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tv   Bloomberg Technology  Bloomberg  September 19, 2019 11:00pm-12:00am EDT

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taylor: i am taylor riggs in san francisco. this is "bloomberg technology." coming up, huawei announces its flagship 5g phone but it is missing google's services among a u.s. china trade war. plus, big tech to washington. facebook ceo mark zuckerberg talks antitrust with senators over dinner. meanwhile, the amazon ceo
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launches lofty goals to combat climate change. we will have details. last, a new york based cloud software company data dog sees a pop in shares after the company goes public. we will hear from the ceo. first, huawei launching its first high-end smart phone since the trump administration's blacklisting. on thursday, the telecom giant announced its pro fund. -- its pro phones. they pack a punch, including 5g capabilities, but all eyes are on that software and those huawei phones are running a free and open source version of google's android operating system because the u.s. blacklist prohibits them from getting the official version from google. that means no google play app store to get programs like google maps. to tell us more, bloombergs consumer tech reporter, mark gurman. talk to me about 5g. huge deal?
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mark: 5g is going to be a massive deal at the end of next year in the u.s. around the time the next iphone is going to have it. right now, you're seeing more and more 5g networks coming online a little in the u.s. but mostly in europe and china. huawei obviously a chinese brand. they are doing the right thing having 5g out of the gate and given how strong china is in 5g and how important the iphone is to china, i am surprised this year's model did not have 5g as well. huawei should get some credit for having a 5g model ready. taylor: how much of a tail wind is 5g to overcome the headwind of not having android software? mark: that is a very good question. the issue with google not being able to provide huawei with android is really an insurmountable hurdle, in my opinion.
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so much of using the device is the ecosystem of applications. we await accuracy -- ecosystem --huawei's ecosystem may be decent in china, but outside of china, you rely on access to google services like gmail, all the bells and whistles that having android provides and not being able to do that is a dealbreaker to many consumers, unless they are in china or huawei diehards. taylor: at what point is that phone outdated? >> right out of the gate, not having the android limits the app ecosystem, the ability to update. you could have the best hardware in the world but what really makes a phone good is integration between hardware, software and services. apple has done this very well, being able to build both on the hardware and software side. google is the most popular operating system in the world because of how it is optimized for hundreds of thousands of phones and tablets all over the
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world. coming out with a phone without one of the major operating systems is really going to be a dealbreaker for a lot of people. this phone is going to struggle out of the gate except for super huawei fans. taylor: how big is huawei's presence in europe? mark: europe is one of huawei's biggest markets. if you compare europe to the u.s., the market share can't buy it in major retailers. many retailers are not carrying it. best buy does not sell it. europe is where it's at in addition to china. taylor: i was posing this question to some analysts over the past few weeks as we confront rising nationalism and pro-apple products here. i was wondering in china when
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they would start to get a pro nationalistic sense about huawei. is that starting to happen, where the chinese consumer is favoring huawei over apple? mark: there was a lot of fear over the past launch cycle, so at the end of last year, at the height of this tariff conversation with the trump administration between the u.s. and china, there was a fear that nationalism was driving await -- driving away sales of the iphone. if you remember, there was that big a sales slowdown, particularly in china at the beginning of 2019, and one of the fears people were raising was people were not buying iphones because they were buying way way instead, because they -- buying huawei instead, because they wanted despite the u.s. and apple being a u.s. company. i do not see that ongoing. taylor: on all things hardware and software, mark gurman. thank you for joining me.
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taylor: mark zuckerberg visited washington a meeting with regulators about how to police the internet. he ended a dinner with a group of senators including mark warner. he spoke to bloomberg about what went down at that table. >> i think mr. zuckerberg acknowledged that self-regulation is not going to cut it, that the federal government needs to act. there need to be rules of the road. those rules need to include more transparency, the ability for americans to know and we have to move around election security issues. a lot of these issues, there was not a full meeting of the minds. i think he realizes that the status quo and the days of the wild west are over. >> in terms of antitrust investigations and whether facebook is too big, did that topic come up and where did that stand in the senate?
