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tv   Bloomberg Technology  Bloomberg  May 26, 2017 11:00pm-12:01am EDT

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alisa: i am alisa parenti from washington. you are watching "bloomberg technology." let's start with a check of your first word news. president trump is the holdout among the g-7 leaders on the climate change issue. german chancellor angela merkel said the leaders made it clear the u.s. must live up to previous commitments to the paris accord. trump says he will not be rushed into a decision. the u.s. has taken full responsibility for leaking information from monday's bomb attack in manchester. secretary of state rex tillerson arranged a visit to london to apologize, saying the special relationship between both countries will withstand this breach of trust.
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former house speaker john boehner says aside from international affairs and foreign policy, president trump's time in office has been a complete disaster. he spoke at an energy conference in houston. he also says the president should not be allowed to tweet overnight. new airport screening equipment is being tested that could make the laptop ban a thing of the past. at least four companies are working on equipment that would give a three-dimensional look into baggage and electronic devices. global news 24 hours a day. from washington, i am alisa parenti. this is bloomberg. "bloomberg technology" is next. ♪
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caroline: i am caroline hyde in london. this is "bloomberg technology." coming up, g-7 leaders join the chorus calling on big tech to limit the spread of hate speech and propaganda online. we are live in italy with all the details. softbank's $500 million bet. the c.e.o. joins us to discuss the investment and using cash to build new realities. the highs and lows of bitcoin. we will track the success and wealth swings of the digital currency on the bloomberg. first to our lead. donald trump made his g-7 debut in sicily, the final stop on his first international trip as president. tensions were brewing over trade and climate change. there was one topic the group was in agreement on, the need for internet companies to do
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"substantially more" to take extremist material off-line. the meeting comes days after the terror attack in manchester which killed 22 people. joining us from the sicilian town, matt miller who has been covering the summit. before you destroy my pronunciation of where you are, matt, the words coming out of here, redoubling the efforts against terror. there was some agreement today. matt: there was. i think a little bit of unexpected agreement. when we came here yesterday, there was an expectation nothing would be accomplished because the italians wanted to move on climate change. they wanted to move on global trade and immigration. three things everyone expected donald trump to disagree with or not even want to talk about. but obviously, terrorism came to the fore because of the manchester attacks. theresa may came here with an agenda. she wants internet and social media companies like google and facebook to start using an algorithm that could block
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certain content from people or certain messages. and also figure out who is sending extremist content, stop them from putting it on the internet and maybe flag them so the police would be more easily able to find or follow them. she came away from here with an agreement that not only is in the communique but has its own separate communique where all seven leaders pledged to get together not only fight terrorism but clamp down on the internet to do so. caroline: fascinating. they say they will have an industry-lead form going forward to work together on the issues. theresa may saying this is a big step forward. let's talk about some of the broader viewpoints. we know how much the u.k. has been focusing on this and the internet companies. the question is how much the internet companies respond to this.
