tv Bloomberg Technology Bloomberg September 5, 2017 5:00pm-6:00pm EDT
gather strength as it roars toward the caribbean. it is the strongest atlantic hurricane since rita in 2005 and comes less than two weeks after harvey devastated parts of texas. the storm get it florida this weekend. south korea's navy conducted an exercise as seoul continues to put its military might on display. this follows north korea's launch last weekend. thegyang joins the u.s. for long going stand offense is the only way to solve the crisis is for the u.s. and south korea to stop joint military exercises, which it called a rehearsal for war. president trump is losing another white house aide. insiders say it could be the most damaging. keith schiller is lose -- leaving. he was once mr. trump's bodyguard and closest confidant. they welcomed back john mccain in washington. he had been receiving chemotherapy for cancer in phoenix.
he is the chair of the armed services committee. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am alisa parenti. this is bloomberg. "bloomberg technology" is next. ♪ emily: i am emily chang and this is "bloomberg technology." limbo,rican dream in nearly one million people who arrived in the u.s. as children face uber tatian after the trump administration pulled the curtain down on daca. id dive into the controversial decision and what it means for the tech community. plus, they remain cautious on forecasts. we break down the scorecard since meg whitman jumped ship,
and we monitor the company's conference call. dice on an ipo for its most successful franchise. will angry birds continue to soar or follow the path of game makers that beckinsale on the public market? after months of speculation amidst messages the trump administration made it official come of the deferred action for childhood arrivals, better known as daca, is ending. president trump spoke about it this afternoon. president trump: i have a great love for them. people think in terms of children, but they are really young adult. love for these people and hopefully now congress will be able to help them and do it properly. i can tell you in speaking to members of congress, they want to be able to do something and do it right. emily: the program allows people who entered the united states illegally as children to apply
for a renewable two-year permits that shield them from deportation. those who fall into this category are known as the dreamers. tech reaction to the repeal was a swift. tim cook tweeted, dreamers contribute to our companies and communities just as much as you and i. apple will fight for them to be treated as equals. dreamers aresaid our neighbors, friends, coworkers. this is our home. congress needs to work now to defend daca. microsoft said they intend to take legal action if their employees who happen to be dreamers are deported and will fund their employees legal bills, if necessary. anning us to discuss, analyst, and our own reporter, bill. first of all, what does this mean -- let's talk about
businesses. microsoft has 39 dreamers, apple has 250. what does it mean for companies that employ these people? >> it puts employees in a state of legal limbo. what they said today is that they want to kick it over to congress, give them about vix months to pass legislation that could, in theory, make these people have a full legal status. just like they had under the dream act or some other capacity. the reality is, immigration reform has been a hard sell. in congress for several years. they have a ton on their plate, when you think about the debt limit and hurricane harvey. it is not something they were looking for. it adds to a very full plate over the next six months. emily: president obama did make a statement today. he said to target these people is wrong because they did nothing wrong. it is self-defeating, cruel. takenbe clear, the action
today is not required illegally, it is a political decision and a moral question. talk to us about that. is this a moral question and not a legal issue? >> i think it can be both. there are moral issues here as well as legal ones. in terms of the moral dimension, you have people brought here as children, under the age of extinct. they did not make -- under the age of 16. they did not make the decision to break our immigration laws. know theyup, did not were illegal immigrants until they were older. they are culturally american. 80% of americans have sympathy for them and want to give them at least the ability to have a path to citizenship. these are people we have a lot of sympathy for and we do not like to punish people for the crimes of their parents. and this is one of these cases where the american public is completely on the right side of
this, ethically, notwithstanding the legal issues. trump's billent says it is time for congress to pass comprehensive immigration reform. but willie actually supported? -- support -- will he actually support it? >> he has agonized over this decision, even though during the campaign he said it is something he would do his first day in office. the language from jeff sessions was harsher. he describes people who have benefited under the dream act as illegal aliens. he said that they have been taking jobs away from true citizens. that kind of terminology does not sound to most people's ears very compassionate. it raises the question of how much support he will put behind congressional effort to enact this. attorneyortant point,
general sessions of said that any kind of legalization of dreamers at probably be teamed up with other legislative proposals the president wants, such as a bill introduced that would cut legal immigration and year.by 100,000 a that is just a nonstarter, dead on arrival. serious, they need to ignore the advice of a lyrical -- the advice of the attorney general and put up a dream act. of course, mitch mcconnell already weighing in on this. let's take a listen. senator mitch mcconnell said, president obama wrongly believed he had the authority to rewrite our immigration law. president trump corrects that fundamental mistake.
