tv Bloomberg Technology Bloomberg August 21, 2017 5:00pm-6:00pm EDT
it is the second collision involving a u.s. warship in the pacific region in two months. the navy has ordered a wide range investigation. the "washington post" reports the secret service on the has enough funds to protect the trump family until the end of september after a "usa today" capst said they hit meant to last until the end of the year. the louisiana congressman says a date has not been set yet for his return. but when he does report that, it will be on his doctor's recommendation. he participated today in a conference call with fellow lawmakers. he was shot by a gunman during a baseball practice. president trump is expected to announce a troop increase in afghanistan. he has been working with advisors on a strategy for america's longest war. as many as 4000 troops could be dispatched. trump is expected to make an announcement later today.
you can watch his speech on bloomberg television at 9:00 new york time. i am emma chandra. this is bloomberg. "bloomberg technology" next. ♪ emily: i am emily chang and this is "bloomberg technology." the growing disconnect between silicon valley and washington. our deep dive into the lobbying landscape as tech looks to bridge the gap. a new game but a familiar face emerges as the front runner in the search for uber's c.e.o.. could take the wheel at the ride-hailing giant.
a once-in-a-lifetime event that unfolded right before our eyes. we have all the details from the first total solar eclipse to cross the u.s. in 99 years. rift between the tech industry and political establishment since president trump took office. tech leaders and the white house have butted heads on several fronts from immigration to climate change and most recently the policy around hate speech and hate groups after the events in charlottesville, virginia. washington has grown more critical over tech firms on their size, practices, and it could have far-reaching effects on legislation moving forward. ben brody covers lobbying and wrote about this topic. he joins us from new york, as well as michael wolf, c.e.o. and cofounder of a tech and strategy consulting firm. he has served on the board of several companies including yahoo! and was formerly the president of mtv network.
you start your piece by talking about google which has fallen from grace. let's look at the google example. how has google's position in washington changed? >> i think we mentioned some of these cultural issues here. the ban on trance service members in the military, immigration issues. these are places where the administration and company have clashed in a very public way. have kinds of clashes policy consequences, especially in this administration where loyalty is a big deal. there is not a lot of love lost between some of those companies and the white house, especially given the events in charlottesville recently. it is important to realize there is a policy dimension, issues like privacy are on the table. issues like that in a tribal -- net neutrality are on the table. washington is looking to take
them on. we don't know where they will go or it seems like tech may be losing in them. there are a lot of ways in which these companies are being surrounded now. obviously, the trump administration has not had the best of luck pushing through policy initiatives. house iswhite considering reform important to silicon valley. white house is clearly not on the side of silicon valley. how much of the concern is that? >> what you have is a divergence of values. you have silicon valley where a number of things are important. net neutrality, some of the things you mentioned, skilled immigration. issues.have the gender more broadly, we have things important to tech companies. one of them is consumers. these are companies have hundreds of millions of users and they are very afraid of some sort of consumer activism.
they want to focus on their values. they are willing to bend their values when it is things important to the companies. two examples are upgrading the government infrastructure weather will be contracts for each of the companies and other things like tax reform because many of them want to repatriate foreign earnings. trump had the recent tweet about amazon where he said amazon is doing great damage to cities and states. many jobs being lost. are we getting to a point where tech companies could end up being regulated like utilities, or at least that is the direction the trump administration wants to go? >> i don't think it is necessarily that we are at that point yet. i think it is definitely where we are at a point where some people in washington, liberals and conservatives, and i think that is what is interesting, are
calling for people to look in on this. this is not the mainstream opinion yet. but i would say there are people who say there is a lot of market share here. there are a lot of big companies like amazon gobbling up smaller ones or even medium and large ones. democrats are saying we need to take a look at what is going on. i think it is important to realize some of these companies are on the chopping block when it comes to these issues. companies have tech changed their approach to lobbying? we know they spent a lot of money during the obama administration lobbying various lawmakers. what is happening right now? >> they are spending a lot of money is what it comes down to. there was some talk these companies did not have any republican representation, they needed to bring in conservatives. i think that was a little overstated. big companies always employ
democrats and republicans. lesse had record spend quarter in lobbying, about $69. goldman sachs often does not even spend $1 million. the u.s. chamber of commerce which largely represents the business community of the u.s. as a whole not even $12 million so they are spending a lot of money because they know a lot of ,hings are coming their way coming or going, and they want to be part of it. emily: we are looking at potentially 3.5 more years in the trump administration at least. what are the main issues you are going to be watching? >> from a tech perspective, looking at any potential efforts about hampering these companies because we cannot stop the march of technology. amazon, apple, google, facebook. these are companies that have not just impact in the united states but impact globally.