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i want to get your take on other key issues for our viewers because they are interested in climate change technology and trade disputes. there was less agreement there. matt: there was much less agreement there. i thought it was interesting angela merkel, the german chancellor and the germans, said they were trying to convince donald trump to agree to back the paris accords. that is what all the other six g-7 leaders were trying to do, with the argument climate change is good for your economy, working against it, because it creates good jobs and things like clean energy tech. they pointed to new jobs and the success of those industries in germany which have gotten a jump on a lot of other countries in things like solar and battery power. and of course, under president obama who was with angela merkel in berlin yesterday we created a lot of jobs in the u.s. also with new battery factories in
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michigan and on the west coast. they tried to come at donald trump with that argument. the interesting thing i think is gary cohn says trump is very concerned about the environment and is open to understanding the european take on climate change in the paris accord and that he is evolving. these are things i don't think you would have heard from donald trump on the campaign trail as it relates to climate change. clearly, there has been some change in his stance. but he still must to take his time before he decides on the paris accord. caroline: the ongoing evolution of donald trump. matt miller, fantastic to have you staying up so late for us. thank you for reporting live from sicily. have a good weekend. a story we are watching on asia. sharp is forecasting the first annual profit in four years. the company credits cost cuts and the new owner and sales fueled by demand for smaller display panels. sharp has more than quadrupled in value since august when they bought control of the struggling
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electronics maker. coming up, we take a look at the rise of ai and what that means for the way we live with a top u.k. tech government advisor. "bloomberg technology" is live streaming on twitter weekdays at 5:00 in new york, 2:00 in san francisco, 10:00 p.m. in london. this is bloomberg. ♪
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caroline: the digital revolution is transforming the world and ushering in a new feature of work. one person with big games helping society is eric van der
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kleij. he headed level39 and is out with the center for digital revolution. the business development hub aims to support startups working on ai and the internet of things and robotics. joining me now is c.e.o. eric van der kleij. wonderful to have you here. talk to us about this particular development hub being launched. >> there are two things it will do. it will help corporates and startups figure out how to take advantage of the pioneering technologies. the other thing is we will help society and government figure out how to cope with the impact of that and thrive. we believe we should be masters of technology and use it for the good of society. we don't really know what to do with it.
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this will be creating experiments to figure out what society can do to help cope with these technologies. caroline: you were advisor to the government. was it almost a reverse inquiry? you saw the government was not understanding the applications of the new technology and how it could be addressed to see the new change upon us? >> governments are large institutions and will always be slower to adopt new technology. even things like blockchain, only a few years ago blockchain and bitcoin was the money launderer's currency of choice. when these technologies go through the challenging initial cycle of being slightly wild west to being useful for companies and society, that is when you see standards emerging and use cases that are profound.
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caroline: i can see this is quite a crowded space. i looking at microsoft ventures. if you're into ai, you could go to that accelerator. perhaps you could go to level39. why come to you? >> we are creating a new model, slightly different. we will be investing with corporates to help build entirely new companies. we are sharing the risk with them. this is an interesting model. caroline: what would you fund as a startup? >> from seed all the way to growth. we are a younger business and do not have as much capital as bigger companies. but we take our stake by taking early risk. we announced the first one with swisscom.
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these are blockchain related innovations. we will let you know how that goes. caroline: you have the co-investing, funds being raised. i'm also interested in cocoon networks, innovation centers. this is where the hubs you are creating in london will be based. chinese-backed investment platform, the first of its kind. what is interesting about it? >> the cocoon networks as our partner are as determined as we are to help crack the code on how european and u.k. companies can expand to china. when you think about it, there are two or three unicorns a year that come out of the u.k. and europe. if we had real access to the
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chinese market, it could double that. that is what cocoon networks are interested in. caroline: this is only the first of many hubs. where else are you looking to expand? >> we are only three days old today. we have already had incredible response from around the world who also want to discuss the opportunity. caroline: while you here, i have to ask more about your experience having worked in the u.k. so well and worked with level39, we are about to have a u.k. election. we are at the point of seeing brexit digitally being pushed through. how much do you think startups will be expanding in london? >> the advantages london brings will not go away overnight regardless of what happens about brexit. in an entrepreneur's mind, their job is to figure out how to cope with whatever you throw at them. when you think about companies that have started even overseas, come here and ground, they have access to the talent, investment, some of the biggest
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single markets. always choosing the u.k. as the first landing point into europe. things will change. entrepreneurs will have to figure out how to get licensed in more territories. but they will do that because the advantages of being here will outweigh the disadvantages. caroline: on a day like this will receive the call from political leaders against internet juggernauts, where do you see the digital role within society at the moment, within the world of terror attacks and the like? is tech responding the way it should? are we seeing tech as a force for good? >> i heard today's calls and did not think of them as an attack against tech company giants. i thought of them as society through our leaders explaining the world we want to live in.