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>> a number of judiciary committee members were there. i am not going to get into what specific questions they ask. there was more conversation about things like election security, identity validation so that we can cut back on the hate speech, the manipulation that has been used by foreign spy services trying to represent themselves as americans. specifics, i am going to leave to the members who may have raised those issues. >> in terms of a regulation that time -- a timeline that regulation may happen, what is that timeline? my sense is that it should be sooner than later. a lot of work has been done on privacy. i have a series of bills that are all bipartisan. i would hope to get these to the floor. i think all of this legislation will get 75 votes. one of the concerns has been
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that the white house has been reluctant, particularly around election security, because it somehow makes them feel like 2016 might not have been valid. i'm not looking to relitigate 2016. i am looking to make sure our system is safe. taylor: that was senator mark warner speaking to bloomberg. coming up, amazon going green with plans to cut emissions and it just put in a big order from one start up to get there. we find out why. if you like bloomberg news, check us out on the radio. you can listen on the bloomberg cap, bloomberg.com and on sirius xm. this is bloomberg. ♪ taylor: google has made the
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taylor: google has made the
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biggest ever purchase of renewable energy by a single company. google has sealed 18 deals to buy 1.6 gigawatts from wind and solar farms across three can't -- continents. the announcement came thursday in a blog post by the ceo. google says it cannot produce -- can now produce more power through clean sources and the entire nation of uruguay. the announcement comes on the same day that amazon ceo pledged to make his company net carbon neutral by 2040 and meet the goals of the paris climate pact 10 years early. in a press conference in washington, d.c., bezos acknowledged global criticism of amazon's approach to climate. amazon also confirmed a deal for 100,000 bands to electrify to100,000 electric vans
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electrify amazon's delivery slate. joining me to discuss from new york is "bloomberg technology" senior executive editor, brad stone. thank you for sprinting back from d.c. from that press conference to join me. i first have to ask, big renewable energy goals, how do they plan to get there? >> we should say, it is a day before 1500 amazon employees were about to walk out of their jobs to protest what they view as amazon's climate inaction. strategically timed press conference by jeff bezos in d.c. at the national press club. they announced a few things. a formation of a new organization called the climate pledge. they said they want to get to the paris climate agreement 10 years early. they are going to buy 100,000 electric vehicles that will be patrolling three neighborhoods, delivering packages. how are going to invest in it. they are making a bet here. it is not something we have seen amazon do, but bezos said this is a priority for the company. taylor: you mentioned some of
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the criticism around amazon. we have a clip from jeff bezos addressing the criticism. take a listen. >> we have been in the middle of the herd on this issue and we want to move to the forefront. we want to be leaders. we want to say if a company of amazon's complexity, scale, scope, infrastructure delivering 10 billion items can do this, so can you. taylor: what are people upset about? >> amazon has experimented a little bit with alternative packaging, moved to renewable energy and fulfillment centers and data centers, but they have not made the specific commitments of an apple or a google. bezos today could have taken the -- put a stake in the ground. he promised action, conceded the severity of the challenges
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facing the planet and says amazon wants to be a leader. there has been a sense the company was not doing enough, but i think today was a significant turning point. taylor: you mentioned packaging and it is interesting. you order 10 different items and they come in 10 different boxes. do we not get any specifics about types of packaging or the way in which they package? >> no, they have always tried to consolidate orders in a single box and it is difficult. those products could be coming from different fulfillment centers. they have tried things over the years. i remember an experiment called amazon total where you would get something in a reusable bag. it is just difficult and expensive. they said their move to prime next day delivery is going to be good for the environment. they are moving fulfillment centers closer in the communities. that will bypass air travel. as amazon scales, its products come closer to neighborhoods and