we should be wary about anything that gets in the way of their growth. yes, they tread in politics. jeff bezos owns "the washington post." there is a lot about the progress from tech companies that can be threatening not just two people in the administration but other businesses. we should be looking at that. we should be looking carefully at issues like net neutrality. the paradox is it is one of those places where more regulation leads to more competition. the tech companies are in favor of net neutrality because it has an impact on them. but ultimately if the net neutrality regulations are dropped, it is going to hurt competition on the internet. is a bigt neutrality area where we could see a shift in policy. michael wolf, you are sticking with me for the hour. thanks so much, ben brody in washington. spotify's planned to mr. mike
lee on the new york stock exchange are under scrutiny. they aimed to bypass the traditional share sale. the securities and exchange commission have asked for further details on their plan. intel's latest processor. will it be enough to fend off competition? "bloomberg technology" is live streaming. check us out. this is bloomberg. ♪
intel is boosting its new personal computer chip will deliver a once in a decade performance boost. the biggest maker of semiconductors says it will provide as much as a 40% jump on its predecessor. new laptops with the chip come out next month. joining us are michael wolf as well as anand srinivasan. would you agree with this characterization by intel this is the biggest up in a decade? >> the performance improvement is substantial. it is particularly notable given this is an aberration rather than a substantial revolution in chip improvement over time. one of the things intel has moved away from is the notion of s.ce a year improvement
improvements are becoming -- they are coming faster for sure but they are relatively marginal improvements. when you consider that context, this together performance in performance is substantial with 40%. the one thing i will say, this is not across-the-board improvement. this does not fit into the overall master plan of chip improvement or its roadmap. number one. number two, this is not across-the-board for all its chips. this is limited to the laptop , higher-end chips. because it is a tactical move rather than a strategic move. that is how we think about this chip improvement. it is important because it should help keep the prices on the chips moving towards the
high end which is very important for intel. emily: moving beyond the technical nature of it, michael, what does this mean for customers? what will this new chip enable that the other one did not? michael: i think it enables intel to maintain its dominance in the p.c. market and the desktop and laptop market. from a consumer perspective, it means the things consumers are doing increasingly which is virtual reality, video editing, a lot of the things, augmented reality, they will be much easier. at the same time, what is happening with intel is they are going to be able to dominate the internet of things, whether that is virtual reality or in-home automation or self-driving cars. decadebe the once in a the probably will not be the last in this decade because the
advances in technology around chips continues to happen. they are saying is a push for more companies to take their chips. but that innovation will continue. emily: intel's chips are in 80% of the world's p.c.'s. p.c.'s are a market in decline. would you agree with michael this chip will allow it to dominate in the internet of things? obviously, the semiconductor market is a very competitive market. >> at the end of the day, this in that it defensive is competitive for the first time in a decade. intel is trying to make sure whatever it does, the corners the market on the high-end. if you look at intel's performance, is p.c. business has substantially outperformed the p.c. unit market and it has
done that because it has pushed its customers to buy higher into chips. chips isof p.c. substantially better than p.c. unit growth. it is pushing people toward the high end of its market to the extent it can develop these chips that produce an incredible amount of benefits at the high-end such as video editing. those are all important things for intel to dominate and continue to drive the average selling price of its platform fire. as far as the internet of things , the byproduct of being so successful where it has substantial share is any other , the intel moves to margins are lower. the downside of this success for
has it been able to find markets as large, fast-growing, and as profitable. when you analyze it using the three-fold equation, it becomes a lot more difficult. for now, it is doing really well in p.c.'s and data centers. emily: thanks so much. st,hael wolf, my guest ho you are sticking with me. amazon continues to prove his power numbers. it lost about 20 private label brands and has sold about $2.5 .illion in 2016 alone private labels make up a private fraction of the overall revenue. the company reported $43 billion in sales for 2016. coming up, the ongoing search
