Skip to main content

tv   Bloomberg Technology  Bloomberg  October 31, 2017 1:00am-2:00am EDT

1:00 am
and charged in the russian greek -- in the russian inquiry. george papadopoulos has pleaded guilty and is cooperating. actually walling, -- the manufacturing number for the 51.6, 52 forecast. the five-year high of 52.4 back
1:01 am
in september. after ahits a new high profit hitting 9.8 alien dollars. memorycts tight flash and conditions in the current quarter. samsung buying $1.7 billion worth of shares. global news 24 hours a day powered by more than 2700 journalists and analysts in more , let's have aries look at markets. moving out on the lunch break in hong kong and china. we will see how that changes later on. this is bloomberg.
1:02 am
reporter: this is bloomberg technology. facebook's flawed it thanks for fighting misinformation. they could be forced to go back to the drawing board with 24 hours to go for the start of silicon valley's big week on capitol hill. plus, the telecom deal to merge sprint and t-mobile could be placed on hold. we will run through the sticking points that may force softbank to pull the plug and discussed the potential impact on the industry. and, a leadership void at samsung. the korean giant is on track for another record quarter, but who is calling the shots? we will update the search for a new chief executive. but first, facebook, twitter, and google lawyers will be on capitol hill this week and faced questions about russian interference in the 2016 u.s. election. while facebook's lawyers face
1:03 am
lawmakers, the company struggles in fighting fake news. at the moment, that social media giant outsources the third-party fact checkers. but bloomberg has learned that partners say the process is too cumbersome and inefficient in making real headway stopping fake news from spreading on its platform. joining me is sarah frier and bob o'donnell. sarah, great piece today detailing how facebook handles fake news and how that process has evolved. talk to us about how today facebook is handling this process. sarah: the process is still very human. they have a way for people to flag fake news on their website. if you see it in your news feed, you can flag it. if enough people flag a story as potentially false, it will end up on a dashboard at these fact checking partners' sites. they can look at this dashboard and click if it is true or false. once they do that, if two organizations mark something as
1:04 am
false, it gets a disputed flag on facebook. there are so many duplicate links about the same false story, by the time you debunk one of them, it has appeared on 20 other websites. fact checkers told me how tedious this process can be and how they feel like they are probably only scratching the surface in terms of the fake news that is out there. emily: is facebook reevaluating this process? what is facebook's approach now? sarah: it is most important that they don't rush into a technical solution because they don't want to create a system that would be inherently biased. they don't want to be the arbiters of what is true or false. so facebook is happy to have these fact checkers create patterns through this system.
1:05 am
the more that they check, the more information goes into facebook's databases about how stories are not fake and they can flagged them more quickly. basically, facebook's main priority right now is speeding the process up because it can take up to three days for a story to get debunked in this process, which is just not fast enough for it to make a dent in how people see and believe news. emily: even so, bob, if a story is debunked, research shows that he can have little effect on the people that have are ready read that story. bob: absolutely. this process is clearly so broken, it does need to be thrown aside. whether they will do that is not likely. the fact is they need to think about themselves as a news conglomeration. that is essentially what it is. instead of blacklisting the bad things, i think they need to really say we have to white list stuff that is ok. sarah: they tried that last year. bob: i know. it is a fair point. look, there is no great and easy way to deal with this. the fundamental issue is you
1:06 am
can't expect the crowd to be an editor. people are editors because they train and how to do that. fundamentally they are asking people to be editors. i don't see how that works. emily: facebook is saying this is just one prong. what are the other prongs of the approach? sarah: they are trying to do news literacy programs around the country, around other countries as well. they are trying to think of ways to present information with more context because one of the problems is on people's news feeds, they see stuff their friends share, but they may not see things from another political perspective. they are trying to think of ways to do that. it is a situation where they will have to try many of these things before they come up with something that is long-term
1:07 am
effective. it will all be very resource intensive. emily: bob, clearly from your facial expression, that is not enough. bob: no, i think they have to rethink how they structure the news on the page. where does news from outside sources up year within your newsfeed as opposed to information everybody gets from their friends? it is about restructuring, maybe trying things they have done in the past but if you put content in different places, people have to think about it in a different way. clearly you can't teach everyone how to properly read the news. that is just not feasible. emily: clearly. sarah, you are walking into these hearings later this week. what are we expecting to hear? sarah: the companies will come and explain how their systems work first of all, because i think at least among political lawmakers, they may not understand how these systems are very difficult to screen for this kind of activity.