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they will do a better job of putting things hopefully in single boxes. taylor: 100,000 orders for electric vehicles. what does that deal represent? >> it is an interesting story. it is a 10-year-old company in portsmouth, michigan. amazon led a 700 million dollar investment round in the company in february. bill ford met the ceo. a few months later, invested $500 million. it started as a tesla competitor but has moved into a heavy duty utility vehicle space. it has not launched its car, but not only do they have their suv and flatbed truck, they are going to deliver these 100,000 prime vans to amazon. it is a company that thought it would be this tesla or sports car maker that is now a contract manufacturer to companies like
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amazon and ford. it is the name of a startup we will probably be hearing more of. taylor: from tech to electric vehicles, it is senior technology editor brad stone. data dog makes its public debut. why the ceo thinks they are successful and what he would say to we work about going public. that is next. this is bloomberg. ♪
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taylor: how-based enterprise software company data dog went public thursday, jumping 53% in its trading debut after raising 615 million dollars in its ipo. the ceo sat down with bloomberg to discuss the big day. >> to get that growth, you have to solve the problem for customers. the way we spend our day as we focus on what can customers learn as they run
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infrastructure. >> how can that grow in terms of market share? you have a lot of competitors. it is a very crowded space. how do you compete? >> it is a very big market. there is room in the market for many companies to be successful. the way we compete is we focus on cloud. we build from that from day one. focus on getting -- being used as many as their engineers. >> what is the point of differentiation? >> we make it more accessible across different teams. we started to break down silos between teams that were separate. our focus was to bring these data into one place. more teams get more users.
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>> everything any public market is slightly over shattered by what has been going on with we work. having just done an ipo, a very successful ipo, what would your advice be for them looking to go public? >> i don't have much to say. we work in a number. it is big business. focusing on having a business that is healthy. profitability, that is what we do. >> you have this stock, very common among tech companies. it has been a subject where there has been controversy in terms of should companies have so much control. was there any discussion around pulling back? >> for us, what matters is we
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are building for the long term. we want that to remain the case as a public company. at the same time, we serve investors. we want something that is predictable for investors, so it is healthy. which is why we had this stock. >> another story that has been much in the news is interest from cisco. talk to us about that. why does it make sense for a company to be public and independent versus under the auspices of a company like cisco? >> i can't really comment on the rumors we have heard, but what i can tell you is it is a perfect market we are in. we see many more problems we can
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solve for customers and there is a much bigger and much more successful company we can build. from that perspective, it makes sense. >> do you see m&a down the road? taylor: that was dated august ceo with bloomberg's ed hammond. coding startup get lab just raised its latest funding round, bringing the evaluation for the coding, development and collaboration platform to $2.75 billion, more than double its last valuation. here to tell me more about its state is none other than the ceo.
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thanks so much for joining me. let's talk about that funding round. where are you using that money? >> there is a transformation going on. it used to be you had good solutions and worked to that. people want to go faster and faster and jumping from those point solutions is getting harder and harder. the problem is integration. the trend is a single application to get you from what you want to build all the way to monitoring and securing that. at gitlab we have that and the planning and the securing and the monitoring will be as good as possible. that is why we have raised the money. taylor: i want to talk about valuation. we have seen volatile valuation. wework, uber. how do you manage a company that avoids that volatility? >> that is the hardest thing, especially if you are a public company, which we are not. i think what is really important is investors are looking at close markets.
