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tv   Bloomberg Technology  Bloomberg  October 18, 2017 5:00pm-6:00pm EDT

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and rebuy -- rebuilding effort. much of the island remains without electricity several weeks after maria struck. jeff sessions says he will not be revealing confidential conversations he had with .resident trump testifying before the senate judiciary committee, sessions said the president is entitled to have private conversations with cabinet secretaries. the committee will press him on those conversations, particularly about the firing of james comey. a manhunt is underway for a gunman who opened fire at a maryland office park, killing three coworkers and wounding two others. he is identified as a 37-year-old. there is not a motive to the shooting. roger goodell believes all for theshould not stand national anthem. he said he did not commit to making it a rule and making it mandatory to stand for the anthem.
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global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. parenti.a this is bloomberg and bloomberg technology is next. ♪ emily: i am emily chang, and this is bloomberg technology. coming up, a new twist in the investigation into election interference. this time, the trail does not lead to russia. how facebook and google are implicated in anti-refugee campaigns in u.s. battleground states. and coverage of the wsjd conference. one about big plans to take the future.
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and after a disappointing box office summer, disney doubles down on fantasy. why a musical animation and the force will pack theaters this fall. and first to our lead, financial execs around the world are bearish, fearing robots will eliminate jobs on the trading floor. consultant in charge of deploying technology for bloomberg said robots will take on tasks currently performed by humans. has already predicted they will wipe out 235,000 jobs by 2025. here with us to discuss the growing influence in the world and other industries, the founder of activate. he has his top predictions for 2018 at the conference. thank you so much for writing. -- for coming here. automation will have a grave
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impact across sectors, but in the finance industry in particular, what do you think? michael: we have already seen the robo advisers like intermittent wealth front already managing accounts, and they are making financial banking accessible to people that cannot afford it. now we will see automation going to other parts of the finance world. some of it is expertise automation and augmentation. it is taking jobs where a lot of judgment has been applied in the past, providing tools to help those people. it is natural a lot of these jobs, whether it is bond trading or sales, those are jobs that yes i'm a there is a lot of routine tasks involved -- yes, there is a lot of routine tasks involved with them. automation should replace parts of them. emily: what about other sectors like on a faction --
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manufacturing? michael: i think we will see it in those jobs that require a great deal of expertise, but that expertise can be managed another way. a great example is the legal profession where lawyers are performing tasks that have to go through documents, go and find certain things using natural language search. using artificial intelligence to highlight and translate those into law, that will be important. emily: could ai take jobs in technology itself? when you think about the top stuff facebook is doing with ads, curating of content, flagging and filtering of content muslim of that is done by humans, but the goal is to have that -- filtering of content, some of that is being done by humans. the goal is to make it automating. michael: we need to have actual
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human actions versus machine learning. but a lot of the tasks in computing, they will be done automatically. so some of the most basic programming, a lot of those things that a couple of years ago would have required expertise, that expertise really can be done by computing. emily: something else you predicted, of the giants, apple am a facebook, amazon, they will -- apple, facebook, amazon, they will compete on the same turf. michael: one of the places is ai. what they are most concerned about -- we hear about this with speakers, every company has a smart speaker, every company but facebook. every one of them has a digital assistant like google assist, siri, and why are they so focused on this? they want to own the first -- the front and between ai and user. they will be competing.
