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tv   Bloomberg Technology  Bloomberg  May 13, 2019 11:00pm-12:00am EDT

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[captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org caption content and accuracy. visit ncicap.org carol: i am carol massar in boston, and this is "bloomberg technology." coming up in the next hour, we are looking at the best of boston's burgeons tech hub. we discuss what is on the cutting edge in some of the city's biggest industries. plus, stocks slide as the trade war escalates. the trump tweet threats and
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china hitting back. we break cowen the biggest movers on one of the most volatile days for market this year. one of the biggest losers of the day was uber. it'sism p. offerman debut showers. can it shake off scent sim around it? >> we are coming to you from boston this week, traveling around the city and showcasing the innovation, diversity and power of the regional tech economy that is in boston. boston known worldwide for higher education. it includes 70 top science graduate programs. it is an area where 49% of adults have college degrees, 40% of which are in science and engineers. today we are at m.i.t. last year the school announced a $1 billion investment in a.i. research in education with the m.i.t. schwartzman college of computing. more on that later on. first we have to get to our top story. u.s. stocks turn in their worst
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day in four months as global trade tensions enter the forefronts. tech was among the worst professionalers with apple and uber standing out. let's go to pimm fox in new york. this was a tough day for the bulls out there. >> yes, that is right. let's point out that what happened to apple today can be connected to a five to four decision at the supreme court. it has to do with the amount of money that apple remits to those developers that offer up eir apps on the apple itunes or app store. this ruling could also affect google, amazon and facebook. any company that has apps or third party software that they sell online. the way it works right now, this is an $80 billion a year industry. it is projected to increase to about $160 by 2022. the idea is that apple takes a
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30% cut and then remits the remainder to the actual developers. well, the sewell suit that will now go forward contends that is too much and that apple has to change its ways. carol: that is certainly what we are watching. we are going to get more on the legal side of that in just a moment. the legal implications forale. but talk to me about the market sell-off that we saw? i think at one point maybe umtitis were safe, but talk to me how broad based this market day was? >> let's put it this way. i think only about 48 issues in the s&p 500 managed to have a gain today. 3.4% to is down follow the technology theme. that is the technology heavy index. the s&p 500 is up about 12% so far this year. the s&p 500 having its worst day since january.
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and a lot of this can also be tied not just to the back and forth over the trade talks between the united states and china, but also the ending of earnings season. we have seen this repeatedly. there is a move higher in equity prices going into the earnings season and then afterwards, we see a backing off. so it might just be an issue of profit-taking and of course having all this negative talk about the trade negotiations isn't a big help. carol: all right. going to leave it there. thank you. we saw the tech sector taking the biggest hit. uber down about another 11%. the u.s. supreme court has ruled against apple, allowing consumers to press ahead with a lawsuit that accuses the company of using its market dominance to artificially inflate prices and its app store. greg store has more details from washington with that story. >> in a 5-4 ruling, the supreme
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court says consumers can press ahead with a lawsuit that apple is overcharging for apps on the store. it overturned a previous decision. apple said that ruling barred the suit and that it is really just a middle man connecting app developers with users, but the supreme court disagreed saying consumer buy apps directly from apple. apple says it is still confident it wilt prevail. it says the app store is not a mop ply by any metric. but by letting the suits two forward, it opened the possibility to hundreds of millions of dollars in damages. perhaps it puts pressure on apple to reduce the 30% commission it charging developers. google similarly charges as much as 30% at its competesing google play store, and it may
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affected as well. it may open others like sedan.com to now consumer lawsuits as well. the ruling produced an unusual break down in the court. brett kavanaugh joined the majority and wrote the opinion. point ee donald trump led the defense. carol: coming up next, robot recyclers. maui m. i.t. is using robots to improve recycling and keep the planet clean. that's next. and if you like bloomberg news, check out all on radio. you can just listen on the bloomberg app, bloomberg.com and on u.s. -- or in the united states i should say on sirius-xm. this is bloomberg. ♪
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carol: before last year china ported about 40% of u.s. recycleables. a resents report and import ban things have ozen researchers saying 11 million tons of plastic will have nowhere to go. students at m.i.t. have developed a robot that can identify and sort recycleables. it is dubbed rose cycle, which can help with the pile-up that is out there. take a look at this. >> for more than three decades, china has been one of the world's biggest importers of plastic waste. that is changing. last year china closed its
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doors to two dogs foreign recycleables. before the ban, china importered about 40% of the united states repsycheables. the new policy could leave 111 in million mets rick tons of used plastic with konopka to go. now one team of researchers at m.i.t. is looking to sort through the pile-up. have .'s learning lab veloped a broadband that can identify. it includes a soft hand that uses tactile sensors. from there it can determine if it is made of metal, paper or plastic and establish a most path. as it stands, recycling centers are task the with the process of sorting and operating waste. mixed materials can become' cycleable altogether.