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for every dollar you get, what are your costs? if you only make 20% margin, any ups or downs swing the stock price by a lot. if you make an 80% gross margin, you have an easier life and investors want to see growth. they want to see you growing at a rapid pace. taylor: when we talk about growth, one of the competitors, github was bought by microsoft. does that help you because there is clearly demand or does it make you nervous? >> it has helped us. our customers want to go multi-cloud. it is no longer you pick one cloud. you want to have a negotiation position, maybe you some functionality that is only available on one cloud. they are going multi-cloud and they want workflow portability. they want to make sure that whatever cloud you use you can
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use the same tools. that has been the great thing. with gitlab they get an independent vendor that fits in that workflow. it has been a great boon to us. taylor: are you thinking about an ipo or a direct sting? -- a direct listing? >> we are not sure yet. we have a mission to go public in 2020. we think the plan is important, but we are flexible. we hope to become a public company next year. taylor: i want to talk about one of the theses of your company, which is in all remote workforce. this is an incredible transformation from an earlier generation where you showed up before your boss and left after your boss. >> it is changing the industry. i think we are the top remote
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companies, but we see a huge wave of new companies coming in. what we learned is there are three things that are really important and those are our top three values. the first is results. managers are not allowed to ask how many hours you work unless they suspect you are working too much. it is about output. we give people a management that knows what they are supposed to do. the second is transparency. we write things down so you don't have to tap people on the shoulder. they might be in a different time zone. people can find out exactly how we work and it also helps attract a lot of great people. the last one is iteration. doing very small things so you don't have to coordinate because it is a small step. you do a next step in a few weeks and people can give input at that time. taylor: i like that you are not allowed to talk about hours but you are results driven. that is the gitlab ceo, thank you for joining me. coming up, we meet up with ceo
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ben layer on his company is funding round. what the online publisher plans to do next. this is bloomberg. ♪ - custom ink helps us motivate our students
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taylor: this is "bloomberg technology." ever wonder what young americans are watching on facebook? it could be something published by numerous companies all belonging to the same parent company which recently raised funding for its lead discovery. it is currently reaching more than 70% of americans in their 20's, so what does the company do with the funding? i asked group nine's ceo. what are you doing with the money? >> i'm probably going to go to disney world. no, i think we are -- the point
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of raising the money is not to spend it, actually. we have been really disciplined in how we have been investing and i think what is happening in digital media right now is there's sort of a reckoning that is coming. there's have and have-nots. there's a bunch of interesting, great brands that have raised, maybe out over their skis the last couple of years, and what i really want to do is have a strong balance sheet and use that capital to be an acquirer. we have four great funds living in the portfolio today, but we have invested a lot in this infrastructure and platform, so the idea is to go after some inorganic growth. taylor: who is next on your list? >> there has been a lot of talk and rumors there. there's nothing imminent. i think the idea right now is -- obviously sort of an awkward question because there has been
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so much talk about this, but realistically for us, you can imagine us going into categories that right now we are not in. we are not looking to pick up little druid drab -- drib drab categories. we are looking into categories that have cultural tailwinds and we are having some interesting conversations and have been for quite some time. taylor: is there some focus on private companies that may or may not be profitable on margins, on that bottom line? do you feel more scrutiny? >> yeah, it is a great point. that is also something i see on the investing side of my life. there is not the same kind of runway orderly way that there leeway that there used to be with the idea that every idea you are going to grow, but you are going to lose sort of more and more. you see this with public markets with some of the scrutiny coming
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to uber and we work -- wework. this is something we focused on earlier or have been focused on more than some of our peers, but the reality is a digital media is a tough business. there's a lot of margin pressure and if you are not hyper diligent about how you spend and what you invest in and really operating in, you know, not operating like a startup even as you grow like a startup, you will find yourself in a situation where there is not the kind of capital availability today that there was a few years ago. taylor: fascinating comments. another thing you talk about is more than 70% of americans in their 20's are watching content on your platform. what sites can we attribute that to? >> our philosophy is to be democratic in how we distribute content, so we focus on granting content for the places people live -- facebook, instagram, snapchat, twitter -- these are the platforms young people live on, so our strategy is how we will build the best content or the biggest brands across all these different touch points,
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and i think there's huge advantage to that in the fact that these platforms are obviously incredibly powerful and have big audiences. there's been challenges with the business model of creating for these platforms, and that is something that little by little continues to improve. i think there is a move toward these platforms valuing premium brands and publishers in ways they did not just a few years ago. taylor: another of your key brands talks about news. it is hard with the news and social media. how do you combat misinformation? >> our responsibility is to make sure the content we are creating is truthful and accurate. i think the sort of fake news problem is something the platforms need to take response ability for. there was a philosophy at many of the big distribution platforms that they were a pipe,
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and any content was welcome. everything will, like, take care of itself, and they were not going to claim responsibility for the quality or accuracy of the content on those platforms. that story is changing, partially because of public outrage, and i think also because at the end of the day, for these platforms to really have lasting value, they need to be a place where real, truthful, high-quality content lives and real brands can be built. i wish it was happening faster, but genuinely, there is a sea change that is happening with how truthful and valuable content is being valued today. taylor: group nine's ceo and managing partner, thank you for joining me. last week, investors piled into the newly listed internet unit from south africa. shares initially jumped as much as 32% above its reference point before declining.
