tv Bloomberg Technology Bloomberg June 6, 2017 11:00pm-12:01am EDT
alisa: i'm alisa parenti from washington and you are watching "bloomberg technology. fired fbi director james comey will publicly describe conversations with president trump, but stops short of saying if you think the president sought to obstruct justice. he will describe in detail any of his interactions with trump during his senate intelligence committee hearing on thursday. department of homeland security secretary john kelly speaking to a senate panel in washington says the block on president trump administration's travel ban puts the u.s. apparel -- the u.s. in peril. he said the u.s.-led attacks on iraq and syria increase the chances of a retaliatory lone
wolf attack on small towns. the mayor of london says he does not care about the repeated insults he has received from the president of the united states asserting today that "he really , couldn't be bothered about what donald trump tweets." he says trump told his comment about no reason to be alarmed after the attack out of context. a u.s. back to syrian force said today it has begun an offensive to capture the northern city of raqqa. an american commanders as the battle against the islamic state will be long and difficult. raqqa was among the first city captured by the islamic state. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i'm alisa parenti. this is bloomberg. ♪ emily: i'm emily chang, and this is "bloomberg technology."
coming up, another bombshell in the development of uber. they have fired more than 20 employees after an investigation into sexual harassment claims. tech companies are joining the global counterterrorism effort. apple ceo tim cook told bloomberg how the phone maker is working with the u.k. government to fight terror. and the ceo meg whitman will give her keynote presentation from las vegas. the fallout from uber's investigation into harassment claims has led to the firing of more than 20 employees. the probe into dozens of other employees is ongoing. this on top of the separate investigation commissioned by uber being led by former u.s. attorney general eric holder. what do we know? reporter: there have basically been 215 incidents they are looking into, human resources
problems, some of them sexual harassment, gender discrimination, lots of things. 20 or more have been fired, and some are still ongoing. a few of those are senior executives. i know you want to know who. we don't know exactly who. uber still has to be very careful of facing some sort of lawsuit from these employees if they speak out against them. there is a lot of sensitivity about who they are. we have seen a lot of executives leave, some without statements about why they left. we are sort of reading the tea leaves right now. emily: there has been speculation about specific uber executives, whether it is the cto or head of business. reporter: that is more about we are sort of reading the tea broader cultural problems rather than a particular incident coming up with the cto. susan valor, who initiated these complaints, was a software engineer. ultimately she reported to the cto.
there have been questions institutionally separate from this single incidents of sexual harassment on a more institutional level, how accountable those people are. emily: what is happening with the investigation that eric holder is handling? reporter: that has gone to a subcommittee of the board. it is being very tightly held. we expect sometime next week to find out some public version of what they found, and what he is recommending. the element that will hopefully find out some new stuff about these incidents we heard about, and holders recommendation about what the company should do. emily: could another shoe drop? could more firings occur? reporter: no one has ruled it out. there are some people that expect actual top executives to be held accountable explicitly. it will be see -- it will be interesting to see what happens with the holder report. emily: other people have left,
they have lost engineering leads. reporter: head of calms and policy left, the head of finance left, and the head of growth left. there are a lot of top executives who left the company. emily: they have made two key new hires, both of them women. tell us about them. reporter: an executive from apple is going to be the chief randy manager, and strategy, coming in as the harvard guru to give advice to the company about how it can turn the corner. they are still looking for a chief operating officer, but to hires -- but two hires. emily: eric newcomer, our uber reporter. always great stuff from you. great job breaking the story. emily: as the autonomous car competition heats up, a new partnership has been announced. lyft will be partnering with boston-based self driving car startup ne -- nutonomy. they plan to launch a limited pilot program in boston within a few months. lyft users will be able to use autonomous vehicles with the app.
caroline hyde spoke to the ceo just last month. this is what he had to say. >> we are a software company. we believe building the software is the most capital efficient way to create a lot of value in this space. we are caught -- we are cooperating with carmakers to put these cars on the road. it will come pick you up and drop you off just like a human piloted taxi service. the difference is there will be no one behind the wheel, and the cost of that service will be substantially lower than today's taxi services. emily: not to our exclusive interview with tim cook from apple's annual worldwide developers conference in san jose, california. it sets the stage for hardware and software that will hit the market over the next 18 months. this year the company announced updated macbooks, imax, and ipad pro, a major overhaul of the apple watch operating system, but the biggest announcement was the new homepod, the answer to the amazon echo and google home.
