tv Best of Bloomberg Technology Bloomberg July 8, 2017 11:00am-12:00pm EDT
♪ caroline: this is the best of "bloomberg technology." we bring you all of our top interviews from this week in tech. coming up a change of leadership largest payment processor. we will analyze the $10 billion deal. plus alibaba enters the ring as , it fights to enter the smart speaker market. have a chinese tighten's -- how the chinese titan sex up against their
rivals. just as the model 3 hits the road, why have the sales shifted down again at tesla. a massive deal in the digital payment space. pay is being bought for $9.9 billion. this comes after j.p. morgan showed interest, but backed away. the u.s. credit card processor hopes to gain greater exposure to e-commerce retailers and small businesses through this acquisition. cory johnson and his partner at index ventures joined us for reaction at to deal. cory: this is a fascinating company. it is based in cincinnati, ohio. why cincinnati, ohio? what's interesting to spin off from this tells you the history of the business of payment transaction and what is happening is the way this
business works, when you use your credit card in a store they , find it if you've got the money in your bank account and they approve the credit or not. there are a number of steps that happen behind the scenes. each of those steps takes a different chunk. you get the verification from the merchant and the movement of the money between the merchant and the bank and the verification, when you go through the steps, there is money taken each hard way. that's part of the way. it results in billions and billions of dollars. the movement of commerce has gone from physical stores to online. and the payment infrastructure the company servicing those businesses has changed as well. that's why you see vantiv making this move. they want to take advantage of things happening online because they have done so well off-line. caroline: they have one of the biggest tech portfolios out
there in europe. isn't all about the graduation of payments? >> that's a big part of the story. global payment processing there is a big market and it's growing fast as we go from cash to card and online. the story is very much a part of that move. 40% of transactions are online, it's very much part of the dna. they have a very big global presence in asia. that is part of the story. ntiv had beena focused on more traditional brick-and-mortar. that had been under attack under more online. one way to do that is to have the main one being commodity
-- the main one, being a company based in holland. it is very much playing on the same strengths of a new global footprint and offering an omni channel offering online. that has been very important to us. caroline: it's interesting that this is the key move and we are hearing of a portfolio company, what about other m&a? interestingly, it wasn't the only suture to begin with. suitor to begin with. jpmorgan was looking at it. cory: there have been a number of acquisitions in this area over the last few years. we have seen the traditional companies have more exposure to e-commerce. we saw heartland acquired. that was for nearly $1 billion. there was a deal today for nearly $10 billion.
let us not forget the very specific action that amazon took in going after whole foods. vantiv shares dropped on that. whole foods uses vantiv to do their transactions. they are not mentioned in the report. one of amazon said we are going to stick with the existing payment structure. we'll use our payment processor , which is none other than j.p. morgan. the competitive space here is quite alive and you can see that the m&a going out, they are trying to buy the new company with the notion that the e-commerce companies are kingmakers, none more so than amazon. caroline: it's interesting, we saw another deal in europe, a
danish company saying it was up byi doubt -- eyed americans. what about the company having your portfolio good m&a be the , exit route? >> we would like for this to see potential in be as big as it can be. we feel europe can build these $10 billion companies that can stand alone. they can have an ipo at some point because they have a very good advantage a very large , footprint. they don't need a backer to go all the way. that has been the pitch from the get-go. that is very much what we're focusing on. caroline: that was cory johnson and martin. facebook could be the next target for antitrust watchdogs. germany is examining whether facebook essentially takes advantage of its popularity by pushing users into agreements
they might not understand. we discuss what is next for european regulators. >> privacy is more important in europe to regulators. there are more rules and regulations in that region than in the u.s. this combines antitrust and privacy in the one charge here. they are saying if you want to get in the social network, facebook is probably your only choice in the western world. that dominance over data is basically forcing anybody who wants to do that to sign up for all of these terms and conditions. caroline: the debate commences. you are saying sometimes scale and size is good to the consumer, but it seems here
that the german antitrust that ities are feeling is making facebook with 2 -- with its group, 2 billion user group a bit too pushy. this investigation was announced i can march. does it mean anything from a real perspective? >> what is happening over there, anything can go right now. they have the biggest ever fine levied on google. who's to say they won't crack down on facebook? at the same time, you are hearing her encourage other companies to sue google. anything can happen. it's interesting to go after the privacy angle. right now, it's tough to say. it's a wild card out there. caroline: when you are looking at it from here in london, this is a german antitrust authority looking at facebook. yes, we had the european commission looking down on google and saying it may be time
for others to start suing here. it might, the fines don't matter. >> i'm not sure the monetary value of these fines actually make a difference for the company's themselves. i do think one goal of the regulator is to say all. it signals to the rest of the market that there is a watchdog, somebody is paying attention. somebody is trying to preserve competition and preserve user privacy or the benefit for consumers. a lot of this is signaling.+++
company's care is really kind of arbitrary. but the point is that the industry in the sectors know that small companies coming up might have a chance, and don't give up and don't think you can't compete. don't think there is not a level playing field. caroline: talk to us about how the tech giants are interpreting this and the european commission and the german antiauthority who are working on facebook here. is this about increasing competition? >> they feel facebook case in particular, it's a real overstretch, taking an antitrust argument which understandably in europe is different than the u.s. and applying it to privacy is a leap. on the google side, there was kind of an era resignation. they do say that they are considering an appeal. the comment that they put out this time versus a year ago were less combative.