this congress will continue working on securing our border and ensuring a lawful system of immigration that works. bill, what is next? >> congress is just getting back into town tonight. this was not the welcome they were looking for. horizon, it ise hard to see something getting done in the next few weeks. congress has to pass an increase in the debt limit and look at continuing a budget or resolution to fund the government through the end of the year or next fiscal year. you have hurricane harvey aid tied into all of that. i imagine you will have different proposals coming up from bipartisan groups of senators and members of the house. but i do not think we will get a clear guidance on whether this is possible for quite a while. emily: nancy has been speaking with reporters. she does not think attaching daca to the debt ceiling is reality.
alex, tell me more about what you expect when it comes to the legal fight these people and companies that employ them might now and up involved in. alex: it will be a vicious little fight. we have heard of the tech firms that will be defending their employees who are in daca. this speaks to our wider problem. why would they have foreign-born people on their payroll? they feel they need to defend the dreamers, to show the rest of their employees and investors that they are serious about protecting their very skilled workforce. we have a six-month deadline, when in early march, 2018, the president's cancellation of daca will start pushing 1000 dreamers a month off of work permits and into the illegal economy, where they will either be fired from their jobs immediately or have to work illegally on the black market, like the other 10 million to 11 million illegal immigrants in this country. we are on a deadline.
it is not a soft deadline. issue, a pressing something where there is broad agreement across the political spectrum with moderates, conservatives, and a lot of liberals, that something needs to be done to bring these people out of the shadows so they can work lawfully in the united states. it is good for the economy, good for us ethically, consistent with traditions in this country. congress needs to solve this problem immediately. it is very rare congress passes a reform in an election year of this magnitude. they have three to four months to figure it out before becomes politically more desperate and toxic. emily: a lot of work, to do for sure. thanks so much. returned to the bond market. the iphone maker is offering $5 billion in debt report cards after dropping their floating-rate component.
dual camera system. hewlett-packard enterprise is emerging from an aggressive slim down. they showed stronger than projected sales. shares in after-hours trading cost as much a 6%. joining us from massachusetts, crawford del prete. i know you just got off the phone with meg whitman. what did she have to say? crawford: as she characterized on the call, they feel they have more work to do. they have made really good progress. spends a lot of time talking about, people have to understand how different this company is right now, in that we may split away from the services group. 110 thousand people exited over the last 12 months, in march of last year.
the hewlett-packard we see today is more focused and leaner. and now is starting to make moves for what their future will look like. i believe this company is not just in the enterprise deal market, but starting to take the company in a new direction. saying, when were commit saying there is a new effort to make operations even more efficient, but they also have more work to do. interesting to hear her say that, given the reporting about her in contention for the ceo job at uber. she was the top candidate until the 11th hour, even though a few weeks ago she said she was not interested. is she going to stay at hp? what do you make of these reports that she was close to leaving? iswford: in my opinion, meg an incredibly talented executive who has provided unbelievable contributions to the valley.
