tv Bloomberg Technology Bloomberg November 14, 2017 11:00pm-12:00am EST
>> i am a alisa parenti and you're watching bloomberg technology. let's start with a check on your first word news. authorities say a gunman killed four people and killed others tuesday morning -- and wounded others tuesday morning in northern california before police shot and killed them. one of the shootings on the reserve took place at an elementary school, where at least one student was hurt. >> it was very clear early on that we had a subject that was randomly picking targets. assistantnty's sheriff told ap the death toll could rise. mitch mcconnell says the chamber tax take up the gop's reform bill after thanks giving.
congressional republicans rejected confidence. about delivering on a tax overhaul. president trump is planning an in-person appeal to lawmakers. house speaker paul ryan has become the latest republican lawmaker to call on roy moore to drop out of the alabama senate race in light of recent accusations of sexual misconduct made against him. speaker ryan: number one, the allegations are credible. number two, if he cares about the values of people he claims to care about, he should step aside. >> ryan later tweeted the house will adopt the policy of mandatory anti-graft and discrimination training. global news 24 hours a day. powered by more than 2,700 journalists and analysts in more than 120 countries. this isa parenti, bloomberg. ♪
emily: i'm emily chang, and this is bloomberg technology. coming up, new details on apple's next-generation of the iphone. the iphone x has just hit stores, but the company is already at work, adding new technology to its upcoming device. plus, airbnb hit a new milestone. the company continues the strength of posting a profit with $1 billion in revenue. can the rental startup keep growing? as the debate over saxophone -- tax reform continues in congress, we will discuss the impact for the tech industry from the big companies to startups. first to our lead. apple continues its never-ending cycle to ramp up the technology used in the iphone. the company plans to take another step toward turning the smartphone into an ar augmented reality device. according to people familiar with the matter apple is working rear-facing, 3-d sensor in the iphone in 2019. it is a different technology from the iphone x face id system. joining us now is alex.
also with us is our bloomberg editor at-large cory johnson. what does this new sensor involved? alex: at the moment on the back of your phone, you have two cameras on the iphone x. this allows for depth perception, but it is not terribly accurate. what apple is doing is the 2019 iphone, adding the depth perception on the back which allows them to do much more complicated augmented reality things with the rear facing camera. emily: was this impact any of the current technology, the face id, or is this something separate? alex: it is something separate. if you are a laser maker, it is probably good news because there on the side of the screen which allows face id , to work. there would be another one on the back. if you take a monopoly board, a virtual monopoly board, you can play virtual monopoly on this table with the ar kit. if you put your hand in the field of view, it does not know your hand is there and ruins the
illusion. adding a 3-d sensor can allow you to pick up a hat and move it to the next space. cory: i want to hear him talking about english monopoly. emily: it is not surprising apple would already be pushing forward on technology one, two, three generations out, but would hat do you make of this knowing about apple's broader ar strategy? cory: i think apple looks at what has happened to the pc industry. we have gotten to a point in pc's where there is no compelling reason to get a new model every year or every other year. the replacements have slow down down for pcs and tablets. we see people replacing the tablet but at a much slower pace. people want to get a new phone after the 18 month or 12 month period, but they don't want to slow down and they want something compelling enough to get people to want to upgrade their phones. this is that kind of thing that is a big leap in one direction. alex: i think the thing is
interesting in that for to a that there are two production from out at the moment that have this kind of technology already. kind of shows apple is taking the advantage because it wants to milk this cycle and the next cycle rather than putting all of the technology as soon as they can, it leaves room to advance -- it leaves them little to room advance the next generation. emily: apple working on ar headsets. how does this tie into that? alex: it can be seen as a foundation stone in some ways. there are increased numbers of augmented reality apps. the problem with augmented reality glasses at the moment is there is not a huge amount of content out there, which makes it worth people buying. if apple is building a whole for -- offoundation ar content, they can parlay that into smart glasses in three or four years time. cory: they have the ability to do a lot of things with ar using air pods as well. augmented reality with the air
pods with some kind of glasses as well could be somewhere they go. i think the fundamental of this is one of the development tools. if you think about pokemon go, it was ground breaking stuff, but they had to build that from the first 1 and 0 to the top. now, developers can get a head start and we might see real advances quickly. emily: new technology can be hard to imagine how you would use this. as with pokemon go, if somebody explained that to me, i do not think i understand it until i played it myself. alex, give us some ideas about how i as a regular user might benefit from this kind of technology. alex: ikea, which has an augmented reality app, it allows you to place a virtual sofa in the image of your living room and walk around and see how it might look. hang a cannot do is mirror on the wall or a picture
on the wall. dealing with vertical planes. it adds that some of perception to it. you have seen the walking dead app where you seize on walking around your living room. the moment a person approaches a zombie, a does not know the person is there anything place an interactive thing with your friends saying hit them in the face or god knows what. cory: you have not seen the walking dead. emily: i do not watch scary movies. cory: it is hard to imagine with -- what the uses might be. when desktop publishing came around, people that you would take magazines and deliver them as a pdf. we did not understand media would be facebook or instagram or twitter. the notions of what you can do with as i sort of unknown. we will look back at this conversation five years from now and laugh at what people are doing with it because it will seem so obvious then if not now. alex: an animated emoji -- emily: love it. alex: we did not know it was going to be this karaoke thing.
