tv Bloomberg Technology Bloomberg August 23, 2017 5:00pm-6:00pm EDT
but his wealthiest donors, not so much. fortunes have risen just 0.6% since the election. the s&p 500 is up since then. chancellor angela merkel says she understands the support for the america first attitude, but she believes it will only hurt the country in the end. many see globalization as something that benefits one country at the expense of others. she says her view is that everyone can win. the israeli prime minister visited russia today to voice concerns about iran's expanding role in syria. after meeting with president putin, netanyahu said most of the conversation was about itselfattempts to base in areas where is long state is defeated and leaving. french president macron wants to protect workers in france and other countries in western europe from cheaper alert -- labor.
global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. "bloomberg technology" is next. ♪ emily: i'm emily chang. this is "bloomberg technology." coming up, samsung's attempt to steal the smartphone thunder from apple. introducing the new galaxy 8 phone ahead of apple's next big iphone event. mutual funds take into account uber's year of drama, slashing their valuations for the ridesharing giant.
of bitcoin surges, investor interest is only growing stronger. are we in a crypto currency bubble, and when could it pop? it's a redefining moment for the samsung note line as the south korean company unveils the brand-new note 8, the largest samsung phone yet. it could be its most important. after last year's exploding battery fiasco, consumers could be hesitant to pick the model backup. samsung feels confident that the problems are fixed and wants to move forward with what it hopes will be it's, quote, -- its, quote, "best mobile device yet." selina wang and mark gurman are with us. now that we've seen the official unveiling, what are your takeaways from a consumer perspective? mark: i love the bigger screen. i think that being able to replace a tablet and your computer by just one device, it's a great thing. a lot of people are going to
like that. when the note 7 was announced, everybody loved it until it started exploding. as long as they fixed the exploding part, they are in good shape. emily: how much do you think the him -- exploding issues will impact new sales? mark: it will be a joke for a few weeks. people have been laughing about it for the next -- last year. i think samsung will be laughing all the way to the bank. emily: selina, how did samsung sell this new phone? did they refer to any of the drama from last year? selina: there was a lot of excitement, a gigantic line. at the start, the addressed exploding -- they addressed the exploding smartphone issue. they addressed it with a sense of gravitas. an executive at samsung said, you know, we will never forget what happened, but we thank our fans for helping to inspire us and move us forward. a really big part of the presentation, the event was focused on the note loyalists.
the people who stuck with the phone even after it exploded and came back and were excited to buy the note 8. there was a lot of excitement. from people i spoke to, it seems they emphatically think samson has mostly gotten over the debacle of last year. about markettalk share. samsung regained the number one position in the global smartphone market earlier this year. apple, 12%. will the new note 8, the new iphone coming in september, the essential phone -- will that shake up the numbers significantly? mark: i don't think the essential phone will shake up the numbers. i think it will be a niche player. i think essential will be happy with that. they are probably not going to get a single percentage point. the chinese makers are right on apple's back. maybe they will cross them, maybe they won't. the iphone will be constrained for the first few months of the launch, the premium model. we will get a good indication of where the answer -- the iphone
versus apple -- the apple versus samsung fight will be. --ly: what do you think will selina: it will probably top what it did for the note 7 and the s8, which blew previous versions out of the water. excitementot of here. samsung is regaining its lead as the number one smartphone player. estimates say the united states, both apple and samsung have about 3/4 of the market. there's a lot of stickiness to the samsung ecosystem, so sales are pretty robust right now. emily: we talked about this a little bit yesterday, but remind us where samsung has the edge in terms of actual features, as compared to what you're expecting with the new iphone. mark: that's a good question, and i think it's something not a lot of people understand. samsung is heavily brutally -- vertically integrated. samsung has been ahead of the pack in some chip-related things, too.