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they view owning that front end as part of their manifest destiny because it is the control to their business, e-commerce, search, media, whether it is social and communication. that is where we will see the complete, and it will be -- see them compete, and it will be ferocious competition. we have got tencent and alibaba end line. -- and line. they will be doing the same thing, launching artificial intelligence, digital assistant, and they will be delivered through a speaker, then later on through every consumer electronics product. emily: so google, amazon, do you see all of them maintaining footholds in this area, or do you see one or two dominating the market? michael: we believe the smart speaker market will peak in two
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years. part of the reason for that is those digital assistants will be golden into every other device, whether it is your heart or your toaster. there is a lot of devices that you can use more than once. there is a speaker that uses alexa, but in the future could use alexa or google assist. emily: when it comes to the assistance themselves, -- assistants themselves, is one becoming dominant, tied it to the smartphone you are using, or is that multiple assistance and survive? -- assistants can survive? michael: i think multiple can survive. there is nothing that will stop them from being four standards in digital assistants. huge discussion about
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the power and responsibility of these platforms as you know, facebook, google and twitter will be speaking before congress november 1 to talk about russian meddling on their platforms. do you think the reputation of these platforms is tarnished by this, or is this about security? michael: what has come out already is the tip of the iceberg. they are trying to minimize the impact are talking about small and campaign. in a lot of ways what is -- ad campaigns. in a lot of ways what is driving fake news is fake friends. they will have a huge impact on their reputation. emily: what do you mean fake friends? michael: there are hawks were people who are posing b. or people who are posing. they were posing either as americans that did not realize they were working for russians or they were bank accounts
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managed by people. emily: do you think it is a significant proportion of the accounts or a problem? problem it is a massive because in twitter, if you look at people's accounts, there is lots of box. when you look -- bots. when you look at facebook, how many of them are people? you will find people you don't know. this is part of the whole problem, not just in terms of social but in terms of advertising, fraud, and other things plaguing these industries. it will hurt their reputations in the longer term. near-term they will clean it up. emily: all right, thank you. think you for sharing your predictions with us. ebay is out with earnings. its shares rolling in late u.s. trading as the company got adjusted earnings in the holiday fourth quarter. $.57 to $.59 per share, the
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estimate was $.60. he did meet estimates for the third quarter. another development for online political ads used in last year's election as we were just discussing. how facebook and google were involved in a campaign that anti-islam messages. and bloomberg technology is live streaming on twitter. check us out weekdays 5:00 in new york, 2:00 in san francisco. this is bloomberg. ♪
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♪ emily: one thing is for certain when it comes to bitcoin, there will be volatility. at the trading session, the cryptocurrency had its worst day in a month. commodity trading commission published a primer on the asset class where the virtual tokens
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were used in bitcoin operations can come under oversight. they have got tokens from some ipo's insecurities under its oversight. now to the russian meddling in the 2016 election through advertising on social media. google and facebook are being scrutinized for helping the anti-refugee campaign in swing states during the final weeks of last year's election. but this time the and did not did not, russia -- ads from russia but from an american campaign in collaboration with facebook and google. nevada and north carolina saw islamic -- plenty of comic ads in their feeds. this is a fast -- anti-islamic ads in their feeds. this is a fascinating story. who are these groups? >> it is called secure america
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now. they are a nonconservative political group. they chime in on conservative causes. we don't know their donors. it is a nonprofit, but their messages were a mix of anti-islam and anti-hillary ads. what is surprising is google and facebook, they have self-service ad platforms. candidates and companies can come in, but what was not known is the degree to which they roll up their sleeves and actually help orchestrate these campaigns and better target ad dollars and get them set more efficiently. that is what they did with this group, putting out anti-islamic ads. emily: so how do they help this campaign? benjamin: so it ranges from troubleshooting how to better use the system and how to use targeting mechanisms. on facebook they were trying to target some of these anti-islamic refugee at the
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swing state voters. they wanted to go after he islamic -- hispanic voters around the las vegas area. they needed help how to best utilize the system. facebook and google do this all the time for major advertisers. if you are procter & gamble, you will spend tens of billions on ads, they will help you. they were doing the same thing here with these political groups. emily: so what are facebook and google saying? benjamin: they are not talking to us on the record. they do not -- they did not want to engage with us. a google spokesperson told me they eventually blocked some of these and they were running. but that is sort of the extent of it. if ads run against our policy, we will cut them off, but it is not clear how long these ads ran on google before they were discontinued. emily: how is this different from the russian interference legally speaking?