emily: it is a new language. alex: rights. karaoke was the thing to push. we could not have predicted that three months ago. emily: try out some of the new features on the iphone. great scoop from you, alex. thanks so much for joining us. cory johnson. coming up, lyft continues to capitalize on uber's rocky year. we will talk about the global expansion plan, next. "bloomberg technology" is live streaming on twitter. you can check us out at 5:00 in new york, to clock in san francisco. this is bloomberg. ♪
emily: a rollout of a major update to the firefox web browser tuesday with a bevy of new features, and one old frenemy, google. firefox's default search engine will be google. the agreement will cause a similar older deal that was scuttled when the web browser became bitter rivals. three years ago, they switched from google to yahoo! as the default firefox search provider in the u.s. after yahoo! agreed to pay more than $300 million a year over five years. lyft has its foot on the gas as
it drives its global expansion north to canada. this will be the first time it operates outside of the united states. the ride hailing company will start in toronto and expand into hamilton, ontario. lyft has been gaining territory. 1500 residents in toronto have downloaded the app even though the service is not available. joining me now is our guest. mayfield invested in the series and round. you guys invested in $6 million in 2011. it is now worth $11 billion. >> the valuation of the company is worth $11 billion and our stake is a lot from where we invested. emily: what do you make of their expansion finally outside the united states? >> i would say lyft is a great example of a company which is on to its mission of serving people, creating communities to transportation. our aim is to build one of the
biggest companies in the information technology industry. when we look at toronto we , believe it is the fourth-largest city in north america. culturally, we are very aligned with the people there. we did surveys. people really wanted a choice. they are looking for inclusivity, diversity, and above all, they want people to treat them well, whether it is the drivers or the consumers. based on market research, we felt the time is right for us to expand outside the u.s. into the first country which is nearby in north america because there is a lot of demand for what we do. emily: uber expanded globally much more quickly. not always working out. they surrendered in china and russia for example, but they do have the lead when it comes to international expansion. was in the right call for lyft to wait? navin: absolutely.
i have a believe having been a serial entrepreneur, building a business is like a marathon so our strong belief is you need to crawl, walk, and run. first, you need to become good at something in the world and people love you. once you conquer that market, then you have the right to expand into other markets. let's take an example of google. google was not the first mogul in search, but it is the biggest company today. there were people before google whether it was yahoo!, excite, and many more. so it is not necessary the first mover always takes the lion share of the market because as i mentioned earlier, it is a marathon, not a sprint. emily: obviously uber has had major challenges this year and lyft has gained market share in part as a result of that. what do you think is the likelihood that lyft can become not necessarily even an equal
player to uber in the u.s. but to surpass them. ? navin: we have not disclosed the numbers. emily: everybody wants to know what the numbers are. navin: what i can say is in many of the cities with the data that has been published, they are running a parity compared to where we were. emily: you mean you think uber and lyft have the same market share? navin: in many cities in the u.s. you can look at third-party data from companies like slides, you can look at markets in san francisco the general bay area, , the big metropolitan cities, we are doing extremely well based on third-party data, and i think if you continue on our focus of delighting customers keeping new products, i think , the sky is the limit is at the . at the end of the day the brand , we have built, this business, we are a community driven site who is looking at something more
than just economic profit to itself. a good example is just in the last 12 to 18 months, lyft drivers had made $350 million on commissions. we are trying to get back to this whole trend of the 1099 economy, micro-entrepreneurship is going because of platforms like lyft. emily: uber drivers have made a lot as well. thingas first to the tip for sure. another company they raised , $88.75 million. the companies are fresh meat in a market where it was on his life are the giant in the room. what makes you think it has what it takes to have a long-term sustainable path? navin: absolutely. first of all, the market is playing in. globally there is a -- it is a $2.6 trillion fashion market.