having said that, but hewlett-packard that exist today in the form of hewlett-packard inc. is vastly hp transformed. i think she can look back at this point and say, she put the company on a different path, took them in a new direction. if she not be surprised is not over the next six months looking for a new chapter. but i do not get that feeling when i talk to her. when youy conjecture think about the transition this company has been through. when you think about someone as it does notmeg, surprise me she is getting a lot of calls and interest for significant transformation projects that other companies are facing. uber put her squarely in that
category. vmworldi was at the dell last week to read i asked michael about hpe and he did not think they were doing so hot. how do you think hpe is performing, relative to the juggernaut that is now dell technologies? crawford: they are very different strategies. is able to play a portfolio strategy and executing that well. it is important to keep in mind they are executing that strategy out of the light of what michael likes to call the 90 day shot clock. at hewlett-packard enterprise, they have slimmed the company down to go after outside profit pools within the enterprise. their acquisition of cloud technology partners, is now looking at, what are the services they can add to their technology services portfolio, to be able to grow that meaningful base of revenue for the company? again, the strategies are increasingly over time,
incredibly different. michael has a great strategy and he will continue to execute that. but he will face challenges in certain areas, like being able to keep all that large, diverse business operating on all cylinders. area, gone to the other getting focused and building off that core. they are entirely different strategies. up until recently, dell was operating better with the leverage they had, outside the scrutiny of public market. what we are today, hp is making progress. it is not surprising, given their ability to be more nimble than they were a year ago. emily: crawford del prete, idc chief officer. thank you so much. they have asaying next efficiency effort. coming up, devastation from hurricane harvey has hit the greater houston and insurance
emily: hurricane harvey has devastated much of the greater houston area. and insurance companies are looking to get as much information they can in relief efforts. farmers insurance will use kespry drones to fly over damaged areas in texas to leverage analytics to analyze footage and provide reports on the farmers claims adjusters. for more on this partnership and how the drone industry is helping, we are joined by kespry ceo, george mathew. telephone this will work. george: it is great to see you. we are very focused on farmers
and other insurance carriers and adjusters having the ability to help on all of the rescue and recovery efforts going down in houston and the corpus christi area. is focusedar, kespry on the recovery effort for enabling claims processing to occur faster, using a kespry drone. anders got on air reiterated the use of a drone for the purpose of recovery and being able to process claims faster can really enable the adjusters to be able to work at a pace which is unprecedented. saying, a drone can help the recovery process occur, where claims adjusters can cover literally three houses per hour. versus without a drone it is about three houses per day. emily: without a drone of they are using ladders, ropes, harnesses. some of these waivers are being passed out right now. what is the status on when the drones will be out there at work?
george: great question. drones are flying as we speak. most of those drones have been flying for the rescue effort the past few days. our kespry drones are now in the air, related to recovery. we have customers using our drones in particular to aid in the recovery effort, as of this past day. we see the coming days, weeks, and months supporting all of our customers. specifically, the policyholders. there has been deep devastation and impact regarding everything that has gone on with harvey, to date. we are there to support our customers and policyholders. emily: what are you seeing out there, what are the big challenges? george: there is a lot of work to do. when you look at the damage that has been impacted in corpus christi and houston and galveston, there are multiple months of recovery underway. need to be is the
able to process those claims as fast as possible, and to enable policyholders to have the best policy -- possible experience. for farmers and other pnc carriers in houston and around the country, it is about customer service being seamless to get claims processed in an meaningful way. the drone is allowing that to happen as fast as possible. emily: we know that irma might be hitting florida in the near term. will you be involved in that and other natural disasters? there is windce damage or hurricane-related damage, flooding, we are starting to see the use of drones most effectively to support the insurance adjusters. it is not just about the property and casualty carriers, but the roofers and independent adjusters. and others in the drone space, ics busy in the of i -- in the near future -- see us busy in the near future.
emily: is this an example of how insurance claims can work? george: it is the future of work. showing how work like this can be done faster, by roofers, construction workers, miners. kespry has really been scaling out our operations to serve our customers' needs. and policyholders, in the greatest time of need. we are very focused to ensure we are providing the best possible experience to our customers and their policyholders. this is where the next few months will take kespry forward in the market. emily: good to see how technology is helping, even if just a little. thank you for joining us. facebook's latest play to take -- played to take on youtube.
president trump's decision to end the dreamer program. in a tweet, obama called it cruel and said it targets innocent young strivers. hundreds of people gathered at trump tower to protest. delay could mean congress comes up with a solution. trump is renewing overhauling the tax code. he spoke with top economic advisers and republican leaders. >> this is more than tax reform. this is tax cutting. .e are going to cut taxes we are going to reduce taxes for individuals. for middle income families. we're going to reduce taxes for companies. president says president trump is "not my bride, and i am not his groom/ ." askaid it was naïve to
whether he is disappointed in the trump presidency. the iranian nuclear deal could be in jeopardy. says the missile program violates the agreement. president trump needs to certify iran's compliance every three months. news, 24 hours a day, powered by more than 2700 journalists and analysts, in more than 120 countries. i am alisa parenti. 7:30 wednesday morning in sydney. we're joined by paul allen with a look at the markets. regional markets look to be headed lower after the u.s. markets missed this opportunity to react to the weekend nuclear test from north korea. nikkei lower. the futures and australia are about 4/10 of a percent lower. local resources could be a bright spot. oil and iron ore strengthened
overnight. nudging 80dollar u.s. census the moment. cents at the moment. some commentators boosted their expectations after the current account number saw contributions to the net exports rising. that is some of what we're looking at around the region. in sydney.llen more from "bloomberg technology," next. ♪ >> facebook is said to be
offering hundreds of millions of dollars to major record labels and publishers for music rights. an exchange, users would be facebook has set up an agreement for attacking videos that infringe copyright. that system could take up to two years to establish. joining us now are our analyst and reporter. lucas, tell us about how this would work. facebook and the music industry have spent months trying to figure out how to resolve this ongoing problem. you have millions of videos getting uploaded to facebook that have music that can't either. facebook is -- that can't be there. facebook would give a bunch of holders, rights to hundreds of millions of dollars to buy them off while they built this system, in collaboration
with these music partners to have a system for all the user generated videos. >> this comes as facebook is rolling out a new hub for video, watch. james: i think it is super smart. they can likely get the deal done. what they are doing is putting their money where their mouth is. moneye willing to spend in order to keep people engaged. to make sure there are no issues when it comes to the music. i think that is something millennial's like to do. they are spending hundreds of millions of dollars on top of that for video content. what they are showing is a willingness to really be a contender when it comes to the digital content. who does this put pressure on? youtube?