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20% of all u.s. recycleables are so contaminated they must be sent to landfills instead. the team says rose cycle can tackle the problems of the system. it provides a safe all tern tiff to human labor. it can be pictured by a needle more than 20 times with millender damage. while rose cycle it did he text stationary materials 85% of the time, it's success rates drops over 20% when objectses are placed on a moving querrey belt. other companies are building their own sorting robots, using camera and computeser vision and estimate that the technology can cut recycling cogs by as much as 50%. reducing contamination is a top priority for the united states. could a robot such as rose cycle and step in the right direction, or will america have o find a new dumping ground?
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carol: now we want to welcome the director of the m.i.t. research lab that created the robot you just say, danielle. so nice to have you with us. so night to be here at m. i.t. >> welcome. we are so delighted to host you here today. >> it is excitesing to see what it can do. we think about artificial intelligence and robotics. have we just scratched the surface? where is it all going? >> it is such an excitesing time in the fields field today. 20 years ago exe takes what a task reserved for experts. today we depend on computing so much we don't even notice how we depend on it. the next wave of technologies, the affirm i., machine learning and robotsic technologies will do so much more for us. carol: like what? we constantly hear that, and we have been hearing that for a while. >> let me give you examples. imagine garbage bin that is would take themselves out. imagine automate the
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infrastructure that will ensure the garbage is taken away, and systems like rose cycle enable the correct sorting of all that garbage so that it is vironment ally good -- environmentally good. imagine fresh produce that shows up on your doorstep delivered by drones. imagine intelligent assistance that helps you optimize your life. imagine transportation systems with no accidents. imagine personalized treatment plans. imagine all these possibilities that we move the routine work from us and ensure that we have time to think critically, to think creatively. >> what do you say to people who hear this and say this means the replacement of so many jobs out there? is that where we are going, or is it more the case of robotics
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working side by side with humans? >> i hear a lot of anxiety and concerns about affirm i. i have worked in this field for many years, and i want to assure everyone that the concerns around an a.i. pop -- a.i. reatly apocalypse are greatly exaggerated. it starts with understanding that it is important to provide people with also tiff viewpoints to help see things differently. it starts with understanding that a.i. and robotics are tools. they are just tools created by the people, for the people. like any other tools, they are not inherently good or bad. they are what we choose to do with them, and we can choose to do so many things, like removing road accidents, offering personalized medical. ensuring people can communicate.
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carol: how soon would we say? we have started to see a trickle of a.i. and robotics, olu how long before we see a bigger impact? >> we already have tremendous impact. medicine is getting so much more precise and personalized. we see the potential of optimized trance takes systems that deliver goods and people much more efficiently. in the future we will see so much more. >> you guys work with so many well-known companies that are familiar to our awed yen. toyota, microsoft, google, i.b.m. they have all opened up facilities in cambridge over the years. talk about the collaboration between academia and the private world? >> well, it is critical that academia and private world get together to solve some of the world's greatest challenges. by working with companies we understand where the pain points are, and we can direct
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the science towards those pain points. we can also show companies what is coming around the corner, what is the technologies that will disrupt are coming. >> it is interesting that you say that because i think about self driving cars. if you go back five years or so, it wasn't until tesla came on the ascione that people starred taking it seriously. what are some of the technologies you think we are not quite talking about much but will certainly be a big deal just around the corner? >> well, around the corner we will see a whole different category of robots. today most of the robots we see are inspired by the human shape. they are either arms, humanoid or robotses on wheels. in the future we will see robots that will be able to work side by side with humans, robots made out of soft materials, out of a variety of materials, whether it is paper, traditional.