the biggest thing -- the battery. they make some of their own components for batteries. they sell to apple. they make displays. they make their own screens. they also make apple screens. if i was in charge of samsung, why would i want to give my biggest competitor priority in terms of the screens? that's why you see the advanced screen technologies appear in the samsung devices three or four years before they do in apple. emily: apple has minimized its dependence on samsung. what our customers most excited asked what our customers -- what are customers most excited about? what do they want? selina: one of the biggest differentiators of the note is the gigantic screen and the infinity display, the curved edge, so that you get as much room as possible. because of that gigantic screen, you can do a lot more without having to scroll. you can launch two apps at the same time. say you are on your way to work and you want to have google maps
pulled up at the same time as spotify, you don't have to scroll back and forth as much. there's a dual camera lens on the back, so you can take more professional-looking photos. consumers were very excited about that at the event. you can have soft focus, focus more on the figure you are trying to take a photo of. the other big differentiator here is that stylus. it means you can write and draw on your phone, like you're holding a pen and pad. those are the main things that consumers were most excited about at the event. emily: there's one more topic i want to cover. "the new york times" out with a story detailing how apple's ambitions have become more modest since the inception. apple's ceo revealed to us exclusively back in june his vision for apple's role in the future of cars. take a listen. tim: we sort of see it as the mother of all ai projects. it is probably one of the most difficult ai projects actually to work on. autonomy is something that is
incredibly exciting for us, and, but we will see where it takes us. we are not really saying from a product point of view what we will do. we are being straightforward that it's a core technology that we view as very important. emily: so, the big question, of course, is what will they do from a product point of view, which is the one thing he wouldn't say. "the new york times" is talking about a shuttle service that will test this technology on the apple campus. what do you know when it comes to the latest on the car plans, aside from focusing on the underlying technology, rather than building a car it self? mark: it is a great story. it sort of detailed, similarly to our tech talk in october, about how apple started by building electric cars -- they want to take on detroit and tesla. they are building a car. they completely abandoned it when they acquired new hardware
engineers. now they are working on underlying software, as tim cook told you in your wonderful interview in june. we will see. are they going to just continue to make software? will they go back and build their own car? i don't think they've made that decision yet. emily: "the new york times" seems to believe they have made that decision. that they have said will use some of their software to test the shuttle service. we don't know if they will have an icar. who knows how expensive that would be. emily:, certainly a lot of details to be reported on. i'm sure you'll bring us new details as you have them. mark gurman, selina wang. thank you both. coming up, uber's year of drama is weighing down its valuations in the eye of mutual funds. which funds are cutting estimates for the ride hailing the gimenez? -- ride-hailing
closer to completion. just last week amazon sold $16 billion worth of unsecured bonds, in some part to fund the acquisition. blackrock, vanguard group, and t. rowe price have lowered their ober valuations -- uber valuations by as much as 15%. they have faced a persistent drumbeat of bad news, on top of an ongoing seo -- ceo search. valuationeld up its as assigned to employees, partners, and prospective competitors that it is a transformational, once in a generation company. any evidence that uber may be less valuable that in appears may scare off -- less valuable off it appears may scare employees and shareholders. .ric: 15% cooper -- uber
blackrock, just 1%. it's a useful sign, especially as this big softbank deal gets done and we don't know what the valuation for the secondary shares that are going to get bought, for people selling into that deal and people doing the selling, having these professional assessments of the company's valuation could give them a guidance. emily: that was my question. you've been reporting about new investor interest. is that happening at that $69 billion valuation? is it significant that the valuation would be flat, rather than increasing? eric: there certainly is strong interest from the company and insiders to see the primary valuation stay at $69 billion. emily: even if it is flat, is that a good thing? eric: it's hard to say, you note i mean? given the -- you know what i mean? given the circumstances, a flat valuation is the best they're
going to get. in the secondary -- in terms of what they are actually paying, netted out, it's going to be a lower value. emily: who is selling the shares, other investors, employees, former employees? eric: that's the big question. is benchmark doing the selling? is travis doing the selling? the range of the secondary sale that we reported was anywhere from 2 billion to 10 billion. you can get a sense of how uncertain people are about what the appetite for selling is going to be. emily: there are new numbers out from uber, showing fairly positive revenue numbers. gross bookings up 17%. trips up 150% in the last year. losses falling. what you make of the numbers? -- what do you make of the numbers? eric: they are good. it's all about perspective. uber is losing historic amounts
of money. if you annualized the $600 million losses they had in this quarter, you get to, like, $2 bi llion. if you compare that to amazon when they had their worst it loss --worst ebitda the scale is significant. they are still humongous compared to any company. emily: for most of that quarter, uber still had a ceo, even though the investigation was ongoing. it would be interesting to see the numbers for the current quarter. ch. sear labor day is approaching. they said they would have someone in place by then or at least have voted on it. jeff immelt seems to be the only name out there. there -- eric: there were reports that meg whitman was back in the mix. we have held our tongue there.