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that is more what it is. bear in mind all of this technology is so new, in some cases it is less than 10 years old, so we have to learn the best practice to use these for society in the right way. what the leaders were doing is calling for measures to improve the way these technologies are used. caroline: and the companies will respond? >> they should. they certainly are listening. in many cases, they are responding. the ones that want to continue to thrive will do so. what we do not want is thought police. what we do want is a safe place, an enriching environment for ourselves and our children. caroline: utopia. here is hoping. come back and tell us more about how your venture is continuing to growth. thank you very much, eric van der kleij. coming up, the london-based vr startup received a $500 million investment from softbank, one of the largest deals ever in the u.k.
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we will catch up with the c.e.o. next. a reminder of our new interactive tv function. you can find it at tv on the bloomberg. you can watch us live. if you miss an interview, you can go back to it. this is for bloomberg subscribers only. check it out at tv . this is bloomberg. ♪
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caroline: apple is said to be bringing artificial intelligence to chips. according to a person familiar with the matter, apple is working on a processor related specifically to ai-related tasks. the chip would improve the way devices complete tasks that would otherwise require human intelligence.
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apple declined to comment. shares of nvidia hit an all-time high today after bloomberg reported softbank is considering boosting its stake in the company. the firm would raise its holding over time and begin to work more closely with nvidia according to people who asked not to be identified. bloomberg reported softbank acquired a 4.9% stake in the chipmaker, making it the fourth largest shareholder. softbank has also been looking at the vr space. earlier this month, the company made a $500 million investment in a london-based vr startup in one of the largest venture-capital deals seen in the u.k. in the last decade. improbable worlds create virtual scenarios for gaming and simulation. the round brings total funding to $550 and at least $1 billion valuation. we caught up with the improbable c.e.o. and asked if this funding round was the amount he was hoping for. >> i think what people do not see is our goal is to literally build new realities.
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that is a 10-year plan. it will take an enormous amount of investment even beyond where we are now to fully realize that vision. for us, this is a logical next step in preparing the company to not only deliver for the current commercial objectives but invest for what technology can become in the future. caroline: talk about what the technology could become in the future. real-world applications, simulation applications. where do you think the fruit is hanging at the moment, whether low or high? >> people talk about ai as a category. ai allows us to find patterns in the past of data. this technology presents the opportunity to re-create reality at a large-scale. you can take a city or piece of
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infrastructure and model its behavior to a scale and degree not possible previously. what we do to provide that is enable the massive computation to take place. we are hoping to be a foundational technology for a lot of applications. i think the potential in gaming is gigantic and perhaps underappreciated. caroline: talk about the gaming applications. you have a new application at the moment trending on twitter. tell us about it. >> the applications in gaming are about going from singular experiences where people are playing in static worlds to really creating massive, shareable experiences with millions. that is a huge sea change in the experience. all of a sudden, you're not playing to a script. you are able to have experiences defined by you and your friends in a fundamental way. this is one of the first commercial worlds to have everyone in the same world and also have the ability to have physics on the backend which was not possible previously.
