tv Bloomberg Technology Bloomberg June 22, 2017 5:00pm-6:01pm EDT
signature legislative achievement at a meeting. president trump: obamacare is a disaster, totally dead. we are putting in a plan today that is going to be negotiated. we would love to have some democrats support. we won't get one, no matter how good it is. we will hopefully get something done, something with heart, and very meaningful. alisa: democratic leaders are slamming the bill, arguing millions stand to lose coverage. nancy pelosi described it as mean and heartless. chuck schumer echoed pelosi, saying millions will be kicked off medicaid in three years. former president obama weighed in, called it a massive transfer of wealth from middle-class and poor families to the rich. he said senators on both sides should deliver what the american people need. president trump tweeted today he his not have faith in
conversation -- does not have tapes of his conversation with james comey. an earlier trump tweet suggested they exist. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. parenti and this is bloomberg. "bloomberg technology" is next. ♪ emily: i am emily chang. this is "bloomberg technology." drone diplomacy at the white house. highlights from president trump's meetings with tech executives and their advice for him to come. plus, a new era at uber. the final moments leading up to travis kalanick's resignation. who was responsible for the oust, and why. preparing to go public, we are at the internet conference in
berlin with one of the biggest investors. first, to our lead. president trump continues to welcome u.s. tech leaders this week to the white house as part of an initiative to get the government equipped with the latest technology. today's meeting was around emerging technology like drones and the internet of things. among attendees, outgoing -- at&t ceo and venture capitalists, steve case. main message,p's remain number one in technology. for more, i want to turn to toluse olorunnipa. what was the main takeaway from the meeting today? toluse: the president wanted to talk specifically about how to make sure america is number one in emerging technology. drone industry. there were several ceos from drone companies and the
president got to see some of these drones in action. usually we hear the president talking about the need to get rid of regulations. some of these drone company ceos said the white house and federal government need to put inappropriate regulations for the drone industry so they can expand. the president was hearing some messages from various ceos about how to keep the u.s. number one in various emerging technologies, because other countries including china, are pushing ahead with some of these technologies. that was something the president listen to and said he was willing to accept recommendations and move forward. emily: shortly after this meeting with the tech ceos, trump posted a tweet confirming he does not have tapes of his conversation with former fbi director james comey. i wonder, is the message from tech we getting lost with everything else going on? toluse: that is a great question. it is supposed to be technology week. the president had a meeting with top ceos.
but after the meeting he went on twitter and stepped over his messaging, talking about tapes and this mystery that has been delayed over weeks and weeks after he originally tweeted james comey should hope there are no tapes of the conversations between those two gentlemen. now the president is saying he did not release any of those tapes. he raised more questions over whether there are other types of illegal surveillance going on within the white house and the west wing. the president did seem to step a little bit on his message. the white house wants us to be tech we can people to focus on what the president is doing about technology. his use of technology with twitter is getting in the way of that a little bit. emily: i can't let you go without talking about the other big topic in washington this week, the health care bill. tell us about the momentum in the chances you see for this actually passing. toluse: this bill has been crafted behind closed doors.
they were finally able to put out a draft version. trouble running into because they only have 52 republicans and need 50 to vote for the bill. they're been several republicans on the conservative and moderate side that were unhappy with the bill as it stands. they want to vote on this in the next week, but it looks like they have an uphill climb. the president even saying the bill needs to be negotiated, meeting changes before it is ready for his signature. it is interesting to see if republicans can rally around the bill at some point, make changes, and get 50 votes. it will be a tight margin if they are able to do it in the next week. that is the timeline they are looking at. emily: thank you so much for that update. for more on this drone meeting with president trump, we're joined by caprice ceo george mathew from washington, where he attended the meeting. strongnded -- had hardware and software services.