there is an air resting nation, -- an era resignation, especially when it comes to more pure antitrust cases. caroline: i just want to get your thought of someone who is looking at potential value for these companies. you rate facebook, as it make you worry about your price targets for these companies or not? >> not yet. we put out a note on google last week saying this is overreach. i agree with that. privacy, even more so with facebook. i always joke around saying if you don't like the privacy, don't use the service. that's what we do here all the time. ultimately, i am most interested in -- our worry is we see in action from the united states. we are in a position where we see a pattern of going after and trying to change the way these
companies do business. there is no recourse or any response from the united states government at that point. caroline: you think this is european regulators completely overstepping the mark? you don't think there's any reason why they should be trying to level these accusations? >> i think they are picking the wrong battles. you can make the case that these of all done something wrong at some point or another. i think the battle they are trying to win it with the vertical search with google, they have done a lot worse. when they scraped yelp content and used it as their own, that is a lot worse. what i would like to see is what the u.s. responses. -- response is, and based on
caroline: london is defending its title as europe's tech capital. that is according to london and partners, the promotional agency of the city. they drove $2.3 billion into the technology sector are since last brexit vote, outpacing other european cities in the area. in particular is ,earles felix capital
announcing it is raising $150 million. the firm backs some of the biggest successes. they joined us to discuss the current landscape. >> when we started two years ago, that was a big precedent. there was no question about it. especially with our position around the creative class. london is a great example of technology and creativity. two years in post-brexit, there , were some questions. that has not stopped investors from backing us. the question going forward was more what kind of opportunity will you be able to find in london? well based on the way we work, , we tend to go after opportunities based on when they are. we don't expect to do everything just on our home turf in london. we met somebody in portugal. we started this conversation to become a global capital for
fashion and luxury. our job is to find this and convince the entrepreneurs to work with us irrespective of , location. caroline: what are you focusing on with this second fund? where are the opportunities? ourt is a validation of original a couple of years ago. when we invest without company invest that company, we for the long-term, it takes up to 10 years to build the company. we are humbled by the interest from the investors. the problem is we have the opportunity for a venture firm that is focused on the digital lifestyle. this -- focus on new, digital first brands a are , investing the way we lead our lives. there are different lifestyle segments from fashion to food to beauty to well-being. everything is changing. we are looking for those founders who have a sense of what people want, who are
building communities in unauthentic, -- in an authentic, organic way, and where we can help them build business. caroline: you will be watching. what level do you see yourself going at now? this is bigger than a c brand. these numbers keep getting bigger each time. >> we're not dogmatic about being the first investor. we want to back the best founder in the segment. this is where we can see a big opportunity. caroline: how are you seeking these founders out? -- data,k at our tools signals. these days, using social media you can track and measure customer love with the number of likes on instagram and twitter. at the same time we are very , founder centric. we like to see passion, we like to see emotion between consumers
and the product, service, or brand. we combined both art and science and eventually our business is , about making decisions much later. it's not black and white or it -- black and white, it is always gray. caroline: last time it was unilever, is it institutional money? is a global money? >> the bar to back us two years ago was very high. even to our surprise, the investor base was very institutional. people understand the venture business. they came from the u.s., from china, and they chose to back because they thought we were offering something different. caroline: coming up, there has been a slew of tech ipos as the u.s. market returns to form. we look at how they are faring
caroline: initial public offerings are ramping up in the u.s. ipo activity is up 243% compared to 2016. globally, it is up 96%. this comes on the heels of blue apron's lackluster debut last week. and the more successful listing for the berlin-based delivery hero on the stock exchange. what does this mixed bag create for the remainder of the year? we asked analysts. >> it does give me a lot of encouragement. as we have seen with other types
of things, we are more insulated in increased valuations and decreases as well. when companies have gone public and listed, they have been through extra rigor because there has not been this enthusiasm that is unchecked like we see in the states. , last year, even though numbers listings, we had offerings there were more resilient than listings in new york. i do think it bodes well. we are going to see a lot more coming from financial services. i think there will be other sectors as i was saying earlier. maybe not so much e-commerce, we will see other sectors coming into the public market. caroline: your take from the slightly more meager blue apron? has that shaken the rest of the ipo market? or do they look across the pond and see how it's faring in germany? maybe blue apron is a one-off?