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all of these trends will lead to future engagement in games. caroline: i'm thinking about a lot of people able to game at the same time in the same virtual world. what does that mean moneywise? how do you monetize it? >> monetization tends to be proportional to engagement, the degree to which someone cares about and wants to be in the world. this technology makes it more engaging so people want to be in it longer and see it as a valuable engagement for time and money. it creates more opportunities, particularly if you have huge social groups participating at the same time which creates more monetization potential. caroline: the monetization you have envisioned, is it free to play where you are buying things in the virtual world? >> i think people will invest more in the things they purchase
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in the virtual worlds because they become more engaging. property, items, all manner of things become an enormous stake in people's time and interest. caroline: the potential is not understood as to the sheer scale it can become. i'm thinking smarter cities. what other applications? >> it is really about better decisions. so many of the large projects, choices, interventions done in the world are based on static models of how the world works. we can have massive simulations that would create systems in their entirety and see how a power failure may affect the city in a cascading way or how a terror attack could be ameliorated through better infrastructure. caroline: are the governments talking to you, particularly after manchester this week? >> we have had a lot of support from the british government and done work on infrastructure simulation. caroline: softbank comes in and gives you $500 million. what do they want to see out of this in particular? >> i think not wanting to put
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words in his head, but the interactions i have had have shown me they are interested in a long-term technical vision. i think they believe as we do that virtual worlds will become a fundamental change in the way we live, work, and play, and the way we run our society. i think for them, much like us, it is about a long-term investment in the future. we have a competitive process. what won us over to working with softbank was not just their vision but the potential synergies we see. caroline: i asked whether you wanted that amount of money. you say you can put it to work. softbank has a reputation of giving startups more than they ask for. is that the case with you? is there any negatives? >> i think that is a fair model, you get too much money going into companies at the wrong stage. we were looking to raise hundreds of millions of dollars
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so it was in the context of what we were looking to raise. we are also fortunate to have other investors who have become amazing advisors to us. we have the benefit of being able to consider the options with expressed partners who have helped us to see why this is the right move. caroline: what is your view on the process? >> this kind of private capital does mean we can think differently about approaching the public markets. for us, the long-term technology play is interesting. it will take us longer before we feel inclined to do that. in general, it does not have to be something that prevents companies from going public. being put in a position where you can access more capital, it is still attractive. perhaps one day when we reach that stage, we will do that, too. caroline: that was the improbable c.e.o. coming up, we will have more on softbank closing its almost $100 million vision fund when we
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discuss this week's top tech headlines. check us out on the radio. you can listen on the bloomberg radio app, bloomberg.com, and sirius xm in the u.s. this is bloomberg. ♪
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alisa: i am alisa parenti in washington and you are watching "bloomberg technology." let's start with a check of your first word news. the u.s. is taking full responsibility for leaking information from monday's bomb attack in manchester. british prime minister theresa may says she discussed it with president trump at the g-7 summit in italy. >> i did raise the issue of leaks of information being shared by the police with the f.b.i. with president trump. he has made clear that was unacceptable. the metropolitan police received assurances from the f.b.i. and have restarted the process of sharing information with them. alisa: president trump has ordered the justice department
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to find out who is responsible for those leaks. theresa may also met with her french counterpart for the first time on the sidelines of the g-7 summit in italy. both disagreed over brexit negotiations. macron insists trade will not be discussed until the u.k. settles all its obligations. election campaign resumes and the u.k. today with the latest polls showing the labour party within five points of conservatives. theresa may's conservatives once held a 20-point lead. the shadow home secretary laid out parts of the labor agenda to bloomberg news. >> it is protecting jobs, standards, protecting things like financial services. as theresa may has done, prioritized controlling immigration. we will prioritize the economy. alisa: president trump and the u.n. security council condemned the attack on a bus carrying coptic christians in egypt.
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at least 28 are dead, dozens other wounded after gunmen opened fire at the bus headed for a monastery. in sri lanka, at least 91 are dead and more than 100 reported missing after flooding and mudslides. some 8000 people have been displaced from their homes. antigovernment protesters continue to square off with police in venezuela. police used water cannons and tear gas as they blocked a highway in caracas. more than 50 people have been killed since protests started nearly two weeks ago. the pentagon is reportedly planning the first ever intercept test to stop an intercontinental missile, similar to the icbm being developed by north korea. the test is reportedly set for this month. u.s. successfully tested the