>> they were trying to get it changed with. they're hoping it does put some pressure on facebook to figure it out. they're hoping the tiger they get bound together, -- the tiger ghter they gete ti bound together, the more facebook will look at these problems. this is the next step in facebook figuring out what its next strategy is. >> facebook also made a bed for india's premier league cricket game. they lost that bid. for the nflidf or thursday night football game and lost. james: they are dabbling. facebook.sus
amazon has the advantage. investors are conditioned to a 30% margin. there is an unlimited amount of cash. the willingness is impressive in and of itself. facebook needs to be careful of is trying to monetize some of their emerging efforts. they need to make sure they get the experience is right. are starting to see how they will be earning money from what is happened. -- what has happened. they spent $20 billion on whatsapp. >> they executed it so perfectly with facebook. so perfectly with instagram. that. are still using i am not sure if they are ready for inter-app advertising --
in-app advcertising. >> it has been a few years, though. >> they are facing pressure with declining advertising loads. as ae it is not being done reactive measure for market expectations, versus actually turning audit monetization at the right time. >> when it comes to twitter and snapchat, do they stand a chance? >> i think twitter does. as long as they deploy the right strategy. twitter is indispensable when it comes to real-time information. media outlets reference it. chat, we came up initially bullish. worst enemyir own because they are not
capitalizing on their core strengths. facebook is showing a willingness to spend money on content. if they start to win that battle, it is a losing proposition for snap. >> when you are bidding for the rights to specific -- to a specific franchise, it is a zero-sum game. facebook and youtube and amazon all win if they are willing to pay? >> the question is, is the ecosystem big enough for the media guys to have the rights? yearer how the nfl last that most people still watch the nfl last- one year, but most people still watch those games on cable television. facebook,sly are amazon, and twitter going to bid on some of these rights. i was surprised by the facebook bed for the -- bid for the cricket rights.
executives were hoping to work out scenarios where they could share advertising revenue. they are willing to spend enough money to why you way the biggest rights. we could see a significant migration of viewers. emily: we will be watching. lucas shaw and james with me in the studio. thank you. just been asked about the uber's ceo job. she said, i am not going anywhere. coming up, there is a new player in the london tax hailing market. taking on over in the british capital, next. this is bloomberg. ♪
>> big banks are using artificial intelligence to monitor traders. they are expanding that coverage to make sure they don't wind up in a similar situation to wells fargo. banks have asked ibm if they can watcheir services to traders. banks are hoping this prevents scandals like the one at wells fargo. over is supposed to be -- uber is getting tough competition in london today. drivers have been vetted by taxify to meet local licensing standards.
ceo to get hishe thoughts on how the company can compete. -- uber has had a lack of competition. we're here to show we can improve on the market. me that this is very much aimed at the drivers. bettering their way of life. we want to serve both sides. we are offering them long-term discounts. side, they are making 50% more. drivers can earn 200 pounds extra every month. >> that includes commissions.
