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tv   Bloomberg Technology  Bloomberg  July 18, 2017 11:00pm-12:00am EDT

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alisa: i'm alisa parenti in washington. you are watching "bloomberg technology." let's start with a check on your first word news. president trump says the republican party should let obamacare fail, after senate gop leaders failed to gather potential votes necessary to pass the bill. trump says allowing obamacare to collapse would force democrats to the negotiating table. majority leader mitch mcconnell says the senate will vote near future on repealing the health care law. but that an alternative plan that could leave millions without coverage has also -- already seen resistance. is the second setback on the issue in three weeks for mcconnell. minority leader chuck schumer
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says he takes exception to accusations democrats do not want to engage on health care. he said mitch mcconnell decided the matter when he blocked senate democrats out of the decision-making. new york's senior senator says the bill needs bipartisan medicine, not a second surgery. president trump hosted lunch with service members to brainstorm about ideas for the war in afghanistan. mr. trump says he wants to get answers on the 17 year fight from people on the ground. defense secretary james mattis is expected to send nearly 4000 more troops there this summer. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm alisa parenti. this is bloomberg. "bloomberg technology," is next. ♪
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caroline: i'm caroline hyde from london in for emily chang. this is "bloomberg technology." coming up, big blues for ibm. revenue dropped for the 23rd straight quarter. we break down their losing streak as investors lose patience. plus, the annual meeting of the minds as leaders in tech converge on colorado to share ideas on cybersecurity, ai, and the future of work. we're live in aspen at the tech conference. and google rebrand its digital eyewear with a new focus. we get an upgrade to the google glass and how the corporate version resonates with users. first to our lead, it is a hit and a miss for ibm. while earnings per share are dropping after-hours after the tech giant came out with revenues that fell short. sales in the technology services as key newlatforms
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areas have declined. the 21st consecutive quarter that sales declined year-over-year. joining us from new york is our bloomberg intelligence reporter. function.ng at the em this is painful when you are digging into revenue. because you are seeing year upon year of negative revenue. -5% in the second quarter. we can't see growth all the way out until 2018. this is difficult for virginia rometty. reporter: it is definitely a sore point for investors. the companies have been transforming businesses to rely more on emerging technologies whether it is cloud, ai, , analytics, security. those products usually do well for ibm. but it is legacy products that pull down the total sales. caroline: how did the so-called strategic imperative do?
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that is where the focus of growth is. why did we see the decline in sales, and particularly in the ai unit? reporter: in quarter after quarter, you could see some lumpiness based on large contracts, one quarter or the other. the general trend is still the same. cloud business grew about 30%. which is similar to what we saw in the previous quarter. overall, the message is still the same that when you come to legacy products, it is still undergoing a massive change where clients are saying, you have been working with us for quite some time. now we want to change the portfolio of products we want to -- we buy from you. you arehappening, when buying those products or selling the products, you have a lot more competition. whether it is amazon, microsoft, or google. there's a new set of competitors. caroline: and investors do seem to be getting frustrated.
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i'm looking at a chart on the bloomberg function. you can see how much ibm has underperformed in the nasdaq this year alone. ibm, unlikeained on most of the fangs, which have fallen. we saw the likes of warren buffett cutting his stakes in ibm. are more investors not willing to wait for this turnaround? even though, as you say, it is coming. reporter: one of the things we look into is that when you look at the growth story, i think everybody understands it will take time for growth to come back. the gross margin story is more interesting. last quarter we saw decline in almost every division. this time, they have slightly exceeded analyst estimates on gross margins, but the question is, do we get rebound in profitability in the second half as the investments pay off? that is the big message. not so much focusing on the top line.
