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tv   Bloomberg Technology  Bloomberg  October 2, 2017 11:00pm-12:00am EDT

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>> you are watching "bloomberg technology." at least 58 people were killed and more than 500 wounded after a gunman in a las vegas casino hotel opened fire at an outdoor festival. some were hit by shrapnel. others were trampled in the panic. the gunman, identified as stephen craig paddock, had as many as 10 guns. this is the deadliest mass shooting in u.s. history. the shooters home in a nevada resort town has been searched by investigators. local police say officers never had contact with him while he lived there. detectives are still trying to determine a motive. islamic state has claimed responsibility, but the f.b.i. says there is no evidence to
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support that. the white house has ruled out talks with north korea over its nuclear arsenal after secretary of state rex tillerson said washington and pyongyang had opened channels of communication. white house spokeswoman sarah sanders said now is not the time to talk. the supreme court kicked off its new year with justice neil gorsuch onboard for his first full term. the nine justices are taking up cases, forh-profile which they were shorthanded following the death of antonin scalia. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i am alisa parenti. this is bloomberg. "bloomberg technology" is next. ♪ ♪
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emily: i am emily chang and this is "bloomberg technology." coming up, oracle opens up , adding new features to take on amazon in the cloud. we will discuss the potential competitive advantage with the c.e.o. plus, damage control continues with a new status update pledging more clean up on facebook. the social network is adding over 1000 ad reviewers in the wake of the congressional investigation into russia's involvement in the 2016 u.s. election. and the big vote at uber on what could be the largest private stock sale in history. we will discuss the potential $10 billion deal and the race to keep travis kalanick in check. first to our lead, oracle is taking the fight to amazon. founder larry ellison is calling the new database service a revolutionary technology that will take the cloud computing business to the next level. the company says new features will improve speed, efficiency, and pricing.
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oracle, sales tied to the new cloud technology rose more than 20% in the last quarter and made up more than 16% of overall revenue. cory johnson caught up with mark hurd at the oracle openworld event in san francisco and asked about the announcement. >> it is called the autonomous database. it is not a highly automated database. it is truly an autonomous database. people spend hours tuning databases, trying to get them to perform and patch them, which has become a more well-known word over the past few months than ever before. all of this stuff that had to be done technically now is going to be done automatically, autonomously, done by us. there are a whole set of implications out of this. suffice it to say, it is extremely significant, a lot lower cost, much more secure,
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much more automated. it is a fantastic set of announcements from our product team. larry made that last night. cory: what is the technology that allows it to work, not just repairing itself, that -- itself, but more quickly? >> it is really all done in machine to machine learning. without getting into machine learning, when you get into the technology, we tried to stay away from that last night and talk more about what it does. it is basically our computers basically getting smarter and smarter. the more data the computer has, the smarter all of the decisions the computer makes. all of this -- something as simple as being able to scan your data, to understand potential intrusions, anomalies, i can go all of this in a lot of detail. i know we don't have a lot of time right now. this is basically technology doing the work.
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today, computers can recognize faces better than humans can. cory: i want to ask you about m&a. larry ellison said on the conference call recently there were not a lot of obvious targets for oracle, which seemed to me to be a different view on what is in the marketplace. you have a robust m&a team within oracle. is that a change with the notion you have acquired what you need to acquire and acquisitions might slow down? >> i would not expect much of a change in our behavior. we have always been disciplined. whether you hear from larry or me, you will hear the same story. we look at things that make strategic sense for us. we do not buy things to buy things. they have to make sense strategically. they have to make sense financially for us or we do not do them. and third, it has to be something we can run, that we can optimize when it gets inside the oracle family. we use those filters.
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i think the only point larry was making, compared to a decade ago where there were lots of potential targets, the market is consolidating. the market is changing. the market is dynamic. i don't think it takes a lot of analysis to say there are less targets than before. we will continue to be discerning. cory: there are proposals coming out of the white house, the notion of repatriation of assets from overseas. i wonder how that might change the plans. would oracle hire more or acquire more if there was a tax holiday to bring cash back? >> let's be clear. we have been running the company in a way to invest into the company regardless of repatriation. for us, we are hiring as we speak. as you look and listen to lots of different changes in our industry, that is not us. we have been investing. seven or eight years ago, our
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headcount was about 90,000. it is now about 140,000. some of that is m&a but a lot of that is organic hiring in r&d and sales. we would love to repatriate our cash to the u.s. and there is no question we would invest it in the u.s. cory: when i covered your earnings announcement, your competitors were quick to complain to me for some reason of your growth rate. i wonder what you make of your cloud growth rate and how it compares to competitors. >> let's talk about our growth rate. i would love it. thank you for asking the question. our growth rates are the highest they have been in years. last quarter, we grew the company in total revenue 7%. that is total revenue of everything. our cloud revenue was higher. revenue growth rate higher than any of our competitors.