>> i think i'm a little more pessimistic. i do agree that there are many sectors like financial and software that are more conducive to ipos. it is up this year, but at the same time, we are below where we were a couple of years ago. the industries that are hard, i think those are going to be facing greater scrutiny. what is going to be a test is quantifying here, because when you look into it, are they going to go direct? is the game going to change? these are things we don't know yet. caroline: talk about the game changes. we saw snap change the game. that is another company that james analyzes. they changed the game in terms of keeping all the power with the ceo. then not raising any more
money, just coming to the market. what do you see from companies coming through? >> i think this next generation of companies that started with google when they came to market and zuckerberg when he brought facebook and maintained the control there -- what we are seeing is a huge appetite from the market for really solid tech companies that have fundamentals. people are clearly willing to concede other measures for publicly listed companies in order to get value in the business. i don't know if spotify will put -- pull it off, but if dropbox comes to market and, it is looking like they will do them ang, and it gives incentive to list. we are seeing uber and other companies. otherwise, they will raise money on private markets. i think control is going to be a big thing. preservation of status, options,
liquidity preference rights. how much information rights they might have to yield and disclose in the listing. but if they can stay within sec or other regulator rules whether , they have to be as transparent, they may share social media without having to go through pages of disclosures. caroline: how hard does that make your job? you have to go through snap's listing. you are a man who came out with right before anyone else did, but what do you see when you looking at the rules of the game changing? >> if i was in a private company, i would not what to go public. this based on everything we have seen. it's not easy. but at the end of the day, i don't have to analyze companies that are private. i just need anecdotes and information flow in order to
assess the public companies. that comes from relationships and so forth. so it doesn't really change my life all that much. caroline: are you looking for dropbox this year? can you give us any sort of names that might be coming to the u.s. market? >> redfin is looking to come into the market, but obviously, there could be some others. the one i am keeping my eye on the most is spotify. caroline: a new forecast says electric cars will outsell fuel powered vehicles by 2040. that is faster than previously estimated. according to bloomberg, battery plunge, turning the global auto industry upside down. this will also bring about economic turmoil for oil exporting companies. coming up, how more tech employees are speaking out against sexual harassment.
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delivers consistent network performance and speed across all your locations. hello, mr. deets. every branch running like headquarters. that's how you outmaneuver. ♪ caroline: welcome back to the "best of bloomberg technology." i am caroline hyde in london. the competition in digital speaker assistance is getting more intense. alibaba has unveiled an echo-like device. fellow chinese internet giant tencent and samsung have each prepared to develop their own ai powered speakers. we spoke with mark gurman on the growing artificial intelligence entering -- intelligence landscape entering your home. >> only for the first trial, 1000 orders, i'm curious to see how high the price goes, or even
if there will be more than 1000 people rushing to buy it. i am assuming there will be given how big alibaba's spread is across asia. this year, 2017, has become the year of the digital speaker. >> and everyone wants in. wants in.nc tencent wants in. why are we seeing this drive? what do the companies want in their ecosystem? >> use saw amazon and google jump in last year with update to the echo line. lots of new alexa devices. dot, and the new echo show has the screen and the echo look as well. it's more of a style guide for your wardrobe. apple, they announced the home pod for $350. you have players in china trying
to jump in. why do they want these? let's start with apple. the home pod takes advantage of apple music and siri and home kit and their home-based services and streaming services , where they are trying to make the bulk of the money in the future has hardware sales. it is important because people really want smart speaker's. you see the demand for alexa. you see the demand for amazon and google's home speaker products. if apple does not create their own, or if others don't create their own, people will buy amazon products. they might really like alexa, and say, maybe i should subscribe to prime music or video instead of apple music in itunes and buy an amazon fire tv instead of apple tv. we are starting to see this pace of people wanting to see those devices. if apple does not create their own and others do not create their own, they risk losing other product lines to other companies.