>> this makes more sense. commissions, we can have happier drivers. which allows for better service. the network is expanding where else in europe? >> 19 countries. center -- central europe, eastern europe, africa, and mexico. we are launching in a few months. >> talk about your partnership giants, didi.se >> they have a very good strategy. they have already invested in the u.s. and india.
southeast asia. we have a partner in europe. we have proved we can win in a lot of markets. >> what are they providing? we can use the money to fuel expansion and new expertise. and how to get all the newest technology. >> what has been your focus when expanding? work inuber do the hard terms of regulation. >> that is one of the main reasons. we go into markets where ridesharing -- millions of people use it. then we come in and improve on that by having cheaper commissions and giving more back to riders and drivers.
we don't want to get into regulatory troubles. europe?o you navigate has it been difficult. thinking of a majority and barcelona. the regulatory environment is inhospitable for ridesharing. there are so many cities in the world to embrace that. we want to go there, bring a better product to market and worry about other cities. >> how does the relationship with didi go forward? >> for right now, we are facing -- the focus is to grow. all of our operations will be sold down the line. >> what is your viewpoint in terms of the ridesharing ecosystem. when you first came up with the
concept, which i understand was 19r years ago, when you were , and coding it yourself, where do you see this going? >> i didn't really have an idea of how big this industry would be. now that we are already this big, we see that autonomous cars will be the future of ridesharing. we're thinking 5-10 years ahead. thatnt to make a product answers drivers right now. so we don't try and postpone problems into the future. >> where are you finding it is being sold the most efficiently? you are the main player in africa. >> africa is the first example. private car ownership is high in europe. there is public transport in most cities. the need for ridesharing is significant we smaller. -- significantly smaller.
>> how did you build this company from your bedroom to the scale that it is? where did you find yourself first? >> we started in estonia. it was really self-funded. we saw if you make a good we can be smart about which cities we got into. we realize the market opportunity is so big that we needed extra money. and money before anyone else. that is when we started looking for new investors. taxify ceo with caroline hyde. just after that interview, caroline gave birth to a
beautiful baby boy. she got to celebrate labor day across the pond. dad are doing wonderfully. he is so beautiful. we want to welcome him in the family. congratulations. birds is preparing to go public. can it bucked the trend of makers fizzling out when they go public? -- of app makers fizzling out when they go public? niall:
public. rovio entertainment could value the company as much as $2 billion. it is following the likes of zynga, which stumbled in its road to the public market, despite having produced a game that became a cultural phenomenon. does the same fate await rovio? joining us is alex barinka out of new york. know it wasn't smooth sailing. is rodeo going to have better luck -- rovio going to have better luck? ng all of itsetti revenue on angry birds. the game came out seven years ago. the company needs to show it can find growth after this new
strategy that it has implemented of massive cost cuts. you have seen the financials improve. you can see the documents in the last quarter, reporting 94% revenue growth to 86 million euros. that is following up another quarter of growth. revenue is growing. do with that has to their selling strategy, they have shifted into getting people to pay in-app. >> talk to us about what we know about the financials. >> the company is improving. 86 million euros in revenue in the last quarter. million, u.s. they followed angry birds with angry birds two in 2010.
it has been a while since we saw new things from them. you did see the movie come out that banked $350 million in box office. the single is coming out in 2019. sequel is coming out in 2019. they have had some introductory games that are doing as well. then they have this movie. them pushing the strategy of getting users to pay up in-app. we talked to some executives earlier this month who said this has been working. they reminded the public that sometimes these games take years to catch on. executive said three years is the typical high point of success. it is going to be whether or not this franchise continues to find growth, either in the
mobile gaming world or in some of these ancillary products like movies. >> what about investor appetite in general for a company like this? >> they are listing in helsinki. supercell,tition, isn't that market. investor appetite seems to be there to a limited extent. if you look at the average value for some of these companies, it is about five times revenue at the reported evaluation that we eight $2 billion market value. this is almost double. there is a bit of a disconnect when it comes to what is currently trading and what angry birds is schilling with this sale. you are going to have to convince investors that they have cut all the costs they needed to enter watch -- and are running much more efficiently and have figured out the in-app
purchasing strategy. i need to know what the next angry birds game is going to be. what are they going to do in 2018?ap of 2017 and they haven't told us about anything exciting that is coming. >> maybe a new movie. alex barinka, thank you for joining us. that doesn't for this edition of "bloomberg technology ." -- that doesn't for -- that does "uber this edition of technology -- "bloomberg technology." ♪
♪ announcer: from our studios in new york city, this is "charlie rose." charlie: welcome to the program. it is the end of summer and as we prepare for the next season, we bring you some of our favorite conversations here on "charlie rose." tonight, hamlet at the theater. -- tonight, conversations on technology. >> talk about virtual reality. there have been many cycles were people describe virtual reality as the next big thing.