for uber's new c.e.o. might have a front runner. how soon could the board vote? we will tell you. youinteractive tv function, can find it at tv on the bloomberg. you can watch live. you can send us a message. you can play along with the charts we bring you on air. this is for bloomberg subscribers only. check it out at tv . this is bloomberg. ♪
announced it would offer home delivery in dallas and two other cities. that comes before whole foods shareholders are expected to approve the sale to amazon. an update on the uber's ongoing search for a new chief executive. jeffrey melt is said to be -- jeff i'm all is said to be the front runner. he stepped down as g.e. c.e.o. at the beginning of the month. uber's board of director may vote within two weeks on travis kalanick's successor. joining us from new york, michael wolf, who served on the of numerous companies. and eric newcomer. you were the first report jeff i'm out was in contention. >> that was when meg whitman was seen as a serious
candidate. jeff has been the only solid candidate since the report surfaced. he seemed like the front runner the whole time. there is this continued fight between benchmark and travis kalanick and some of the other board members. it is hard to know exactly if someone is a front runner given the great divide of the board. given he is the only public candidate, he would be the front runner. that some board members like him but it is not clear how many, correct? what is it he brings to the table that they like? , theyhink for a long time , formero states person c.e.o., with a technician. with him, you seem to get two out of three. it is hard to find someone that
has all three. the hope for people close to travis is he can continue to play that role as some sort of advisor saying this is where we should go in terms of technology. emily: they are also looking for someone it will not be pushed around. the yahoo!u joined board as marissa mayer was coming on as c.e.o. so you know how hard a c.e.o. changeover can be. what do you think is important? what do you think the biggest challenges will be in this situation at uber? michael: the board has a couple of directions it could go. it could hire a digital innovator who focused on user experience. if they end up choosing jeff immelt, what they are really focusing on his sales and operations effectiveness and respectability in terms of culture. some of the challenges for somebody coming in is striking the right balance between what is an internet company at its
core with a user experience, and at the same time have to move into areas like self-driving cars and real operational excellence. there is something else which is important here which they really give up with travis, which is this drive to work with cities and countries to allow uber to operate. we forget one of the things having a founder in place is that founders tend not to ask for permission. they beg for forgiveness later. by bringing in someone who is an established manager from a large company, one does wonder whether they will be able to continue that drive and that ability to push their way into new markets and keep themselves in those markets. >> sort of funny to hear travi'' regulatory recklessness phrased quite that way. i think there are plenty of four members ready to see over move
potential lawbreaking other probes --under probes. emily: in which they knowingly evaded the law. >> there is the indian rape case and the waymo lawsuit going. i am sure travis needed to be aggressive in the beginning and pushing in hazy areas allowed uber to be successful. i think everybody at the company is ready for an uber less worried about whether san francisco will shut down there self-driving cars or some new law enforcement official will come after them. i think they are ready to put the regulatory risks behind them and want a states person-like c.e.o. emily: we have about 30 seconds. michael: i think we have
services gaining market share in a lot of countries where uber is not the leading service or risk having at the leading service. it will require continued aggressiveness dealing with these markets. managing against the law. at the same time, it will require that. you, eric newcomer, for stopping by. coming up, the solar eclipse got everyone's attention today. even president trump donned glasses and did not for part of the eclipse. this is bloomberg ♪. ♪ ♪
the regional police chief confirmed two officers shot and killed him today, the men authorities say was behind the wheel of the van. piecesassy will suspend wednesday in response to the kremlin's decision to cut 750 positions from consulates across russia. russians have to moscow for interviews. progressces are making in the town 45 miles west of mosul according to the u.s.-led coalition that says iraqi forces have retaken 95 square miles from the extremist since the operation began sunday. office hasacron's published a charger detailing the role his wife will play during his term. there will be no official budget, nor will she be designated first lady.