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our bookings -- last year, we booked over $2 billion in new cloud bookings. this time last year had many people saying i do not think you will get that done. we did and beat it. our growth rate in q1 in bookings was higher than it was the year before in q1. there are lots of people that say lots of things. i say read the numbers. we are in as good a position. our applications business is growing. we made the biggest database announcement we've ever made. we are excited around here. emily: that was oracle c.e.o. mark hurd speaking earlier with cory johnson. cory johnson joins us from new york along with our guest host for the hour, david kirkpatrick. cory, do you believe what they say, that this can take on amazon in the cloud? cory: i think it is notable they
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think of amazon is competition. if you think about what oracle has done in the cloud, they have tried to offer apps. oracle was databases forever. you think about databases as the ground on which all applications will grow. the company 10 or 15 years ago took that database business and went out one by one and acquired software. over time, it grew these other vertical businesses on top of the horizontal base of the database. now everything is going to the cloud. they recognize all databases premiseill be on database but they will build applications on the cloud. they have a lot of success selling applications. what they are announcing this week is a real change in their cloud offerings of database. they recognize there is a much cruder product that has evolved at amazon, and that is a competitive set to have to take on at a price point
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different from anything they have done before. emily: david, oracle has been playing catch-up for some time. do you believe this is a moment when they can move to the forefront and compete with competitors at the top of the game? david: they're not going to gain the market reputation of aws in the next five years. that does not mean they are not the 50,000 pound gorilla in enterprise software that can have enormous impact. i think they are smart to be putting a lot of emphasis on security, which is the obsession of business leaders right now. if they can differentiate and say we are more secure than aws and we can respond to threats faster, that is powerful. i think they will end up being a comparably important player, possibly over the very long-term. the reality is aws defines cloud computing now and will continue to for the foreseeable future. emily: cory, how would you compare oracle to salesforce?
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cory: salesforce is doing one thing in cloud computing which is crm. oracle is also doing crm, but oracle is trying to do everything else. they are trying to do human resources management software. they are trying to do crm to compete with oracle. the database is the core of all of that. for them to have the most competitive database product in the marketplace is essential for oracle because there are lots of competitors. microsoft has a product. you have amazon's offerings on the database which are surprisingly robust. think a lot of people were surprised to see them offering rep. also, hosting oracle databases on amazon web services. for them to get database right creates a position for them to be strong on the enterprise. it serves to make sense of their sun acquisition on the hardware
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side. the notion these guys can make sense of this whole puzzle amazon put together, oracle is in a sweet spot to do that. emily: cory johnson, editor at large, thank you for the interview. david kirkpatrick, you are with me for the hour. coming up, tesla sales break records in the third quarter. we break down the numbers plus what it means for future demand of the model 3. "bloomberg technology" is live streaming on twitter weekdays at 5:00 in new york, 2:00 in san francisco. this is bloomberg. ♪
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♪ emily: now an update on tesla's
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vehicle deliveries in the third quarter. they shipped more than 26,000 cars and s.u.v.'s, including a record number of model s and x sedans. david, what do you make of the latest numbers? david: shares in the aftermarket atdes didn't -- did well first. i think people read the first paragraph of the press release and said great sales for model s and x. the shares shot up. as you read through, you see there are production bottlenecks for the model 3. that is the all-important car, the cheaper and high-volume car, it makes or breaks tesla going forward in terms of cash flow and profitability. i think investors looked at that and said, are we going to have another set of delays from tesla? they tend to miss production targets and scheduling. i think some investors said here we go again, and the shares are now down significantly from
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where they were close today. emily: elon musk has set ambitious goals. i believe it was to be producing 20,000 cars per month by the end of the year. does that seem plausible? david: this is early production. elon has said they would really get into the bigger production numbers in the fourth quarter. the fact that they are having some bottlenecks now is not surprising for the third quarter. the fourth quarter will probably give a better idea of where they are getting the plant up and going. investors see this as a company that has never done mass production before. the model s and model x have had good numbers but are still relatively small volumes. i think they are taking a cautious approach and thinking maybe we will not see a big boost to earnings and cash flow in the fourth quarter. it might take longer. until they see things smooth out, maybe they are being cautious. the shares are not tanking.