1:08 am
then they will try to explain they have done a lot of work and they are going to basically say that they are very intent on making sure these problems don't occur in the future and to trust them and build up a relationship and make it seem like they are very proactive so that legislation does not come down on a harmful manner. some of them are open to legislation. facebook has said they are willing to work with regulators, but what shape or form that will take really depends on how these companies come through these hearings. emily: bob, is legislation the answer here? government intervention? bob: i am not sure it is the answer, but at the same time i don't think it hurts to have some kind of mandate and some kind of controls in place about more transparency in the way news is gathered and the sources that are provided, as well as the advertisers. that has a huge influence as well. the organization of events and other things recently reported. that they have been driving. emily: we will be covering these hearings all week long. bob o donnell, you are sticking with me for the hour.
1:09 am
sarah frier in washington for us. i know we will check in with you regularly. thank you for stopping by. another day, another record for bitcoin. the cryptocurrency which has surged past $6,000 earlier this month and now a market capital of over $1 billion. bitcoins total by you is just over $100 billion. it makes up over half of the cryptocurrency market. it is well ahead of its rival, ethereum, with a market cap of $29 billion. currency prices have been unfazed by recent regulatory crackdown and skepticism from warren buffett and jamie dimon. coming up, a stellar earnings season for tech companies. it is helping to push the market higher. we break down the highlights. "bloomberg technology" is live streaming on twitter. check us out at @bloombergtechtv. this is bloomberg. ♪
1:10 am
1:11 am
1:12 am
♪ emily: it was another successful launch for spacex. elon musk's company's 16th rooted launch of the year. a south korean commercial satellite into space. the satellite that launched from the kennedy space center will replace an existing orbiter. it launched successfully for
1:13 am
reuse for a future mission. half of the companies of the s&p 500 have reported earning results for the last quarter. technology has been the standout. amazon stock trading above $1000 a share on it still a results. plus, apple and facebook trading at record levels ahead of his earning release this week. bob o'donnell is still here as our guest host for the hour. what do you make of the amazon running away with the show? bob: the amazon numbers were incredible because everybody expected because this is q3, building up their warehouses in preparation for the holidays, that they would take a hit. you even saw modest profitability on the retail side of things, and of course aws continues to kill it for them. and you have all these other interesting businesses they are starting to build up. the thing about amazon is a really want to drive people towards prime and other services. that is what they are all about, so they are doing all these interesting things. they put out their key service, which is a little controversial, but interesting and trying to address a problem that some people have. yet another way to say look at all the different services we
1:14 am
will be able to bring to you. once they can get people cooked on those services and have that recurring revenue, that is much better than the hit and miss of the holiday season. emily: one analysis shows u.s. corporate leaders are more worried about amazon and what it is doing to their business than any other factor, including the chaos in washington. i mean obviously other retailers, it makes sense they would be worried about amazon, but what about all these other businesses? who should feel threatened? bob: the logistics companies. amazon is building their own logistics systems. then you have to worry, you have to pharmacies potentially. they just got approval to do deals -- not drugs, but prescriptions. obviously, groceries. they are really extending their reach. content, delivery -- all these kinds of services. almost everything that people pay for on a regular basis they are going after.
1:15 am
emily: looking ahead later this week, we have apple coming up. i know this is your bread and butter. we have been talking about what is happening with the iphone 10 and the iphone 8. we will not see any of that in this quarter. what are you looking for? bob: the big number everybody is looking for will be the calendar q4 forecast because that will give us the first hint of what we can expect on iphone 10 demand. everybody is talking about the fact five to six weeks, great demand. well, it is either great demand, short supply or realistically, or a little bit of both. the iphone 8 story will not play itself out much in the last quarter, maybe a little bit, but everybody seems to have written it off. all of a sudden, the markets have decided we will go three quarters ahead for apple. we never do that, so now all of a sudden, now it is ok? emily: do you think the iphone 8 could see a bump in demand once users are able to hold the phone in their hand and say do i really want to pay $300 more for this or not? maybe i would just go with the iphone 8, or unlikely?
