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is facing bipartisan condemnation. otheresident saluted families. >> it is a true reminder of the strength of america. we have to do everything we can ies.the family' and be humbled by them. the focusmp said should be on "radical islamic terrorism." hillary clinton and warren buffett are sharing the stage this hour. anew poll shows clinton with 9-point lead over trump. the u.s. has launched airstrikes against isis in libya.
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american warplanes and several vehicles are in northern libya. oural news is powered by journalists and analysts in more than 120 countries. i am mark crumpton. bloomberg west is next. ♪ >> i am cory johnson. this is bloomberg west. uber wins by losing in china. they sell the business to a rival. we will hear from a board member. elon musk is closer to combining his two companies. does the deal makes sense? we will discuss. surprising the industry with a new device.
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we will take a look at what the offer is and why there is no test. first, to the lead. after losing $2 billion in two years, uber is selling chinese operations to a local rival. it is a significant tie off. founders joining uber. remember, just two years ago, uber offered to invest in the chinese company and the company refused. about how he felt on the deal. company, uber has respect for that market opportunity and it will likely be the largest ridesharing market in the world. because of the lack of ownership in a percentage of the
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population, you may have something similar with leapfrogging and this is an interesting market that we were excited to be a part of. somethingutcome is that is a win for both companies. didi is worth more and i think we are. >> what will the involvement the in the business going forward? is uber going to participate? are they going to be an observer? ofa large percentage employees will be part of the team and we will work together to serve that community better. to haveany's are going a closer relationship.
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cory: is this active management? are employees going over? what is the management? shoulder a minority that shareholder -- we are a minority shareholder. all i am insinuating is that the relationship is closer and there will be many opportunities to work together, going forward. >> this is interesting and a thing that came out is that uber is actually profitable in developed markets. why is it so hard to be profitable in china. >> is fierce competition over the last few years. we have been impressed with what has been done and they have probably been the toughest competition that we have based from the global perspective.
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is tied into the capital availability that is out there and it has led to the aggressive competition that is leading to requiring investments, rather than profits. a blog post that, if you want to serve consumers, profitability has to be a part of it. looked at individual markets differently. i always talk to drivers about how many rides they give. it seems like uber takes a local focus in different localities. is that fair to say? >> absolutely. if you want to be successful in the local markets, you have to serve the market in a specific way. cory: do you think the didi
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competition in the united states market, does that change? are you going to partner with them outside of china? >> it has not been a point of focus in the deal. i suspect that you will see them working on integrating chinese employees and trying to better serve the community. largestthe single ridesharing opportunity in the globe and i think you will see us focus resources on areas that are outside of china and we are hopeful that the chinese opportunity will give us the ability to work harder at investing and making products better for consumers and drivers on the planet. is a bigger deal, in
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terms of profitability? both are equally important. we survey high and opportunity and the low-end. the higher-end opportunity has more profit with each ride. businessjority of the point and it price is half the price of a taxi. this is a price-a elastic market and the demand will surge up words. consumers rely on this in their daily lives. with products that are complicated to deliver because of the complex algorithms you pointsou reach price
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that compete nicely with car ownership and you will see uber continue to invest all it can in algorithms that allow driving the price point down. we want to be a price leader in the market. >> you told me the numbers that you didn't want me to repeat and i won't. but, when you came into the market, there were more cars on the road. it is about changing consumer behavior so that there are more rides than before. do you see this in all the markets you go into? is it limited? >> i will share some numbers with you. market is 10 times what it was five years ago.
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an order of magnitude. missnk that some people perceive us as a taxi alternative. ieve us as a taxi alternative. i think of us on a "miles traveled" basis. you look at the fact that you do not have basic car ownership and this will be the way that you solve massive transportation problems. by the way, it creates more efficient cities. when you build a city for car ownership, houston has 3.5 parking spaces per car. you cover most of the geography with cement. cory: that is the view from uber. what about the other side? let's bring in an early
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investor. we are joined live with the context on the asian ridesharing market. so, let me start with you. i will let you take a victory lap. it is interesting to me that the notion of this deal changed. didioffered to invest in and now, they are spending $1 billion to get it. >> we were involved in a deal in 2005, as you know and, by those joining forces, they became over $200 billion in market cap and time and time again over the last 10 years, this is been instrumental in getting some of
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this to happen sector by sector -- happen, sector by sector. we have seen this in companies and we think that the structure will make sense. over theomoting a deal last 12 months and it is very gratifying to see that has come around. yeah. let me ask you. kind of the same question, uber was attractive. rather than taking the money, they wanted to take the business. >> yes. exactly. what was happening in china was that investors were getting involved in a massive transfer of wealth with investors and drivers and there have been lots
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of press releases to talk about how many they employed, former soldiers, so one and so forth. of course, this is part of the spin. there is a reality to that. the feeling was that they were always going to win and it was whether or not uber would have enough to sustain them. -all businessr-take al model. you want the car, one with the most cars and you are not going to mess is rarely you are not going to necessarily open up two app s. cory: did i hear a yes in the middle? do you agree?
