ emily alphabet's google is
: wrapping up its efforts to suppress terrorism related video. google is identifying extremists and terrorism related video across a site which includes youtube and will boost the number of people who screen for terrorism related content. it is a response to u.k. lawmakers who says the internet is a petri dish for radical ideology and pressured to quickly remove posts by terrorist groups after seven people were killed and 48 injured in london earlier this month. another tech giant under pressure from the government to combat extremists is facebook. the platform recently announced it would increase its use of artificial intelligence to remove inappropriate content. we will send it back to caroline hyde in london. caroline you spoke to sheryl , sandberg about this. what did she have to say?
caroline: an interesting discussion wit her. we discussed what is inherently in incredible issue. an incredibly complex issue. we discussed it at length. we talked about how the company is tackling extremist posts and working with the government to counter the hate speech. sheryl: there is no place for any of this on facebook, no place for terrorism and we take that responsibility very seriously. we just announced last week we have been working on this for a long time, we will continue to work on it, but we have next steps. we are using ai to help us find any content that may be inappropriate and get it off even faster. we are making a big human resources investment. we already have researchers and law enforcement and terrorism experts to work at facebook but we are growing that including our human capacity. we have 4500 people around the world to review inappropriate content.
we are growing that by 3000. we are working with nonprofit governments, other companies , around the world to make sure we all work together to make sure this content is not on our platform. for brands, we offer a lot of tools to know where their ads can show and know that facebook is is a community for them. caroline: you say you are working for nonprofits and governments. how are you in europe talking to governments? are you worried about the talk about encryption and some of the fines? sheryl: we are in constant conversation with the government on issues of security and issues that affect all of us working together. we have worked with government to talk about initiatives, occi.
online content initiatives where governments can not just make sure terrorism is prevented but get counterterrorism work. getting positive messages out there that stop people from doing things that obviously hurts many people. we also work with law enforcement officials all over the world to make sure that if there is anything we can do to support their work, we are able to do in this area. caroline: you launched in berlin, the online civil courage initiative. a counter narrative. it is so complex, therefore, how do you think you can understand if you are improving -- what is the end goal or target? to make sure the numbers come down? what would you count as a success? sheryl: success from a company point of view is to make sure there is no inappropriate content of any kind. hate, violence, terrorism. we take our responsibility even
more broadly. we want to contribute. over the past several years, tech companies have started working together, sharing information. when anybody identifies somebody that think they put inappropriate content, we know we have a broad response ability to do everything we can in the face of some of these threats to protect people. we take that very seriously. caroline: even though we are in the early days of brands, the terrorism element and fake news, do they feel this is changing? sheryl: brands know facebook is a safe place for them to be. brands have a safe way and contextually safe way to communicate on facebook. caroline: i think what is also fascinating -- you talk very passionately about this element. you have been someone who talks passionately about diversity.
this is something we are seeing now, brands becoming potentially involved in. what are your messages to brand to keep on drawing diversity, not only within companies, but also in advertising? sheryl: brand seven important -- brands have such an important role to play because people see so many marketing messages. the estimates are people can see hundreds of marketing messages a day. that means if we market products and services in a supportive of gender equality way, supporting female leadership, we can really make strides towards gender equality in the world. the foundation will announce the grass line. -- the glass wine. it is an award given every year to cannes to the ads of the year for gender equality. -- the foundation will announce awardass lion which is an for the ads of the year for gender equality. last year, p&g won which showed a man seeing a woman doing all
the housework. he realize he had never helped in the house and he left and offers to do laundry for his wife. caroline: talked to was about diversity. -- talk about biodiversity -- talk about diversity. i'm a female looking to get a job and technology at the moment. i look at uber for example and maybe i am being passed. what advice might you give to uber answer the people wanting to get into technology right now? sheryl: obviously, the reports of what is happening at uber are super troubling. i'm glad they are taking action and all of us need to do more. we definitely need more women in the tech field. we also need them in leadership in every industry in the world. we have these same issues. in technology, we have a special concern and opportunity which is that women are not studying computer science. in 1985, women were 35% of computer science and now we're down to 17%.
we know girls are outperforming boys in schools in most countries of the world. all the way from elementary to university. we need to pursue our daughters and people of underrepresented that tech is for them so we can make sure we can represent diversity in the people we serve. emily: sheryl sandberg with caroline hyde. thank you so much for that interview from london. you can watch the full interview on bloomberg.com. we are getting headlines from the tech summit in washington. president trump has spoken to executives in the last hour. apple ceo tim cook made some remarks saying the u.s. should have the most modern government in the world. we will continue to monitor this meeting for any headlines and bring you as we have them. this is bloomberg. ♪
emily: we have got some developing news on tesla. they are said to be close to an agreement to produce vehicles in china for the first time. the move would allow the company to avoid an import tax and price cars more competitively in the world's largest auto market. joining us now to discuss is our tech reporter who covers tesla. what do we know so far? >> there is an imminent announcement for tesla to produce vehicles in shanghai. we are hearing this from china. not a lot of details on who the partner would be but this would be a huge move for tesla to become a global automaker. right now they have one auto plant here in california. emily: how significant is this? dana: pretty significant because right now auto companies cannot produce in china unless they have a local production partner
and without that the import taxes is high. having a local partner would allow tesla to access china. that's where luxury cars are all the rage. emily: how big of a market could china be for tesla? dana: we are seeing signs that sales of the model x are doing really well. in the wake of the paris agreement, china is the leader on climate change. especially when it comes to automobiles. emily: also, there are two upcoming spacex launches. what can you tell us? dana: the next one is the bulgaria satellite. the launch has been shifted around but it is now scheduled on friday from cape canaveral. on saturday, they will launch satellites. they could potentially have two back-to-back launches from either coast. emily: what is the significance of these launches? dana: what you are really seeing is spacex has come back from the mishap of last september and they are launching rockets on a regular basis. they want to launch 24 rockets this year.
if they get that, that would be incredible. emily: what are they expecting? dana: launches could shift a lot because of last minute issues or the weather, but if they launch one rocket from florida on friday and another rocket from california on saturday, that is pretty unprecedented. emily: put it in the big picture for us when it comes to the space race, the private space race. dana: spacex is really focused on dragging down the cost of space and reusing rockets is a big part of that. they had a big milestone in march where they reused a rocket for the first time. they are going to be launching rockets on a more regular basis. the more they launch, the cheaper it gets. emily: we look forward to those this weekend. dana hull, thank you so much for joining us. speaking of, nasa as found evidence of 219 planets outside our solar system. 10 of those planets appearing to
be similar to the size of earth. the planets orbit their stars in the goldilocks zone, just far enough away to develop water but not so far that they freeze. keplar has now identified 4000 planets. that does it for this edition of bloomberg technology. tomorrow, we will hear from adam selipsky, discussing tableau's growth in europe. check us out on twitter. bloomberg tech is live streaming on twitter. that's 5:00 p.m. in new york and 2:00 p.m. in san francisco. that is all for now. this is bloomberg. ♪
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