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they are just taking a hit after hours. it does tell investors this is a learning experience for tesla to get the model 3 going. emily: what are we seeing in terms of demand for the model 3 and how that is impacting demand for the model s and model x? >> that was a big question going to this. would people who could afford a lot more tesla just get a car allre when the s and x were that was on the market, and get the model 3 now? that does not seem to be the case. you can reserve a model 3. production has started. there is a lot of hype over it. if you have been waiting for your model 3, there is some inkling you could get it in the next year. the model s and model x did well. people are still buying them even though they have a chance to get in line for the model 3. i think that helped the shares early on.
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model 3 is make or break. that is the big car everyone is waiting on. there could be a wait. emily: david welch from detroit, thank you for the update. coming up, facebook is making a push to revamp ad buying. what the social media giant turned over to lawmakers, next. this is bloomberg. ♪
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♪ emily: facebook is planning to overhaul its political ad rules in the wake of the congressional investigation into russia's involvement in the 2016 u.s. election. the company plans to hire an additional 1000 employees to review ads that run on the site as facebook also says it now has handed over information to
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congressional investigators regarding the 3000 ads relevant to the probe. joining me to discuss, alistair barr and david kirkpatrick. alastair, we got news about what facebook handed over to congress. we also got a statement trump adam schiff, who said -- a statement from adam schiff, he said the american people deserve to see the way the russian intelligence service manipulated and took advantage of online platforms to stoke and amplify political tensions. this is from representative adam schiff on the house intelligence committee. what did we learn today? alastair: we got details on what the ads looked like. there were three examples that came out. one was a gun rights group. another was an lgbt group. another was for dog lovers that people are scratching their heads about. they think it is maybe to plant the seed to place political commentary later.
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emily: what is next when it comes to testifying before congress? what else? alastair: the interesting thing adam schiff said today is they are looking at how these ads were targeted. you can target very specifically on facebook. they are going to look at how these russian ads were targeted. this is a democrat speaking so you have to be careful. he said if there are any similarities between the way the trump campaign targeted their political ads, that will raise some eyebrows. emily: interesting statement from zuckerberg over the weekend. he posted on saturday on yom kippur, the jewish day of atonement. he said for those i hurt this year, i ask forgiveness and will tried to be better. i will work to do better. david, you know zuckerberg well. what do you make of that statement? david: it is kind of extraordinary. i think in the notes i sent you
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earlier, i was saying he is capable of admitting when he is wrong. that is the cool thing about it. he is not the kind of guy that can never admit error. what is interesting when i see it now is the idea he is more or less equating himself with facebook. that is sort of strange, isn't it, for a company that has 2 billion customers and one of the most profitable companies that has ever existed, etc. it is a weird moment we are in. certainly, no company would want to have been pulled as far into this election controversy as facebook now has been. i absolutely believe him that he wants to do the right thing. i think it is an enormous number -- right things he has before him to do and he does not even know how to do all of them. emily: alistair, is 1000 people enough? is it possible? alastair: the key to the advertising programs is they are easy to use and automated. one of the jobs these 1000
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people are going to do is check advertisers. you will have to authenticate yourself more than you had to in the past. i think there are 2 million advertisers on facebook. i imagine those 1000 people will only look at ads triggered by some sort of software algorithm as to this one looks mysterious, we better have a human look at that. they would need hundreds of thousands of people if they were going to have humans look at all of these. it will be a mixture of the two. emily: we saw this morning again the problem of fake news. we saw stories incorrectly identify the shooter in las vegas across the internet. david, is it possible to get a handle on all of this? david: i don't think anybody really knows. i think the problem is not just facebook, but in google and amazon, we have these new
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colossi that have disproportionate weight in society really from any other commercial enterprise in terms of communications and the way we live. i don't know whether we have factored in how to manage them or if the leaders of these companies have done that. i think it is a strange moment, like i said before. and we don't really know what to do next. emily: it is interesting. there is a great story in the "new york times" how fake news helped to start a rally in a small town in the united states, a political rally. obviously there are elections going on around the world of all kinds. can facebook stay on top of federal, state, and local elections around the world? alastair: i think this is a broader theme with all these big u.s. internet companies. they were built on software and automation. they are realizing now they are going to have to use a lot more people. i think the real challenge is going to come with whether the software they develop will be
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able to handle this type of thing with fewer humans or will they have to hire thousands of people? if they do, they will not make near as much money as they used to. emily: david, how do you think this plays out? david: i agree with alastair that doing the right thing will cut into profitability of facebook and google as these issues move forward. i will say i am confident zuckerberg and facebook will continue taking extremely aggressive moves on the social behalf of all of us trying to do the right thing. they really want to be good contributors to social concord. they are in a very difficult position. i think you will see congress come down on them hard. you will probably see some laws come into play that will apply to them specifically, which they do not want but will have to accept. that will happen in the e.u. and elsewhere as well. it is a whole new era for the relationship between regulators and these companies.
