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tv   Bloomberg Technology  Bloomberg  March 26, 2019 11:00pm-12:00am EDT

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emily: i am emily chang in san francisco. this is bloomberg technology. with apple's big services announcement in the rearview mirror, if dispute with qualcomm is back front and center, how apple just escaped an immediate import ban on its iphone. protect theing to
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2020 elections from foreign interference. e-sports is getting a new venue. millionis investing $50 into a stadium, specifically designed for the next generation of gaming. lead, apple has escaped a possible import ban on its iconic iphone. the decision is coming after u.s. trade agency rejected a patent infringement claim filed by qualcomm in the second of two cases brought before the u.s. international trade commission. earlier today, a separate judge set apple infringed a different qualcomm patent and recommended a ban. here to discuss all things apple , they cover tech litigation and policy. what does this mean? that theys a decision were reviewing.
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that decision said that apple did imprint a patent. that judge actually refused to the issue of a sales been. this was a special police of the itc grand. they reviewed that. we were thinking we might get some sort of analysis of whether this was appropriate given the underlying 5g concerned that a pushing intel that would diminish u.s. competition. entirely sidestep that. invalid, that this was they did reach a sticky 5g issue. emily: another judge recommended a ban, saying that apple did infringe and other qualcomm patent. how do we take these two rulings together? mark: these are two distinct patents, both related to qualcomm patents in making batteries and phones last longer. the two cases were at different
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points in the process. the other one from earlier today around lunchtime was earlier in the process. that was the judge's initial view on it. this will still go to the hard court for a final ruling. likelyact here would be on iphone 7 and iphone 7 plus which is due to be discontinued anyways. it was still have a multibillion dollar impact on apple. next where the judge has made this initial recommendation. a july 26 -- have that is when they are going to review this decision. that, if it recommends as has been on these iphone models,
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there is a 60 day presidential review. the administration to decide whether or not it would allow sales been to take effect. it could overrule that. we could potentially be looking at a sales been by late september. emily: some of these have gone in qualcomm's favor, some have gone in apple's favor. is it clear which company has the upper hand? mark: you have to look at it from a consumer perspective. that is how i look at it. right now, qualcomm is where it is at. they are a year ahead of of intel. apple is unlikely to release a 5g iphone this year. they are using intel parts that don't have 5g's yet. they won't have it until the beginning or middle of next year. from that perspective, qualcomm
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is winning. apple has not banned any phones at this point. they are not losing, they are in a draw at this point. emily: tamlin, would you agree with that? tamlin: this is a pressure point that can force apple to the table. what qualcomm wants is a settlement. they want to begin paying royalties. i think this is a potential sales been. enough for anhave upcoming trial in april that will be huge. qualcomm, it is definitely good for them ruling in that favor. emily: what is the company sang about the most recent ruling? have we heard from them? mark: q3 is when they come out with new iphones anyways. the iphone 7 and seven plus.
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this came out in 2016. those are due to be cut -- to be discontinued. they could expand to other devices. it won't have a wide-ranging impact. qualcomm was praising the judge's decision that we have yet to hear from either side on the second going. -- ruling. emily: what is the next big milestone for either one of these companies in this ongoing legal fight? lin: there is an april 15 trial scheduled in san diego. filed thisally lawsuit. qualcomm shot back with claims of its own. trial thathree-week starts april 15. i think that will be the next indicator.
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emily: that was tamerlan and mark.-- tamlin and we will follow those decisions. coming up, can the u.s. safeguard the 2020 election from foreign interference? what is silicon valley's role? we will hear about the plan to ensure that they were together. that is next. if you like bloomberg news, you can listen on the radio, the bloomberg app or sirius xm. this is bloomberg. ♪
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>> the investigation of russian interference in the 2016 election has wrapped. there is still plenty of work to do ahead of the 2020 presidential vote. this is what he believes needs to be done in a washington post op-ed. he wrote that completely preventing the injection of foreign propaganda into our discourse is impossible but we can ask our tech industry to reduce the application of text messages and more quickly to text commenting and reports organized foreign influence efforts into u.s. officials. congressman connor joins us now from capitol hill. , it is great to have you back on the shop. khanna: as bob mueller found, the russians hacked into our emails.