caroline: let's go to vc tech. ush for ai,e this r you say how driverless cars is the hottest investment in the last four months, is ai a good investment? >> i think it has been a good area, but we have seen a lot of startups in that space. on the smart speaker side we have not really seen anyone. very few startups. we have not really seen anything going after that. i'm a skeptic on the home smart speaker area, where we have not seen an ecosystem growing up after them. even as a user or the potential investor in them, what is the retention? what is the engagement with those? i have had one for six months. it is catching dust. francine: --
caroline: mine is a timer generally. >> exactly. i think the voice interface is a little simplistic. what can it actually do? that is the reason why they have been adding a screen now. if you have a screen and the speaker, it is just an ipad to does not move. i don't really understand it. i believe voice is a complement to other things as an interface, but the simple voice interface device in the home -- i am a bit skeptical. caroline: you go to the app developer conferences. not managing to entice that investors on board? fact is -- that is a very good question, very interesting. apple's siri voice platform is not open to developers where one
start up can make a speaker device and put siri on top of it and other unflavored to it. microsoft and amazon have recently started offering their voice service to be used on other startup devices. you see carmen carden out with a speaker in the fall that runs microsoft's cortana and a bunch are using alexa. it will take time to penetrate. the bigger story here is the services that go with these voice-activated systems. it is what kind of using to you -- what kind of music do you want to subscribe to? it's about keeping players to their customers, sticking them together in his ecosystems. the last thing apple wants is for people to use an iphone and an alexa speaker and a pc. the last thing amazon once is for other people to use an apple tv and an alexa speaker. they want to bulk up the ecosystems and have everyone on their own platforms across the different devices, and the speaker is just one component of
that. caroline: that was mark gurman. stories of sexual harassment in the tech industry continue to come out. tech startups throughout silicon ed byy have been rock numerous sexual misconduct allegations, resulting in several resignations from tech investors. the latest one coming just this week from dave mcclure. as the industry's move to grapple, the question still can enact how they change in the male-dominated sector. jenna sarah, who has written for the new york times, wrote about this topic in his column this week. and joining gus with -- joined us with martin mignon. >> it is so pervasive that there are studies that show that 60% of the women who were polled
said they had had to deal was some form of sexual harassment. i would say that is pretty darn pervasive. it has gone on for years because the power imbalance between a venture capitalist who has money and a female founder who desperately needs money is immense. as powerful as the ceo and an underling. it is really only recently, especially after susan fowler wrote that incredible blog post about her year at uber, which launched the decline and fall of travis kalanick, that women have started to come out and not talk in vague generalities, but use their names so they are on the record and name the people who harass them. there has been an explosion over the last two weeks in silicon valley over this. jobs have been lost.
there will be more explosions because women are going to keep talking about this. more names will come out and more jobs will be lost. >> what i am fascinated with is whether this is something that is been talked about in europe much. i have been in silicon valley for a few months, but it does not feel like perhaps we will get exposure here like an silicon valley. am i wrong? >> i'm afraid you are wrong. the imbalance that joe mentioned to the fact there are way more men than women in the vc industry in the tech industry as it is in europe as it is in the u.s. this issue of imbalance i'm afraid will be the same here as well. caroline: you think, therefore, they are jobs that need to be lost in europe and asia to start to see the harassment element start to come away, but also the discrimination in diversity? >> i think what has been
happening in the past few weeks and months has been a call to arms for the industry. we will see a lot of behavior and very brave behavior from these women if they are to speak up. i think it has been a good thing. clearly, this has moved to the top of priority list, certainly at our firm, and i'm sure across the industry. at index we have four female investors as part of a 20-person investment team, which is not terrible but we should do much better. we don't have female partners , which is not really a good thing. we really need to make it a top priority to expand the female professionals. we are taking that really seriously. caroline: joe, your piece is fascinating. i urge viewers to go online and
read it. it takes brave women to come out and take on the startups. we have seen it affect other industries and maybe we will start to see harassment decline, but do we see diversity pick up , as well? are we starting to see all of this coming to change in silicon valley? >> in a weird way, the harassment is an easy problem to solve because it is such an offense that if you make the consequence, you will lose your job and your reputation, people, men will stop doing it. that is with other industries show. gender bias, getting women on boards, getting more women founders, that is much more difficult. although i will say one of the reasons that all this has been coming out now is because there are a lot more women founders than there were in the past.