that's what i talked about with tim cook. >> we tried to build something that was a breakthrough speaker first. music is deep in our dna, dating back from itunes and the ipod. we wanted something that number one sounded unbelievable. i think when people listen to it, they are going to be shocked over the quality of the sound. and of course it does a lot of other things, right? all of those are important as well. but we wanted a really high quality audio experience. emily: you're very focused on how this could reinvent music in the home. what about these other things? will i be able to make phone calls, order groceries? >> one of the advantages we have is there are a lot of things that siri knows how to do from the phone.
we will start with a patch of those as we showed today during the keynote. then you can bet there is a nice follow-on activity as well. emily: let's talk about e-commerce. it is very important to these devices. i can order paper towels on my amazon echo. does this tell us something about apple's aspirations? guest: i wouldn't read anything to it in that regard. what i would read into it is that apple is a company that deeply cares about music and wants to deliver a great audio experience from the home. we feel like we reinvented it in the portable player area, and we think we can reinvented in the home, as well. we know that people want a speaker now to do more than that, and obviously we want a speaker to do more than that, so we are sort of combining what has been thought of to be too
distinctly different things until now. i think people are going to love it. i know they are. i am a user, and i think they are going to be blown away with the experience. emily: how long have you been working on this? guest: multiple years. the underlying technology in here is something to behold. to get the experience that we wanted at the quality we wanted, like apple products in general take multiple years to do, starting from the core technology and building up to the product. emily: you have people out there saying, "finally." what took so long? guest: for us it has never been about being first to anything. we didn't have the first mp3 player. we didn't have the first smartphone. we didn't have the first tablet. there is a tablet shipping a decade before. very few people used it.
arguably we shipped the first modern mp3 player, the first modern smartphone, the first modern tablet, but we weren't first in any of those. for us it is not about being first. it is about being the best, and giving the user an experience that delights them every time. we don't let that impatience result in shipping something that is just not great. emily: it is the 10th anniversary of the iphone. you've unveiled the new ios. what does that tell us about what is next? guest: i can tell you that ios 11 is unbelievable. both for iphone and for ipad, it has incredible things in it, from peer-to-peer payments, the biggest ipad release ever. an area that i have great personal excitement on is ar.
you saw the demos that were done today. i think this is profound. i think we today are, as we get this developer release in the hands of the developers, we will have the largest augmented reality platform in the world. i think we have launched ar in a way to large numbers of people. i'm incredibly excited to see what some of the developers come up with with ar kit. emily: you talked a lot about ar and vr with regards to developers. what about consumers? when will consumers see an apple ar? guest: that's one of those things i'm obviously not going to answer. but with the core of technology as a platform, the first thing and most important is to build the foundation. from that foundation you can do many things off of it, but first
you have to have a really solid foundation. i think the developers are really going to love what they find in the developed bill -- the developer build on arkit. emily: we will have more of that exclusive interview later this hour. coming up we take a look at the global rise of crypto currency and the surprising bar it just past. this is bloomberg. ♪
emily: pinterest announced it has raised $150 million. yet, the investment came from a group of existing investors as -- at the same share price as two of years ago. it can delay a potential ipo as its business model matures. the company makes money by selling ads that looks like posts on its site. they currently has 175 million monthly active users. crypto currency has just had a major threshold that may further solidify the ecosystem. caroline hyde is in london and spoke with some of the major players. what have you got?
caroline: fascinating. the investment category of crypto currency has hit a new milestone, one that had been thought unfathomable just a couple of years ago. the value of the new asset class, less than a decade old, now $100 billion, up tenfold in a year. quebec 12 digit threshold is largely -- hitting that 12 digit threshold is largely due to bitcoin, by far the largest crypto currency. the company block change is for digital assets. i recently spoke with the ceo, peter smith, from a conference on financial technology. i started by asking what he sees crypto currency. as the driving force behind the rise of crypto currency. guest: i think we are seeing really strong demand across a couple key market. we are also seeing record levels of macro instability across the world.