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>> more human like,? where it moves towards? >> more variety of machines and in the scope of machines. >> as i have been walking around here seeing stuents working in grooms, what are you doing to prepare students for what is going to be needed in the future in terms of robotics? >> we are offering a wide range of important classes. machine learning is a very popular class these days. last year over 700 students took machine learning. we are also offering free classes online, and we are createsing new blended disciplines and academic degrees that enenable students to co-train in technology and something else. for example we just launched a degree in computational urban signs where we are training students in technology and policy. >> very fascinating. thank you very much. fun to be on campus with you. she is the director of m.i.t.'s computer science and intelligence lab.
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coming up next, we are going to take a look at boston's biotech seen. why third rock ventures continues to bet about big on gene editing technologies. we will get into that in just a moment. this is bloomberg. ♪
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carol: boston is home to a number of biotech companies ranging from small startups to billion-dollar amphetamines. alexis borisy, partner at third rock venus turings, is no stranger to boston's biotech
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scene. the company holds 28 companies in its portfolio. nice to have you here. >> it is a pleasure to be here. >> in 2007 you started. >> correct. you have gone out on a mission for personalized medicine. it has been more than a decade. what has changeled in your thinking and approach on permize medicine from then to now? >> the first think is 109 years ago it was a hope. we have had a number of medicines approved and that will be approved sign. that is great. it is remarkable how much broader the tool set a has become. it used to be traditional drugs. today it is beyond just traditional drugs. we have gene modifying gene therapies and cell therapies as well. so the tools you can use to make these break throughs has matured incredibly. >> changed dramaticsally, what we can do today.
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how quickly does all of this -- stuff has started to come to mark. how quickly do we starts to see a dramatic disruption in terms of how we treat patients? >> we are starting to have the first gene therapies approved now and first cell therapies approved now. ten years ago they were a sparkle in people's homes. that is remarkably quick. where there is one or two today, i think we are going to be seeing dozens of them over the next 10 years. >> i want to ask you about relay therapiesics. money.lsed a lot what is next for relay? >> it is another major trend where you have the life sciences intersecond with computational power and machine learning. we are able to do things again that maybe a decade ago we might have hoped for. but we can actually do them now, which means we can use the computational power in the case
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of relay to design drugs against biological targets that we have known we wanted to create a drug against for the last 10 or 20 years, but we haven't been able to. but now we can, and we can do it really, really quickly. it has created a drug against a target that we have known in the field has been important for several decades. relay was able to do it in the force of two years. before it was impossible. >> so everything goes much more quickly. what is the next step for relay? is an i.p.o. soon on horizon? >> relay has been fortunate with the amount of private capital that has been raised. it doesn't have to turn an i.p.o. immediately. i think it is going to move some of its programs forward and scale what it is doing because the potential there is so large. but one can imagine an i.p.o. at some point in the future. >> i want to ask you what you think main risks are to the industry in terms of biotech? we have a congress in warblets that is really focused on reducing the cost of health care, specifically the cost of
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pharmaceuticals. i think of some of these treatments, they are not going to be inexpensive. is that the major risk or something else? >> i think you have put your finger right on it we are at a time where we have this technology that is offering cures, where we can use the word cures. you are rights, they are not inexpensive, and people are frustrated broadly, and maybe deservedly so to some degree in some ways. but you worry that washington will take a blunt solution or a unt instrument and cause unintended damage to the entrepreneurial system. >> what excites you about biotech now? >> we are creating cures. when i first got into this business, that was a word you said softly because you didn't want to lose your credit ibblets. people didn't want to believe. today we actually can. not for all of diseases. there is still a lot of hard work to be done.