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its assets include a lucrative stake in china's tencent holdings. i caught up with bob van dyke friday and asks what he sees that investors should be open to. >> i think the start was quite positive and we expected to be somewhat volatile in the beginning, right? it is a new listing and the shareholders have not yet received their shares. they will only get them effectively on monday. generally, i think people are very excited to have a large consumer internet group listed in europe. we are actually the largest consumer internet group listed in europe. investors are very positive for it. taylor: is now the right time to be ipo-ing? >> we are also growing very fast organically, so i think the timing is also per -- is actually perfect. >> what is the next business you would direct list and ipo? >> we are really focused on
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process at the moment. the important thing for us is we are a growth company and we want to see the next wave of growth happen and we want to get the right investor base into the new listing. taylor: what sectors are you investing in next? >> there is so much out there we are excited about. we are investing in food delivery. that is in the u.s. also a very rapidly growing sector, but we see it basically everywhere in the world. people are using more and more meal occasions to order in at work or at home, so we think that is 20 x growth from here. taylor: talk to me about food delivery. competition is heating up in that space. you have more companies coming out trying to invest in that market. how do you stand out? >> it is really important to have excellent local operations. what we have seen in markets like india, what is required to be successful, it's a different than what is required in an auto
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market.otgheher you need an excellent operator on the ground who really understands what restaurants need and has a very efficient and scalable operation. >> when you talk about being in the local market, you mentioned india. talk to us about being in the local market in china. how does that work? >> we are an investor in tencent. we have about 31% of the shares. as a market, it is probably the most attractive internet market in the world. the biggest internet marketing users, growing very fast, still, and i think tencent has a fantastic position in that market and probably the best leadership team. we are happy to be active in the markets. taylor: you talk a lot about food delivery. i know you are also an investor -- ai is all the rage these days. outside food delivery, where do you see sort of the next frontier? >> if you look at technology, that is going to make a massive difference in our lives. i would say machine learning is the one that stands out.
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it is really changing how people interact with the internet, and i think it's actually going to be relevant in all the businesses we have. machine learning is a huge topic of interest for us. taylor: a big thing in the market recently has been finding that path to profitability. as you look at companies in individual markets, looking at different sectors you want to be involved in, how important is it to be able to see that roadmap to a path to profitability? >> it is an excellent question. the way we think about it is if you understand the business model well, we are fine investing and having losses for a number of years. as long as you know the model well that you are investing in, you can be comfortable with a number of years of losses, but in the end, obviously, you need to make money. taylor: we have talked about india and china. what we have not talked about is the u.s.