there's a lot of confusion, the idea that they had put her out there. it seems like jeff immelt is their main candidate. there have been these other candidates purportedly still in the mix. we will see. emily: do you think labor day is a realistic deadline? will we know by then? eric: i think everybody is exhausted and would love to see a deadline met, but it requires groups of investors who don't get along to get along. hard to say whether they are going to be able to meet the deadline or not. they would love to see it met if everybody can get along. emily: i'm sure you would love to see it met, too. eric newcomer, thanks so much. the debate over u.s. tax reform is coming into focus as congress is set to reconvene. u.s. house speaker paul ryan was at an intel plant on a tax reform business tour. ryan said the current tax code is, quote, "a junker." he talked about the chances of a government shutdown.
speaker ryan: i don't think a government shutdown is necessary, and i don't think most people want to see a government shutdown, ourselves included. congress and the house has all ready done its work on the issue. emily: ryan's comments just a day after president trump said -- threatened to bring the u.s. government to the brink of a shutdown if needed to pressure conference -- congress into funding a border wall with mexico. coming up, after the events in charlottesville, virginia, tech firms have all taken a stand against neo-nazi groups, but the debate in silicon valley over its dealings with hate and hate groups continues. a feature i want to bring to your attention, our interactive tv function. watch us live. if you miss an interview, you can go back to it. send our producers and message. click along with the charts. this is for bloomberg subscribers only. this is bloomberg. ♪
emily: the success of apple's iphone has caused a ripple effect in the airline industry. china airlines have surged more than 30% in the last eight days, adding more than $4 billion to its market cap. eva airways had its best week in a year. they expect to benefit from taiwanese supplier orders from apple. since the events in charlottesville, virginia, a surprising topic has come to the forefront in silicon valley. deep-seated divisions about how far tech companies should go to silence hate groups, specifically nazis. can and should they act on moral judgment alone? max chafkin explores the topic. max, you point out that a lot of
these ceos, tech ceo's got a lot of praise for denouncing nazis, when that's not exactly heroic, but just an obvious thing that you do. explain. max: one of the sort of interesting things that has played out over not just the past couple of weeks, but the past six months, is that silicon valley has had kind of a hard time navigating the era of donald trump. that's partly because, even before the election, there was all this controversy around companies like facebook and google, as to whether or not they were media companies or technology companies. if you are a technology company, then you don't have to take any responsibility for any of the content that is on your platform. if you are a media company, obviously you do. these companies want to be technology companies. they are valued higher. you don't spend as much on content moderation. the thing that happened two weeks ago, suddenly these companies realized, hey, maybe
we have to take at least some responsibility. that came to the forefront when google and go daddy and a bunch of other companies took down a nazi publication that had basically been on the internet until then. cloudflare was the last of those companies to cut off the daily stormer. it has taken a more laissez-faire approach to these things. we had the ceo on the show, and he said he is still uncomfortable with his decision to take down the site, that ultimately he did so because the daily stormer was claiming they had cloudflare's support, quote-unquote. he believes no person, no company should have the power to do such a thing. take a listen to what he had to say. >> we turned to the experts in terrorism and illegal content, law enforcement, regulators. we say, here is this content. what would you like us to do? that feels like the principle of areprocess, that they
politically enshrined organizations who can make these decisions, as opposed to these decisions being made based on the political whims of me or mark zuckerberg or jeff bezos. emily: he is arguing that internet companies should be regulated more like utilities, that this decision should be out of their hands. what do you think? max: i don't know that he's really thought through that one. if you are regulated as utility, you were about burdens -- you worry about burdens. that creates a whole additional set of burdens. there are price controls. there's a whole bunch of stuff that, if you really think through it, you don't necessarily want. the other thing i would point out is, this is not something that necessarily has to be solved by law enforcement or the government. free speech lets businesses do business pretty much with whoever they want. they point out in the article, if you own a bar and some of the
is spouting off about nazi believes or whatever, you can throw them out. cloud floor -- cloudflare or google can choose not to do business with anybody. i think we have seen that is possible, in the sense that the daily stormer is still available. it's a little bit grandiose to think that cloudflare or google or any other company has to have some kind of grand governments system -- governance system to deal with the bad actors. they can just get rid of them. emily: is it a slippery slope? where do you draw the line? max: that's the counter argument. if they get rid of the nazis, maybe they will get rid of the black lives matter activists. frankly, i don't put a lot of stock in that. the fact is that there are multiple competing companies. they all want as much business as possible. i don't think it's too hard to see the difference between, you know, white supremacy and some activist causes. we can count on our business
leaders to make those distinctions reliably. i think the slippery slope argument -- it mostly serves to allow these tech companies to wash their hands of making some hard decisions. emily: we will see if they indeed make those decisions. max chafkin of bloomberg's businessweek. call it the crypto effect. chipmakers ride the wave. can it last, or is it a bubble about to burst? if you like bloomberg news, check us out on the radio. listen on the bloomberg radio app, bloomberg.com, and in the u.s. on sirius xm. this is bloomberg. ♪ ♪
a statement adds that he, the president, and their teams are, quote, "in regular contact." this comes after "the new york times" reported that the relationship between the two had deteriorated in recent weeks. house speaker paul ryan responded to president trump's threat to shut down the government if congress doesn't fund a wall on the border with mexico. speaker ryan: i don't pick a government shutdown is necessary and i don't think most people want to see a government shutdown, ourselves included. congress in the house has are the done its work on this issue. congress needs to pass a spending measure to keep the government open by september 30. france's interior ministry says some of the men suspected in last week's deadly attacks in barcelona visited the paris area two days before hand. officials are trying to determine what the suspects did while they were in paris. russian president vladimir putin met with vatican secretary of state in sochi today.