i think that is driving a lot of the growth. i think he would be a mistake to focus too much on that. what we are seeing now is a huge insurgence of an ovation and the space, particularly across the creation of a lot of new assets. caroline: when you say a huge surge of animation -- of innovation, design we will see stability when it looks to the price of bitcoin and other crypto currency's? is that here to stay? guest: i think volatility is here to stay in terms of that the price will move a lot. bitcoin is obviously very established and trades at a pretty low relative volatility. the other assets, the new ico's you are seeing, i think those are going to remain really volatile until they mature and build market that. caroline: talk to us about the
trend of ico's. we are starting to see companies, many of them startups themselves, launching their own crypto currency, their own token, and financing themselves this way. what is the trend there that you are seeing on block chain, in particular? guest: i think it is better to think of these as tokens than actual coins. these represent some value, as opposed to network value for that product. it is just an investment product in that open protocol. i think you're seeing new tech companies doing it, but also established tech companies. print example of this is you are seeing kik, a messaging platform, issuing their own token. i think you are seeing across the tech space, both with new projects and established product. i think that is really interesting. caroline: what is phenomenal is, i think it was brave that sold out within 24 seconds or something in terms of the amount of tokens they were issuing and
the sheer scale of what they were able to raise. can you paint a picture for our viewers of how hot demand is and where you think it comes from? guest: i think you're seeing people who are in these digital assets or crypto space already have a really strong demand for investment product. there's about $100 billion of capital in the space, market cap wise. looking for interesting projects to back, i think brave is a really interesting one. it sold out about $35 million and 24 seconds. right now we are seeing a lot of stuff that is great and a lot of stuff that is worrying. that is just going to take time to mature out. what is important to realize about it is that it is a huge improvement over the status quo of how small, private companies raise capital. this is not just about high-tech companies. this is also about tech companies, any company across the world that is trying to raise capital to do something. i think it is going to totally
revolutionize the way people raise capital. caroline: that was block chain ceo peter smith. the growth of crypto currency's have become clear, and one company that is cashing in is a startup that is the leading social trading network for people to trade currencies, commodities, and more recently, crypto currencies. today and announced a new fund in failing investors to access the top investment strategies for holding bitcoin and similar currencies. i started by asking the rationale for the company's new venture. guest: we are seeing a huge spike in both volume of users and the prices of the crypto currency's lately. we are actually today seeing the crypto currency market cap as a wholesome passing, for the first time in history, $100 billion, which we believe is an important milestone for this industry.
i'm here at the muddy conference -- money conference in madrid, where we will be launching our crypto currency strategies. we are launching a copy fund, which automatically invests in bitcoin and is very him -- and etherium, the two largest crypto currency's. with market cap of over $40 billion and $20 billion respectively. we have seen a lot of customers asking us how to allocate their portfolios between the different crypto currencies. we have created the fund to allow people to invest in a copy fund in etoro where people simply invest in the copy fund
and we automatically rebalance it based on the market cap of bitcoin and etherium. caroline: emily, back to you. emily: thanks so much. a reminder of our new interactive tv function. you can find it at tv on the bloomberg. if you miss an interview, you can go back to it, or send our producers a message. play along with the charts we bring you on air. this is for bloomberg subscribers only at tv . this is bloomberg. ♪
the deal is worth about $125 million and will help snap expand its efforts to show that ad on its video and photo app is driving users to stores. they will continue to operate independently. california is home to tech giants like apple, facebook, and google, which brings in millions in tax revenue and thousands of jobs to the state. governor jerry brown spoke with bloomberg in beijing. he said america can't rest on its laurels as competition rises from china. guest: if we are going to spend more time trying to reduce taxes on the rich instead of generating more investment in the private sector, but also investment in the public sector, we are not -- we are going to lose out. that is where i think washington is going right now. emily: a federal judge has fined dish network for -- dish network for $280 million for making robo calls to users on no call list.