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emily: david kirkpatrick, you will be back. alistair barr, thank you so much. we will be back with more "bloomberg technology" after this quick break. ♪
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>> you are watching "bloomberg markets: asia." janet yellen says last week's of then is an example process working properly. she says it proves that a too big to fail institution can make itself less risky. frommaller scale field aig restrictions from the dodd-frank act. north korea has a second way of accessing the internet with a link from russia giving it live access over the weekend. cybersecurity from fireeye says tran telecom has had ties with
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pyongyang and its connection elements the original from china. the second link reduces u.s. chances of measuring beijing to turn off its connection. sales have resumed in japan that were suspended on news that check seven carried out -- checks were carried out by unauthorized staff for years. regulators discovered safety rules have not been followed. it is expected to cost more than $200 million. we have breaking news. we have paul allen with details. , the rba keeping cash rate on hold as economists were expecting, the aussie dollar dropping slightly but not massively so. some of the headlines from the statement. philip lowe saying the low rates
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are continuing to support the australian economy and unchanged policy is consistent with them economic growth. with sustained economic growth. the aussie dollar has come off a little since the last meeting in september. housing conditions are using in sydney, we saw that yesterday in house prices coming off a 10th of 1%. growth maysaying it be slower than forecast if the aussie dollar keeps rising, but inflation is inspected -- is expected to pick up. not a great deal of change from the rba. bias from the statement, either. the cash rate unchanged at 1.5%, not a lot of difference in the statement. angie: thank you.
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that was paul allen bringing us the latest on the rba. let's check on the market. sophie, how is the aussie dollar looking? sophie: it is trading near -- ion lows, ♪ this is "bloomberg technology." i'm emily chang. vanity fair summit is underway in l.a. it is an event that aims together the biggest names in tech, media, business, and politics to talk about issues and innovations shaping the future. on sunday, the new establishment list was released. a number of new names joined the most prestigious names in tech. joining us from l.a., jon kelly. i will be seeing you for the summit tomorrow. let's talk about this list. a lot of newcomers. who are the notable additions this year?
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jon: our list is different. it is not algorithmic. it attempts to measure influence. the list was going to have to change in the trump era. i think you will find names that would have been surprising in another year like robert mueller. like marty baron, like jim van high. what we are seeing more than anything is the collision of media and technology, platforms trying to get in front of as many people as possible. in the past, we have noticed some of the thematic changes on the list have to do with everyone getting into the technology business. now it seems like everyone is in everyone else's business. media is the way to do that in 2017. emily: what about the notable folks who fell off? i know you debate this. who does not make the cut this year? jon: i think what will get more attention is who dropped. some of it is not a surprise. evan spiegel on account of the rigors of running a public
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company. travis kalanick, obviously, suffered the same fate losing his job. adam newman had been on years past. one note close observers will pick up is it has moved from being about unicorn culture in silicon valley to being about where silicon valley meets wall street meets washington. it is a global domination of the conversation. all of these people and companies are fighting for your attention. we are trying to carefully pick the ones dominating that. emily: i found it interesting travis was on the list at all given the turn of events. he obviously did add the new ceo, dara-- new uber khosrowshahi. the uber engineer who kicked off the uber sexual-harassment investigation. david kirkpatrick is still with us. you know a lot of these people. what is your take on who made it and who did not, who moved up and down and which way? david: i love the list.