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benjamin: this is perfectly legal, and a surprise people have had with this is these companies would actively engage with the groups on the fringes of the clinical spectrum. but it raised -- political spectrum. it raises questions on how the russian meddling potentially impacted the election in social media. here is one other area where this occurs, were these nonprofits can funnel a ton of money into ads, and people don't know why is this at, why is this showing up in my facebook feed? you don't know who it is coming from. it is a transparency issue. facebook and google will be pressed to better disclose who is doing these in the future. emily: fascinating piece, thank you so much. paypal,p, he cofounded now he has his sights on ending predatory lending. this is bloomberg.
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emily: cnn has received a waiver for allowing routine drill flights above clouds. the milestone for the agency seeking remote control devices from insurance expections to covering news. the approval was the first time a government agency has granted a waiver for flights over people. previous exemptions allowed flights of drones over people in operations only when tethered with a max height of 21 feet. for this week, top business leaders are gathering at the conference in laguna beach. i spoke with max. he found paypal. in my interview with him, i asked about the trend he is seeing in the lending arena now.
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take a listen. >> we are just about ready to -- enter this new market where companies good at managing ,isk, smart at reserving setting up for long-term success will pick up stragglers who don't have capital or management teams, are not ready to take on risk management demands and regulatory demands. emily: what do you see happening with predatory lending for example? max: i think the promise of fintech, what we have all come here to do is get rid of predatory lending. it is to shine a spotlight on what is the wrong way of doing this, bringing more acts of into the darker reaches of the pawn shop's. i think the opportunity is still there. we are all working on it very hard. the dense has been made, but it is small. , but it is been made
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small. a lot of people have no access to credit. emily: talk about the newest development and how you are trying to combat these trends. so we have been scaling steadily over the last five or six years we have been around. we are very focused on this idea of honest finance, delivering a low-end product to a consumer, tailored to the purchase they are trying to make with transparent pricing, something we can commit to that will not change. no hidden fees or interest rate changes, things that hurt consumers and give the industry a bad name, deservedly anyway. we have been working on that for a long time, and we have picked up a lot. we have been hovering well north of 80, which traditional banks have a negative score.
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it is in a compliment i am proud of. one of the things we have been able to show at this point with real data is we opened our credit access. proved 30% more, so we are actively bringing credit access to audiences that are traditionally excluded. best way of doing it, create responsible vehicles and lend money to those who cannot afford to get it but provide guide rails that they do not go into a cycle event. emily: the equifax hack has been in the spotlight on the hundreds of millions having their private information stolen. you were asked should equifax even exist given credit bureaus should exist, but how do we avoid risks like this? max: i think it is the new reality many traditional players have not come to terms with.
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security is no longer optional. it used to be the joke in the security industry that cryptography is only after wanted after the day your house burns down. so with this latest incident, people must stay loud enough on the alarm that it teaches the industry, do yourself and your customers a favor. encryption data, have security practices. there is a lot of time showing how easy it is to fix the problem. we should not have to have that. emily: i am curious your thoughts on bitcoin. jamie dimon says that coin is a fraud. what do you think of cryptocurrency? max: i think it is a developing story in a sense that from a skeptical perspective, it is a hammer looking for nails. anytime someone is looking for a currency based company, they
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say, can this be done without bitcoin, and nine times out of 10 it is yes, it is unnecessary to bring cryptocurrency in. but the problem of cryptocurrency and the ledger and inexpensively creating fully distributed verifiable trust is really powerful. i believe we will converge on andept and companies fundamental improvements to our society through the use of blockchain. i am not sure what they are yet. emily: i recently interviewed bill marries, former ceo of google ventures. he suggested the sun is setting on silicon valley. there is influx of foreign capital of billions and billions of dollars from softbank that is changing the landscape dramatically. he said for investors, -- what changes are you seeing in the investing landscape and valuations? would you echo this idea that the sun is setting and the way