1:16 am
bob: i don't think so, and the reason is the people who see the 8 and go this is nice, i think i will gravitate back to the 7 and sixs because it is less expensive. the thing we have not seen with the iphone 10 is once all the apple fans spend their thousand dollars on the phone and we get to regular people, i am not convinced they will go $1000, no problem. instead i think they will go back and look at the 8, 6 or 7 not so bad because i'm sitting on a five or older phone, so i will upgrade. i don't know. they could charge $2000 and people will pay. emily: any concern about -- bob: it is way too early to say. there are one or two reviews out there -- it is way too early to say. one phone, one person -- too early to tell. obviously it needs the work.
1:17 am
emily: facebook coming up. facebook has some big stories to deal with this week, but it also happens to be the earnings on november 1. bob: i think they will be fine this time around. they are continuing to show the breach and their influence is extending. therefore i think from a financial perspective, i think facebook will be just fine. the longer-term question will they have to be thought of more as a media company and therefore more regulations on how ads come in? will that slow down the rate of growth on programmatic advertising? and all the other things they do that traditional media companies cannot get away with. emily: bob o'donnell is sticking with me for the hour. coming up, are tech companies getting so big that the government needs to step in? we will find out what the ceo of one of amazon's competitors thinks. that is next. this is bloomberg. ♪
1:18 am
1:19 am
1:20 am
♪ emily: gopro has tapped one big name in sports to serve on its board. it has named the golden state warriors president on the board, saying his leadership and passion has made him one of the most respected individuals in the nba. the warriors were one of the first pilot partners to try the
1:21 am
gopro fusion, the virtual-reality video. welts will be the eighth board member. while lawyers for facebook, twitter and google will appear on capitol hill tomorrow to answer questions about russian meddling in the 2016 u.s. election. one company that will not be there is amazon. but scrutiny could raise antitrust questions for the e-commerce giant. we spoke earlier about whether there needs to be regulatory oversight on big tech firms. take a listen. >> i do think so to a certain extent. as you are looking at the position of amazon, the fact they can file a simple trademark application and have an entire market react with billions of market cap loss, i think there is something to that and whether that needs to be corrected by the market sentiment in general, whether the market will
1:22 am
eventually say it is more bark than bite, or whether that is a legislative action, we will see in the future. >> do you see any evidence that a company like amazon is engaging in anti-competitive behavior? >> i don't see potentially outside of what they have done in the past. it is well documented in brad's book, the everything store, their past acquisition practices. but now, it is a conundrum because you would say they try to lower prices, inject more competition, yet they have the ability to move markets solely by themselves. right now in a vacuum, potentially no. but when you look at the events and their m.o. and the past, now tbd. >> in fact, 55% of all project searches begin on amazon which has surpassed google. that is something that has brought a lot of unwanted attention on amazon. how do you raise your company's profile in this environment? when amazon dominates? >> yes, they are dominant but there is market share for the
1:23 am
rest of us. especially in places like business to business. for us, box, we ship toilet paper, large-format anywhere in the u.s., but the reality is that a big part of our business is actually business-to-business. take for example the green rooms in bloomberg, there are hundreds of different snacks for everyone here to eat and enjoy. certainly the folks that stock that pantry are not going on amazon and clicking on pop chips 400 times. i think for us it is really finding those niches where amazon is not as strong and we are going after it. >> you said some of your best customers, populations with 50,000 people, may be less at times. just to bring back exactly to what you are saying -- do you think that they are insulated from the likes of amazon because they don't really care about going to those regions? >> to a certain extent, but it offers more opportunity for folks like us. there is opportunity out there,