there is an increasing number of women who want to get into technology. i think it is their frustration that is driving some of this -- some of these exposes and could lead to a change. caroline: coming up, analysts voice concern about the tesla model s and model x cars. what does the ceo have to show with the upcoming affordable model 3? we spoke to a man who has written a book on elon. this is bloomberg. ♪
♪ caroline: tesla stock fell back this week. analysts have grown concern of the committee reported deliveries flatlining in the second quarter. goldman sachs issued notes saying the demand for the company's higher-priced model s sedan and model x might hit a plateau. ashlee vance and asking how important the company's upcoming model 3 will
be for investors. ashlee: we can look at the s and x sales, but the model 3 is this make or break product for tesla. over the weekend, we heard from elon they will ship about 30 model 3's this month. the good news is the car is arriving much earlier than tesla products tend to arrive. it is almost on-time. the bad news, of course, they are talking about hand making 30 cars and this is definitely not mass production like we're used to seeing from other automakers. but over the next year to two years it is how the model 3 cells that will define tesla. if you are an investor, the only way the share price makes any sense is if the model 3 does well. caroline: when looking at the slight selloff we saw today in tesla share price, that seems to also be digesting those numbers we got late monday, prior to the u.s. holiday.
x sales.om model s and they did seem to disappoint. is there an issue that potentially that there is a plateau going on here? ashlee: tesla seemed to blame some of the lackluster sales on trouble getting a battery pack into production. this has been a concern that is haunting the company forever. how many rich people are there that can buy a car that starts at about $100,000 after you start equipping it with a few things? you look around silicon valley where i live, i'm amazed to see how many are out there. there are more wealthy people here than i ever imagined. the same in los angeles. you wonder how this plays out globally. maybe, finally, it is starting to stall a little bit. that is where they made much higher margins than it will make on the model 3. that is where the problem stalls
out. caroline: will people rather go for a $30,000 car that has the tesla finesse to it, or would they rather go for the model s and x? three: i think the model is a definite problem. you can buy into the story where you can still get this amazing gadget. elon has been pushing hard for people to realize the model x and s are luxury high-end vehicles. if that's what you're looking for, that is where you should go because he once those sales to keep going. ants those sales to keep going. there is no question these early adopters and people into technology and want to get in to tesla, the model 3 will be the obvious way to go. down -- anust any's eased down version of the model s. it is a much lower in car but it will be tough to convince people
of that. caroline: what will elon musk he be doing to convince? he is a man that takes to twitter. that is his way of speaking to the masses. how will he try to negotiate these bumps in the road? will he go out fighting? you are the man who has written on him. ashlee: he is relentless about these things. part of it is the shine. the model x and s have become a status symbol of sorts. i think that will carry on. there will be people who just want to buy the best thing that tesla is selling. and elon will be out there having huge events for the model 3. we see him on twitter all the time talking about, yes, we have this car coming but let me tell you about the model s and model x. he is relentless about this stuff and he has a gift the other carmakers don't have which is his twitter account is immense free advertising and it's very powerful.
caroline: do you think they can push forward and meet these very lofty expectations that are currently being baked into the share price? ashlee: in my gut, no. tesla has struggled with manufacturing for years. if we know anything, the shipment numbers almost definitely will come in under what the company is having is us think about. with the share price this can be -- cannot be based on a six-month thing, how many model 3 do they ship through the end of the year. it's a one-year, two-year story if the company can make these cars efficiently. make them at high quality. then let's have a story that gets very good. if they struggle over a long period of time, it is a huge issue. all the competitors are coming with electric cars. their quality is very high.