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ground-based system three years ago. people are getting ready for ramadan in lebanon. muslims may not eat from dusk to dawn during the holiest month of the islamic calendar. global news 24 hours a day 2600 journalists in more than 120 countries. i am alisa parenti and this is bloomberg. ♪ caroline: this is "bloomberg technology." i am caroline hyde in london. this week, softbank announced it closed the first round of funding for its vision fund with $92 billion in the coffers. we spoke to the "bloomberg technology" executive editor, tom giles, in san francisco, and giles turner about softbank and the other tech headlines that grabbed our attention this week. >> what is happening right now in silicon valley is there is a lot of concern among venture capitalists there is going to be this extra cash flowing in and inflating the value of these
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companies and making it harder for existing shareholders or new shareholders to get in at a valuation that is right for them, that makes them feel comfortable, it makes them feel like we have a lot of upside. someone else will come in and is willing to give the start of the terms much friendlier to them, that can box out some of the other players. it is definitely having its presence felt across silicon valley, even before the money starts flowing in. caroline: it is interesting. there is a great piece by bloomberg saying let's put it into perspective. the $100 million fund is the same that came from private equity in all of 2016. this is a big chunk of change. also going to the public markets. not only private. it was a listed company in the u.k. already they sold down some of their stake. >> this is a really important point to make. this fund is not just buying
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small companies. it will be buying large companies as well. they are not interested in just taking a small stake in a public company. they want to take strategic stakes with other companies. it is a conglomerate and they have a big vision of where they want to take the company they are investing in. caroline: i want to switch gears. we have to move from opportunities to invest to sad facts that happened in the united kingdom. we started off the week with the terrorist attack in manchester. and if you to take on a technology angle as the week has progressed. the united kingdom seems to be wanting to crack down on encryption. it seems deja vu to san bernardino. can you remind us? >> there was a terror attack in southern california, san bernardino. it was found out later the terrorists used iphones to communicate with each other. there was a big battle in the united states over whether and to what extent apple should give
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the u.s. government access to the communications that we expect to be safe on our phones and hidden from intrusion. apple vehemently opposed that in a high-profile case. it turns out the government was able to get the information, decrypt those phones in a backdoor manner. so the legal battle was dropped. but we are going to see this time and time again where bad actors are using social media, using consumer electronics, to disseminate propaganda, to gain support for their causes, to communicate among each other. we saw theresa may come out in light of the attack at the concert earlier this week asking for greater cooperation from the likes of facebook in helping
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them clamp down on hateful speech, on ways these groups are able to organize on social media. caroline: what is the reaction from the u.k. public and the technology companies here? do you think they will fight against this amid the current environment? >> i think they will certainly fight back. we were speaking to a government official. he gave us an idea of the range of reactions from tech companies. he said some are willing to work with the u.k. government. some of them are happy to work with them. others are fighting back. it will be interesting to see what the u.k. government will do to force these companies to go along with their plans. caroline: taking a hard left from a sad subject to one where more investors are hopeful, let's talk european ipo's.
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the music startup spotify looks like it is edging closer to a public offering. public directors? that seems to help? >> i think so. this is essentially a bit of housekeeping. i think they have the right people on the board. it makes it look like a proper ipo. it will not be a proper ipo. they will not the searching for the right investors. they are letting people who already hold spotify stock to sell it on the public market. interesting to see the first few minutes when this does happen to see what price people really put on spotify stock. caroline: what is interesting is we are seeing the european and u.s. ipo market still readily available to new entrants. today even in the united
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kingdom, we had alpha 30% higher. is the time still to go? >> absolutely. we expect a much bigger pipeline this year. there continues to be so much bullishness in the market despite uncertainty on the political front in certain areas, the kinds of attacks we saw that we were just talking about. the attitude toward the public markets is very positive. we see tech companies going from record to record. that is always going to inform the ipo market. caroline: that was giles turner and tom giles. bitcoin has been on a tear. the cryptocurrency topped $2800 this week but has come down quite a bit. joining us to discuss the large swings is cory johnson from san francisco. talking of wild swings, i'm looking at my bloomberg. type in 8660.