france does not have a formal title for presidential spouses. ben will be silent over the next four years for repair work. it sounded for the last time today. the longest silence since 1859. .lobal news 24 hours a day i am emma chandra. this is bloomberg. it is just after 5:30 in new york, seven: 30 tuesday morning in melbourne, australia. i am joined by paul allen with a look at the markets. good morning. paul: good morning. it is looking weaker on the nikkei this morning. futures are up by just four points at the moment. we may have earnings to drive the market today. oil sales will be out later today. bhp will release full-year earnings. we are expecting to see a profits.increase in
the dividend is expected to surge to $.88. that may go toward appeasing management which has been pushing for change. the could have more on china overseas land and development. first-half profits soaring on monday with shares up. we will have more reaction on that. china state construction will report earnings. we are waiting on figures for july expected to see strengthening to 2% on the year. i am paul allen. more from "bloomberg technology" next. ♪ emily: the once-in-a-lifetime total solar a clips -- eclipse has come and gone. they put the u.s. power grid to the test.
they braced for more than 12,000 megawatts of solar power possibly going off-line. it is the largest independent solar developer in the u.s. it c.e.o. spoke with bloomberg television during the height of the eclipse on the east coast. >> the best part about the sun is it is so reliable. when these happen once in a generation, we have a lot of advance notice. we were able to work with the grid operators. they were able to procure power to meet the needs during the eclipse. it is important to put this into context. when you look at our overall traditional power sources, they go off-line all the time and without a lot of notice. annually, they will go out to the tune of 9000 times the amount of power loss we will see with this eclipse. the sun is there. it is reliable. we are asking customers to turn their power down and enjoy it.
>> is this testing how you react to an event where we have solar power as a dominant force in power generation in the country so you can look at what the options are in terms of switching between one and the other? as you said, in terms of solar power, that is the most reliable source of energy we have. >> it is. contributions have been so significant it is becoming the dominant source of new generation. the segment my company operates in, on the rooftop, has a different dimension. we often think about renewables as one in the same, but there is a difference between the large utility scale type renewables and what we do at the home level which is really pushing out, using the rooftop to produce the power, using your electric vehicle to store the power,
getting a battery on the grid. what we are going to see is a system that will be much more reliable with the addition of this rooftop solar storage and electric vehicle. i really look forward to that. >> we have been talking to power scientistsors and that will use this as an opportunity to test their systems and software. is there anything you are doing during the eclipse? are you testing battery capacity for example? what are you going to be observing? >> for our customers, we have about 150,000 customers across the country. a full gigawatt of power. howertainly can test to see our systems will produce during the eclipse. and we will do that and record the data. we will also look at what the consumer patterns are. were we successful when we asked our consumers to bring consumption down? those are important learnings.
across the world happens 300 to 400 years so it is fairly rare. what we are more focused on is how we get the storage fees to be cost-effective so when there is a situation like this, we are able to fill up the battery with solar power and dispatch it to the grid when it needs it the most. sunrunthe c.e.o. of earlier on bloomberg television. millions of people watch the eclipse using special glasses and even virtual reality to catch a glimpse of an eclipse that last occurred in north america nearly a century ago. tom giles, a group of you went down. what did you see? >> we used everything from very boxphisticated cereal
viewers. i used some of the google glasses you tested out earlier in the week. we saw people looking with their naked eye. i wanted to shout over i do not think you are supposed to do that. in san francisco, it was a little cloudy, a little foggy. covered 70% of the sun. a little anticlimactic here. the thing about this eclipse given the ubiquity of social media, when we got back to the office, you could look on facebook and twitter and see the experiences of people across the country in the path of totality. i saw people posting photos saying my son just took this, it changed his life. i was listening to people in south carolina cheer as the sun went completely dark. for some people, it had a very profound impact. emily: i did cover a solar eclipse in china in 2009 and was in the path of totality.