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we have been doing business up to this point? max: i think that is right. no one can ignore the asteroid in the room, that once they are involved, the valuations become very different if they are involved. i think that is a backdrop, but probably more to the trend is the fact it feels like we are in the later stages of this don't go public, raise late stage money, the idea of companies being told by their investors in no certain terms it is time to prepare yourself for being treated. seems to be -- traded. seems to be an emerging theme i don't find unwelcome. so in general, i think it is probably for the better in a sense that we are swinging back to more accountability and transparency, something that i
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am happy about. emily: my exclusive interview with a firm ceo and paypal cofounder max left jen. -- max levchin. we go back to the conference and have more on facebook. how it will become the default messaging app. ,nd if you like bloomberg news check us out on the radio. listen on the app, on sirius xm. this is bloomberg. ♪
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mark: i am mark crumpton in new york. "bloomberg technology. you are watching" says he faces a once-in-a-lifetime opportunity
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to overhaul the tax system. pres. trump: the timing is right. i have promised not to mention the names of the people on the other side, but a lot of people are liking this very much, and i think we will have tremendous support trad. nafta negotiators are working on a side deal for the u.s., canada, and mexico to make a nonbinding pledge to avoid devaluing their currency. that is according to three people familiar with the matter. president emmanuel macron says today that the sanctions on france will be lifted november 1, which were put in place after the terrorist attacks that killed many people. haseuropean union
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encountered deadly low-tech extremistslowing driving vehicles into crowds. terrorists change and adapt their methods. we need to be ready to adapt response. the european commission, which proposes and ensures compliance with the eu laws, says the measures are aimed at better protecting concerts and sporting events. ,lobal news 24 hours a day powered by over 2700 journalists 120analysts in over countries. it is after 5:30 here in new york. my colleague paul allen has a look at the markets. paul: trading has been underway a few zealand for minutes now.
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we have oil hovering over 52 brawlers -- $52 a barrel, mark. here in australia futures are looking pretty flat, down just two points, the market waiting on production numbers from santos and westside, two petroleum developers. also keeping an eye on the australian dollar today. jobs are expected to remain steady at 5.6%. i am watching the bank of korea as well, setting to hold at 1.1 .5%. ♪ emily: "the wall street journal" conference kicks off in laguna beach, california.
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david marcus, recruited personally by facebook ceo mark zuckerberg, is credited with updating the tech giant's messenger product. i caught up with him and started by asking how much revenue the company is dragging into advertising. break it outnot for specific products, but it is still very early in the development of messenger for facebook. the early signs are promising. so basically if you are a business, and you build inside of messenger, and you redirect people from either a facebook or now intagram ad, messenger at in a conversation, you will increase our business objectives. that is a very good sign that we and be able to enable more more businesses to create conversations with their customers and generate new
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revenues and basically grow their business. i have tons of examples for you, good ones to share, for instance, t-mobile is now selling data plans and devices on messenger, and they are because 7x increase they can re-create the experience you have in a store inside of messenger with this conversational ability mixed with ui elements. -to-b: competition in the b chat space, even whatsapp, which is in your own facebook family, how do you see messenger sending out amidst the competition? it is a veryow, different geographical split between different types of messaging apps. what we see is whatsapp is strong in certain markets like
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latin america, india, etc., and we are very strong in north america and western and central europe, etc. i think one different transient -- one differentiation that messenger has is groups today. when you create a group on messenger, it is always identity so you know exactly who you are talking to at any given point in time. you can send media really quickly. orther it is an android apple device, it works well flawlessly. i will music, spotify, or playing games, making plans, we can do all of these things much better on messenger and it is us.key differentiator for we will continue investing in groups and investing in real time so you can, as you know, you can upgrade from testing to light video and groups, and it
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is a really delightful experience with augmented reality. we really feel like we have a key advantage here. emily: you have added new features like location, polling, third-party experiences, spotify. -- mentioned by a movie buying a movie tickets on san diego. ticket on fandango. what are you seeing? david: those experiences are driving engagement because once you have those experiences, you tend to stick with messenger and have more conversations on messenger. what we are seeing is when people actually get what they want, when we can infer intent from a conversation and actually leverage them to suggest the right thing at the right time, what we see is people are having a better experience, and they are sticking around on messenger in groups and one-on-one conversations. with any referencing of