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but what we do, we are beginning to offer therapies that make a huge difference for patients. that is the best thing. >> the money you are raising, you say it affords you to the ability to stay private. can you talk about what kind of returns you have seen? >> we have been very fortunate at third rock, our first several funds have led the industry, and have had just incredible levels of returns. it has been good. >> doing well. >> yes. >> and it is ensuring you that more money is coming in. that is correct. >> big pharma and biotech, they have been active with another wave of consolidation. what are they looking for, a and where do you watch in the industry that you think will see more consolidation? >> there was an interesting ass statistic resentsly published that for for drugs being improved, more than 2/3 of them originate in biotech.
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go back 10 or 20 years, it was the reverse. years ago mostly from large pharmaceutical companies. now 2/3 originatesed from biotech. another stat. last year, 50% of the new launches were being commercialized by the smell kegs as well. it shollings you the power of entrepreneurial system. >> in terms of machine learning, affirmism, use of data, getting smarter with it, about 30 seconds left. where does it lead us to in terms of mo dammits and treatments? >> the great power where we take the machine learning and intersecond it with life sciences, hopefully it will points to places we don't understand the diseases to aim the medicine. two, can we imagine a future where the productsivity of industry is to much higher, instead of 30, 40 or 50 drugs
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approved, could it be like 100 or 200? >> thank you. alexis borisy of third rock ventures. coming up, everybody, we are talking tough tech with katie ray. how other m.i.t. founded venus accenture is taking a more parent approach to investing. coming up next. ♪ ♪
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carol: this is "bloomberg technology." i am carol massar admit mitt. forget speedy turnarounds for your investing. that is what the engine c.e.o., katie rae, is approach can't. she is focusing on something called tough tech for h- venture firm that was co-founded with our host at m.i.t. she joinses us now. great to have you with us. >> thank you. >> first of all, i have to ask you about the markets volatility today. we saw investors really kind of freaked out because of the u.s. -china trade talks or lack thereof. some of the funding comes from
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m.i.t. and others. do you worry about market volatility impacting the flow of funds into it? >> you always worry a little built, but i can't control that. so what we think about is the long-term and what are the right areas of technology to invest into. so we are thinking five, 10, 15 years out. so little market blips we don't worry about that much. we do worry about china-u.s. competition. we worry about how that will affect a founder's ability to tap the world markets. but again, i don't have control over that, so we have to work with what we have. >> you say a founder of a company, right, being able to tap the world markets? >> yes. >> if we don't have those trade flows. that is a really important way to look at it. i want to talk about some of the founders coming out of the the engine. tell us about the work you are doing? >> we bet on break-through next generation technology. you think about all of our
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biggest problems? how are we going to provide clean energy? how are we going to feed the world? how are we going to cure disease? how are we going to create next generation industry and infrastructure that will allow us as a species to blossom? those are areas we look at. what are the true breakthroughs coming? what could be not two times better, but 10, 100 or a thousand time better? >> what kind of visibilities do you have? are there things we are not look at that you think will be dominating our work and personal lives? >> i think emotion of our energy will be clean energy. >> do you? >> i rail do. we will know how toe make it in a clean way and store it. one of our companies, they are building long-term batsry storage for wind and solar. rights now you can only use wind and solar part of the time and you couldn't power the greenwood with that.
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but if you could store the energy, you can power the grid with that. and another is we will be able to create net positive energy with fusion. that is one area. think about how we are going to produce our food. how are we going to have less waste that comes out of our food stream? how are we going to produce the volume of food we will need for people? all of that is being developed in the labs here around boston. people are really thinking cows so do we feed or that they produce less waste. -- how do e create you do that across the different types of food strains. >> i wonder about -- are you trying to attracts new funds to do more? >> always. >> are there new flows coming is this? >> yes. people are interested around the world.