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they wanted donald trump to win. we need to make sure that they never do that again. there are very civil things we can do. cant, technology companies form a consortium so they can share information about thoughts are bad actors and make sure those actors are removed from those platforms. agencies cancement been acquainted with tech companies. tech of his don't have all the resources to do all the intelligence work. they need to be working with law enforcement. the third point, we need to label these as. who is ashley behind these online ads? -- actually behind these online ads? emily: is there anything that for thiscan do to make doesn't happen? it goes like falling through the cracks. rep. khanna: we can, we can get
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funding to these law-enforcement agencies to help private companies with cybersecurity and fighting foreign interference. we do this all the time. we don't expect to be responsible for their security. they have private security but they still have the protection of our military and police forces. they should also have the assistance from our intelligence agencies to help them identify who the bad actors are on their platforms. then they have a responsibility to remove those bad actors. this is a bipartisan issue. i have talked to people on the other side of the aisle about the need for congress to step in to make sure this doesn't happen again. we saw this live video of a mass shooting in new zealand to up on facebook platform, nobody caught it for 17 long minutes. it sort of diminishes faith in
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the ability of the tech industry to take strong action on some of these things. do you think we are really better prepared now than we were in 2016 to prevent this kind of interference from happening on tech platforms? rep. khanna: we are better prepared. i have spoken to many tech leaders. they take this very seriously. they have instituted safeguards into their platforms to make sure they are ready to act. when you mentioned the new as atrociousing and awful, it took maybe a few hours to remove the video from every side. it is a hard problem. once the video is out there, it has over million shares, it is not easy for anyone to remove it. we have to understand that this is a difficult issue. it is going to require investment in artificial intelligence. it will require better coordination. i think many of the leaders understand the responsibility. do you think that tech
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gets how big of an issue this is? do you think there is the will to affect the human and technological resources to make this happen? >> i do. they understand and what is platforms. when you talk to them, they will talk about how proud they are of black lives matter orchids having social media as a platform to get their voice out. or how excited they were about the arab spring. they understand that these platforms have been abused for hate crimes. they want to solve this. they cannot do it alone. they need help of law-enforcement agencies and they need help of the government to invest in resources. that said, they have a responsibility and there are things they can do themselves. making sure that they limit the virality of propaganda or his speech.
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emily: they tech is getting bipartisan scrutiny of late. senator elizabeth warren calling for the breakup of big tech, ted cruz supporting her on that. do you think that is the right way to go? rep. khanna: i don't agree with them on that. i don't want china to have the only big tech companies. it would be an irony if alibaba, tencent and those dominated the world. we need strong antitrust protection. the paradigm should be the microsoft case. microsoft cannot privilege their own products or tie internet explorer -- they prohibited that. it is not break michael soft up. -- microsoft up. we see the giants of the past like aol or yahoo! are often not the giants of the future. strong antitrust protection yes. breaking up big companies, now.
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emily: what kind of antitrust would you impose on amazon, apple and facebook? rep. khanna: you should not have anti-competitive platform privilege. you can prioritize your own product. a concrete example, amazon should not be able to say that when you search for a detergent you want to buy that the first things you will see is amazon basics. they should make sure that every competitor has equal access to their platform without biasing their own products. those types of reasonable steps and strengthening antitrust law is a good thing. that doesn't mean that we break up these companies into multiple alibaba tohen allow succeed and become the world's platform. emily: you represent silicon valley. at any of these tech parents --
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giants reached out personally to express their concerns about government intervention or regulation? rep. khanna: i have conversations with them all the time. there are times when i think i am going to far with my internet bill of rights or even talking about stronger antitrust enforcement. ultimately, the respect that. it is intellectually defensible. what they don't like his painting with broad brushes and just politics of demonization. tech remains very popular when you go around the country. people like using tech products. they want tech jobs. they want more regulation. tim cook said it best, that we needed well-crafted regulation. emily: the mueller investigation has wrapped. we have the attorney general some ration of it. these you satisfied with that or do you want the full report released to the public? do you think that congress should move on? rep. khanna: we definitely need
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the full report released to the public. the american taxpayers pay for the report. we should see the report. we need to see the report on obstruction of justice. ab mueller did not make conclusion about whether the president obstructed justice. who is bill barr to make that 36 hours?nclusion in if he wanted him to make the conclusion, he would have used that in his report. mueller wanted the american people to make a conclusion, he wanted congress to make that conclusion. we have to see the full report. emily: we appreciate you joining us. that was from california 17th district, joining us from capitol hill. a federal judge in manhattan has scheduled a hearing for april 4 in elon musk's contempt fight with the u.s. regulation agency. the judge wants to hear arguments from the sec about whether they should be held in
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-- elon musk should be held in contempt. both sides wanted a hearing over the evidence but the judge will hear the arguments. coming up, your changes the internet, a potentially big and dramatic change. a new set of copyright rules could drastically change the way content is uploaded to the web. we will discuss, next. this is bloomberg. ♪
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emily: the eu has backed a new set of digital copyright rules. tech platforms will have to get information from publishers before publishing user content including -- included in such uploads. free-speech activists fear this could lead to censorship. we spoke with this man in london. he is the president of the european tech alliance. a future internet where
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everybody can compete at the same level. .his is very important new rules as always, can appear draconian or too strong. it is more effective and more right, rule for all. emily: are you worried that this could restrain the growth of european tech companies? no, the opposite of the rules were made impossible in the last 10 years. this is to grow european tech giants.