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we know it will take a few quarters for that to reverse itself. caroline: where do you stand on forecasts? i was reading that they need in the second half to have one of the highest earnings second halves in the last 20 years for ibm, if they are going to make the company's forecast. have they managed to reassess whether they might meet them or not? reporter: they have maintained guidance for the full year on the conference call, which should have started now. they will give a little more detail as to how they expect margins to improve. for example in the systems division, there's a new product cycle that would come in the second half that should help margins. the m&a's should mature. that should help margins and the investments they have been doing and cloud. there are several factors that could help offset the pressures in the first half, but there are
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that is really the main point, whether they can overcome that in the second. still a lot of structural issues in the company. that's the main point, whether they can overcome that in the second half. caroline: as you mentioned the competition, they are up against amazon, microsoft, who is made big changes to focus on ai. we heard -- who is really cleaning up at the moment? who is ahead of the game when it comes to ai, cyber, the areas ibm is pushing into? reporter: ibm is targeting more the enterprise ai space. they had an advantage of being the first to move into it. but every of their big company -- every big company is giving people tools to build those products themselves internally. unlike any other product, these are not stand-alone products you can sell and start making money off of. it will be included part and parcel with everything they sell. as they develop new products with insurance, with banking, it is that combination that will drive additional sales for ibm.
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caroline: and for now, investors wait. after-hours trading, down 2% on ibm stock. wonderful to get your take, thank you. another stock we are watching, toshiba. it searched of the most in five months after david einhorn had a position in the struggling japanese company. the hedge fund it says its wagering toshiba shares will rise. green light also believes toshiba can resolve a legal dispute over a sale of its memory unit. coming up, shares of netflix jumped the most in nearly two years, hitting an all-time high. we will dive into that and other tech movers in the market, next. "bloomberg technology," is live streaming on twitter. check us out weekdays at 5:00 p.m. in new york and 2:00 p.m. in san francisco, 10:00 p.m. here in london.
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this is bloomberg. ♪ caroline: politics, media, and
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the future of automation was front and center at the convention held in boston. our bloomberg editor at large erik schatzker sat down with barry diller to discuss how ai has been used to transform his businesses. >> we have been using machine learning and artificial intelligence for years. it has accelerated because the computing ability, the ability to compute faster and faster, has accelerated. but artificial intelligence
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sounds like, it is scary, and promising, and all of that. but with computers, they have the ability they don't yet have, they can distinguish pictures, but they can do it yet with understanding language. they are really close. that really is going to be the big, big motivating change. dillere: that was barry on stage with our own erik schatzker. let's turn to the markets, where the nasdaq is recovered from the recent tech fall back to close at a new all-time high. as we head into earnings season, the current value of big tech stocks are being called into question. that's go to abigail doolittle in new york. you've got it all for us. talk us through these moves. reporter: it's a pretty remarkable session.
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it traded higher and finished at an all-time high the first time , we've seen that since june 9. erasing the mysterious tech pullback we are not quite sure , what has behind that, but it seems investors have more confidence in this highflying sector. to your point about highflying valuation, valuation is pretty high. we can take a look at g #btv 5201. this shows what we are looking at relative to valuations. long-term pe of the s&p 500 tech index. we see that in the bubble of 1999, 2000, skyhigh. a multiple of more than 50 times. now right above the multi-year high at 19 times, some investors say that is relatively rich, highest since 2009 when stocks were covering and prices were high, and earnings relatively low.
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the question is, are the earnings too high? especially for chips, it is that closer to 25 times pe. amd, which has been up in a huge way over the last year, it cannot be measured on a price-to-earnings basis, because the e is not there. it will be interesting to see whether or not investors continue to believe the valuation is worth it. from a performance standpoint, we do have proved today from netflix that the performance is in the pudding, to some degree. they put up a tremendous second quarter, beating subscriber numbers bets that 61%. it will be interesting to see whether it plays out with other tech companies. caroline: netflix's price-to-earnings, 223 times, quite phenomenal.