every month that takes by is -- ticks by is tesla's disadvantage. it is a two-year story we are looking at. caroline: elon remains the number one shareholder. he has more than 20% of the company. he has got skin in the game. do the investor base ever worry about the fact he has got so many other distractions looking at spacex one day? how much should they consider he can remain so focused? ashlee: i think people worry about this. if we have seen anything over time, it is the company seems to be getting better at delivering on all the things that you want -- delivering all these promises. caroline: coming up, amazon's deal to acquire whole foods is shaking up the ghost market. what will they pick up next? if you like bloomberg news, check us out on the radio. you can listen on the bloomberg radio app, bloomberg.com, and on
♪ caroline: amazon's acquisition of whole foods took many by surprise. we continue to question which industry the tech giant will disrupt next. he thinks amazon can encourage tash encroach -- encroach on the territory of restaurants and the entire prepared food and delivery market, doubling up on the grocery opportunity. he discussed his outlook. >> there is no way my thinking in our thinking is in line with what jeff bezos is thinking. he is probably several steps ahead. in thinking about that, work in the opportunities be, and thinking about how they can leverage on the whole foods infrastructure today. here are a couple of things we know. the restaurant business is an
$800 billion industry, which is bigger than the grocery market. digital penetration of digital food sales is over 20% in china versus 2% in the u.s. the margins are ripe for the taking. you put that together, we think we can be in a situation where amazon can leverage their data, their analytics, and predict the kind of preferences of each individual market, leverage the infrastructure of whole foods to act as a commissary, slash the margins to 0%, and then deliver potentially celebrity chef tie-in dishes at five dollars a pop for prime members. i think it could potentially open up a whole new array of food services beyond delivery and grocery. >> wow. you were just talking about as a seed investor perhaps not the time to be going into the food delivery companies, even though it might be the time to look at
delivery or this ipo. do you see this sort of potential for the restaurant chains themselves to be disrupted by technology delivery? >> absolutely. i agree with james. there are other categories that amazon might go into for brick-and-mortar stores. i don't think it will end with food. as james said, it's about the infrastructure and logistics and supply chains. there are other critical categories where amazon can go retail. as a seed investor, we do predominately tech. i am less of an idealist and less of the visionary than james and certainly jeff bezos, but i think about what amazon has done on the back end of everything. it is not just logistics for food products or otherwise, whatever they have done for storage, cloud updates. in the u.s., i think it was a lot more they can do even on the back end that will surprise more and more people. caroline: when you're looking at
amazon, give us what you see the potential in terms of price target, where you currently stand on the company, and a talk of the restaurant area and some of the other sectors that it could disrupt. james: we are neutral rated on and not taking a position on the stock because of this regulatory overhang we talked about. theoretically you can easily make a case for the stock to move at least 50% higher from here based on where the numbers are. the margins are improving. the theoretical margins on the retail side as those businesses scale as well. you have the overhang, but as far as the next avenues they can pursue beyond just food, i think health care, personal-care products is ripe for the taking. potentially see an acquisition on that front. that is another massive
industry. think about drugs and all the personal products you have partially being fulfilled on amazon, but it can definitely be taken to a whole other level. caroline: i am typing in analyst recommendations and you see how many buy ratings remain on amazon and how many few sale ratings are and the price continues to escalate as we continue to see price target slightly continuing to go higher on the white line and where we see price targets show up on the bloomberg and the yellow line is tipping amazon slightly. we are certainly not seeing any sales from the analyst. do you have the regulatory, or do you think amazon will continue to become the -- >> given everything we were talking about earlier, they will be what the regulators are looking at. it is really obvious.
i think they have so much consumer data and transactual data, there is a lot of ripe fruit. they are starting to get into drone delivery and there are privacy issues. if the regulators are doing it to really try to take any battle to try to bring the company down a bit, there will be a lot of material there for them. caroline: finally, facebook, twitter and the parent of snapchat want to be able to show video clips from the world cup next year. the companies have offered 21st century fox tens of millions of dollars for the online rights. fox holds the u.s. broadcast rights for the world cup. oft does it for this edition "best of bloomberg technology" and all next week, we will have special programming on bloomberg tv, radio, and the web for tech week. tune into egg issues in tech right now. plus, it interviews with top
♪ david: coming up on "bloomberg best," the stories that shaped the week and business around the world. the g-20 summit begins in a climate of uncertainty for the world's most powerful nations. a missile launch from north korea throwing another wrench into the gears of diplomacy. >> they are going to try to continue to pressure china to put more economic pressure on north korea. david: a new trading link provides access to china's markets, and investors wonder what to make of the june job report. >> take note, the bad news is it does not do a lot for wages. david: the leader of the left in britain explaining his stance on brexit. >> it will be a