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one of the founders of uber, dominant andy were the deal would have made sense. it was too early for uber to think about something like that. a chinese startup deciding to 24/7and expand, they work and, if a u.s. company wants to come in, they have to get in earlier. if it is too late, it makes sense to pull out. i am struck by the similarities of the yahoo! and alibaba fight. they finally gave up and they created a wealth of valuable
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assets. do you think that is the specific model here? you think it is the kind of model we will see going forward? >> what we are seeing is the internet disrupting industries and they start with retail and you are seeing ridesharing with the automotive ownership and existing services. the efficiency is critical. and trafficp congestion in china, it is terrible. china can go the route of japan, like tokyo or osaka, with lots of subway lines. china has 10 lines each decade
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in beijing and shanghai. to get to tokyo's level, it will take 40 years. ridesharing is critical to complement the existing public strategy. ridesharing has officially become legal. how will that be implemented, that is a general question. coming. you both for a really interesting story. glad we could dig deep there. we will dig into the expansion plans of the alibaba financial arm next. this is bloomberg west.
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cory: the most bible chinese isancial technology company a mix of many things rolled into one. with me more to focus on this market is cheryl. talk to me about this. can you explain what the collection --is a what the is this is? it is a collection of things. but it is hard for investors to wrap their heads around the company. it does not fit neatly into a bucket. to think about this
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is that it started off as an online payment processor for a commerce giant and it even talked to include services like banks and credit scoring companies. largesthe nation's money market funds is also included and it spun out into a financial of elliott of -- financial affiliate of alibaba. cory: the notion of payment systems in china, we talked to point inwe are at a the marketplace where the market is superseding it. >> mobile is an investment that most and we saw
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chinese cannot or do not own personal computers and many americans own personal computers for work or home. ist followed with that mobile payments here in the united states. and we havehat things we're continuing to use. this mean it is trying to bring the west east or the east west? >> they hired douglas, who has , and i spoke to him. the international strategy is two-pronged. the first is to follow the chinese consumer and go wherever they are going.
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they have users and they want to make sure that, wherever they go, they can get paid and the second part of the strategy is going local and requiring local brands working with them. they did a deal with a big indian payment platform. >> it is the conversation you just had with uber. one company is domestic and you need to adapt to whatever is happening. hiring somebody who is local is important. if they want to come to the united states, they need to hire people who understand the regulation and how consumers transact and how small businesses expect them to do the payments. mean that they
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will make partnership deals and that that is more important than other kinds of investment. -- investment? they hadt stage, visions for world domination. it is not to happen. we do look at vision and if the entrepreneur has the vision. theyey add value, how do bring it to a global market. normally, when you invest, it and weisraeli company wanted to address the u.s. market and how to do that. -- cheryl chang , thank you very much. we are turning to another agreement to buy a startup. stock -- $582n
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million in stock. it was founded by a former ctobook cfo and he was -- and he was an early investor. later this hour, on the forefront of experimental medical research, could a computer chip in the brain restore organ function. ing tois partner investigate the brain.
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ose, after newy rt analysis from citigroup. they have developed a strong brand for their quirky products. they should be considered in a separate category.