1:24 am
whether it is in the city or out in the rural areas. you look at our business, for example, there are 30 million folks in the u.s. do not live within a 30 minute drive of costco. those folks, it is whether they like costco or not, it doesn't matter because though the brand is ubiquitous, the locations are not. that is why we have been able to grow so quickly. we went from $40,000 in sales in 2013 in my garage and last year, over nine figures in 36 months. absolutely there is opportunity, but you can't take your eyes off amazon. >> what do you think you do better than amazon now? what have you adapted better at? >> it is interesting. i feel like we have this really good ability to focus on the customer. our customer wants wholesale. it is really difficult because amazon is the everything store and they want be everything for
1:25 am
everyone. for us, it is really tough when you get a single person living in a 300 square foot apartment in the upper east side and says boxed is not for me. for us, it is a myth that it is not for you and only for large families and folks who want to stock up on something. that has been really difficult for us to concentrate on, but i feel like we do wholesale better than amazon, partly because as a wholesaler we can sell different items and different sizes that amazon cannot get their hands on. >> i want to ask you about automation. really quick because we are running out of time, but you have automated your warehouses and have not lost any employees as a result. is that sustainable as you scale that up? >> i think it is sustainable. i think the reality is folks will need to be able to work
1:26 am
with those robotics in order to keep those positions. we did not lay off anyone solely because of automation. we retrained them and we feel like they have earning power over their career. emily: that was boxed ceo earlier on bloomberg television. the future of sprint, t-mobile and a merger may be in peril. we will get the latest on the talks and examine if the deal will be shelved indefinitely. if you like bloomberg news, check us out on the radio. you can listen to us on the bloomberg radio app,, and on sirius xm. this is bloomberg. ♪
1:27 am
1:28 am
1:29 am
1:30 am
reporter: at the top stories. president trump has been charged -- paul manafort denied it money-laundering spirits he and other crimes area -- crimes. george papadopoulos secretly pleaded guilty and has been cooperating. eventseaking that predated the campaign. that the white house was quick to try to distance them from the inquiry, saying it has nothing to do with the administration. the last 30 minutes or so as
1:31 am
seen them sung announced changes of its ceo structure and chairman for the electronics division. the boj voted to maintain policy while the bank of england is expected to make -- raise interest rates. bidding will come after the penultimate meeting. global news 24 hours a day powered by more than 2700 journalists and analysts in more .han 120 countries this is bloomberg. markets are trading as we enter the last leg of trade, here's julius. juliette: -- julius.
1:32 am
holding at the november 2007 highs, a gain of over 4% over the course of october. you can see the i.t. sector leading the gains, samsung hit a record high. earnings coming through as well. we are seeing weakness come through from the banks today. have a look at the different markets, you are seeing south korea at a record high, up 9.9%. switch out coming through in china, and super stocks certainly have been getting dumped over the last couple of sessions. apple flyers -- suppliers looking good ahead of the release of the iphone x and yes really a mature market has close lower by .1%. seeing -- isou are a dollar weakness story.
1:33 am
some of the asian currencies are rallying. live from london at the top of the hour with daybreak: europe and the close of the market in japan. ♪ emily: softbank's talk to merge brent with t-mobile have hit a snag and could throw the deal into jeopardy. shares of both countries tumbled 9% and 5% respectively. the company's have been unable to get past differences over valuation, and nikkei reported that softbank will propose ending the talks as early as tuesday. still with us is bob o'donnel, the president of technology and research. alex sherman in new york, and from l.a., our bloomberg news editor, who covers telcos.