give us some color from inside the room and how it all went down. george: good afternoon, emily. it was a great meeting to spend time with this administration. of the administration and this specific area of american leadership in emerging technology was to drive into three key aspects of emerging technology. one was drones, another was a 5g, another was iot. dronentext of the discussion was around three seminal areas -- where regulatory policy stands and how to drive efficiency in terms of regulations. second, technology innovation that occurred in the drone space. andourse, the safety security surrounding grounds. timed an ability to spend with the president and administration, discussing these key areas, and dive into the details in terms of how this continues to evolve, the commercialization of the drone market. emily: we have video of you
showing a drone to the president. moodwas president trump's in general, and his level of interest and knowledge of drones? george: he was very focused on the topic. he was very much aware of the conversation that was emerging in the drone space. we had an opportunity for the first time, to bring a drone into the white house, and walk cases. the kespry use we have been focused on industrial use cases where construction engineering, insurance, mining and aggregates can take advantage of analytics generated from the drone we built. manufacturing this drone in the united states and being able to provide a full cloud infrastructure that supports our users, and being able to introduce one of our construction users to the president, was quite a seminal omen for kespry and the drone industry. emily: did trump give indications of his plans for supporting technology going forward? whether it is for consumers in
general use or the military? george: we really spoke on the commercial aspects, at least for kespry's industrial use cases. the entire focus for this working session was on commercial use of drones. it was interrelated in the fact that iot and expansion of 5g broadband is defining where the future of these technologies are going to go. in my view, the drone is the new sensor network. the interrelationship of these topics was quite seminal for us to have this discussion with this administration at this time. emily: there continued to be safety concerns around drones. what was your message to that for president trump? george: the industry itself is focused on safety and self-regulation. today, weabout kespry have hundreds of the country in the world. we have over 25,000 flights we
have safely and securely done. we have actually been one of those key players in terms of being able to autonomously drive the safety and security of these commercial use cases that we have been focused on. at least in kespry's case, we have not had concern over the need to pull the rate safety levers in place as regulation continues to evolve. we are considered one of the good actors. there are bad actors in the middle of this. that is where the focus, particularly from a security standpoint for drones, should continue to evolve. emily: what are the next steps, especially considering the faa? george: it was one of the things we talked about. law of theing the land in october 2016, we have a framework to operate in. below 400has to fly feet of air space, it has to remain within line of sight, you examto have that part 107
past. if you are flying outside and airspace, you have to get a waiver. that is perfectly normal. the challenges, waiver today is a manual process that takes over 90 days for anyone to get a waiver to commercially fly in u.s. airspace. that is a huge challenge. it is not a question of whether the regulation is right, it is a question of how to automate what is. already in place -- what is already in place. emily: steve case, the venture aboutlist, posted deflecting criticism he was attending this event at all. what he do think it was important to go visit president trump? george: on a personal basis i thought about that quite a bit, considering my friends close to me in silicon valley, and the politics surrounding this current administration. policy, was about
understanding how to progress forward in terms of commercialization of the drone space. in that regard, we had an opportunity to represent not entirespry, but the sector in this discussion. we were delighted to see this administration continue to push forward in terms of driving this innovation around american technology. emily: kespry ceo george mathew in washington, just out of a meeting with president trump. thank you for joining us. the world's largest manufacturer of iphones prepared to invest $10 billion in the u.s. foxconn next month will begin with a decision on where to build a $7 million display-making plant. there are seven states in the midwest for the factory could be built. they could create tens of thousands of american jobs. coming up, we go behind the scenes at uber after travis kalanick steps down. breaking down the shifting power in the board room, plus a campaign by employees to bring
emily: sean parker has a step down from spotify's board of directors. he was an early spotify investor, joining the service in 2010. plenty of heavyweights will remain at the company. including former disney ceo, stag. the world's largest music streaming service will go public on the new york stock exchange this year. you developments in the wake of travis kalanick's exit as uber's ceo as the ridesharing start up
tries a new chapter, we have new date -- details behind his exit. eric newcomer joins us now. we have been getting more and more details about how exactly this happened. two investors flying to chicago to deliver him a letter. tell us what we know now. one who is on the board until recently left his two partners, peter and matt, flight to chicago to meet travis at the wrist and hand deliver him this and hand-deliver him this letter telling him to resign. the letters got travis out. emily: what was it that convince them this was the right decision, after all these years? eric: there is so much.