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on tuesday.port coming up, elon musk is a step closer to combining two companies. if you like bloomberg news, check us out on the radio. you can listen to us on the bloomberg radio app and at it is all there, all the time. this is bloomberg. ♪
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>> you are watching bloomberg west. donald trump is on the campaign aboutin ohio and he spoke
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the relations with russia. donald trump: russia has nuclear weapons. it would be nice to get along with russia and others. wouldn't it be nice to team up with russia and others, including surrounding states and nato and we knocked the hell out isis and got rid of these people. when that be nice? -- these people? wouldn't that be nice? >> a new survey has secretary clinton leading donald trump. convention,publican the candidates were tied. a new poll says that the unfavorable views of mrs. clinton have dropped. following nine hours of your options, a volcano finally
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stopped spewing ash over mexico city. on sunday.y began the volcano has been erecting periodically since 1994. i am mark crumpton and this is bloomberg just after 6:30 here in new york. 8:30 in sydney. >> good morning. a slightly gray day on the markets with the index opening and futures are down in japan at the moment. in terms of what we are looking at, we are looking at the bank.
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low withow at a record 20-25 economists thinking it is going down. watching japan carmakers and we have seen the yen strength and and this has gotten tougher. also, there are sales results coming out ahead of the big results and i think these are the big things they will watch today and i look forward to the west -- the rest of the week. we now continue with bloomberg west. cory: this is bloomberg west and i am in for emily chang.
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is one step closer to combining two of his companies. although tesla still has to approve the deal, there is nearly $3 billion in debt. smp to warn that they could cut the credit raining. breaking it down for a's is the senior scientist at argonne national laboratories. thank you for joining the show. it is always awesome to be on with you. you, george.ith you have been working on battery technology and you have pointed out that solar is advancing at a faster pace. will battery technology advance as fast?
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>> you look at the history of solar and it was at the same place that storage is. it was too expensive and the upfront costs were too high for most customers. solarstarted producing cells and it went way down and the new business plans emerged. ther city is one of pioneers. you can get the upfront cost paid and it is painless for the customers. breakingcould be a point that opens up some new horizons. i remember bill gates saying that moore's law works with yours and not bulldozers. when you look at this notion of anything adapting with moore's
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, should we just go on the the expectations of what is possible with a deal like this? know that the deal will depend on the accelerating pace of technological change. george knows more about this than i do. abilityptical about the for batteries to advance quickly. tohave been looking at them advance and they are not advancing at a moore's law type of pace. with pixie dust justifying that combining one and one will make 2.1. he will not get to three. it might he 2.1.
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>> i want to go through the circumstances of this deal. solar city is losing a lot of money. the company lost over $200 million in the free cash flow and, if you look at what is happening, tesla has a couple of and with the free cash flow they blew through $467,000 and a quarter. you are looking at a company over $600through million in free cash flow for every single day of the second quarter. andlook at a deal like this how can you say that the financials do not matter, if they are burning through so much cash that they have to bring in
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new cash. -- new cash? >> thank you for having me. the expectations matter and elon 's masterful in setting expectations. it is the end of the year and it will be a vague number. the model will be a big number. it will be three times what we said, initially. to go back to the point of economies of scale, this happens to be celebrating a grand opening and it is finally getting to a point where it is up and running and he is trying to harness this idea of factories coming online and he said this up for the markets to raise capital. the question was, how much capital do you need and how do you get it? you are right to tie that together. cory: this is why i wanted you
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on the show. you are an analyst who does not work for the investment bank. with love the opportunity to sell some of the stock to raise money for tesla. >> it is an interesting point and i thank you for having me. is, with thesay anticipations that the model will be successful, that is better than we thought. investorsa lot of getting to free cash flow's and you add some of the same problems that we know tesla motors to have an it is only a bigger obstacle in the near term. cory: and 30 seconds, can you give me a thing that is the
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toughest for the battery factory to overcome? is biggerortunity than the challenge. >> i like the optimism. >> the hope is that this will maybe be 50% and it would go a the solaro making panel story and i think the opportunity is there. cory: interesting. david, you are going to stick with me. i appreciate that. today, in the funding board, microsoft raises over $20 they hope to finance a planned purchase of linkedin. it is clearly one that is greatly in demand.
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the company lands to buy linkedin. cory: can electrical signals treat parkinson's disease?
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♪ cory: shares of caesars on monday.nt raised casino-styleakes online games. elliott god can has more from eel aviv -- elliott gotkin has more.
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>> gambling is illegal. have always insisted that they are immobile gaming company. they make the kinds of one's you would expect to see in a real casino. you cannot gamble on the outcome. there is a price being paid that is a decent chunk for anyone. $130u compare this to the million initially paid for five years, there is a return on investment. many people suggest is that the best deal. of the yahoo!u situation.