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clearly some match anticipation baked into that stock. not so much into the down-and-out ipo's we have seen over the course of the past few months. reporter: it is pretty amazing to see the carnage of two in particular, snap and blue apron, both down, well above the ipo prices. blue apron down more than 30% from its ipo price, snap below $15. that ipo is $17. snap had initially been highflying, a lot of enthusiasm. blue apron pressured from a lot of different fronts including , the fact that amazon just filed a patent for competing meal delivery prep kit. the question is what is next for some of those ipo's? back into the bloomberg, we have a chart that shows this is typical.
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this is g #btv 2669. if you can believe it after facebook went public, shares were down more than 50%. now they are skyhigh. look over to the right. the orange line is the nosedive of blue apron. in purple, that is snap. however, both square and facebook have managed to recover. twitter in blue, not so much. the question is, is snap and blue apron closer to twitter, or more along the lines of square? facebook is in a league of its own, i have to say. [laughter] caroline: all eyes on facebook's earnings as it comes out next week. abigail doolittle, thank you. now a story we are watching. facebook's whatsapp messaging service has been partially blocked in china. it comes after the government began cracking down on virtual private networks which allow
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users to route data overseas. authorities have been ramping up social media censorship in china as it prepares for its 19th communist party congress. as links between russian intelligence and president trump's 2016 campaign continued -- continue to be scrutinized, we speak with the former nsa director general keith alexander. the advice he is giving to the commander-in-chief, next. this is bloomberg. ♪ caroline: the fortune brainstorm
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tech conference is well underway in aspen, colorado. the event brings together global leaders in the digital world to discuss ways companies are preparing for the future. we will send it out to emily chang, at the event with more. emily, take it away. we are having a few technical difficulties.
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it happens on a tech show sometimes. i know she has been getting some great sound from key topics. a big key topic among the attendees has been the state of cybersecurity. the scale we can see the major hacking attacks continue to happen around the world, not to mention the investigation of russian meddling in the u.s. election continuing to dominate headlines. earlier, emily chang spoke with someone with expert knowledge of the subject, retired former director general of the nsa, keith alexander. he is now at the helm of cybersecurity. we started by asking about the boldness of russia hackers in the u.s. election. >> it points out not just that it is blatant, but that we were not prepared to defend. if you left a bag of money on a park bench, then you're surprised somebody stole it, you would say, secure your money. i think that gets us to secure , your network.
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we should not be public with this. we have to make changes in cybersecurity. it is important to point out it can't be done by industry itself. it has to be an industry-government partnership. i think this is an area the trump administration has taken on. i think it's important government and industry work together for a defensive architecture that can block these things in the future. actually, whether blatant or not, we shouldn't be faced with them. we should not have people losing intellectual property to low-profile hackers. emily: what is your impression of whether or not the trump administration is taking these threats seriously enough? >> on cybersecurity, i have met twice with the president. both meetings have been great. he asked all the right questions. he pointed to his administration officials to help. his comment to industry and the government, what do you need from me?
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exactly what we want him to do. i think he takes it serious. he understands this threat. he has tom bossert as a lead. he's amazing. and robert joyce. i think what they are doing is trying to put this in the right place. i am optimistic that the government will move forward. i think we as an industry need that. there's so much you can do as a cybersecurity company, but for sectors in the nation it takes the government to weigh in. i think we can get there. think of it as an air defense network over our country. if we had everybody defending each state with their own air defense system or each company with their own that , would not be a viable defensive infrastructure. we have to change that. emily: we understand you've been advising the administration. what kind of advice are you giving them? >> great advice. it's always been great. [laughter] >> just along those lines. we have to work together.
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i think the interesting part is my experience in the financial sector and in the energy sector they are willing to pay and do , what it takes to get them secure to where they can. great across the board. ceos have been great to work with. cybersecurity teams in the financial and energy sector are doing great work. the missing link is, when they are being attacked, who do you call? you dial 911, there is no answer to stop the attacks going on. we have incident response, but no way to block the attack. now if you jump forward to the election, and they are being attacked who do you call? ,the answer is, it is always after the fact. you need to have a way of defending it at network speed. that takes industry and government work together. emily: if president trump is taking this issue seriously, then why hasn't he publicly acknowledged russia's hacking of the election?