no leader in that space online. they are not a retailer. we are a marketplace like alibaba and ebay where the business has effects. with the business has network effects we have 3 million , stylists sharing 8 million items a day. plus, we have a community where our engagement metrics are at the same order of facebook and snap. if you look at it today, we are not an e-commerce company. we are the largest social commerce company for fashion. when you have that fact with the community, it is a very different model. we don't even take hold of inventory. it is a people to people thing. people started selling used merchandise. now, they have expanded to selling essentially like new merchandise. 3 million women in the business of creating online boutiques. emily: when you look at the future of e-commerce market, is it amazon and everyone else?
or do you see other larger players emerging whether they are a straight economist company -- e-commerce company porsche social e-commerce company as you call it? navin: yes, i think amazon has 50% market share as we know, so they will be the giant gorilla in the market. that is always the case. if you look at google, if you look at microsoft and its markets, could there be $10, $20, $30 billion market cap companies created along these massive markets? i think it is going to happen. you look at off-line retail in fashion, that is louis vuitton, -- there is louis vuitton which , is very well known. nordstrom is a great company that has been created, so this is not going to be a fashion a winner take all market. amazon does very well when you know what to buy. they provide you the cheapest thing the fastest. the biggest problem in fashion is most people do not even know what to buy. that sort of community of 3 million stylists is essentially
helping you curate and style for you what is best for you, and that is the model nordstrom pioneered with the offline concierge. those are the things using technology we are seeing coming online today. emily: all right. thank you so much. navin: it is a pleasure being here. thank you very much. emily: coming up, we will outline airbnb's path to profitability despite a warning by morgan stanley about slowing growth. this is bloomberg. ♪ emily: the u.k. luxury
e-commerce platform far-fetched reported a bump in sales last year with global demand for high-end fashion continuing to grow. the value of orders and services minus fees increased to $780 million, an 81% jump from 2015. if you recall, a company got a minority stake in the company in june. both companies looking to boost sales in china. -- now to an airbnb milestone. the home and apartment rental startup pulled in about $1 billion in net revenue for the quarter ending in september. this according to people familiar with the financials. airbnb became profitable during the second half of 2016, but is still under pressure to justify the private valuation of $31 billion. the news comes after morgan stanley put out a report last week saying that airbnb's
growth was slowing down. joining us now is olivia, who covers startups and venture capital. $1 billion in net revenue. what do we take away from that? olivia it shows this company is : really growing. $1 billion in net revenue for this past winter. last year for the same quarter, $500 million so a huge acceleration in growth, and that is not slowing down. actually, they are predicted to grow about 60% year-over-year compared to the end of the year last year. the company is really on the fast-track, which is interesting because the morgan stanley report came out that said that growth was slowing down a bit. exactly. the morgan stanley report only looked at the u.s. and parts of europe. it only pulled about 4000 airbnb users. -- it only polled about 4000 airbnb users.
it did not take into account these two huge new markets for the company, which is latin america and china. china saw about an 80% growth year-over-year. latin america saw a 150% growth. it will look like the company is slowing down because it does appear it is slowing a bit in the u.s. and in parts of europe. such a small sampling. emily: at the same time, we learned that airbnb is and has been profitable. we do not know to what extent, but they are on a profitability streak. olivia: right. they have been profitable for 17 months now, which is a really good sign. most silicon valley upstarts are not yet profitable. we look at uber and we work, they are not there yet. brian says he expects to bring this company to the public market within a year so it is a really good sign, but they will have to continue to work pretty hard to justify the $31 billion valuation. emily: you mentioned china. you said they are seeing growth. at the same time, we are seeing tumult.