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it is a zeitgeist embracement. the range of people on there is quite extraordinary. i applaud you for having broadened it the way you have. it is an amazingly interesting aggregation. little things -- i happen to endorse the inclusion of katrina fix, i'm writing about them this week. that is an astonishing company that will be in the news more. travis kalanick belongs on the list. he is still making big waves if you're talking about power and influence. to have robert mueller below the tech leaders, it is astonishing. they get you thinking about what is happening in modern culture. emily: that is an interesting point, david. jon, how do you decide on the political side given the upheaval happening in washington and around the world? jon: to answer your previous question, we debated long and hard about where travis would be on the list. david makes a good point. it would be hard to disqualify
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him given the potential inroads he has to return as c.e.o. there are a number of board circumstances you could see falling into place for him. it does seem possible. to go back to david's point. we are trying to measure influence. i know on some level that can seem mushy, it is less algorithmic than other lists. what we are looking for is who has absolute power in the conversation, in the zeitgeist. we think about those things. this year, it was different. there are a lot of people doing civic duties, whether that is journalism or running a federal investigation, that have more influence and clout than people running some of the most influential technology platforms on the planet. david: i have spent 25 years at "fortune," so i know what it is like to be at a magazine doing a list. how hard is it to move around the pieces? you must be putting post-it's on
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the wall and having big debates. talk about what it is like figuring it out as a group and how many people are involved. jon: we asked about 10 or 12 journalists to join, not just staff. we wanted to be intentionally large and messy. this is the way the framers designed the constitution. we want to be able to have a large pool of names to choose from. the list we begin with is probably twice the size or more. you whittle it down. you allow yourself to change it up. there is a consequential meeting we have toward the end of the process where we go through it all. at that point we are down to for 100 slots. we are literally figuring out what the top 25 look like. are we being consistent? who are the most impactful media c.e.o.'s?
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we are looking in each sector to make sure we have those right. and then you play it out on a more global level. it is intentionally messy. it can be a pain in the neck in the last week. we do it intentionally because that is the only way to get it right. emily: jon kelly, editor of "the hive." jon, i will see you tomorrow. david, you are sticking with me. tuesday, bloomberg will be live from the new establishment summit in l.a. interviewing top tech and media executives. equifax is saying an additional 2.5 million u.s. consumers could have been affected by its massive data breach. the company says an outside cybersecurity firm completed its review and boosted the total estimate of impacted consumers to more than 145 million. the review showed no evidence the hackers accessed databases located outside the united states.
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the ceo will testify before four separate congressional panels starting tuesday. coming up, uber's board has a big day tuesday with a possible record-breaking deal. that and their london legal troubles are next. this is bloomberg. ♪
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♪ emily: now to a story we are
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watching on a new round of funding from in faced there's -- from investors including softbank and tencent that will help bankroll uber's rival in india. it will help continue the focus on india and build a supply of vehicles and drivers. tomorrow, uber's board of directors is set to vote on whether to continue the deal with softbank. as well as sweeping board reforms. the deal could be the largest private thoughts sale -- stocks fell in history. sale in history. the three major goals inside the board room are to create equal voting power among shareholders, move it closer to an ipo in the next couple of years, and limit travis kalanick's power. on friday, he shocked many by naming members to vacant board seats he controls. joining us from san francisco, eric newcomer.
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still with us, our guest host, david kirkpatrick. softbank wants to invest in uber. i don't understand how any of this make sense. basically, taking a stake in the biggest ride-hailers around the world. basici guess there is the thesis ride-hailing is a good business, you invest in all of them. they seem to compete in a zero-sum atmosphere spending money on subsidies that cut into each other. i think one of the reasons the softbank deal could get done is the hope it creates space for a grand bargain afterwards. that is on the horizon. right now we have to see whether uber is able to seal the deal. i think that is a hope down the road. emily: a critical vote potentially happening tomorrow in a board meeting about the softbank deal. what are the terms they are discussing? eric: it is going to be a crazy board meetings. we have had so many. it is a double feature in that they are deciding governance
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terms, how control of the company works, changing shareholder agreements and potentially board seats. that is part one. part two is that needs to happen for the softbank deal to go through because investors like benchmark have suggested they will hold up the works if governance reform does not happen. governance reform has been a major component of the softbank deal. we have two major pieces in flux. emily: what is your take on the new board members? are they travis' allies? are they going to be on his side? eric: they are certainly former titans of industry, people that could have legitimately been on uber's board in a normal process. there are lots of questions. the fact that they are willing to join the board in this strange process where the board is not consolidated. travis decides by himself. i think it has some people asking whether they make since
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to stay on the board long-term if travis loses the power struggle. maybe he will win with three people on his side. these two new board members, his seat. so much is unclear. it is not even clear if these new members will vote tomorrow in the decisions that will be made. they will probably be there. will they vote when they are playing catch up on everything? it is hard to say. so many questions. emily: david, the palace intrigue continues. what is your read? david: the only thing that compares to it is the h.p. board about 10 years ago. when there was all of that spying and everything. i think this is the most amazing board dynamic i have ever seen. listening to eric, who is so sage, makes me wonder if maybe they had been interviewed and were possibly being considered for the board anyway which kalanick would have known. what does he think he is going to get from them? that is the key thing i do not understand.