going to complete darkness, there is a magical feeling. the temperature completely cools. you heard people talking about that across the country. it was the sort of communal moment. even the president watched. he got a lot of flak on twitter for looking up briefly without glasses. we are looking at him now. he just took them off. when he came out onto the balcony --there he is. >> very briefly. hopefully, he did not do much damage to his eyes. you could hear in the video people below the balcony shouting "don't look." this was one of those moments where this was an opportunity for the nation to come together and focus on something different. hopefully, wearing glasses. without a moment being upset i washington, d.c. and yet, here is what happened. the president found a way to
steal the thunder from this event as well. emily: yet again. everyone had a different livestream up. it was all over cable news. it was interesting to see how various tech companies from google to twitter to airbnb turned this into a business opportunity. >> really able to benefit from it. we talked to airbnb. there were thousands of people who rented their homes, many for the first time. surge ina huge listings because people were wanting to be there. if you look on google maps, you saw traffic patterns very red in the path of totality. emily: there were some folks in idaho who spent a lot of money and it rained. and yet, they were still happy about the experience. it was an all-around experience watch., to commute and
you are looking at people. >> people throwing parties. i was on a plane recently and a guy got sidelined going through security because he had a pair of goggles. there are only a certain number you are supposed to use. emily: he was prepared. tom giles, thanks for sharing your experience with us. coming up, how one u.k. lender is providing postgraduate loans to international students. we will bring you the latest next. this is bloomberg. ♪
outlaw smartphone used by pedestrians crossing the street. the proposed ban would have police issuing citations of $30 per violation. u.s. pedestrian deaths happen on the rise. there are no stats to show if tech played any role in the fatalities. to a story out of the u.k.. one fintech company is looking to help foreign students get loans. i want to hand it over to caroline hyde in london. they've just announced it has completed a fundraiser of $240 million helping more international students from emerging markets receive loans based on projected earnings rather than historical credit. aroundh is comprised of as by index ventures as well an unnamed global investment bank. i spoke with the founder and
c.e.o. and asked how the text portion will be used. >> we provide loans to postgraduate students starting internationally. they cannot get any sources of finance from local banks. if you're coming from guyana to study at oxford or harvard, the u.s. and u.k. banks will not look at you. someone with phenomenal potential has no access to funding. our challenge has been scaling the funding we have to lend through our platform. we are a fairly classic fintech platform making loans to international postgraduate students which are funded by investors. those include alumni from the universities and more recently a large institution which is our first institutional round of funding coming in. that will be used to expand the number of students we are able to fund.