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you will see it has doubled the price of gold. it was only a month ago they were about the same price as gold, back in march and april. now almost double. talk us through it. cory: we have seen tremendous speculation about the value of bitcoin with the price surging like that. it is dramatic when compared to gold. some people on the margins see it as something that might offer some stability. it is quite the opposite. we showed the five-day chart. you saw this tremendous volatility in the course of one hour's trading on thursday, you saw bitcoin value fall 15% in less than one hour. the next morning, there were a couple of trades even lower where you saw a 21% swing in the course of less than 100 minutes of trading. 21%. the notion of this as a reserve currency or safety is bonkers because of volatility. of late, there has been a great
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transfer of wealth into bitcoin as you see the value increasing dramatically. caroline: not for the fainthearted. it seems some countries like japan adding more legitimacy. i am interested in the rivals to bitcoin. we don't have them tracked on the bloomberg yet, but they are on a tear as well. i'm thinking of ripple xrp. we are seeing 2000% gains in these cryptocurrencies. they seem to be used more by corporates. cory: when i talk to people in the world of bitcoin, they say a lot of transactions in the last week have been swapping digital currencies for digital currencies. in particular, a lot of sales of things like ripple and others into ripple xrp.
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there has been a lot of transfer out of some of the alternative currencies into bitcoin. with those great profits, it looks like it might be going back to the other currencies bidding them up left-handed and right-handed. there seems to be coalescing around bitcoin as the alternative currency of choice. we heard from the c.e.o. of ripple. he said there is a lot of trouble completing transactions in bitcoin. the bitcoins are becoming so laden with code it is taking longer to complete transactions with bitcoin. while it makes the currency more valuable, it becomes less valuable to use if it is harder to close transactions. caroline: latency as an issue. there is another way of betting on future startups. you can perhaps by the new cryptocurrencies being forged? cory: what we are seeing is
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bitcoin is being trumpeted in more places. some startups are willing to accept bitcoin as commerce for the platform. brad told me for years he has been paying his son's allowance in bitcoin. now he is not even working. he's just enjoying the fruits of that allowance because bitcoin has become so valuable. caroline: thank you very much, cory johnson. fantastic analysis as ever. happy weekend. sprig has announced it is shutting down. the san francisco-based company raised more than $56 million for investors. bloomberg reported last week it is burning $850,000 a month.
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and it is seeking a buyer. it is the latest food startup to close its doors. others have closed up shop in the last 18 months. still, there is optimism in the industry. alibaba led a startup round in one of china's biggest food delivery firms. food for thought maybe. coming up, mccrory cuts its rating sending shares down to the lowest level since 2012. we will speak to an analyst about the biggest threat to the company. this is bloomberg. ♪
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caroline: trip advisor shares dropped 2% in trading today. the stock fell to the lowest
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intraday since 2012 an extended a weekly decline to over 11%. matthew brooks cut his rating to underperform. he believes travel search will be disrupted by ai technology. joining us from fort lauderdale is matthew brooks of mccrory. thank you for joining us. your call helped shave about $11 million off the market cap. talk about why you're going underperform. there does seem to be competition here. >> yes, we downgraded this morning as part of a transfer of coverage. when i started to look at it, it looked like a broken growth start because earnings have been falling since 2014. and yet the market is willing to pay more for trip advisor than priceline even the priceline has strong growth. the c.e.o. will admit google is their biggest competitor, but there are still a lot of investors that underestimate what this means. a lot of investors think trip
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advisor is the top of the travel tunnel and they could be for travel what amazon is for retail. i don't see how that will happen given the competition with google. if you look at google traffic, it has over 75 times the traffic trip advisor does and it is a lot more loyal because people google things every day. it is a verb for a reason. on from that, google has a flight search product. it is more u.s. searches for google flights now than for trip advisor which is showing strong growth. it shows what they can do with that big user base in terms of growing some sort of travel search product. it is hotels that make the difference. in hotels, google is now putting their hotel search product on top of the organic search results. the magic of the trip advisor model in the past was the free traffic they got from all the user generated reviews. that is not going to happen as much in the future. that means they will probably
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have to spend more to get traffic to try to compete with google who is at the center of the search universe and where people start when looking for travel. caroline: i'm going into the bloomberg now typing and analyst recommendations. in analyst recommendations. five sells, three buys. most are holds at the moment. i want to understand why the rest of the market is not thinking perhaps trip advisor cannot step up and do the ai itself. why are you feeling perhaps they cannot manage to be getting ahead and dabble in artificial intelligence as well? >> i think the biggest reason most analysts are sitting on the fence at the moment is they can see some of the competition from google, but they also think the stock will get taken over. if you look at the rise of voice
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search, i don't see how that will happen. the company rumored to buy it is priceline but they have 120 million of their own reviews. they would have to pay $5 billion or $6 billion to get all the trip advisor reviews when they will need to invest in this technology as well. there is no reason to buy another company at the same time. caroline: what do you want to hear from the c.e.o. if it is not yes we understand google is our main competitor? what would persuade you to look more favorably? >> what they would need to do is convince me they can get traffic and grow that traffic without having to pay a lot for it. and then they could convert people with more bookings, and that they will invest in some of this new travel technology because the way i see it in the future people want to ask siri for amazon echo. -- amazon echo. or their amazon echo. amazon echo.