case troubled a lot of people. at the handling of waymo came up and it. there are legal issues at play, too. uber just hired a law firm to defend it in the civil case in the indian rape and the handling of the woman's medical records. it is a troubling allegation. emily: another big issue according to my sources, was scuttledis kalanick any potential plans to bring in new talent. he would intimidate coo candidates in interviews and they would walk away saying, i can't. eric: he wanted to be the central hub of the company. there had of finance was very effective, but was not very senior. travis resisted bringing in a serious cfo.
similarly, concerns about the coo he was supposed higher and whether he would get high-caliber talent that would draw attention away from him. emily: he wanted to clear the way for new leadership, a new ceo, and start fresh. there is a board meeting happening today. we know anything? eric: it should have just ended or is ending. we're still waiting to see. trujillo should be there. the board is changing, even though the firms are staying the same, the names are changing. see ife interesting to some join it. they still need more people. emily: there are still independent board seats open, right? eric: yes. the board has approved an independent chair. needs to join.
i think eric camp is on the board. he wrote a letter saying they need board can't -- board members. eric camp is founder of uber and current chick -- chairman of the board. there is a letter from employees asking travis be reinstated. eric: at last check, 1400. that is 10% of employees. very upset travis is gone. recognizing his flaws, but they really bought into the message of, travis can reform and come back. he is so core to the identity. emily: any chance he can be reinstated? eric: very unlikely. .e is on the board right now i think the question is, could he have another role -- it is not clear. the coming ceo is very unlikely. emily: there are new allegations
travis kalanick knew that anthony levandowski stole files from alphabet a year ago. what do we know about this? eric: we are still learning. at that came from waymo. a lot of questions will be asked about what travis knew, when. it will be a continuous theme as we go forward, figuring out why he would buy this company where it seems like in retrospect, there were so many red flags. interesting. i know you will get right on the phone after this for new information. thank you. emily: we bring you an exclusive interview with oliver samwer, what he says about european tech scene. check us out on the radio, the bloomberg radio app, bloomberg.com, and sirius xm. this is bloomberg. ♪
the internet founders at toa event. excitement around a food delivery started. caroline hyde caught up with a rocket internet's oliver samwer. rocket owns a 35% stake in delivery heroes? they must be easily awaiting germany's biggest ipo of the year. caroline: it is crucial for rocket internet. it is not since 2014 we actually saw a success story from portfolio companies exiting. alando, when rocket went public. we have seen the shares up some 15%. they have a lot of proving to do to the market. they are expecting an ipo in excess of $1 billion.
a nice chunk of change to their own investor base. i spoke to oliver samwer and this is what he had to say. oliver: i think it is great for europe because it is a great example of european entrepreneurship. they have done a fantastic job. there were 5000 people. i hope it will inspire many toer european onto the norse build bigger businesses, create more jobs, and tell other people -- show other people. caroline: how much advice have you given? you are an investor going public. we bet first on entrepreneurs. we want them to make the decision. you are always there for advice. we talked a lot on the ipo.
lessons ony provide right, wrong, how to handle investment banks, lawyers. there are hundreds of more details. if this company goes public, it will be their success, and i wanted to be there success. caroline: what about the folio companies you have? tore is an aim now for you ensure they potentially become profitable, is that the way they want to see startups now? there is a dialogue change, we do not want to be just revenue growing but bottom line-growing, as well? they want to reach critical scale to break even to have operational leverage. companies have been operating for many years very close to the scale. i think they make tremendous progress.