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there was the value with the market and it seems to have happened with caesars entertainment. elliott gotten, bloomberg news -- elliott gotkine, bloomberg. cory: diving deeper into experimental's. k will focus on bio electronics. they will have more than $700 bioion of investments and electronics is almost literally mind blowing. .e're joined right now but start with you. this is a date investment for
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any company. big investment. >> you think about it over seven years and they have to run trials and the trials are expensive. it does make sense. devices,ese medical can we make the distinctions? should think about it this way. people will use medical devices to treat this. if you start thinking beyond the traditional devices and you look at the new technology, the distinctions become more blurred. fields thatny other can be used with the energy. smithkline -- at
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gsk, they are looking at organ control. going into this field, is it too far? think it is. it makes sense that google would go in a direction like this. and larrywith google page is that they believe that information technology expands our knowledge of everything. we do not know much about the human body. we have been treating diseases with a primitive set of tools, pills week that we do not know what they do in the side effects. electromagnetism is a set of horses that will be shown to have more impacts on the body and substances we have been taking. as time goes on, we will learn more. we have data that we are accumulating and i think that
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this is probably an area that will become one of them warm were in areas. this is clearly a thing they believe. i think that it is exciting and that electromagnetism prove to be beneficial and achieve life extension. that.all of us want >> we do not really talk about it. can say that about me. i can take it. >> i think it is interesting that they are picking them as a partner. >> absolutely. they had to take a decade to bring one of these devices to the market and they are thinking ahead. have newanies have to drugs or devices. versa five and have their finger in multiple
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parties? do they have something to continue growth? if you could have access , what data that collects would it be? >> this is a challenging question. >> thank you. that is my job. think that we would be more interested in getting data on the properties of the biological tissues. we would start using that knowledge to design devices in intelligent ways. our like we are using a hammer to pound on a p&l and of the to play the keys nervous system. cory: when you look at the
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applications, where do you expect breakthroughs? >> we will likely see those breakthroughs in areas that relate to the peripheral nervous system and i would think that it is largely regulatory approval and it is a little easier to get angst through in the periphery, rather than in the central nervous system. i could be entirely wrong. and they arets starting right now and they are looking to implant devices to treat diseases like arthritis. i imagine that this continues theit is in parts of nervous system. >> interesting. maybe outside the brain.
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very interesting. thank you very much., you have a story they have been slapped across the race and they found a new device. presentinghey were at the annual meeting in front of live experts in this is the first time they were doing a presentation of a scientific meeting and everybody expected them to explain the technology. results andd the they were not actually using the technology the whole time. andhey have been sanctioned they have a lot of problems out here and, what happened today was a new product that took a lot of people by surprise and it
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showed the innerworkings of this technology and they opened a lot of new questions. now, investors are like, we would like to see more on this. they are, look at this new thing we are working on. >> that is what happened today. >> fairly amazing. >> it is. they have published journal articles and they are going to and thereve experts are a lot of problems and it will be interesting to see how they follow through. sanctioned anden it includes labs and they have 60 days to appeal. this could be a way they get around that.
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>> someone else got it. >> maybe. >> thank you for crossing the aisle to talk to us. tomorrow, the council of former relations -- of foreign relations president here. this is bloomberg. ♪
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>> after winning a bidding war, another deal is only getting a fraction of the attention. company with $60 a share and a 40% premium. the fuelrack of where
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level stand and how fast it goes. another big of tech earnings. we will hear from electronic arts. linkedin reports. reporting on thursday, one thing we have learned about is a change in a reporting structure and there are new guidelines. this is important for new markets. this is predicted to fall from year over year with no major game launches. we will bring in the revenue every day. go. to a story of pokemon this game has not launched in russia yet. there is an estimate that there
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is a sevenfold increase in moscow in the last week. trick the phones to think they are in different countries. they want to capture cultural and historical figures like ivan the terrible. tomorrow, we have roger. that is all for us in san francisco. this is bloomberg west. ♪
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. . .
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♪ >> from our studios in new york city, this is "charlie rose." we begin with politics. the democratic national convention came to an end on thursday. hillary clinton became the first female president -- candidate for president by major political party. she criticized her opponent, 's, temperament, and called for unity pretty joining me is megan murphy, the washington bureau chief for bloomberg. also john heilemann, the managing editor of bloomberg politics and cohost of "w


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