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why do you continue to focus investments in emerging markets and would you ever consider big investments in the u.s.? >> it is a good thing we speak about that because we are a growth company, but not necessarily just a growth market company. we actually invested quite a bit in the u.s. in the last few years in a company which is basically trying to let people sell things they don't need anymore on a mobile phone. taylor: tell me more about that. >> it is founded by a founder who is close to our hearts. he also founded our classifieds business, and now he founded this company. what it does really well is make something that you don't need anymore as easy to sell throwing it away, so it makes super sense. taylor: i want to end on a broader question about being in the midst of the u.s.-china trade war. you have been focused on china. have the tariffs or trade war impacted any of the
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relationships between the u.s. and china? >> if you look at the investment we have in china, in tencent, i think tencent is mainly operating domestically. it is a very strong chinese franchise. i would say the operations of the business have not been so much impacted, but i think it obviously has impacted investor sentiment. i think that has had an impact on their share price and ours as well. taylor: are you purposely focusing on companies that are locally operated with china, that do not have that international exposure that are subject to trade headlines from the u.s.? >> one of the things we do is take a long-term perspective on the world, and i think it has served us well over time. when we do an investment, we simply take a 10-year horizon. we were not really worry about what happens today. taylor: coming up, waiting for the new year. that's when airbnb plans to ipo,
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but one city could be a roadblock to the public markets. we discussed next. this is bloomberg. ♪
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taylor: stripe has raised 250 million dollars in additional funding. according to a company statement, that puts the unicorn at a new pre-money valuation. of $35 billion. investors include general catalyst, sequoia, and entries in julio it's -- entry -- andreesen-horowitz. the home rental startup has negotiated regulations that have allowed it to operate in more than 500 cities from san francisco to tokyo, but it is
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hitting a wall when it comes to new york, and the empire state could be what stands in the way between airbnb and the public market. to discuss, i am joined by olivia carville, w wrote this piece in the newest addition of -- the newest edition of "bloomberg businessweek." pre-2020, now maybe in 2020, by the change? olivia: airbnb's whole story has been that they wanted to ipo before the end of 2019. we heard executives say this earlier this year. back in 2018, they talked about the ipo, but they never actually set a date as to when they are going to go public. today, we got an announcement from the company's a.m. for the first time that 2020 is going to be the year that airbnb does file its ipo. i think that it's the first time we have heard from airbnb that they do intend to launch in 2020.
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earlier, we just heard the company wanted to be ready to go public by 2019, so this is a story we have heard from airbnb for a while now, but they made it official today. taylor: the big thing that stands in the way is that relationship with new york that is so contentious. olivia: airbnb and new york have been locked in this battle for more than a decade. the interesting thing i found while reporting the story is that fight has actually been really ugly at times. i heard of bullying and earning tactics, private investigators being hired by the city to conduct sting operations. airbnb has hired oppositional researchers to dig into the background of its major opponents. there's been a lot of frustration from both the city side, which feels like airbnb is impacting on its housing, and airbnb's side, which is saying, hey, new york, we want to allow new yorkers to rent out their homes legally and make extra cash.
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the fight boils down to an amendment to the 2010 multiple dwelling law in new york, which states that if you live in a building with three or more apartments, you cannot legally rent out your apartment for anything less than 30 days, and that really hurts airbnb's biggest value in the city. for example, myself, i would not be able to airbnb my apartment for two weeks if i went on vacation. the city wants airbnb to play by its rules and airbnb wants the city to change its rules, so they have really been arguing about that for a long time now. taylor: new york revenue only makes up 1% of airbnb -- only makes up 1% of revenue on airbnb's statement. olivia: airbnb's argument is new york is just one market. they are a global company operating in over 100 thousand cities. as you said, new york is only 1%
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of their revenue. new york used to be a really important market to airbnb, and it's not anymore. from the company's standpoint at least, they can still go public without the city. they don't need to regulate in new york beforehand, but from the city's perspective, they are going to keep pushing back and do all they can to make it as hard as possible for airbnb. taylor: we'll wait new regulations and potentially the ipo in the coming years. thank you for joining me. coming up, more of our exclusive interview with ibm's ceo and why she thinks technology will change 100% of jobs. this is bloomberg. ♪
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taylor: there has been an ever present worry about the impact on jobs with the rise of tech. will machines do in the future what humans do now? it is a concern that ibm's ceo thinks a lot about, especially when a workforce of 700 thousand