an additional $28 million in fines was awarded to california, north carolina, and ohio for violations of state law. they plan to appeal the ruling and blame the calls on contractors and subcontractors. coming up, more of our exclusive interview with apple ceo tim cook. how the company fights the threat of terror while protecting user privacy. if you like bloomberg news, check us out on the radio app. this is bloomberg. ♪
>> its 11:29 a.m. in hong kong and 12: 20 9 p.m. in new york. first quarter gdp numbers came line as expected. the economy expanded 1.7% from a year earlier. the rva signaled on tuesday it ,ould look to move slower saying it still expects the pace to accelerate above 3%. the governor of california is warning the u.s. not to rest on its laurels amid rising competition from china. jerry brown is in china trying to forge new leaks -- new links following president
trump's decision to pull the country from the paris accord. quirks -- >> they are just saying china is on the move, although the president did say when china puts its mind to something, we persist and get it done. words of those other someone who is looking out over the whole world and not looking in. >> the u.k.'s prime minister said she would tear words of someone who up legislation to help the fight against terrorism. dominate continues to the elections. the elections on brexit but recent attacks have switched the focus.
this is bloomberg. ♪ the markets in asia. a mixed bag ahead of super thursday. japanese shares continuing to decline. the one leading the drop in asia. we are seeing the aussie dollar climb. chinese stocks are fully ahead, up over 1%. a good chunk of the advance coming from aac tech. contributing over 30 points, jumping the most since 2009 on buybacks docs and as short-sellers take the opposite view. the stock is still the best performer on the hong kong guild today. we do have motors falling.
japanesehe shareholders is planning to its heads of state. emily: this is "bloomberg technology." i'm emily chang. this week, u.k. prime minister theresa may put more pressure on technology companies to prevent their products and services from being used by violent extremists, after a third attack in the u.k. in as many months. apple has taken a stand on user privacy in the past in a standoff with the u.s. fbi about unlocking a suspect's iphone in a shooting in san bernardino, california. we spoke exclusively with apple ceo tim cook about with the company is doing to combat the terror threat while balancing user security. >> these terrorist attacks, first of all, our heart goes out to everyone affected by this. they are horrendous.
the u.k., for us, we have been in the u.k. pretty much the whole length of time for our company. it feels like they are a neighbor. we have thousands of employees there. our heart goes out. what do we do to help with this? we have done one thing since the beginning of the app store, we curate it. we don't want hate speech on there. we don't want these recruiting kind of things on there. we have tried to be careful from the beginning about not having that stuff. i'm not saying we will never make a mistake, but actually, i don't know of a case where something has gotten through from that perspective. we are very vigilant on what kind of happens from that point of view.
we also have been collaborating with the u.k. government in -- not only in law enforcement kind of matters, but on some of the attacks. i can't speak in details about that, but in cases about where we have information, and we have gone through the lawful process, we have not just given, but we do it very promptly. i think, i would hope, that they would say that we've been collaborating well. and i think there is valuable information. i think there's a misunderstanding about -- encryption doesn't mean there's no information. likely metadata exists.
metadata, if you're putting together a profile, which is very important -- emily: can we assume apple is always working to make encryption even stronger? >> the reality is that this cyber attack on people and government, it is happening left and right everywhere -- these affect your safety and security. it's not just privacy. it's not privacy versus security. its privacy and security versus security. so we are always working to try to stay one step ahead of these hackers that, frankly speaking, have gone from the guy in the basement that's a kind of hobbyist to a sophisticated enterprise. it takes all that we can do to do it, and we don't think our
users said have to think through all these things. it's not practical for people. we try to stand up for users and stay one step ahead of these guys. emily: our exclusive conversation with apple ceo tim cook. let's bring in our bloomberg tech editor alistair barr. what did you make of his answer? reporter: he didn't really answer the question how much he kind of have answered it appeared the most interesting point was about metadata, which is the more genetic -- generic, general data. you can build a profile of what people were doing so and so, over here talking to another person over there, but the fbi and other organizations want actual messages that are in encrypted text messages. they want to see it going over the either to the other person as well. the metadata wouldn't provide that much detail.