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we primarily have u.s. investors. >> i am curious about it. you did your first seven invexes in seven? >> we have done 17 invex to date. we did a company that is doing a platform that will truly regenerate cells to cure diseases in the bodies. we have done things like a.s.ism who is putting up a whole new satellite system in space that will allow deats to come back down rapidly. that opens up data. we are working on things that will speed up manufacturing and biotech, or in production of metals. we look at all kinds of things like that. every day i have an incredible world working with people inventsing truly extraordinary things. >> it is fascinating. and to see that so much of what is going to come out of your
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lab will be things we are talking about in 10 or 15 years. thank you so much. >> thank you. >> we reasht, pressure it. katie rae, the engine c.e.o. admit mitt. we want to take a little bit of talking some tough tech to really biotech. boston is arguably the center of the biotech world. but among all of this competition, madurns stands out. based in cambridge, the company is focused on making drugs based on merge r.n.s., and combatting infections to cardiovascular diseases. it went public last year and turned out to be the biggest biotech company ever. we talked about what changed since that i.p.o. >> i think the big difference for us and our employees is we use shell data all time with everybody. you do great medicine and
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science. that is the biggest change. >> so you are sharing more data? >> we are sharing less deats because now we have to be careful and when we share deats. >> because you are a public hell company? >> yes. >> what has changed in terms of the work you are doing and the perception with some of your partners. has anything along that line changed. >> we are work with partners for many years. it goes back to 2013 -- 2014 and 2015. we have other long-term investors for a long time. it is the same for us. >> what i wonder is there is something different between being privatesly held and then you become a public company? you do have to answer to investors. there has been a lot of talk about your evaluation out of the gate. it was over $7 billion. i am curious what kinds of questions? are you getting more pressure from investors who understand
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the biotech world. things take a while. but you are public now? >> because we had for many years very high qualities long-term investors, the story has been same, which is we believe we have technology to build a new class of medicines. we can do medicines that cannot be done using old technology like small molecule, traditional pharma and biotech product. this is an information molecule. with them we injects into the humans, we do it a thousand times. every time we inject a human, we give them an instruction for their own cells to make the medicine. because of that, we have a platform. and because the human genome has been sequenced now, we know all the instructions for all of the proteins we have in our bodies. we can take that information
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into our technology and very quickly give an up struck to your body to make protein you need to be healthy again. >> you say very quickly. how quickly is it proceeding? any kind of pharmaceutical, if you will -- as you know better than most -- it takes several procedures in different stages in terms of cling a.m. testing. i think about the evaluation, and at some point investors are going to say are we in stage three and where are we in the process? >> state side you think about two things. one is research, what we do in the labs. you want to test a drug before it is ready to go into clinical trials. in the labs we are able to move very fast because of the human genoming sequence. we don't have toe invent how to make the product. it is the same every time. the only difference is the message, like you have zeros and ones for soft wear.
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>> so it is same process in going after the protein created? >> yes. we have 20 drugs in development, many more in research, but all of those have a similar manufacturing process. in other big pharmaceutical companies, you have drugs to make. you could go very fast. >> can we make the assumption that the efficacy is going to be the same in every process? even if the process in terms of how you deal with an individual's body, but can we assume it is efficacy is it going to be the same? >> it is tough to say ahead of seeing the data because we are doing science. but the thing that is interesting is that because you make your own protein, and it is a protein that is known to your bodiesy, because it has been in your bodiesy -- >> in the medication, individual liesed. >> yes, for millions a years. when advancing a new molecule,
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wonderful drugs like lipitor and prozac, those have been invented. when we injects an instruction into your bodiesy, it is to make a protein that you are already making, natural in humans. >> this is not going to come as a new argument to you because many people have talked to you. it is like the holy grail, using it is body to form a treatment to deal with some disease or ailment. people have been working on this for such a long time. what makes you think you have the magic to make it work this time? >> i think we are resting on the shoulders of giants. a lot of the technology we are using at the company has been invented by others over the last 20, 30 or 40 years. just one example, we use next gen sequencing. so we use machines to sequence the human genome. we did not invent that, but we are using those machines to give us information that we can then use to go into the technology. there is a lot of technology
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that comes together to make it possible. i like to say that 10 years ago or 15 years ago it could not have exist the >> that was moderna c.e.o. coming up, what industries and trends are really supporting and changing the work place. we will hear from one investor who is working with companies who are trying to change the status quo. this is bloomberg. loomberg. ♪
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carol: a break from our coverage from boston and head to san francisco and catch up with emily challenge.