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>> i think that is a more strategic question. that gets back to, what do you want to do with russia, and how does the administration work with russia in the future? do you poke them in the eye or talk to them quietly on the side? the comments i would do is to say publicly, i'm not going to make this harder than i need to. how do i privately engage putin and the russian government to get to the right place? we don't want to create another cold war. we don't want a war. we have to have some kind of partnership with russia. remember, 40 years in the military, russia was always the adversary. at the same time, we have to be conscious.
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it's like that movie where you are looking up at them, but you have to figure out in the middle east and other areas how do we work with and not against them. i think every administration, the obama administration, the bush administration, now the trump administration is trying to say the same thing. i think we've got to give this administration time to work it out. what that means is don't poke them in the eye yet. emily: that said, you've got all the u.s. intelligence agencies saying this happened, and it seems like president trump is at odds with his own intelligence agencies. >> really what he's doing is giving himself the ability to deal. it comes from, when you are a ceo and you want a strategic
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deal, you let your people do certain things and you leave yourself enough room to negotiate. i don't know specifically on these. i have not asked on the russia stuff. i'm giving you my best thoughts. but my experience with cybersecurity and dealing with him, he's very thoughtful. i thought he was well read. he knew all the facts. he had read everything. as you would see a ceo. i expect on russia he's doing the same thing. and the question for our country, i think that we've got to ask, strategically, where do we want to be with russia and china? caroline: that was the former director of the nsa and ceo of network security, keith alexander. emily chang joins us from colorado. great interview. who else have you spoken with? emily: thank you. it has been a fascinating day here at fortune brainstorm. coming up, we will speak with marne levine, the coo of instagram, talked to her about snapchat and the allegations instagram is copying snapchat. we also spoke with glenn fogel, the ceo of priceline. as well as penny pritzker, former commerce secretary for the u.s. she is now investing. we will get her thoughts on the administration and what she's doing now. caroline: amazing lineup.
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enjoy it out there. thank you so much. a stellar set of interviews. coming up, we are talking google glass. are they ready for the come back? this is bloomberg. ♪ >> i am paul allen with the
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latest first word news. apple has appointed one of its top wireless software engineers as head of china operations, in the face of a persistent sales decline in its largest overseas market. they assume the newly created position of director for greater china, which includes taiwan and hong kong. led thehinese-born and team that developed apple pay and homekit. revenue in china has fallen first consecutive quarters. beijing is rebuilding its foreign currency reserves as that yuan stabilizes.
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they stood at $1.1 trillion, up $10 billion from april. china is the second biggest holder of treasuries, a fraction behind japan. the two countries account for foreign-ownedf treasuries. production came in at a less than expected 60 million metric tons despite additional capacity and supply chain improvement. that compares to the median estimate of $61.5 million in an -- a bloomberg survey. yearch as 4% in fiscal 2017. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> i am sophie kamaruddin with a check on the markets. a slow start this morning, but momentum and -- picking up. 1%,ese stocks rising over
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touching the highest since december 2015. this as chinese mining shares are rallying. iron ore futures and dalian -- an jumping to an 11 month high. month high on the back of rising ipn banking stocks. it the taiwanese a dollar, is good, despite the weakness in the greenback. onshore rates snapping after hitting a high on tuesday. --have this gauge is shoring soaring to a high, thanks to rising rail and financial shares. we do have china railways set for its biggest again since march, rising 3%. this is rising for a fifth day. 3%.es rising over
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mainland funds into hong kong the shanghai composite erasing losses on the five-day. shanghai composition up 3%, year to date. ♪ caroline: this is "bloomberg technology." i'm caroline hyde in for emily chang. google glass is making a comeback. this time, it is eyeing a different type of consumer. after noting its popularity in factories and other large businesses, the tech giant changed its focus for the smart glasses which are now , officially named the google glass enterprise edition. the product is available in a network of google partners like boeing and dhl. we are joined by our guest who covers alphabet. fascinating. it's about the enterprise. reporter: it is pretty consistent with the direction google has been going. they have been divesting from
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moon shots and expensive projects, and they go to partnerships or stakes in companies. also, the cloud computing and going green has been a huge focus for the company. from what i can understand google glass is still part of , the research lab, but the sales strategy will go through the cloud team. caroline: this has been going on quietly for a couple of years. they have been using this in businesses already. reporter: right. google is finally talking about it. they have been having manufacturing logistics. health care companies have been using google glass. sometimes they were wavering and it was never clear that they were pulling the plug. this is a vote of confidence for those companies now that google is committed to publicly talking about it. caroline: is it over for the consumer dream? they are not going to go chasing snapchat phone glasses. is it done for you and i?