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these are not shy people. we will probably hear them get asked this in the near future. they will have to have some kind of answer. how much are they his people and how much are they objective board members like they ought to be? i am nonplussed. my jaw is hanging open. emily: exactly. eric: how independent these board members are is the big question. how much leverage does travis have over them? does he have the power to fire them if they do not vote like he wants? these are the questions being posed to me now. i think people are trying to figure out if we will embrace these board members and believe they are independent or not. emily: i cannot let you go without asking about london. uber's head of london is out. dara khosrowshahi is there this week. eric: he is flying there right now. emily: he looks to reinstate their license. eric: a peacekeeping mission.
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uber is still operating in london. it does not seem they will have to stop. the government is talking to them to figure it out. he is going to make peace with london. the far more important decision is at home. i am sure he will be calling in to work on his board problems at home while in london. emily: more to come this week, apparently. eric newcomer, our valiant uber reporter. david kirkpatrick, c.e.o. of techonomy. wonderful to have you. thanks so much for stopping by. coming up, u.s. regulators are growing concerned and investigating a popular exchange for cryptocurrency. we will bring you the details, next. a reminder of our interactive tv function. find it at tv on the bloomberg. you can watch us live, go back to the interview. this is for bloomberg subscribers only. check it out at tv . this is bloomberg. ♪
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emily: a change at the top. retire in junell of next year. the move will hand the helm to the company's two chief executives. the announcement confirmed long-standing speculation and establishes a formal secession plan at the manufacturer of chips for apple. he used his retirement announcement to issue a 2017 revenue forecast that surpassed analyst estimates. meantime, bitcoin and other cryptocurrencies have surged this year. but regulators and financial executives are concerned it is a bubble destined to pop.
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coinbase, a -- popular exchange, is facing scrutiny from the commodity futures trading commission, the cftc. regulators have requested more information about an incident in june when ethereum suffered a flash crash, plummeting more $.10 in a matter of milliseconds. we are joined by lily katz who broke the story. what more do we know about what the cftc is looking into? lily: the cftc have sent coinbase a letter with a list of questions asking for more information about the flash crash in june. we know they have asked about the initial -- let me back up and explain what happened during the flash crash. basically there was a big $12.5 million trade. that triggered all of these cascading sell orders. within 45 milliseconds, the
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price plunged. the cftc is asking coinbase for more information about the initial $12.5 million trade as well as about margin trading , which is something coinbase used to offer as an option. margin trading is when you borrow money to buy or sell more of an asset than you might otherwise be able to. coinbase has suspended that option. those are two by the things we know cftc is asking coinbase for more information about. emily: what do we know about how coinbase is currently regulated? lily: coinbase is currently agulated through sort of patchwork system of state regulations. they have licenses in a few dozen different states as well as puerto rico. they are not currently regulated by the cftc. it is kind of this regulatory gray area for cryptocurrencies. the sec said some of these might
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be securities and should be regulated as such. the cftc has said we think they are commodities. it is kind of a gray area. emily: we saw today goldman sachs is exploring starting its own bitcoin trading venture. you have regulators looking into this. you have legitimate banks looking to make a bigger bet on cryptocurrencies. what do we see more of in the future? lily: we definitely see more startup companies coming in and entering this space, and more established companies. it is interesting goldman might be entering. they could be a formidable competitor for someone like coinbase given how many more resources they would have and potentially the level of trust they might have with customers being an incumbent bank. emily: what do you see coming
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next when it comes to these regulatory issues? lily: hopefully we will see more guidance from the sec and cftc. in the last couple of months, we have seen china and south korea ban these initial coin offerings. it seems like what is next would be more either guidance or regulation from u.s. regulators. emily: what about the other cryptocurrencies, bitcoin aside? we were talking about ethereum. what trends are we seeing across the spectrum? thoroughly -- lily: with all the different cryptocurrencies, just this year alone, more than $2 billion have flowed into the initial coin offering space. we are seeing more startup companies and more concern there might be fraud in the space, which is why i think regulators are starting to crack down.
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emily: lily katz, thanks so much for stopping by. that does it for this edition of "bloomberg technology." tuesday, i will be reporting from the vanity fair new establishment summit. we will be on bloomberg all day with a great lineup of guests. including bob iger. reminder, we are live streaming on twitter. check us out weekdays, 5:00 in new york, 2:00 in san francisco. that is all for now. this is bloomberg. ♪
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