the airbnb ceo had to leave. olivia: step down. emily: we now know a little bit more about why. remind us what happened there. you have the cofounder of airbnb taking over as chairman of china. what are the dynamics now in at play? olivia: he stepped down basically for personal reasons. there was a relationship between him and another airbnb colligan -- colleague and the company felt it was appropriate that he leave, which is an interesting signal in the age of uber where i think they are trying to take a stand and say they will not stand for that kind of behavior of our company. definitely turmoil there. china is a huge, huge part of their growth and forecast so they will have to make sure that that market is really well taken care of. by putting the person in charge, -- by putting nathan in charge
there it is a signal they are , taking it seriously, but i understand they are looking for leadership there and it is difficult to find somebody who wants to work for an american tech company in china because it is difficult to build a successful tech company. in china. emily: airbnb, you have a call tomorrow with the global head of policy. what are we expecting? olivia: very colorful character. we can expect a lot of jokes and we will understand more how airbnb is competing with hotels. emily: olivia, thank you so much for stopping by. coming up, a shift in a massive operation with amazon web services also having to do with china. why the tech giant pulled a chunk out of china. check us out on the radio. you can listen on the bloomberg radio app, bloomberg.com, and on sirius xm in the u.s. this is bloomberg. ♪
emily: you're watching bloomberg. these are first word headlines from around the world. the symbolic way army says it seized power and is pursuing criminals after explosions were reported. officers areal saying they are guaranteeing his safety and will return the country to normality as soon as possible. a top general has been accused of treason for criticizing the backing of the vice presidents. japan's economy has shrugged off a recent dip in consumer longest a long the paradox of uninterrupted growth.
gdp expanded 1.4% in the third quarter, slightly below forecast, but it made seven straight quarters of growth, the longest winning streak since 2001. u.s. attorney general jeff sessions denied lying or misleading congress about contact with russia during the presidential campaign. he said he simply forgot about a meeting revealed by the molar uellerigation -- mu investigation. he says he now recalled the meeting where george papadopoulos said he could arrange a meeting between trump and president putin. here is a look at the markets. >> pain as the name of the game for equity investors and asia. stocks set for a fourth day of losses. 1.25%.op, lower by
a lot of this anxiety is from the commodities carnage we are seeing. research stocks across the region. the dollar is finding little $0.76 after falling 1076 u.sto u.s. hedge funds are slowly unwinding. we see the white line on this chart right here. this does remain the biggest bullish position out there. take a look at what is going in hong kong. the biggest drop in four weeks. automakers among the worst performers on this particular day. the chinese index of small caps it today.ittin liquidity concerns around the recent settlements in china, perhaps they are hitting the
stocks hard today. overall, there is a sea pf red in asian equity markets. that is your market snapshot in asia as we head to midday and hong kong. this is bloomberg. ♪ emily: this is "bloomberg technology." i am emily chang. amazon is going through big changes in china. they are selling some other local products in order to comply with local regulation. the company clarified a move in a statement, saying they do not sell its business and china and remains fully committed. we are excited about the significant business we have and the growth potential over the next number of years. the market in china could be worth $30 million for amazon. what happens now? joining us in new york, matt, governing director.
matt has more than 20 years of investing in tech experience, mainly in the seattle region. he has invested in dozens of startups. what you make of this move by amazon? at the same time, is no secret alibaba has been eating amazon's lunch in china. matt: i think this is more of a political move then an economic move it although it is the competitive market in china, not only with alibaba but increasingly with others. they will compete hard for the cloud business over in china. i think what amazon is thinking and they had to comply with this but they are thinking of finding a way to win in china. reinventsat there conference, they will announce things about global expansion and new initiatives. emily: technology companies have tried and failed in china, whether it is facebook or google business.s e-commerce do you think amazon has a chance to win in the cloud market in
china? matt: i think one of the reasons they have a chance to win -- and i do not think they will be the only winner in china -- but they have such a lead in cloud computing services. pretty much everybody else is embracing the standards that aws has set up over the last 10 years. to that extent, if they can bring customers with them and they have a market opportunity to grow through those customers, i think they have a chance to win. although the combination of strong players like alibaba, plus some of those regulatory advantages you enjoy as a chinese, company in china will make it hard for them. emily: meanwhile, microsoft and google are nipping at amazon's heels. how much progress do you think those companies are making vis-a-vis amazon, and how threatened should aws feel? matt: i think microsoft is making more progress. in ae, nhl -- then google challenging situation. they have a much greater presence on premise.