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is it all about the enterprise? reporter: i don't think so. the ceo of google and the vr division, they are still thinking of augmented reality. that is the dream where you can overplay the real world with the digital world. thinking -- are glass top them to be a lot more careful. you can see that google will probably be much more conservative than they were in the past. certainly, competitors like apple, facebook, snap, microsoft, they are pushing forward fast with ar. i doubt google will give up on this. caroline: talk to us about another great scoop you have. we are also seeing google backtracking a little bit in google fiber. what's the story? there's another shakeup in terms of who's in charge. reporter: it has been confusing. there are people in the industry and even in google who are not entirely clear. at one point, it was this big challenge that broadband and cable companies that are often monopolies in the markets, and
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google came in with fast service, cheaper prices. from what i could tell in the markets they were in, consumers were pretty happy with it. they had this big plan to go to 20 cities that fell back. there ceo left in october. his replacement came in february. within five months, he also departs. they don't have a replacement. they haven't given a reason for why he departed so quickly. from what i could tell, he was still sorting out exactly what the strategy is. they bought a company that does wireless, and are talking about using new spectrum waves and exploring the new technical capabilities of delivering internet. caroline: so has it been -- it has been scaled back significantly. are they expecting it to remain smaller? reporter: it's unclear. from the best i can gather,
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executives that follow -- at alpha that really care about the product. they really want faster internet. one could say the goal of google fiber was to improve internet speeds and reduce prices. they spent a lot of money on that, but they did do that. faster and cheaper internet is good for alphabet and google. i do think they are thinking of different ways they could actually scale this with a sort of technology, a breakthrough in technology, not just a business model. a lot of the work is digging up trenches. that is not something google historically has liked. caroline: a great story. check it out on bloomberg.com. thank you, mark bergen. let's return to our coverage of the fortune brainstorm tech conference in aspen. we sat down with the instagram coo, and emily chang discussed how the platform is advertising. >> one in five mobile minutes is
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spent on facebook and instagram. there are 2 billion people using facebook and 700 million using instagram. businesses need to be on both. what's interesting about the instagram community is that people in the community really want to hear from businesses. about half of our community or 80%, connects with the business voluntarily. they want to hear from businesses. we have been focused on helping businesses big and small advertise on instagram, advertising feed, and instagram stories. we just started advertising there, and helping businesses develop a presence and connect with new customers and connect more deeply with existing customers. we are seeing businesses are finding great success on instagram. caroline: how would you rate the success of instagram stories so far? >> it's been great. if you think back a year ago this time, instagram stories did not exist. now there are 250 million people
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using it every day. they are not just sharing highlights, but all of their moments and telling their full story. that can come from businesses as well. of the most-watched stories on instagram stories, a third come from businesses. what that shows is that people want to hear from businesses in feed, but also in instagram stories. emily: instagram may be the one facebook platform where e-commerce actually works. i know you are doing some experimentation. you have partnerships with j.crew end coach and club monaco. how are the partnerships? >> it has been interesting. people come to instagram because they want to connect with businesses and their friends and family. sometimes when people are coming, they want inspiration. sometimes they want to be able to act. they see a great pair of shoes
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and they want to be able to buy those. but when it comes to shopping, there is a journey in between. i think instagram can play a great role in terms of helping to develop this. caroline: that was marne levine, coo of instagram, speaking with emily chang. now to the latest on the race to autonomous cars. baidu has announced an expanded partnership with microsoft's cloud computing. it is meant to advance autonomous driving worldwide. microsoft will provide global apolloo baidu's app -- platform. the partnership is one of more than 50 baidu has launched in an effort to bolster its presence outside of china. coming up, we get the latest from tribal giant priceline. how it plans to fend off the competition and maintain growth. that is next. this is bloomberg. ♪ caroline: now we continue our