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tough day in the markets. >> indeed. we are going to talk about that, carol. in our work shifting series we have been talking about the changing nature of work in the real tech place and role play. what about the investors who are looking to back the trends that will decide the future of ? bs in the work place a new joined here by person. i want to talk about your investing approach. you say you are an anthropologyal investor. what does take that mean? >> sure. all investors approach these early stage investments in different ways. when i say that, what i mean is really wanting to starts by how consumers are using the end products and then backing into what are the products or service that is need to exist to support those type of human behaviors. >> everybody wants to talk about the future of work, but nobody knows what that is going
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to look like. what is your vision for that and how does that impact the choices you are making when it comes to where to put your money? >> sure. the topic of future of work is nothing new. how people work, when they work, from what locations do they work? it is all kind of up in the air right now, which is exciting and can transform how we all are spending our time in many ways. when i think about the future of work, how i think about it is less how people are compensatesed and more how people spend their time. i look and investing broadly in tree buckets. the first are technologies themselves where people are more efficient. this is where most of the conversation around the future has been. everyone , or autom ony for why. the thirds would be the platforms or marketplaces where people are finding work. >> how are people going to
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spend their time differently in the future? >> if you think about the first buck, many jobs are going to be made more efficient. sometimes there is a conversation that they will be replaced altogether or really just funneled mentally change. i was earlier this morning looking up some statistics on the number of farmers in the u.s. a couple of hundred years ago, 90% of people in the u.s. were formers. today it is about 1%. it doesn't mean there are fewer jobs in totals. there are far more, but the nature of those jobs has changed quite dramaticsally. i think it is much more likely that we will see forms of artificial intelligence that are working alongside people to help them do their jobs more effectively for many decades before we will ever see jobs replaced entirely. >> that is interesting because you were head of strategic ops for uber freight, their trucking business. you have also invested in autonomous trucking. is trucking a job, being a truck driver is that going to
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exist in 10 or 20 years? >> yes. >> how will technology offerset the newspaper of people required to driver a truck. >> trucking happens happens to be a passion topic of mine. things you never thought you would say. truck drivers represent about 1% of the population today. the average truck driver is in his mid 50's and drives a long haul truck. as you think about the pieces of driving a truck, it looks very different if you are driving a truck or car through the streets of san francisco or any other major metro than it does driving through programs an entire state in the middle of the country when you are going from major metro to major mets row. human beings and the nature of how complex the nature of that driving are very different. on a cross country trip, you are probably on cruise control, like the eastern half of nevada, versus i am never on
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cruise control driving down the streets of sfrinls. >> first of all, you worked at uber a year. hat is your take on uber almost 20% down for last two days into being a public company? >> well, obviously it is not the start that anybody would hope for. i think, as with anything, it is very hard to make any call when you are just two days two trading, for example. ultimately i think the future of uber hinges on how quickly and how much they will be able to innovate from the core business they have today. if you look at a company like amazon, when they first started out, they were just selling books. now they sell all sorts of things. they have amazon web services. they have tools and services for s and b's, and not to mention prime, the subscription consumer service. none of those businesses existed at first. what uber will look like one year to 10 years down the road
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is anybody's guess. >> what will the markets look like in six months? we are dealing with the trade war. a lot of companies got hit today, but ebayer by far the most. down more than the broader market. there must be some skepticism about the broader markets in general. how concerned are you about this environment? >> i think my job at red point is primarily very early stage investor. we are investing in the series a's of companies. so the future of how large those businesses can become is so far in the future that what the marketses look like six months from now have very little to no influence on the companies we are investing in today. >> we will be watching to see where you put your money next. thank you so much for stopping by. >> thank you. >> carol? very good point there that if uber was only going to have ride sharing in 10 years, then maybe it wouldn't be an amazon.