emily: does it sound like they're trying to strike a balance? reporter: yes, especially much more than last year when they clashed with the fbi in court. emily: so you do think there's a change? reporter: there's certainly a change in the messaging. i don't know if there's a change in actual activity. i'm sure that still when the fbi tries to get into a locked iphone, they are still locked out of them and i'm sure they would still have a lot of complaints. it's even more important for apple to strike a balance between the security and helping authorities. it's becoming way more important. privacy is a product. he was talking about how cyber hackers, that fbi hackers who are trying to help the government, trying to steal
data, they want to encrypt stuff so they can't steal our data. emily: it was important to hear him say they are helping in the data, they want to encrypt stuff aftermath of the u.k. terrorist attack. we covered a lot of ground, and we talked about the issue of repatriation. of course, apple has hundreds of billions of dollars in cash overseas. i asked him how he would like a repatriation to be structured. take a listen to what he said. >> in our view, it should be a deemed repatriation. this means it should be a required tax. so you are not asking the people that have had earnings from their international subsidiaries if they would like to bring back money. you are saying that you must pay the government next percent now or over some period of time. my own advice to be is that the u.s. would use that money for a significant infrastructure, because it creates jobs.
emily: interesting that he agrees with president trump on one thing. the importance of infrastructure. reporter: yes. stop the presses. they actually agree on something. they disagree on the paris accord, so it's all they agree on something. they have billions of dollars in cash. they have a lot more flexibility with what they do. emily: we will be watching that. alistair barr, i bloomberg editor, thank you for joining us. coming up, more from our exclusive conversation with tim cook. we talk more about his relationship to president trump, and his decision to pull out of the paris climate accord. that's next. this is bloomberg. ♪
emily: the countdown for delivery heroes much anticipated ipo is on. based in berlin, the food take-out business has announced it plans to raise over $500 million from a public listing. it plans to list on the frankfurt stock exchange in the coming months. it is backed by germany's rocket internet. the ipo would give a much-needed reprieve to rocket and ceo, who hasn't taken a startup public since 2014. back to our exclusive interview with apple ceo tim cook. we had to touch on the president's decision to leave the paris climate agreement. cook was one of a number of silicon valley leaders to contact the white house directly to ask the president not to pull out of the agreement. we asked if he thought the president listened. >> i think he didn't listen to me. he didn't decide what i wanted
him to decide. i think he decided wrong. i think it's not good, not in the best interest of the united states what he decided. but in terms of -- the way that i look at this thing, and do you interact with politicians or do you not, my view is, first and foremost, it is about, can you help your country? if you can help your country and you do that by interacting, then you do it. that country eclipse is politics. emily: you have other people leaving the table, like bob iger, like elon musk. is the president jeopardizing his relationship with his key constituency, the business community? >> i would differentiate, and i'm not speaking for those guys, but i would differentiate
leaving a council and advising in a way that can help the country. i think the first one is a judgment call that people make. i didn't join a council. so it's not a decision i had to make. i understand both sides of that. advising something that you believe will help america i think it's a requirement as a ceo. you definitely do that. if i get the chance to go pitch the paris agreement again, i'm going to do it again. i think it's very important that we engaged to fight climate change on a global basis. this isn't something where you can solve it country by country. it requires a global action.
emissions created in one country affect another. that is something we feel very strongly about. i wanted to do everything we could do to tell how important it was to stay in the agreement. unfortunately, he decided something different. emily: why didn't you join the council? >> two reasons. one, my primary job is being the ceo of the country -- company. i spend the bulk of my waking hours doing that. i do so willingly, because i love the company and the people in it. traveling back east isn't something that i look forward to doing, except when i need to. secondly, i don't find these councils in general and committees to be terribly productive.