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coverage of the fortune brainstorm tech conference in aspen, colorado, were some of the biggest names in tech are gathering. in attendance was the priceline ceo who took the reins of the internet travel giant in january. since then, the shares have risen over 34%, cementing itself as one of the world's largest travel platforms. emily chang caught up with fogel for an exclusive interview. she started by asking about the company's strategy to keep priceline in the lead. >> we will keep doing what we did in the past. the strategy doesn't change, which is providing great service for two sides of the market. the traveler and the supplier, be it a hotel, or a car rental.
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the idea is to use our technological skills to better supply a better service for those customers. emily: the e.u. justice slapped google with a massive fine based on favoring their own products in search results. does the e.u. need to take a closer look at how google handles travel? >> i read a little bit about that, but it doesn't say exactly what google would have to change. until we see what that change is we can't really comment. , but google has been a great partner for us. we have done a lot of good work with of them in the past and we hope to continue to have a great combination in the future. emily: is there space for priceline to benefit? the market seems to think so. >> we don't know what the changes in the way google operates how they will be. ,when google has had the change in the past, they have been advantageous to us because we
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have been able to adapt quickly. the technology people are able to take advantage. we are able to keep up as things change. and, be able to get new things out very rapidly. it's one of the benefits of scale. we can afford all these people to be able to do this. if you are a small player, you don't have the luxury of having those people around to do that thing and make sure it is an advantage for you. emily: meantime, the hotel industry is mounting a campaign claiming that priceline and expedia are monopolistic. what's your response? >> first, let's be careful, that is the lobbying group saying that. i read very nice things from some of the ceos. i'm not sure where that came from. i'd like to make the point that right now we only book a single digit percentage of the total number of hotel rooms and properties on our system. single digit percentage of the total inventory.
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that is a very small number. i think that says that i have to disagree with people who are saying we have some sort of large market share. i think they should look at the statistics. emily: airbnb is looking to expand into travel booking. how worried are you about airbnb as a competitor? >> i am concerned about all my competitors. i want to make sure we are always on the cutting edge and making sure we can do things better. we came from behind. when we started out, we were small. in europe, our biggest customer, booking.com, nobody had ever heard of it. we are used to undercutting bigger people. i am aware of people much smaller than us who are coming up quickly. that's why we are spending so much time, energy, and money building out our own home, apartments, and product. we have over 700,000 properties on our system. people aren't as aware in america about this, but we will actively make that happen.
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i believe that being able to see both that type of home apartment and hotels in the same search -- i'm going to iceland with my family next month. when i looked, i wasn't sure what i wanted. people, do we want an apartment or hotel? i looked online, it was instantly bookable. a lot of people do this but it is not instantly bookable. 100% of our stuff is instantly bookable. when i press, i'm done. our goal is to get rid of the friction. emily: when you say you will actively make that happen, what does it mean? >> it means we have people out there getting more inventory. over 700,000 properties. we want a lot more of every type. it means making sure some kind of marketing, no matter how it
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is, but when you think that i need a condo to do skiing in aspen or maybe a place on the beach, i want you to think booking.com. that's what i want. emily: a chinese online travel giant makes it clear that they want to expand. does that mean more competition? >> the partnership is beneficial to both of us. i've had a great relationship with the senior management for 12 years. our investment did not come until we had gone to know them for a long time. we think there's room for everybody in the marketplace. you have a good understanding of the chinese market. there are a lot of people who are very cooperative and competitive. i have no problem with this at all. i think we will hopefully keep our relationship going for a long time. emily: so you plan to hold onto the stake and increase it?