president putin said that russia values a, quote, "trustful and constructive dialogue with the vatican." president trump's emergency management director is pushing for an overhaul of disaster relief. he tells bloomberg that states, cities, and homeowners should bear more of the costs. he says taxpayer should not be on the hook for homes that keep flooding. global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪
samsung introducing a new galaxy note 8 phone, a redefining moment potentially for the product line after last year's exploding battery fiasco. the timing coming just ahead of apple's next big iphone event. how important is this to the future of samsung's business? selina wang went to the phone unveiling earlier today to look at the new device. selina: i'm here in midtown manhattan for the grand unveiling of samsung's galaxy note 8. the stakes are very high for this phone to succeed since it believes version -- its the latest version says the galaxy note 7 was recalled after reports of catching on fire and exploding. let's go ahead and take a look at it. note has always been samsung's biggest phone, one with a screen so large it's been compared to a tablet. now that screen is getting even bigger, measuring at 6.3 inches to be exact. the note 8 has an improved camera with two lenses on the
back of the device. it supports faster networking tech for browsing the web and downloading content. -- can question remains samsung win big with customers after last summer's note seven debacle? samsung killed off the smartphone after customers reported problems of early note and even theloding replacement phones catching fire. the whole fiasco costs the company -- cost the company an estimated $6 billion. >> we won't really know if it gotten over the note 7 debacle until probably early 2018, when the phone has been out there long enough and people have tested it. selina: but that's not the only problem the company faces. it a fact of samsung is on trial for bribery and embezzlement -- the de facto head of samsung is on trial for bribery and embezzlement. >> they are inextricably tied to the brand of the company. other companies, for instance apple's tim cook, is different. he represents the company.
--y few consumers, even very few consumers even know who runs samsung. selina: it faces competition with apple and other competitors in asia. apple plans to roll out its highly anticipated iphone eight in the coming weeks -- iphone 8 in the coming weeks. >> if you do a feature by feature comparison and what is rumored, samsung has a very strong lineup. selina: samsung regained its top spot in the global smartphone shipments earlier this year with 23% of the market, after losing ground during the note 7 scandal. can samsung hold onto its top spot in the increasingly crowded smartphone market? only time can tell, but one thing is for sure. by keeping the same note branding, samsung is making clear that the note 8 fixes any problems of the past. emily: our bloomberg tech reporter selina wang there in new york. now to cryptocurrencies.
as and nvidia have rallied bitcoin has surged. both have seen a drop in the last few days tied to bitcoin market correction, however with less volatility. joining me, bloomberg's caroline hyde in london. take it away. josh: -- caroline: i'm joined by peter denious, the global head at aberdeen. he joins us now. welcome to "bloomberg technology." we could -- were hearing how you can gain exposure encrypt knowcurrency -- in cryptocurrency. you are looking at funds that are investing in block chain startups, in ipos, digital currencies. what makes a fund stand out to you?