we have a huge amount of demand to cover a challenge in scaling up the funding. this will be directly used to increase our ability to fund more people. caroline: what sort of returns are you talking about? how does the student go about paying it back? what sort of interest rate do they pay? >> it is a range of about 5% to 8%. the returned to investors, we discharge a platform servicing and upfront fee. getcally, investor will plus 4.5. about 6% over the life of the loan. students would typically go and study. they have a grace. studyingen they are and then have about seven to 10 years to repay the loan. caroline: what sort of credit rating do you give to individuals? how are you doing the background
check on the student? any unreliability in repayment? >> it was one of the most complicated things to get right. one of the problems the banks have lending across borders, the model is built about credit data in one country. you move one street across in london in the bank will think you are incredibly mobile and be worried about you. when you can move to singapore tomorrow, you are still on social networks. that concept of location and risk has changed. we had to think about how to assess people. we try to assess someone's ability to repay the loan. if they have the ability, will they repay the loan? which is fairly standard for credit. that meant we had to look at someone's future earning potential, but they will be earning after graduating from
stanford or harvard in a particular course from a particular country. we have a massive dataset from universities to understand the earnings potential. we have a scorecard to understand how much they can repay and how much we can give them. caroline: how do you continue to make it more precise? how do you continue to build it out? are you looking at ai and computer learning? >> we have a machine learning team. you are trying to understand what goes into understanding performance. you are refining that as you go. now we are getting more repayment data from our own portfolio. we started in 2007. we started before fintech was even a term. we are getting good data over a
long time so we can start to refine our model. absolutely, machine learning is something we see in the future as we start to expand products and think about where we are going in the next two or three years. it will become increasingly important. the base level is in place and has been tested over a while. caroline: where are you going in the next two to three years? you are already in 118 countries where you are getting students from. you are in european universities, asian universities, u.s. universities. is it just building scale across those countries? >> we think about it in that everything is going global, nationalism in a few places. the world is going global. financial services are nearly local. depending on where you are in the world, your access to financial services will be hugely differentiated in terms of what products you can be
offered. that is how the bank models have been built today. we think that is going to globalize and we are pioneers in that. we are building the infrastructure to be able to look at someone wherever they are in the world and assess their risk, fund against that risk, and you can think about different products from the most basic to you just arrived in london and no one will give you a credit card or bank account. you have 60 million people working outside of their home country as a starting point. how do you think about being able to service this globally mobile population without having this artificial constraint of national borders? stevens: cameron who still sees expansion in the number of international students and realization of their economic importance.
emily: digital dinosaur d.n.a. is causing the maker shares to shore. they hit a record high today after news they are developing it for p.c.'s and gaming consoles. shares have tripled in value since the start of the year. the company hopes to announce another franchise project in the next year. competition in the streaming space is set to get more intense. apple's $1 billion in spending on original content in 2018 will
allow it to create 10 new shows. it is entering a crowded field already dominated by netflix and amazon. netflix will spend $7 billion on content and 2018. here to weigh in, we are joined by michael wolf former president of mtv network. in anll can apple compete already crowded market? >michael: apple brings a lot to the party. they already have devices. they already have people watching on their phones and computers. they also have a lot of data. they know what people are watching and doing. at the same time, it is very difficult to produce hit tv shows. youtube is using data to be able to decide what shows they are going to produce. doing aple, they are spinoff of "the karate kid" because they know people are
arehing old clips or they doing shows about dancing because they know what people are looking at. in apple's case, it is not as easy as going to the content store and saying serve me up some hit series. it is very difficult to know what to produce. there is an old line in hollywood that nobody knows nothing which means no matter how many times you made a film, you may not know what makes the next tv show or film successful. i think it will be interesting to see how apple involves. at the same time, they are competing against facebook, youtube, as well as other that are already well established in the tv business. emily: facebook soon to unveil original series. youtube also spending big on original series.
is it a tossup in terms of who is better positioned to compete? are you optimistic about both? michael: it is hard to make a judgment based on their platforms. it comes down to who is able to produce it shows. a lot of that revolves around talent. directors, writers, stars, people they can put together. and of course, there is that bit of luck about what an audience will be interested in. both of these platforms, one of the advantages they have, especially facebook, is they have got hundreds of millions of arele in this country who going to that platform. if nothing more, they will click on that watch button to see what is there. when you look at an average of $3 million an episode and you are talking about 10 episodes takeeason, it is going to a long time to burn through that $1 billion.
at the same time, it will take a while to ramp up. it is hard. you cannot just go out to buy it. you have to build it. emily: we will be watching, literally. michael wolf, thank you so much for joining me for the hour. that does it for this edition of "bloomberg technology." we will be back tomorrow. this is bloomberg. ♪
♪ from our studios in new york city, this is "charlie rose." charlie: welcome to the program. with two big stories, the departure of steve bannon from the white house and the terrorist attack in barcelona. we start with a look at the cbs evening news report. >> the white house press secretary said john kelly and steve bannon mutually agreed on his exit. sources tell us the president had grown frustrated i bannon's rising profile in recent publications describing him as the mastermind behind mr. trump's campaign.