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sounds like you are not planning to sell it. >> the one thing i'm careful to say is i will never make predictions about what we will do in the future. it's not healthy. but we are happy with our relationship. caroline: another great interview, priceline ceo glenn fogel. our exclusive interview with the billionaire businesswoman and former u.s. commerce secretary penny pritzker, on the future of work. this is bloomberg. ♪ caroline: now let's return to
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coverage of the fortune brainstorm tech conference in aspen. emily topped with penny -- emily sat down with penny pritzker, the former u.s. commerce secretary under the obama administration. she talked about trade and the future of the workforce.
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>> we took transition very seriously and tried to give our successors the benefit of what we have learned over our tenure. obama administration. she talked about trade and theis as it relates to the issue we are working on here at the fortune conference, the future of work, is that i think the future of work requires a focus by not only the private sector but also government to work on workforce training and dealing with the skills mismatch in the short run. and deal in the long run making sure we're training people for jobs of the 21st century. the second role of government is one that if you're thinking about a conference or economic plan for the u.s., it's also opportunity. trade, for example. one of the things that is challenging is to watch us walk away from multilateral trade agreements and narrow our focus to either bilateral or smaller trade agreements.
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emily: do you think we are at risk of a trade war? >> i wouldn't bet on a trade war as much as i think the narrowing of our focus and agitating trade partners is not useful to creating opportunities for american and american business. i worry about that. creating opportunities for i want us to make progress. that's important for the united states, for us to have good and functional, open, free, and fair trade agreements. we need to get those in place. the more that we just talk about it and not take action, the more opportunity we are creating for our competitors. emily: if trade is one, what are your other big concerns? >> is not so much the trump administration. how do we have a competitive america? we need to deal with trade.
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we also need to have tax reform so that companies can be competitive. we need to be investing more in infrastructure. both digital infrastructure and physical infrastructure. frankly, comprehensive immigration reform is both a moral responsibility and an economic opportunity that we are letting languish right now. i think creating greater opportunity is one part of a conference of economic strategy for the country. the other is a social safety net. we need to have a social safety net that acknowledges what 21st-century work is like. we have 55 million americans out of 140 million working americans who are in the gig economy or the on-demand economy. we have to make sure the social safety net is reporting all americans. whether it is health care, we
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can't just repeal health care and uninsure 20 million americans. we have to make sure americans have access to health care, that they have access to workforce training that will allow them to be successful. in the fortune conference today we were talking about that , americans want to know they have stable earning capacity, they want security in that. social safety nets are a part of that as well as workforce training. caroline: that was emily chang speaking with former u.s. commerce secretary penny pritzker. here are some tech stories out of europe. ericsson came up short in the second quarter. profit and revenue at the swedish equipment maker missed estimates. there turnaround will take time. as a result, shares in the company took their biggest dive this year, falling more than
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15%. oracle is ramping up their cloud computing services in europe, the middle east and africa. the california company is hiring 1000 employees in the region. last month, oracle said cloud revenue rose a 50% from a year ago, and accounts for 12% of overall sales. lloyd's of london has issued a new report outlining how costly a cyber attack can be. the insurance market says a global cyber attack can result in damages as much as $121 billion in an extreme event, comparable to economic disasters like a hurricane. pettya have increased awareness of vulnerabilities in companies. according to lloyd's estimates, the global cyber insurance market is currently worth between $3 billion and $3.5 billion. that does it for this edition of "bloomberg technology." we will have more coverage from aspen on wednesday, and bring you our conversations from the block chain ceo. from london, this is bloomberg. ♪
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