.t will be their choice i encourage companies to think long-term and make the right choices for the long-term, as many successful companies have. putting: where is money to work for you? what excites you, can you break it down by sector? we started in consumer, moved to software. now we say all sectors. anywhere you can find really good entrepreneurs. e-commerce, b2b, we look at autonomous driving, mobility. we try to find amazing entrepreneurs and all sectors, emerging entrepreneurs and emerging technologies. that is what we're looking for. caroline: that was my exclusive rocket internet
ceo oliver samwer. we will have more from the noah conference in berlin. emily: thanks so much. we will get back to you. com -- a deal, jd. forges an alliance between china's second-largest e-commerce player and the online fashion shop time, trying to boost itself in one of the largest growing markets. mark zuckerberg outlines a new mission statement. how the social networking giant wants to be seen on the global stage. this is bloomberg. ♪
at promise from theresa may, who wants to offer them certainty about their future. the u.k. prime minister spoke at a dinner for e.u. leaders in brussels, saying she is not looking to break up any families. she is seeking a similar deal for brits in teh bloc. angela merkel says it is a good start, but work remains to be done on brexit. nikki haley once the international community to take action and venezuela after three month of deadly protests and political unrest. venezuela's u.n. mission rejected haley's call, signed by 57 countries, opposing interference. in france, president macron's government won it to beef up police power against extremist threats. they want to extend france's existing state of emergency through november 3. zuma sparred with
lawmakers in parliament over the country's recession and his job performance. calls foraced resignation from his ruling party. gathered atmourners a high school in ohio to celebrate and remember the life warmto warm beer, -- otto who, the college student was imprisoned in north korea and return home in a couple -- in a coma. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am alisa parenti and this is bloomberg. it is just after 5:30 p.m. in washington, 7:30 friday morning in sydney. we are joined by paul allen. he has a look at the markets for us. paul: we are looking at fairly modest gains on the asx futures. it has been a wild week on the asx.
keep an eye on the big banking stocks. this is after the state of south australia announced in its budget it would be hitting the banks with a levy on liabilities, intending to raise up to three and at dollars million in four years. that is on top of the one announced by the federal government in may. they have slammed the policy as a joke. in japan, nikkei futures pointed to slight gains. watching jakarta again after steep declines on thursday for the troubled airbag maker. we are expecting takata to file for bankruptcy on monday. pmi manufacturing we are also watching. more "bloomberg technology," next. ♪ emily: this is "bloomberg technology," i am emily chang. mark zuckerberg has written a new mission statement to give
people the power to build community and bring the world closer together. at an event in chicago, he rolled out new rules to further engage its users. we have to build a world where every single person has a sense of purpose and community. that is how we are going to bring the world closer together. we need to bring a world -- build a world where we care just as much about anyone -- a person in india, china, mexico, nigeria, as much as a person here in chicago. emily: we're joined by david kirkpatrick, from techonomy. what is your reaction to this change in mission statement? been a lote is happening at facebook recently in talking about themselves differently. i think they are unbelievably responsive to the growing aboutns that have been
the social impact of their business, starting with fake news and facilitating terrorism and other problems people are accusing them of contribute into in society. many accusations have some validity. hard to working very say, yes, we are open to talking about that. today, they are kind underscore the truly positive impact facebook has in people's lives. by talking so much about these communities and specifically emphasizing that facebook's mission is to bring more communities of the world, i think they are trying to remind people that for all the problems, facebook has a lot of truly positive impacts in the world. how do imagine our facebook experience, and using the project changing as a result of this? david: that is a good question, and i do not know. probably not that much in any dramatic way. emphasizinge is
more this idea of groups. all of this will be encouraged to be part of private and public groups, more than we are now. they say 100 million people are in the groups today. that is a relatively small percentage of groups. that are statistically significant a small percentage of their almost 2 billion users. i expect that would encourage us to aggregate more in true conversation. when he says something, he means it. he does not mess around. emily: mark zuckerberg was one of the first founders, along with google, to perpetuate the idea of the cult of the founder, consolidate power, dual shares. now we see travis kalanick, ceo of uber, resigning, who had a similar amount of power. what do you make of travis kalanick stepping down? david: i think travis kalanick
needed to step down. clearly, uber has committed tremendous errors and really offended the world in so many ways, that they had to come up with some sort of reset. thinkingnic to me, that somebody like travis kalanick, clearly an opportunist and very aggressive and the visionary, but not a very ethical or morally minded person, should take his cues from zuckerberg -- whatever you say about him, he is unbelievably ethically and morally centered. he is a unique character. it is very dangerous to think if you are starting a company you should model the way you do it after the freedoms and powers that zuckerberg got because he really had the capacity to live up to those powers. stewartvery responsible -- steward of facebook.