1:34 am
i will start with you. what is happening right now? >> everything is happening and nothing is happening at the same time i guess. these deal talks have been going on for months, and they have had all sorts of discussions about valuation and who will control the combined company. the whole point of this exercise has been to take the number three carrier, t-mobile, and the number four carrier, sprint, and put them together to create a bigger third competitor against at&t and verizon. it would take the market from four carriers to three in the u.s., which was v.a. a big deal for everybody involved. it would provide the resolution for softbank, sprint's owner, the japanese company run by masayoshi son who has been looking for a way to address the long-term problems sprint has because it continues to lose money and has not done that great with subscribers. this was supposed to be the final resolution in his
1:35 am
investment in the u.s.. now everything is up in the air. emily: these talks have been going on for months. talks of a potential deal have been going on for years. alex, talk to us about what is happening right now. what are the major snags? >> the valuation question that creighton mentioned has been a potential obstacle for a while, really since these two sides started to get into earnest discussions about hammering out a deal in early september. since then, both sides have been doing due diligence on each other, and sources around deutsche telekom have told me consistently that valuation may be an issue, particularly around this time, because we have really hit sort of the endpoint here before a deal was going to get announced. we have reported several times that the sides got close to a deal, then delayed them. so initially they were trying to get a deal done when the companies reported earnings.
1:36 am
we reported that was going to be pushed out to mid-november. now the idea that talks may have hit a snag indicates that it is possible deutsche telekom was simply asking for too low of a price, meaning the exchange rate, how many shares deutsche telekom would pay to softbank, or i should say t-mobile, pay to sprint since that is where the merger was going to happen, merging as equals, would be too low. in other words, they would want to pay too little of an amount of money per share of sprint. so that may be the snag we are talking about here, where softbank may have said, if you are pushing for that low of a price for sprint, we are not going to do this deal. we may know more details in the coming days. >> alex, one of the big questions on the valuation of telcos is around spectrum.
1:37 am
both sprint and t-mobile have been recently getting some interesting pieces of spectrum looking ahead to five g. do you think that has anything to do with this? >> the fundamental reason to pursue a deal at all. if you look at sprint in today's iteration, there is no reason why t-mobile would want to merge with sprint. it has been a money losing entity for years. it continues to struggle, but the. here is that t-mobile could use sprint's customers, and more than that, it's spectrum for a 5g world. so that logic really hasn't gone out the window here. it is just that the two sides can't meet on valuation, and if they can't, they could pursue other routes. but it doesn't change the big strategic picture that putting these companies together would make them stronger in a 5g world against at&t and verizon if in fact that deal was allowed by regulators. emily: creighton, let's say a deal doesn't happen.
1:38 am
what does that mean? >> that is the next question. first off, you have t-mobile, who has had a great run. they have been gaining subscribers for years. the profits have continued to, profit margins have continued to expand. everything is going right for them. that is why deutsche telekom has always acted like they have a position of strength in these talks, they should be the ones to control the company, that they don't need to pay a premium to sprint because their company is doing better. there is no reason to think that wouldn't continue, and in terms of spectrum, they have what they need for the near future. as far as the far future, who knows. as we get more into 5g and there is more demand for various services, that is why they would like to have more spectrum in the sprint deal, and of course more subscribers and more market share. for sprint though, that is where the question comes up. will softbank put more money into sprint to develop a
1:39 am
network? that would be a question i would be asking if i was a softbank shareholder. sprint has basically cut off its capex for the last few years. it has not been investing much in its network. it has been doing all sorts of things, also innovations to make the network work better but bottom line, it will have to play catch-up. emily: what happens next? >> that is a great question. it is hard to believe from my perspective that sprint and t-mobile would've gotten this close to a deal, only to have softbank pull back and get cold feet about issues of control. it just seems sort of illogical, like, why would you have gone this far? these companies have been thinking about this for months. so is it possible that this is all a big negotiation strategy once more from softbank to get t-mobile to budge? yes, but if, as nikkei is reporting, softbank comes out tomorrow or even today japan time and says, we are pulling back publicly, that is a big step to walk back from.
1:40 am
so you would have to imagine that at least the discussions would be put on hold for the near future if softbank does say that. emily: all right, alex sherman, crayton harrison, i know you will keep us posted. our news team is working on this. centurylink clear the last hurdle to buy level 3 communications, sending shares of both companies higher in the session. the sec approved the $34 billion cash and stock deal, which will create a bigger competitor to at&t in the business internet market. coming up, square targets larger merchants with its latest product. can its foray into hardware be a game changer? this is bloomberg. ♪
1:41 am
1:42 am
1:43 am
♪ emily: square unveiled a countertop hardware register to attract larger merchants. the new register includes a customer facing screen for buyers to see what they are purchasing, ethernet wi-fi, and acceptance of all payment types. square has aimed to attract larger customers with its services like loans and inventory management software. still with us is my guest for the hour, president of technology research, bob o'donnell, and selina wang, who attended today's event. first of all, selena, you got a chance to speak with the ceo, jack dorsey. what did he say? >> i did. it was one of his rare appearances in new york.