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as you know, the c.e.o. i spoke to on friday is sort of trying to sell this idea of uber as a platform, that it could be something like amazon with freight, with scooters, with e-bikes and self driving in the future. is this an $80 billion company or $200 billion company or more? we just dopets know. carol: time will tell on that. thank you, emily chang in san francisco. still ahead, holding off the hackers. we sit down with patrick morely, the c.e.o. of cybersecurity farm carbon black. that is therg. ♪
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carol: so on a day when increased trade tension, tech stock stumble, one company bucked the trend. shares of carbon black ended up today nearly 3% in today's
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trading. c.e.o. patrick morely is joining us now. nice to have you here. i know you said we had nothing to do with it. it is interesting to see the nervousness in the markets and it has to do with u.s.-china trade. how does it impact what you are doing at your business? >> well, as a cybersecurity company, we have an interesting relationship with certain nations around the world, particularly those that are very active from a cyberstandpoint. china in particular is statistically to be the number one nation across the globe hat is driving sigh better attacks. other relation they are is different than other public companies. we don't sell in the market because we are helping many companies protect themselves from attacks that are generated out of china. >> so when we have these
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u.s.-china trade tensions, because you are not selling into it, it doesn't impact you. how does it impact other c.e.o. and corps nervousness? >> as i tell our employees, we are building a company for the long-term. our stock is going to be iment packed by things we control and many things we don't control. when i look at my app and see red everywhere, it is disturbing. obviously that will impact companies that are going to buy my product eventually. so if that has an impact on other public companies and private companies, it will impact us eventually. >> tell us about -- you gave an opts mystic outlook for the second quarter in terms of revenue. where is growth coming from? where are you seeing it and what parts of the markets place are driving it? >> we gave a consistent it's look in q2. >> annual tilses thought it was good. >> they did react positively. again, we are building fors long-term, a company that matters in cyber.
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i think cyber is one of the most interesting spaces in tech. we come back to it again and again. you look at all the news about facebook, cyber is in it. you look at some of the geopolitical issues in europe and the u.s., cybers in it. we are a new guard of company that is helping to change it, make it better and more effective for companies. >> i feel like on air at bloomberg we are constantly talking about someone in the cybersecurities base. it is one of the number one concerns in the corporate community. how do you compete with the bigger guys like cisco or others? >> some of those providers work in a different part of the market than we do. it is a big mark. it is a $100 billion markets that is going through fundamental change. but r- but we do provide a platform that does compete with some of the traditional players. other public companies like smantsic and other prouders are out there. the way we compete is we are based on one core prince-point, if you look long-term where the
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world is going, you need to leverage the power of data in order to figure out what is happening. so we leverage data in a tway that allows us to see and stop the adversary in a tway that traditional products can't. >> i have to ask you about that. when you leverage the data to fight against adversaries, that happens instantaneously. when you have malwear coming in, you have a fraction of a second to stop it. what is the technology that you've got that enables that to happen, or can you? >> you are right. carbon black is analyzing 5900 billion security events across the globe every day. you can't do that with people. you have to do that with a number of techniques. we certainly leverage the compute capability of the cloud, and we apply a.ism and machine learning models to that, and it allows us to see pats earns across the glow to help companies stop the bad guys. >> so much going on. patrick morely, he is the c.e.o. of carbon black. that will for this edition of
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"bloomberg technology." but we do have a lot more coming up in boston throughout the week. then tomorrow we will dive into the world of sports. we will be at reebok's dead quarters and sitting down with the celtics owner. snolet ♪
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♪ manus: is "bloomberg daybreak: middle east." tracy: asia cell of moderating after president trump says he feels trade talks with china will be successful. s&p 500 stocks lost more in dollar value n an entireeen -- tha year's worth of imports from china. manus: stocks slumped across the gulf him -- golf and stocks were damagedkers of the uae coast. tracy: the market is expecting one fed rate reduction in 2019, but bets

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