the things you hear about happening to uber you never hear happening about facebook. the worse you hear is that they do not have enough women executives. i know that is real and something you care about, i care about it, but it is nothing like repeatedly breaking the law needlessly, making threats, stealing intellectual property, all kinds of horrible things uber did. emily: travis had a hard time bringing another high-level executives into the company. the sheryl sandberg of uber, for example. we see a successful partnership between a mark zuckerberg and sheryl sandberg now, but people forget they were previous executives at facebook they did not work out. kindled ackerberg transition in the power dynamic? you were there on the front lines. a talented guy, but
nothing like sheryl sandberg, we have to admit. i would respond to that by saying, facebook has almost the lowest executive turnover of any company i have ever seen. people love working with zuckerberg. he has a very constructive way of working with his senior leadership team. it is funny hearing people talk about sheryl sandberg being a potentially strong candidate to go to uber and take over kalanick's job. there is no way that will happen. she does not want another job. is the topcop -- she candidate any ceo searcher would want. senator, governor, maybe president of the united states. for the time being, she loves her job, loves working with zuckerberg. and he is good at learning from his co-executives and not thinking of himself as superior. he is revered at the company, but he works very constructively with his leadership team. i do not think that is the way kalanick did it at all.
emily: let's get back to kalanick. there is broader concern about the overall arrogance of founders and silicon valley. what lessons can founders and investors take from what happened in uber? there was a lot of talk about the greed of investors in enabling kalanick. that is a very legitimate point. he seemed to be turning entire industry upside down in a way that could be enormously profitable. people thought he would potentially create a new monopoly, ala facebook or google. i never thought that was a strong possibility. he got people excited by the potential scale of his victory, and they just threw money at him needlessly. beingd to see investors ore careful and nuanced
cautious about how they throw money at people. he was allowed to run wild because of the greed of his investors. that come up to me, is the single biggest problem. emily: david kirkpatrick, not mincing words. chonomy.conomy -- of te and the trading debut after raising $1.9 billion in the second biggest u.s. ipo. after itny gaining 9% sold $60 million more shares. the ipo comes one year after it was formed with the parent company closing the acquisition of cablevision. usa pledge to use the money for acquisitions. the ceo says they will look at any type of deal. >> we are focused on cable, we like cable. we like the opportunity to have
emily: tesla is known for branching beyond cars to batteries. -- batteries, solar power, energy storage. they are in talks with record labels about their own music streaming service. it is unsure if they will go forward with the service or continue with its cute -- its current music services. multiple tearse of service, starting with a pandora-like web radio offering.
i want to get back to the noah conference in berlin. willcoin currency provider provide funding. the influx of cash represents one of the largest investment round in the financial tech center since britain vote to leave the european union. caroline hyde caught up with peter smith and started by asking about how the company was able to draw in their latest funding round during such a tough political climate. >> we have added an incredible year on a growth perspective. investors are willing to back up things that are growing well. we have a strong management team. we're diversified. our market, we have a huge european user base. but it is also a majority outside europe. you talk about growth, can you give us an idea of what growth you are seeing? one is, consistently
improving your product. is the extreme geopolitical risks we have seen. when you see that, people want to diversify and find new assets to the current system. where that happens, bitcoin does well. caroline: there are plenty of .ther digital currencies what you sing in terms of dynamics there? volatilitye saw some , is it stressing? peter: there's been a huge run-up. it is probably overheated. it is probably a bubble that will pop soon. that said, i am positive about the long-term outlook.
markets can get irrational. at the same time, bitcoin is doing well. 25, 2700. did going now trades as a safe haven asset. now,nk generally right bitcoin is seeing a slow and persistent run-up. blockchain ceo peter smith. caroline hyde also caught up with one of the largest digital publishing houses in europe. she talked about the relationship with social media platforms and how he sees it he revolving. l: social media are an important driver. we have new leadership. the important thing is that in the long run, we have a sustainable model.