those are things aws does not have. there are significant advantages for microsoft. will google is pushing hard on is a combination of the fact they have done early investing in deep learning, and they can make deep learning services available to their customers, as well as they have their own set of applications with google etc..google mail, they hav a lot of resources and cash on the balance sheet . emily: we have been talking for the last few days about alibaba and singles' day, which just happened. now we are coming on black friday and cyber monday. this is big in the u.s. and the freight company like amazon. and yet, the importance of black friday is declining as we are seeing sales all year round, as we are seeing more shopping spread out across the year. do you think black friday will become a thing of the past? matt: i do not think black friday will become a thing of the past. the physical world retailers still need to ring people into
their stores and to grow their people into- bring their stores and grow their businesses. we see amazon make their own $15 a high-endestment in grocery store business. we understand the digital and physical realm are -- realms are coming together. it will be a combination of understanding the physical and digital worlds. i think cyber monday, which takes place a couple weeks after black friday, will be an important measurement point in the cycle of who is winning and losing and holiday retail. emily: we were up in seattle a few weeks ago. ,ll the talk was about amazon and it was a big loss for seattle,, the fact that amazon is looking for headquarters somewhere else. they even asked the ceo of a ws where he saw it. he said it is above his pay says it is up to jeff bezos.
how big a loss is hq2 for the seattle area in general? matt: i think it is a massive disappointment that amazon feels there is a set of things in terms of talent and infrastructure and spirit of partnership with the city government that would lead them to put out this r.i.p. basically headquarters. my more provocative with you is i am not sure if amazon will ultimately take a second headquarters. i think one thing they are learning with those 238 submissions is there is a number of centers of excellence around the country. i have no insight knowledge with this, although i have a close relationship with amazon and would not be surprised if they take a major area for robotics as they ultimately make the decision sometime next year. having said that, it is disappointing that seattle has not worked as closely with
amazon to figure out a way to be the true one and only day one and day forever headquarters. emily: interesting speculation. i'm curious, what you think it means for, the tech beats in seattle which has been rising? obviously, you still have giants like amazon and microsoft-based there. do you think it is a blow for the startup scene as well? matt: no is the short answer. a couple reasons why. we have two of the top five market cap companies in the world. the other place is silicon valley. three also have major presences up in seattle. that is what i hear from my startups more often. how hard it is to compete with with the big companies. they're still taking down significant space in downtown in greater seattle. they will be bringing talent to
seattle for a long, long time to come. we would like to have it all. we understand why they would .ave major presences amazon is going to choose to do that and other jabber freeze. i do not think it is a blow to the startups. in fact, it might make it a little easier for startups to compete for the great talent that is already in seattle. as always, great to have you here. youtube announced a partnership ticketmaster. the site will feature upcoming u.s. tour dates on hundreds of youtubeg artists' videos. the deal will first rollout in north america with plans to expand globally. coming up, as the gop tax overhaul continues to work its way through congress, a provision is getting --from a startup community.
emily: crucial details of u.s. tax reform is still being worked out in the halls of congress. one provision is grabbing the attention of the tech community. the senate version of the bill requires employees to pay taxes on stock options at the time they in fact, brother when they are exercised. startupl impact the world, where employees are learned by the stock options but it takes years to know what they
are worth. matt,with us in new york, managing director of madrone ventures. there are some good things and bad things. the house and senate bills are different. break it down for us. >> the senate is one that they will tweak out. it basically means if you are an employee, you get stock awarded to you the moment it invests, which means you have the stock option. that is the moment you are taxed. that is the reason that it is causing so much consolation. a lot of the times, it fails. worth nothing but you will be taxed on the value when you get it. emily: you can be taxed yearly or monthly, essentially. but the house bill is more favorable. it is like the opposite. alistair: it is. basically, it delays when you have to pay taxes on your stock options, which everyone would be
much more comfortable with. basically, it would give people a lot more flexibility when they pay taxes. emily: this is just one part. matt, how hard -- how big of an impact with these two different scenarios have on the startup community? matt: the first thing to say about this is i think it is generally good and accepted that having simple if i tax reform is going to help the economy overall. that is good for the innovation community that we live in. having said that, the senate provision is particularly bad. there are three issues with it. first of all, these are stock options. .this is not even something i own today in many cases, i do not have the right to exercise those options and own them outright. . that iscalled the early exercise provision i am being taxed on something i do not own yet. secondly, the reason that i have to pay because i don't own it yet, the economy like if your