1:44 am
for him, he sees this as a game gender, something that is really going to be a reason for large sellers to join square. they know longer have to rely on an ipad. now, square is offering an out-of-the-box package that provides a countertop register, a front facing customer screen as well as their software already integrated. he said that a big pain point for many sellers is that they had to use an unprofessional consumer device, the ipad, and had to constantly update it. this way, it comes right out of the box. emily: bob, you have worked with some of these point-of-sale companies. how do you see square fitting into the larger competitive environment? >> i think it is a nice option. as selena pointed out and you mentioned, the addition of all the services is what a lot of small retailers want.
1:45 am
you have the big cash register companies, nec, dell, they have done these point-of-sale terminals in the big malls, if you go into gap stores, four years, they have had that stuff. this is a nice entry for square to get into it. it is more about services and the ability to do that, and it is a minor convenience to have both screens available, but an important step for them. it allows them to open the door to other services. they are not going to make a lot of money on that hardware. emily: how does this fit into the larger vision square has, the loan business, square capital as well? >> as bob mentioned, this will not be a signature revenue driver for square. their vision has been to serve hardware up cheap, and provide them all of the software services. something jack said over and over again is that they want to grow with their sellers, so they started with that smartphone dongle for the food trucks and tiny one person sellers. as that seller grows to multiple
1:46 am
locations, square wants to be there the entire way. as the company has developed, so have their sellers. this fits in really nicely to their loan business. they recently applied for an industrial loan charger, which would be a big deal for capital business. it would help to reduce their costs there. like bob said, this isn't going to necessarily mean they will all of a sudden take business away from big players. but it is a great product to up sell their existing seller base. emily: having spoken with jack dorsey today, this is a big week for twitter. the company will be testifying on capitol hill this week. did he say anything about that? >> that is a great point. i said, just tomorrow, your other company is going to be testifying. he was very reticent to say anything specific, but he said he is flying back to san francisco. he is feeling great. he says the company recognizes what they control and they are working on improving and it is quite a contrast to facebook, where mark zuckerberg and sheryl sandberg have both been on the phone with people in congress. sheryl sandberg even made a trip out there.
1:47 am
jack on the other hand, at least on the surface, cool as a cucumber. we will see. emily: when will we see the new square hardware rollout? >> it is already working in some stores. i grab coffee to test it out at one of their locations in new york. it works simply and easily, and it is the first time they are providing this whole set. it is this kind of dark apple-esque looking device. they have been working on this for a very long time to make it look as beautiful as possible. emily: selina wang, thanks so much for sharing that update. bob o'donnell, you are sticking with me. all right, coming up, the show that helped establish netflix's original programming, "house of cards," is coming to an end. this is according to a person with knowledge of the matter.
1:48 am
"house of cards" was netflix's first original hit, drawing millions of viewers come a spurring the company to produce dozens of other shows. the decision coincides but is unrelated to an allegation that kevin spacey made a sexual advance towards a 14-year-old many years ago. spacey has apologized and says he doesn't remember it. ♪ emily: coming up, a huge leadership shakeup could be in store for samsung after what has already been a tumultuous year. we will explore the top candidates to take over the company. and happening now, after another dramatic day in washington, president trump and the first lady are participating in halloween festivities at the white house. there they are, passing out candy. ♪
1:49 am
1:50 am
♪ emily: nintendo's earnings got a big boost from its switch console. the company reported profit of ¥28 billion.