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ai technology, some say i facebook is behind on the ai game, alexa, google at home products, using facebook and facebook messenger have some catching up to do here? david: i think we are having a very different approach here because the current experience that you have that basically to dots things you want in conversation is really popping up at the right time, and so as a result, we tend to not disappoint when we have an intent that you want to complete because we only surface suggestions when we feel pretty confident that this is what you want to do. the model that we have been working on right now is the one that we have been talking about with suggestions and conversations, and we are continuing to invest in bringing a more full-fledged assistant to
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market. we have been working on it for a wild. shift really want to something that is valuable and will not let people down. it is really important. we do not want to rush to market. we want to get it right. once we get it right, we will shift it to the now 1.3 billion people on messenger and counting. facebook, along with google and twitter, will be speaking before the house intelligence committee on november 1 about russian meddling on the platform. david, what responsibility does facebook bear here? what mistakes do you think were made? david: one thing i want to say when those things come up, lately, we have been talking a lot about responsibility of the platform, and clearly we have a great deal of responsibility given our reach, but i want to highlight something because we talk about all of the downsides of the platform, but we never talk about the upsides of the platform. this is something i feel really passionate about.
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the number of people who connect with other people around the disease thatve a they have, and they can connect with them in ways that they cannot even connect with friends and family, the fact that they turned on safety checks about 600 times and have come alike, a billion notifications going to people to reassure them everything is ok, the fact that we have raised $17 million for harvey on the platform are things that we do not talk about, there is so much goodness that comes from the platform. and of course, when we operate at this scale, there are things that should have never happened that happened on the platform, but we have a crystal-clear plan about how we're going to go about it, and we are hiring thousands of people to ensure that what happened on the platform does not happen again, and of course we are collaborating with special counsel and congress during the investigation. we are taking this very seriously, and we have a clear plan that both mark and sh
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eryl outlined. you said, they become of these platforms can be used for good, but we can easily be used for that. advertising, ao facebook has developed an ad system, whether it is targeting racists or creating fake accounts, which facebook has apologized for. as you build capabilities in messenger, are you looking for ways your platform can be abused, and are you taking steps to prevent it? david: we definitely can be better at this. paul of the things that are currently being raised -- all of these things that are currently being raised are things that made us realize that as we roll tose things out, we need continue being more thoughtful and try to overthink healthy platform can be used in ways -- how the platform can be used in ways it was not designed for. going forward, that is what we
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will do. we tend to learn quickly and fix things quickly. we have done that in the past, and i have no doubt we will do that this time. emily: that was facebook's vice president of messaging platform david marcus. blue apron cuts 6% of their workforce, the cuts at three point $5 million, stemming mostly from severance payments in the fourth quarter. blue apron shares have cut 37% since its public trading debut. coming up, pinterest unveiling new ways for small and midsized businesses to reach the masses. we will discuss next. this is bloomberg. ♪
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interest is hoping to real in advertisers. the social network introducing new ways for small and medium-sized businesses to reach the masses. it will allow businesses targeting customers for potential products. for more, we are joined by pinterest's president. is just one new feature. how will you use it? is forpinterest planning, and what we are announcing today is the ability for small businesses to reach people on pinterest while they are searching. while searching, there is an intent. do you think these pinterest ads will be more effective at
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getting people to buy things than your potential facebook ad? tim: what we see is that people look for something emotionally ;-shapedy want, like an couch,-- and l-shaped but they do not know the brand. tosmall businesses have acquire new customers to grow and have to find people to buy their products who have never heard of them. if you are searching, like i said, an l-shaped couch or a baby stroller, we can now let a small business who sells the product get in front of more people. emily: how much does pinterest see in revenue? potential? tim: this is our fastest growing segment. it is a big number, and it is growing the fastest. becausethink pinterest,