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hundred thousand people. caroline hyde asked how ibm approaches the human element of disruption. >> there's no doubt we are in a digital era and there's no doubt in my mind that this technology will change 100% of jobs. >> there's a lot of people that want to talk about this job will go away, that job will go away. to me, that is not the issue. the issue is it will change how you and i do our work. almost all of us will interact with these technologies, and it's happening fast. i consider the word responsible stewardship. it's one thing to make these technologies, but if you make them, you had better bring them safely into the world. if part of that means you prepare society, your own people, and in the world at large, and when i say that, what i worry most about is this cannot be a world where it all goes to a few people, where the benefits do, and that you have to have a college degree or phd. i have an entire workforce of
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that, but that cannot be the world. you start to have have and have-nots and this is what has led to a lot of unrest in the world where people go, my future is not better than my current. i want a change. i don't like this anymore. we are really focused on both the reason society wants these technologies -- it sees goodness in them. the second thing has got to be we have a workforce shortage. there's 10 million cyber people in the world that are needed. let me first to the broader and then come back. the broader has been about how you make this an inclusive era. that's apprenticeship. this is return ships are people who left workforce and are afraid to come back. we have also something -- we have also started something called new color and we have open 500 companies around the world. you get your high school and associate degree at the same
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time, and we have been at this eight years now. 150 thousand kids around the world, 16 countries coming to these schools. almost all first generations, never have gone to university before. no one in their family has. 15% of my hiring in the u.s. last year were these young people. this idea that they do great cloud work, cyber work -- by the way, many of them end up going back to school for four year degrees in parallel. it is about this country -- where there is a will, there is a way. this is also solving a need i have. we are taking a whole swath of society that otherwise might not have seen themselves in the digital era into it. we invest about $500 million a year, but i will tell you, this has been an interesting journey. today, i can tell you eight out of 10 ibmers have skills not just for today before the
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future. this has been about moving skills to the center of the people plan, and auto companies are like that. this is not just education. it starts with telling people -- first, be transparent. is your skill going to be in demand in the future or not? is it abundant or scarce? it kind of makes a natural thing that people want to move. then, the world is so consumable you've got to make career and education as easy as your netflix. our learning platform is learning on netflix. it's not netflix, but it looks like it. we have 50,000 people a day taking education in that way. caroline: and they are comfortable? they are not worried? >> this is an interesting point you made. now that we have been through
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the transformation, i can tell you with 100%, it is age irrelevant that people are able to move to new skills independent of age, and the number one thing we hire for now is propensity to learn. because it does not matter about age. if you think of it now intech, the half-life of a scale is less -- of a skill is less than five years. if i hire you with a skilled today, it's not going to matter in a very short period of time. i want you to be curious and want to learn. if you are, no worries. i will take care of the rest. that, to me, is a profound point. i think it is what every company needs to look at. caroline: i know ibm has done a lot of research talking to investors and finding out their main concern. it seems to be talent. >> it is talent. i kicked off a show and while i did talk about technology, one of the things i really dwelled
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on was about these skills. there is a perception that to get the new tech skills, you have to buy it all. that's wrong. there's an intersection people have to have. knowledge of an industry process. you do have to look inside, outside, but you have to look at the skill that is integrated here. taylor: that was part of bloomberg's caroline hyde's exclusive interview with ibm's chairman and ceo. tomorrow, we wrap up our ceo spotlight with a look at what she has learned since taking the helm and how the company has changed under her watch. that does it for this edition of "bloomberg technology," and "bloomberg technology" is livestreaming on twitter. be sure to follow our global breaking news network at tictoc on twitter. this is bloomberg. ♪ here, it all starts with a simple...
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>> the following is a paid program. the opinions and views expressed do not reflect those of bloomberg lp, its affiliates, or its employees. >> the following is a paid presentation brought to you by national debt relief. are your credit cards maxed out? are you just making the minimum payments or falling behind on your payments? are you stressed out? is that stress keeping you awake at night? there is reason to worry. check out your credit card statement. if you are only making the minimum payment, it could take you over 20 years to pay off. >> having debt is like having tremendous weight on you and you cannot lift it.

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