1:51 am
coming in better than expected. nintendo also boosted their annual forecast after customers bought more games than anticipated. the company now predicts it will sell 14 million switch units in that timeframe. samsung is gearing up to report earnings tuesday, forecasting a record order. there is one issue investors hope samsung will address, filling the top job at the tech giant. stephen engle joins us from hong kong to give us details on who is in the running for samsung's ceo. bob o'donnell is still with me. walk us through the potential candidates here. >> this could be a real turning point for samsung. it has been run by the elder statesman for many decades, and of course, his son, the cochair, jay y. lee, is behind bars as he is appealing a five-year sentence for various bribery charges. there is a long list of
1:52 am
potential candidates, and it will give us an indication of the type of generational change that samsung says it wants to do, because the current ceo is stepping down after the preliminary numbers came out a couple weeks ago. the ceo stepping down, saying the company and the conglomerate needs young leadership as it goes through this unprecedented crisis. you are seeing some of the names here. i can run through them pretty quickly. kim ki-nam is president of the most profitable division, the memory chips and semiconductors. he is a lifer at samsung and really spearheading their push into the next generation. his protege is a candidate, as well, in the same division. he is a semiconductor engineer, a core member of kim's team. he is stanford educated, a foremost expert on drams. that is the biggest contributor to profit. then there are the other two co-ceos, shin jong-kyun is a little older, 61, and yoon boo-keun is older. he is 64.
1:53 am
keep in mind that they have a three-ceo tiered system. they could bring somebody else from another minor division, as well. emily: what about a long shot? jay y. lee's sister, is she in contention here? >> that will be the interesting question. she would probably be considered a longshot, given the dynastic troubles, if you will, at samsung. she is not out of the question because samsung has been doing this for years. they promote from within and within the family as well. she is jay y. lee's sister, she runs the hotel group, so she has management experience. she is highly ambitious and very charismatic, like her father. she is not out of the question, but i would say she is a longshot, given the crisis samsung is going through.
1:54 am
emily: samsung reporting earnings tomorrow. have you seen evidence that the dramatic leadership issues have affected the company? and the bottom line? bob: no, not in the least. the way samsung is structured is an extraordinarily complex combination of companies. because of that it is difficult for one change to dramatically shift things. at the same time, it is well respected within the organization, so whoever comes into this role will have to be really good not only at knowing all these businesses, but at herding all these businesses. they are very distinct and run differently, even under the brand of samsung electronics itself. emily: when are we expecting a decision? stephen: we could get it, it will be later today when they break out there further results, and we will get peppered. i'm sure senior leadership will get peppered by analysts and journalists about the hierarchical succession planning, which has been disarray throughout the jay y. lee crisis.
1:55 am
keep your eyes on one in particular person. he is known as the digital evangelist at samsung. he, for years, has been campaigning against easing the hierarchical structure at samsung. he could rise to the forefront, although he wasn't necessarily on paper be considered a front-runner. he is heading up the medical device unit. he is very high profile and he could be the one person who herds these divisions. emily: stephen engle, thank you so much. thank you, bob o'donnell, for staying with us throughout the show. great to have you. finally, android's emojis are under fire for not being exactly accurate. when you compare apple's styling of a cheeseburger to android's. you can see the latter puts the cheese on the bun underneath the patty. who does that? androids illustration of a beer
1:56 am
stein leaves a large gap between the foaming top and the beer. android says they will address on monday if folks can agree on the correct way to do it. the cheese goes on top. that's all i have to say. the cheese goes on top. that does it for this edition of "bloomberg technology." we are live streaming on twitter. check us out weekdays at 5:00 p.m. in new york. this is bloomberg. that's all for now. ♪ is this a phone?
1:57 am
1:58 am
1:59 am
or a little internet machine? it makes you wonder: shouldn't we get our phones and internet from the same company? that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and text at no extra cost. so all you pay for is data. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit, or go to
2:00 am
>> molars inquiry. the special counsel discloses a plea agreement. what will this investigation mean for the administration's agenda. manus: the bank of japan gives monetary stimulus unchanged. it takes a different path from its peers. the boe is expected to hike rates on thursday. the fed could follow suit. morgan stanley drops out of an industry court allows financial advisors to defect to competitors without getting sued. ♪


info Stream Only

Uploaded by TV Archive on