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these rules will create better conditions to grow the european tech giants of the future. emily: do you think these new copyright laws that the u.s. could adopt similar legislation? gianpiero: yes, the gdpr was an example for many countries out of your. to makeislation tried something in the real world. same fority is the many. i think that probably, out of they can take this example as a good example to eliminate the internet of the future.
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emily: there is still a fairly decent threat that the u.k. could crash out of the the u.k. would become a more attractive country. the u.k. needs to attract the tech size of the future. they can have the opportunity to set a relationship with a country without important economy of course, the present will be the final point. in this moment, we don't know how the brexit will evolve. do you think that on top of all of the regulatory pushback that tech is seeing in europe will
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actually put european tech at a disadvantage to the u.s. and other tech industries? we need a digital industry that can compete at the global level. this is important for other industries. without a strong digital industry, this factory cannot grow in the right way. everything is happening in this moment, it is a rebalancing of the situation. i think that we will observe errors that will be corrected. emily: what is your take on gdpr
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and what the right side of history will be? stepsrope taken the right ? is this something the u.s. should do? was able thatr came from the need to have more respect. i think in the culture of europe, data protection for the european culture is stronger. gdpr was the first solution and as for the other things, it was also the web tax for example. we will see a rebalancing in the future. rules, we will not have
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a digital economy at the level that europe needs. emily: the president of the , more ontech alliance bloomberg tech to come. ♪ so with xfinity mobile
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now that's simple, easy, awesome. customize each line by paying for data by the gig or get unlimited. and now get $250 back when you buy a new samsung galaxy. click, call, or visit a store today. emily: this is bloomberg technology, i am emily chang in san francisco. one day after apple's big event, they escape a possible import ban on its iconic smartphones. the international trade commission rejected a patent claim followed by clout that -- filed by qualcomm. apple recommended in yvonne man. that case is up for review. they are scheduled to complete an investigation by july. we have the cofounder of this.
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apple gain some ground and qualcomm gain some ground and vice versa. how do you expect this global battle to play out? jean: it will play out over these small bumps in the road, the small roller coaster ride. country by country. to put some context on this, these headlines sound most concerning. sound is the most important were there. this is just noise. doester your question, how this play out, we will see some varying degrees of announcement both for qualcomm as apple. that does not change with a trajectory of the relationship between apple and qualcomm is going. that relationship is moving in a different direction where they will eventually be separate. you can point to the hires that apple has had more recently in san diego.
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they started to build their own checks and intricately -- internally integrated. they have the option of moving in that direction. the big picture, the simple reason why this is noise is in the future, apple will not be dependent on qualcomm. on inrritation is going the courts and it only accelerates that move for apple. emily: the iphone has been banned by other countries in other buildings pertaining to qualcomm. i know it is mostly involving older models. even if it is just older models potentially being banned, do think that is still just noise? gene: it is. there are disputes about which models will be banned. apple uses intel chips for their most recent ones. to your point, it will be for some of the older phones.
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those don't have any apple products. this is a measurable piece of the business. importantly, i think i come back to the central theme. these customers are going to make a decision asked on a price point that is unavailable to jump to an android phone. apple has retention. it has been steady for the iphone between 90 and 95% over the past five years. i think the availability of certain models will not change that number in the near term. emily: i want your thoughts on all of the service announcements yesterday. we know that apple unveiled its original streaming plans with much fanfare, a lot of big celebrities. oprah, reese witherspoon, a lot
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.f unanswered questions how much is it going to cost. how big of a deal is this new streaming plan? emily: it is irritating that we do not get a lot of the specifics. gene: i think we can back in there. these will be very similar prices. most training services are right around $15 per month. it is $10 per month. then we can look at the number of ads they have an apple music as some sort of #for the next few years. they about where netflix is as another benchmark. what you can build as a case for this video segment to be somewhere between 10 and $15 billion per year in revenue. around 45% to apple's overall business.