but it wasn't about not wanting to advise on something where i thought that we could help or we had a point of view that should be heard. i'm doing the latter. i can't imagine a situation where i went into the letter, because i think it's in the best interest of america to do it. i am first and foremost an american. emily: more of our exclusive conversation with apple ceo tim cook. cory johnson joins us. the environment has been a long-standing issue for apple, an area they have been criticized in and that they have worked on. what do you make of his remarks? cory: i think he was heartfelt. i think you'll see from the action, the company is a lot more political than it was. both in terms of policies around immigration, involvement with the white house, is the biggest company in the world with market cap, so they have to take a
stand. this is a business that 100% of data centers are run on green power and solar wind. 96% of their entire business worldwide is run on renewable energy. that even go to the point where there building solar facilities in china so the suppliers can get solar power. they have a real deep commitment and they show it in their action. emily: what do you make of the model tim cook has set of not joining the council, but maintaining an open dialogue? cory: it is so interesting to see him as such a diplomat. a lot of that stuff was nonsense. you have these big meetings with all these people, little input to see the president, who apparently the president doesn't listen to. emily: but it caused great headaches for the ceo of uber when he was in the council, and he had to drop off. cory: and to what benefit? i'm sure he wasn't dropping a tear.
nor was elon musk about dropping out of these panels. in the sense that these businesses can actually do better business for effect or want to, but in the white house, there are people advising the president on these matters and they don't get their way. let tim cook didn't say outright is a waste of time. what he said is a waste of time. emily: but he also said if he still sitting at the table to the extent there is a chair there, and when the president wants to interact -- cory: he has the phone, not the table. emily: ok. cory johnson, editor at large, thank you. coming up, the discover conference is underway. just the second since the company's split. meg whitman is on stage performing the keynote. we bring you the latest in las vegas, next. tune in all day wednesday for special coverage, bloomberg investment coverage 2017. we have blackstone chairman and ceo stephen schwarzman, the tpg ceo, and pimco group cio.
our attention. amazon prime will now be available to low income shoppers at a discount. those with a valid and electronic benefit card will pay $5.99 a month for perks like free shipping and unlimited streaming of movies and tv. some analysts say the move will help amazon better compete with walmart. 21st century fox is diving into videogame. it has acquired aftershock, a company designing mobile games based on the global blockbuster fox film "avatar."
the avatar sequel is due to come out in 2012 -- 2020. the hp discover conference is currently underway. it is the second discover conference since hpe became its own company. we caught up with that enterprise executive president and asked about the company's progress since the split. >> i think we have made huge progress. obviously, if you think about the project -- progress hp ink has made, you can see the results, and the innovation they continue to bring on the market. on our side, we lay the foundation for the company going forward. we have completed already one of the versions with csc, creating the second largest services company as a player. we laid a very clear strategy for hewlett-packard enterprise going forward. we are very excited about that, because it gives us focus,
purpose, and we are applying capital and innovation just around the strategy. for us, it has been a great journey. customers really like what we are doing. emily: how has the merger of dell and emc changed the competitive landscape? >> well, i think they'll eat -- dell emc has taken a completely different strategy. they go bigger, they leverage the balance sheet, and they play a scale game. mostly, on the older technologies. we have taken a completely different radical approach to that. we want to be smaller and more nimble, and we have the leveraged balance sheets, to make the right investments for -- both organic, inorganic with m&a.
we believe we are in a position to win. -- customers are looking for its innovation, speed, and agility, and efficiency we can bring at the speed of the business. at the end, it's about delivering business outcomes and faster value. we believe we are positioned. we like our strategy. emily: you are often touted as the successor to meg whitman, not that she's going anywhere. what do you think hpe needs in a leader? >> listen, i'm enjoying what i'm doing. i'm having a tremendous blast working with meg and the team, positioning the c company for the future. i've been in the business for 22 years, in many different areas. i'm excited about the future this company. i think if we could position again hp for the next 75 years'
journey, innovating around the customers problems. for us, it's about how we bring value to customers faster, how we use engineering and innovation dna to solve problems, and ultimately how we deliver customer value in a business outcome oriented. kraft, it's about positioning hp at the core of that transformation and becoming a trusted advisor for customers. emily: that was hp enterprise executive vice president antonio neri. don't miss our exclusive interview with hp ceo meg whitman. that's tomorrow 5:00 p.m. eastern, 2:00 p.m. pacific. i will be asking about how hp dominates in the cloud, talking about her vision for the future of computing. the machine, a big futuristic project they are working on, as well as her report card on hpe post-split. that does it for this edition of "bloomberg technology." we are live streaming on twitter. check us out weekdays 5 p.m. in new york, 2 p.m. in san francisco.
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