peter: it is early days. we are seeing a tremendous amount of excitement and cryptocurrencies. it's been pretty slow for the venture capitalists to jump in and invest in the sector. we are seeing some new fund offerings. it is trying to figure out how experienced are these , have theye sector been thought leaders in the sector, do they have any experience either in investing in these offerings or working with the underlying companies that are behind them. caroline: when we talk about exuberance and excitement, i want to show our viewers what we've seen in the bitcoin price alone, now trading at three times where gold prices have been trading. 2426, you can see this on
a graphical basis. the euphoria is there. we were talking about one confirmation, a new vc-style fund. in want them to have money the start up, not just in the digital currency, the so-called ipo they issue. perspective,ur remembering that we invest in venture capital funds on behalf of our clients -- from our perspective, it seems to make a bit more sense if we have capital both in the company as well as in the underlying token offering through the fund in which we are investing in. frankly, like i said at the outset, it's still very early days. you have so many different approaches and business models at the underlying company level, at the token level. it is frankly still just being defined. this is really an emerging asset class and changing literally
every day. caroline: and regulation changing literally every day. talk to us about the regulatory environment. in and is weighing wanting to start regulating. with this become a global thing? -- will this become a global thing? peter: the regulatory bodies here in the u.s. -- the sec has opined that some of these tokens could, in fact, be deemed securities and therefore they are going to be subject to regulation. that is, frankly, a good thing. a lot of that $1.8 billion that has been raised by these offerings, we believe has been, you know, pretty fast and loose, if you will. with more clarity from the sec, we will see the quality bar rise, and that can only be a good thing when we talk about the long-term sustainability of this market. because we certainly don't want
to see it implode with a lot of fraud and poorly designed offerings and companies that are behind them. caroline: long-term sustainability of the bitcoin price -- do you see it remaining, or do you see a crash coming at some point? peter: i've gotten that question before, and i tend to be more on the bearish side as it relates to the current price of bitcoin. but -- and i think that's really driven, frankly, by the capital that's in bitcoin today. a lot of that capital is highly speculative capital in our estimation, because we just haven't seen a lot of institutional capital get invested in currencies, more broadly, in these tokens. theour sense is a lot of bitcoin price has been driven by speculation and a fear of missing out.
i think it will take some time for that to settle. we try and think about these markets in more decade-type time frames, as opposed to yearly or daily. we are bullish on block chain in general over that period of time. we think there will be a tremendous amount of continued innovation in this area and that there will be an opportunity for institutional investors to continue to invest or begin to invest in the asset class. caroline: very similar sentiment we were hearing from mark cuban yesterday, that he believes in the underlying technology, perhaps not always the assets that are being sold. when you look at volumes, particularly in bitcoin, a high-volume comes from japan. what about the breakdown of your at clients and interest aberdeen? how is it regionally breaking down? peter: it is a global market, a global dynamic. we do have a global investor
base. y, i think that investor base is looking to us to make sense of it. it's a very confusing highlighting them -- very confusing, highly dynamic asset class, changing literally every day. as i said at the outset, what we are trying to discern is just how this new business model and this new asset class can impact or will impact or some might say disrupt the venture capital industry. they're implicitly asking us to sort of make sense of that in either invest or not invest and do so on their behalf as stewards of their capital. caroline: one confirmation is one of the new bc funds -- vc funds, seed funds looking into the cryptocurrency and block chain space. what other funds do you have your eye on? can you tell us where the interesting funds are springing up from?