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it does not change the expectation around the business services. most analysts are expecting this, you need to have these types of new products like video. it is an important step, video. needed for apple to hit the march that the analysts set up for. emily: what about the news plus service? it builds on things that apple has tried to do before but they have not been raging successes. gene: this is the one that was the most underwhelming to resurrect the magazine business. people can get a lot of that same type of content in the photos and the web at large.
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like you said, if the partners aren't quite there, wall street is there. we think that this could be a $500 million business. it is their gaming segment, the credit card and what this could be. emily: the last two, apple arcade and apple card which was the least expected but maybe the most impactful of all of these announcements, what is your take? was a 15%e probability that that would come out. it is a big market. that can be a 3 billion delly your business. i think the part that got me is what is going on with the apple cart. it is a dramatic step forward. there are variations of apple's culture. on the credit card, it is something that is very unique in
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adding transparency to the credit card. the simple analogy is think about your circles and bands and bars. transparency with how you manage a credit card. i think it will be successful. i think that it will be another example of one of the subtle things that people like about their iphones. not a huge business for apple but it helps maintain that high retention rate. emily: don't you want titanium credit card in your wallet, gen e? gene: can't wait. emily: always good to have you with us. comcast betting big on e-sports. plansdia giant unveiled for a new $50 million arena. the fusion arena will have more than 2000 square feet of led
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screens, training facilities and private rooms for streaming. it will eventually house to comcast owned philadelphia fusion. one of 20 franchises in the overwatch leak. joining us now is tougher roberts. that you for being here. how will this arena be different from a traditional sports arena? tucker: thank you for having me. this is a tech building at its core. even through the design of it, we wanted it to look kind of like a computer. sports arenas are not known for being very technologically advanced. whether it is the wi-fi or what have you. that is not the thing you go therefore. this is very different. there will be leds and sound systems that are first in class. we want to make it feel like
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this is a virtual experience that blows you away. it is the very core of the design that is built with that in mind. that is such a departure from what people are used to. >> can these e-sports legs become as mainstream as the nfl, and i'll be and if so, when? tucker: i think it takes a lot of time. the nfl and mlb are only really watched in america. they don't have a lot of followers in china, they don't have a lot of followers in europe. this is a global phenomenon that likecends just a region ice hockey being paid -- big encoder regions or football being only popular in america. question, butur it takes a lot of time. the nfl is as big as it is today
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because it has been around forever. the average viewer of an nfl game is 50 years old or more. the average viewer of overwatch matches are 27. it will take some time. emily: they tech is making an even bigger push into giving. apple and google have announced their own streaming platforms. how much can these change the tucker: i would not say they would change the industry but that doesn't mean they can't be successful. the gaming industry is so much bigger than some people realize. in annualbillion revenue and a. that is broken up into so many business models of games. you have free to play games, subscriptions, premium titles. you have ad-based games. i think it is -- there is a place for it.
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we are going to prioritize design and quality. because with the industry is doing. the market is huge, it is tough to change it. >> tucker roberts, fascinating stuff, thank you for stopping by. emily: coming up, your electric car may be gas free. if it catches fire, it could pose a new problem for firefighters. first responders are learning to deal with the perils of this new technology. coming bloomberg tech up, this is bloomberg. ♪
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emily: adobe is broadening its strategy to win over more corporate customers. the company announced a new software system called experience platform. it'll unify business applications that have been through different acquisitions and it will connect them from new apps from third-party developers and other programs. they will be acting as a hub for data. first responders are quickly learning how challenging it is to stop electric car fires. a deadly crash in florida keys in florida teaching place that fire extinguishers will not work and water is not even a sure bet. there may be only two ways to put out a lithium-ion battery higher. chester has the story from detroit. testre focusing on this the carr fire in florida. what happened there?