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i want to go on a trip to orlando this weekend. what hotels can i stay at? they want to get three or five options customized to them. i think that will take a big investment. i am not sure trip advisor could make that investment. but they should at least be trying. if you look at what carnival is doing in travel, that is what the future of travel is about, providing a more personalized service using technology and artificial intelligence, etc. caroline: matthew brooks, thank you for giving so much of your time on this friday. we will keep up with your call on carnival and trip advisor. the company referred to as the airbnb of the car industry. we will look at how everyday car owners are expanding from toyota to alfa romeo. this is bloomberg. ♪
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caroline: elon musk may be missing out on the u.s. boom. the upcoming model s sedan has
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racked up thousands of orders. but the model x sport-utility vehicle has not met the c.e.o.'s expectations. deliveries have yet to keep pace with the model s. u.s. registrations of the model x have slipped the last two quarters. musk blames the struggles on making the vehicle to complicated. whether you are looking to buy the latest tesla or a less tech-savvy vehicle, it is a debt-laden business owning a car. one peer-to-peer car sharing platform allows car owners to not only rent out their vehicles to finance but also incentivizing some owners to invest in more cars of higher quality. >> i love porsches. >> how many? >> i have five. >> he owns 11 vehicles. he rents out his vehicles on the car sharing app, frequently
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referred to as the airbnb for cars. >> in 2013, i started with the honda accord and purchased that car specifically to rent out to test out the peer-to-peer car sharing model. it was really successful so i figured, why not? i have been adding cars to my fleet ever since. >> the average monthly earnings for owners on the platform is $720. if they have more than three cars, they can make over $3000 per month. the vehicles do not have to be high-end sports cars. >> demand went off the charts, a 15-year-old honda was being minted all the time. people loved it. >> she joined with her 2002 honda and have since purchased two additional vehicles to rent
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out. >> it was not my intention to run a car rental business. it just sort of happened. >> since it is a peer-to-peer service, they act as the middlemen so they do not pay for parking or servicing. >> they take care of marketing, the back-end support, insurance is also the key thing they take care of. >> car sharing may not be a true game changer according to the consulting group, but they predict 35 million people worldwide will use the site for service by 2021. that is up from 6 million in 2015. it has become far more popular in europe and asia than in north america. >> the way i see it is if a car is rented out more than 50% of the month, it is time to get another car. it is all about meeting the demand for the high-end vehicles. >> i can definitely see why you want to trade up. caroline: that was fun. that does it for this edition of "bloomberg technology." we will be back on the air tuesday after the memorial day
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holiday in the u.s. and the holiday in the u.k. if you are enjoying those holidays, have a wonderful time. this is bloomberg. ♪
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>> welcome to bloomberg>> is as great, i'm carol massar. >> and i'm oliver renick of it largecandal of proportion. >> no patient is left behind because every patient is a gold mine. >> facebook's anti-fake gold mine. all that ahead on bloomberg businessweek. ♪ >> we are here with bloomberg businessweek editor-in-chief make an murky. let's start with the opening remarks. you do a great job summarizing a complex

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