peter: most of the investment opportunities we've seen that the fund level have been here in the u.s. i think that makes sense given the depth of the institutional market here. we have seen some funds outside the united states, but, again, we are just at the outset of this. we are certain that more funds will be coming to market here in the next 12 to 24 months, but t hat's basically -- it's been a u.s. phenomenon so far for the most part. caroline: peter denious, it's been wonderful having the time with you. thank you very much. head of global vc for aberdeen standard investments. emily? emily: thanks so much. coming up, ibm ceo ginni rometty is one of the most identifiable tech leaders in the world. we will hear what she has to say about advising heads of state. this is bloomberg. ♪
musk is at it again, this time bringing us a peek at the future of space travel. the spacex ceo took to instagram, writing "first picture of spacex spacesuit." "was incredibly hard to balance aesthetics and function. -- function." the spacex suit will be used for manned missions in outer space. the engineer who was fired by google after he criticized the company's diversity policies has hired a notable lawyer to represent him. i interviewed him earlier this month, and he has announced plans to sue the company. he set off a firestorm with a 10 page memo blasting google for
its, quote, "left bias." it was widely reported months ago that he was a contender for a top job in the u.s. justice department. now, to a conversation with ginni rometty. she sat down with david rubenstein in the latest episode of "the david rubenstein show: peer-to-peer conversations." david: when you meet with presidents, do you see other ceos willing to say, that's not a good idea, let me give you my thoughts? that: my experience is people are respectfully honest and give their opinions. just as there are times, whether it's a president or prime minister, we agree and times we don't agree. in our case, here as an example with the paris agreement, we believed that america should
stay in there. we shared our once on that. -- our viewpoints on that. emily: catch the full conversation with ibm ceo ginni rometty tonight on "the david rubenstein show." coming up, does the idea that an enemy's enemy is a friend work in business? which companies are partnering up to take on amazon. bloomberg tv will have full coverage of central-bank leaders meeting in jackson hole on thursday. our interview with esther george. catch that conversation at 7:30 a.m. eastern time. this is bloomberg. ♪
thousands of items for delivery. by next year, the service will include groceries and allow shoppers to pick up their orders at walmart stores. amazon shares slipped about 1% on the news, but will this partnership the enough for walmart to close the gap? here with me on the set, arun sundararajan, author of "the sharing economy." joining us from new york, matt townsend. tell us how this partnership is actually going to work. matt: walmart is going to be --ling its, the first time its products, the first time it has sold outside of its own universe, through google express. you have a google assistant at home, a voice-activated device. you could say "i need more toilet paper," for example, and the order would go directly through the google system and you would get toilet paper shipped to you from walmart. emily: google express has had
its stumbles. there are other vendors on the service, target, costco, bed bath & beyond. arun, how big of a threat is this to amazon? arun: i think it's a really big threat. you're combining the ai and device power of google with the retailing expertise of walmart. i think it's a win-win for both walmart and for google. you look at the online retail landscape, look a few years ahead, and there doesn't seem to be anybody who poses a serious threat to amazon. when you combine google's strengths with walmart's strengths, it's still really early days for online retail. less than 10% of u.s. retail is online. emily: yet amazon has spent 20 years laying groundwork for this. how much of a head start to they have? arun: they certainly have an advantage. they have the devices in the home, and they have the 55% of u.s. customers -- prime
customers. they've got the largest techs asked -- tech expertise and, like, 20 years of experience, but i think google is ahead of them on the voice and ai technologies and the intelligent agents that will power retail in the future. espite amazon's rapid growth, walmart is still ahead of them in the basic retailing space. emily: matt, walmart is also working with uber to deliver groceries in a few cities, orlando, dallas. how do all of these efforts come together? matt: it's really a big play for every day essentials, so the jet.com founder who now oversees all of walmart's e-commerce -- his big idea about the e-commerce space is, for the most part, it's only been a few categories that have gone online in a big way. grocery and essentials, like toilet paper and toothpaste, have not yet. that's what made jet.com
successful. that's what he wants to do with this relationship with google and uber. the uber relationship is for stores to -- for uber to partner with walmart for online pickup of groceries. you know, the percentage of sales coming online for groceries and essentials is much lower than, say, apparel. it's an opportunity for walmart to make a play and drive growth in this specific category that hasn't gone online as much as other categories. arun: and, in many ways, this is sort of the central point. companies like uber, amazon, postmates, they are indexing physical world stores now and making them searchable. but it's going to be that device, that home that is ai-powered, that's going to be matching my "i want toilet paper, i want to , -- toothp
with theks" appropriate retailer. for walmart's to be inside that device, so to speak, is central to their future. amazon has the lead because they have the store and the device. emily: a lot of commerce hasn't gone online. that's a big opportunity. how much commerce won't go online? i do a lot of online grocery shopping, but i went back to going back to the store. i got what i wanted. arun: i think we will hit a double-digit percentage this year. we could probably get to 20%, 25%, 30% over the next decade. a wasificant fraction is going to be in person, especially specialty, but general retailing will go online. the denominator in some sense is so big. -- retail is $20 you're talking about a shift of
$500 billion in the u.s. that's a tremendous amount of opportunity. emily: arun sundararajan and matt townsend. thank you both. and that does it for this edition of "bloomberg technology." we are live streaming on twitter. check us out weekdays, 5:00 p.m. in new york. that's all for now. this is bloomberg. ♪
>> from our studios in new york city, this is "charlie rose." it is the end of summer and as we prepare for the next season, we bring you some of our favorite conversations on charlie rose. justice breyer: the most i can do is my best. everyone of us has really tried to do his or her best. you're putting out. and as you get older, it becomes a privilege. more and more. you have a job you can go in everyday and