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-- tesla carr fire in -- tesla car fire in florida, what happened? >> once the fire department arrived on scene and ousted, the vehicle caught fire again to more times as it was being towed to the lot. it just shows you that when you're dealing with electric powertrains, it is a completely different situation from your typical gasoline powered engine and the first responders unless they are imminently -- intimately familiar with the protocols. they will have to learn that as electric vehicles become more common on the roads. emily: what are the protocols? chester: as you mentioned in extinguisher fire
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has no affect. the answer is to dump lots of water. thousands of gallons. hundreds of gallons would do it for a gasoline powered car. the other alternative is to let it burn out. tola and others recommend first responders that if there is a safe place to let the , that is another option. it may be the only option unless you have thousands of gallons of water that you can use to pour on or submerge the car or battery. emily: is it realistic to assume that any firefighter would be able to access thousands and thousands of gallons of water in an emergency situation? chester: it is a good question. that is what is needed. typically does the fire, you can get rid of the flames momentarily. temporarily with lesser amounts of water but these are the things that fire departments will have to enter themselves.
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are they properly equipped for this? what other equipment with a need to do with this? it should be said that electric vehicles are no more likely to get into a next door or catch fire than a gasoline powered vehicle. some research shows it is less likely. when it does happen, it is a more difficult problem to deal with. emily: tesla called the accident tragic. equipment that would make these fires easier to put out? it sounds like if you are in an electric car and it catches fire, you're kind of out of luck. yes and no. typically, an initial dousing will be enough to get the person out of the vehicle. there is a hole of the of issues and electric goes. they have high-voltage cables.
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say that the door is jammed, in a typical car, they can use the jaws of life anywhere as long as they aboard the gas line. the electric vehicle, they have to be careful about where they access the car or where they cut. that there is no high-voltage cable. that could be potentially dangerous for the first responder as well. there are other issues with these types of vehicles in terms of where things are located and just being of a to it as electric vehicle. wholet is requiring is a other level of education for first responders. to --ay, they are aware they can handle the unique challenges of those vehicles. it is not more liquid to get into an accident but when it does, they have to make sure the first responders are prepared to do it. >> our first responders having respondersre first
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having a training? chester: it is coming in fits and starts. there are other electric vehicle makers. gm with its volt. nissan with its leaf. first responders are getting more training. it is a bit haphazard. there is no national standard for it yet. there are certain departments that are maybe the ones who have seen more of these incidents raised on where sales are highest. that happens in florida, california, that is where the markets for ev's are more popular. about a quarter of a million firefighters have had some level of training and there are about a million firefighters were first responders in the u.s.. about a quarter of them have had some training.
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that is mean they are all experts. emily: chester dawson, you can read his story at and in this weekend's bloomberg businessweek. hear more from the editors every weekend on bloomberg television and radio. still ahead, overtaking on the middle east. how acquiring their rival will affect the ride-hailing competition. this is bloomberg. ♪
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nasa's historic all-female spacewalk has been put on hold because of the lack of fitted spacers. -- spacesuits. this would conclude women's history month but according to the agency, both need a mediums -- medium sized spacesuit. only one is available. thehanie shargh host told
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washington post that an all female spacewalk is inevitable. after months of rumors, google is acquiring kareem. they will buy the device-based company-- dubai taste -- dubai based company. expanded rapidly. in --chat is an investor david is an investor in careem. >> a lot of investors were in the deal. there were a lot of investigations. to expandr has tried to break failure. >> i think this is a victory for uber. in southeast china and asia,
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they withdrew. this time, the management team took a less adversarial position. they believed that opera is going to let them be independent for a while. i think the deal was right for both sides. what does this mean for ridesharing in the middle east? d there are 700 million people in the middle eastavil: -- david: there are 700 million people in the middle east. the customer still have two choices. they will not be run completely the same. consumer still have a lot of great options. emily: what is your outlook on the over -- uber ipo? uber has prioritize growth over
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profits and sustainability at this point. do you think that investors will buy into this? david: everybody wants the lyft ipo to be a smashing success because it will legitimize the sector. i think that this whole argument sector is going to see automation kick in. then, the labor cost which is the largest chunk of the cost, it will disappear. >> that all of these drivers are out of a job. yes, that means that ove-- profits wills skyrocket. it will not be overnight. i think it is going to be gradual. theseo means that companies profits will continue to rise gradually. emily: you are also an investor canabils --
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cannabis. what do you see there? david: this extends to the cannabis market. people want delivered to their homes. i think a lot of cannabis dispensaries are not in great locations. you are a female wanting to buy cannabis, you would rather have it delivered then going to a store in the middle of the worst part of town. greatk this is a opportunity. we believe it will be federally legal in the next three or five years. emily: lots of evolving stuff there. peggy foravid chao, stopping by. that does it for this edition of bloomberg technology. you can follow our global breaking news network, tictoc on twitter.
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this is bloomberg. ♪
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