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we are strong in home, beauty, style, and food, these are categories where small businesses thrive. there are lots of new entrants. people want selection. it is a natural place for small businesses to be. emily: what can you tell us about trends in advertising revenue at large at pinterest? tim: the correct direction, how to grow trajectory is great. is,y: one of the weakness as we were talking about earlier on the show, is advertising and the potential for abuse. we have seen this with russian meddling on facebook's platform, trying to sway the election. how do you make sure this kind of thing does not happen? tim: first of all, every single ad on pinterest has been reviewed. emily: can you keep that up as you scale? tim: i believe we can. the second thing is we use
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technology to look for fraudulent ads. other people do this, too. checke human evals who that technology, so it keeps getting better. emily: there was a report in the "washington post" that russian content did end up on pinterest. your policy had said they are looking into it, and it looks like it came from facebook. what more can you say about what happened there? tim: that content was rampant across the internet, our viewers saw the content -- it is convincing content, it does not look fake. emily: in general, what do you think is the responsibility of these platforms? tim: i think when we see that content, we have an obligation to remove it. so we are trying to stay in line with that principle. emily: when it comes to advertising in general, pinterest is on the list of
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potential companies who could go out of the gate into the public market. does this bring you any closer to an ipo? tim: we do not have any plans for an ipo. super focused on making our products better for our users and growing the business. emily: what can you tell us about demographic trends among users? a lot of people think women use pinterest mostly. is that true? tim: men is the fastest-growing segment. 40% of sign-ups today are men. it is significant. emily: where do you see this going? you are in charge of building the business be on these new ad these business, beyond next?s, what is service thate the
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everyone uses on the phone to discover what they want to eat, where they want to live, where they want to travel, it is a gigantic business to improve lives. emily: all right, we will be watching, tim kendall, president of pinterest, thank you for being back here on the show. tim: thank you for emily: coming up, the movie business may be in trouble, but disney's bob iger is confident his superhero films will pack a punch. this is bloomberg. ♪
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emily: eight major tv networks have signed up for nielsen's new
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tracking service that will provide data on on-demand services like netflix. negotiations with the streaming companies, which plan to spend as much as $8 billion next year on conflict -- content. flawed says it is because it does not include international viewers. summerhe worst hollywood in decades, ceo bob iger has high hopes, including for the new "thosr" film. mary,g us is chris paul bloomberg's m bureau chief. hris: we have been writing about hollywood's big disappointments, and the industry is down about 5% of your, but it looks like it could turn around and a last quarter in a large part due to disney. they have a new pixar movie
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coming out, and of course "star wars" in december. emily: what are the box office numbers? chris: it looks like $105 million, $270 million domestically. other two movies will both be over $200 million. "star wars: rogue one" did over $1 billion, so everyone expects the latest "star wars" sequel to do more than that. emily: if sequels have not been doing well, why do they keep making them? chris: because when they do do well, they make a lot of money. i asked bob iger about this, how do you keep these things fresh, and he said do a lot of work and new stories, new places for the heroes to go, new characters, it is the case of "thor,"
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a funny movie, which is a change in tone from the past. emily: we actually do have a chart showing movie theater stocks, g #btv 3728. have theater stocks tumbled over the last year. in terms of keeping things fresh , one thing that is interesting is model comics. they try to increase diversity. "thor" is now a woman, and more. when will we see that kind of diversity translate on-screen? chris: you are starting to see it. there were definitely new characters. cate blanchett is in a new movie. you will also see "black panther," directed by an african-american director as well, next year. it is obviously a big issue in hollywood these days, diversity
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of all kinds, and he will start to see that reflected a lot more. emily: what will he hit mean for the film business? chris: right now, we are just trying to get back to even for the year. last year was a record year. movies dowo disney well, there is another warner's private -- warner's brother movie coming out, "justice league." if those do well, that will take away the feeling that movies are not doing well. emily: all right, chris palmeri, thanks for joining us on a show. that does it for this edition of "bloomberg technology." a reminder, we are always live streaming. this is bloomberg. ♪
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