paid element subscription has to be the second one. facebook is preparing initiatives in that context, i am confident that in a short media of time on social we will have two revenue streams. with that, i think a great platform. if facebook itself would transform into a publisher, then we would have an issue. i do not think it is going in that direction. areink social media platforms for distribution to connect people. we publishers are generating the content, monetizing, advertising. caroline: the question of fake news, how is it then dealt with? fake news is first of all nothing new.
the amplification of fake news through social media shows there is a big difference when you do not know who has written that. there is a track record of investigating and breaking news. on the one hand it is educating people. but also showing they have to attract high-quality content. it has also increased credibility of branded content, of journalism. take for example the new york times, with 3 million subscribers. the highest subscription numbers in history. it is very much driven by phenomenons like fake news. we need trustworthy sources and we're benefiting in our portfolio. caroline: how will that affect the german elections? they're all these ways
to manipulate, they will be used to determine the german election campaign. they have a tremendous opportunity to show what they can do. people are smart, so i am not too concerned about it. ceo there. springer unique approach to seeking philanthropic ideas. and, a reminder of our new interactive tv function at tv on the bloomberg. you can watch is life. if you miss an interview you can go back to us or send our producers a message. this is for bloomberg subscribers only. this is bloomberg. ♪
fiscal sales. having its best days since 2014. thanks to that stock surge, it jumped $3.4 billion. that makes that the biggest gainer on the bloomberg billionaires invest today. a tweet from a week ago from amazon's jeff bezos may have been lost in the shuffle due to that amazon-whole foods deal. best usehow he could his wealth to help people has set off a frenzy of responses from every corner of the world. part of what he wrote says come i what much of my philanthropic activity to be helping people in the here and now, at the intersection of urgent need and lasting impact. joining me from new york to discuss the response that bex -- bezos received is tom metcalf. some tweaks were lighthearted, like donate $42 to every
shareholder. what about food banks, freshwater, mental health care? what did you see? tom: you are picking through 42,000 tweets. some are snarky whole foods comments. it is split between the two. some people are taking the opportunity to complain about amazon's customer service or asking that he give alexa manners. some were heartfelt. they were asking for urgent need, like food, soup kitchens. also, loan forgiveness for students. teachers were a popular topic. basically, something his money can impact now and have a long-term impact of the same time. emily: taking a look at the bloomberg, you see jeff bezos hanging out in the number two spot. compare what he is trying to do here with whatever -- what other
billionaires have done, like zuckerberg and bill gates. tom: there is a lot less information about what he is planning to do. he is a second richest in the world, just after gates. in comparison to bill gates, who is donated $30 billion, $40 billion of microsoft stocks, bezos has done little. he has given $100 million to his family's foundation. in contrast to mark zuckerberg, zuckerberg has said, i will pledge 99% of my facebook shares , $63 billion today. send a tweetbezos that is suggesting he is starting to think that way. but he is lagging. someone put him alongside warren buffett, mark zuckerberg. emily: what is a like so far? tom: about $100 million, focused
on specific items. there is a wide ranging call for ideas. $10eattle he has given million, $20 million to a cancer research. onre is a heavy focus attention toward childhood education. that is run by his parents, mike and jackie. he will be involved through funding part of that movement. on what itventures might -- ventures to guess what it might look like after this? something about job retraining. amazon had a tremendous impact on the american job market. if you look at this cynically, it can be used to buy goodwill. he had that one impact through amazon's success and he will perhaps try to rectify that or offer retraining to the american workers who might have been hurt by amazon. emily: tom, thanks so much.
>> from our studios in new york city, this is "cahrlie -- charile rose." charlie: we begin this evening with politics. it was the most expensive house race in history. international attention. many viewed it as a referendum on president trump and his agenda. the loss raises questions about the party's tragedy i doubts about its leadership. -- and doubts about its leadership.