appreciated in value and you have to pay taxes on the appreciation before you sold it. i might have to pay a tax on something and then as it happens sometimes, companies do not work out or sell at a price below that value or have a down round financing. i pay a higher tax on something worth less. for three reasons, the senate proposal does not make sense to me and would be a negative on the tech community. emily: is the house proposal fair? matt: i do not think it is a thing.ry it is a little bit more generous in how it treats the situation for stock options. i do not think we should be pounding on the table for that. i would much rather have simplification overall and understand different kinds of loopholes be closed or not created. i think in the balance of things that ultimately get done, and again, i'm very hopeful we do get major tax reform, the house piece is a little bit generous. i would be much more concerned
about the senate piece. it is a logical -- it is ill ogical and would have a negative impact on startups. a lot of big companies do not have these issues because they are using cash compensation to retain their employees. it is quite a different equation for them. significantly deaths of his advantage of earlier stage companies. emily: there are a lot of other provisions here. how do they affect the tech industry? alistair: i was going to pick up on one thing matt said. it strikes me when you add up all these things, it is bad for smaller tech companies and relatively good for big companies. overallbig one is the corporate tax rate down to 20% is great. they might get a lower tax rate to bring back all that cash rate. that is good. some of the bad stuff is they are thinking about taxing intellectual property income. that type of thing is the basis
of how some of these big tech companies avoid paying tax overseas. sat is where all the ip its and they charge licensing fees. emily: what are your thoughts about some of these additional provisions? matt: i do think the tax repatriation and the changing to a territorial system is good for the overall tech ecosystem, particularly good in the united states. not only will there be more capital for big companies, but perhaps to acquire early-stage companies. the publication is often very much better. as we have seen in washington state with the no income tax system and a simplified system that really helps grow our economy disproportionate to the rest of the country. emily: all right. thank you as always. our tech editor, thanks for breaking down all of the nuances
emily: microsoft has joined a growing number of companies pledging to curb their omissions. they set a new target to cut carbo dioxide -- carbon dioxide. microsoft may be announcement during the united nations' annua whereate conference leaders have voiced support for the paris deal, despite president trump's plan to withdraw. lower prices have presented an economic challenge for many countries and the gulf region for oil. one country sees a silver lining
due to the rise of cloud services. finances,llenge and generally the drop in oil prices has been a blessing in disguise. it forces governments to take on policy changes and law changes that have been for the benefit of tracking investors. >> that would have previously been very unpopular? khaled: absolutely. it has made my job a lot easier. theave seen a investment attraction double from 2014 to 2015. million0 dollars. >> and foreign direct investment?
-- in foreign direct investment? khaled: yes. i think it is down to the openness that the economy has always had, and because the government is looking to attract investors to pick up the slack the governments leaves behind. on saudi, i think it is good news. i think people look at the region and see as a zero sum game. if the kingdom of saudi arabia grows, what would it do to the other states? we do not se say that about asia. we see the success of one leading to the benefit of the others. >> $700 million through the economic board in 2017. what about 2018? khaled: it will be hard to match that number. $300nk we will exceed million to $400 million.
we set of data centers. it is the first investment -- >> a hosting hub? khaled: yes. it is a server form that will serve the entire middle east and africa. we looked at the middle east and africa and the absence of data centers. we were encouraged by amazon looking to set up something. >> so that is happening? khaled: that is under construction. we will be that launched by the first quarter of 2019. it is a game changer for the region. it is going to bring supercomputing power to the fingertips of startups and small businesses. it will allow people to move work close to the cloud. they can enhance security, reduce costs. we will adapt a cloud source policy. we will adapt every government entity to move to the cloud.
we will save 90% of our costs by moving to the cloud with amazon and hopefully with others, as well. >> what was the dollar figure? disclosed thatt because amazon is protective. >> is there more you can do with amazon? khaled: absolutely. we want to talk to them about other lines of business. we are talking to google, microsoft. we want our whole country to be a host to several of the leading companies. not to have sales offices but that have something of substance hopefully in the cloud. >> more data centers, and other words. khaled: more data centers and a catalyst to develop a digital economy and the country that will serve the entire middle east. we see data as growing an important. we see it in terms of supercomputers in our pockets and mobile phones. we think the middle east should not be neglecting that element. >> so amazon is a done deal.
how close are you to getting google or microsoft, the two companies you just named, to make similar commitments? khaled: we are in talks with them. they have to see the potential in the region. the second element is making them see the benefits of bahrain. i cannot say we are close to concluding anything but we are hopeful. >> would you go so far as to protect one of those conversations will result in agreement before the end of this year or next year? khaled: i do not want to speculate, but hopefully we can reach some kind of conclusion. emily: that was the chief executive of the bahrain economic development board. that does it for this edition of bloomberg technology. a reminder, we are live streaming on twitter. check it out on bloomberg tech tv. that is all for now, this is bloomberg. ♪
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