tv Bloomberg Technology Bloomberg February 12, 2018 5:00pm-6:00pm EST
country's roads and bridges. >> i submitted the biggest and oldest researcher investment in american history. the framework will generate an unprecedented 1.5 21 $.7 trillion investment in american infrastructure. >> new york city police say by trump opened an envelope that contained a white substance powder. the senate kicked off debate on immigration today, the fate of so-called dreamers, young undocumented immigrants facing deportation is at stake. president trump once money to build a wall that limits immigration in exchange for protection.
global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. i am alisa parenti, this is bloomberg technology with emily chang is next. ♪ emily: this is bloomberg technology. on thek's cool factor line, a record number of teens are jumping ship and making a beeline for snapchat. plus our deprived of getting more women into technology. -- deep dive of getting women into technology. changeenewed focus and a
of the world's most fallible company. but first, to our lead. market surged after its worst performance in two years last week it the dow and s&p are only down a percent since the and of december, and for more of like the reagan the mark markets reporter abigail doolittle. please give us some context on the trends and the way the market open today. the bulls were out, and the sellers try to push the major averages lower at 10 a.m. this morning, but the buyer stepped up, and we had a big rally. days&p on pace for its best since november of 2016, and it is the best day for averages, and the first and we have seen that in february. of thethis opposite action of last week and the question is what next? what way will the volatility go?
even so, a lot of old tech names trading higher, such as apple, intel, microsoft, and cisco. being these names were sold off, and nothing has changed fundamentally, so it points to the degree that sentiment and confidence displayed to the upside and downside, and that could change on a dime, so there is perhaps more work to the downside to be done. emily: the banks did well, opec rebounding, what does that mean for the future? well, andhe banks did last week these names were being sold as well, they a big rally. if we hopped on to the bloomberg, something interesting shows here, these are the daily moves for the merrill lynch bank index, and here today we see a big move higher, not bigger than last tuesday's action where the selling last thursday was
stronger. all of this suggests that sellers pay came out -- may come out in droves and cause more downside. it is slightly down on the year, gs may shift in the days or weeks ahead. much. abigail, thanks so when it comes to the sheer amount of global users, facebook reign supreme, but it is not a completely rosy outlook. a new report shows facebook is losing ground to snapchat in the teen demographic. lose 2 million users and dad states this year, and snapchat is set to gain nearly 2 million. , activate ceo and my guest post for the hour.
deborah, let's start with you. what did you find and how do you come up with this 2 million number? >> as you mentioned, facebook is set to lose 2 million users under the age of 25 does your, particularly the teen demographic. theave seen some of declining usage there over the past year or two, but the decline has steepened quite a bit this year. for the first time where also seeing a decline in usage this year among people 18 to 24 in the u.s., and people ages zero to 11. we know facebook isn't technically allowed for that age group but we know people are using it in that age group, unfortunately not as many as perhaps facebook had hoped. as far as how we got the numbers, they come from an analysis of third-party survey data as well as public information released by facebook
and government information as well on population trends and internet usage trends. emily: we have any idea if facebook's algorithm changes to show more friends and family versus news had an impact here? facebook decision that is consciously making to sacrifice users in order to improve the overall experience? >> they did say that in their last earnings call, but i think this problem has to do with the fact that 14's internet -- for teens, interacting with video is a popular way, and that is why snapchat is rising in popularity. people on it,lder so perhaps that is not cool for teens. teens may not be interested in keeping things for prosperity. on facebook you can say things forever, where snapchat things disappear. how troublesome
is this for facebook? issue is that this isn't about teens anymore. the average user is over the age of 25, and instagram is younger, so 70 percent of the users are over the age of 25, if you look at snapchat, it is only 50%. becauset that troubling a lot of what facebook is going to do in terms of growth is it is going to be among people who are older and it is about people who have the time for more usage. teens and the younger audience is going to snapchat, but we also don't know what is what to happen next. itschat redesigned interface and there were a lot of people across the internet who were unhappy with that. are in flux, and a couple of million users one way or the other is want to make a huge difference in the whole facebook universe.
emily: deborah, would you a growth that? facebook is the victim of the law of large numbers, but does 2 million not matter that much? or as a part of a longer term trend that is going to continue? be watchinging to the numbers to see if this is a longer-term trend, but michael is right when it comes to the important work of facebook, which is how much revenue they are generating. we are not seeing any impact at all, we are forecasting facebook will have a quarter of all u.s. digital ad revenues this year, and 10% of all media spending and united states this year. that is still expected to grow up in double digit percentages next couple of years, so advertisers are still very interested in that facebook audience, even if the teen audience is not using facebook itself. they may be using instagram.
instagram is also popular with teens and young adults, and that is growing its ad revenue as well. facebook has a lot of hedges against this potential problem. quickly,chael, threatening to pull from facebook and google, saying this platform has become a swap for fake news, sexism, racism, extremism, how serious is this? >> the problem is truly serious and is more likely that facebook and google will respond to their biggest customers, to advertisers, and they went to regulators. the biggest advertisers are concerned not just about the content going across things that are promoting hate, but they are also concerned about the wake of that one waytion or the other, these platforms contributed to the sharing of fake news and misinformation. going forward, data want to be responsible for that or part of it. emily: we will continue talking
hire as many women as men, and i would like to welcome former twitter ceo, great to have you back on the show. great to be back, i was hoping you would call me abigail. [laughter] going. people tuning in our going, what? when you left twitter and start chorus, you approached hiring differently than most ceos and said i'm not going to why did youypg d do that? 50% acrossto keep it all engineering, because when you fall behind, which is common knowledge based on gender and diversity studies at comes out from all of these companies --
once you get behind on things like gender diversity in your engineering team, it becomes frankly impossible to catch up. have women engineers interviewing at the company and want to meet other women areneers and theiere only so many women engineers, and then it comes to writing election code, and it is hard to catch up when you fall behind, and i just decided that the way to deal with that is to start off by not falling behind. give yourself the excuse in the early days that we have to get the right seven people in here on day one, and if there is seven men, you catch up later, but you can catch up. i decided if it was 50-50 early on, it would be easier to stay that way, and it has proven to be true. emily: why don't other founders
think like you? >> i don't think they think about it. you are trying to raise money and waking up every morning, i'm responsible for people i haven't been responsible before, and you want to squeeze your head together and cry about all the things you are worried about, so you don't think about it. or they feel like it is something i can do with later, and there's probably a general sense of the resulting 30 people in the company now, that is going to be an issue because where out of whack here, but will do with that later, and the reality is that once you fall the hide, it is almost impossible to catch up. everything in the organization starts to work to favor the existing imbalance and to keep going. reason,any nefarious just because that is the way
everything in the company is. for example if you have 90% of in engineering and 10% women, the way you bring people's referrals, and a junior engineer guy is handy out with other junior engineer guys, and they know mostly guys, and that is who gets referred in. that is what i mean that once you fall behind, that imbalance starts to reinforce itself. anything inere particular -- we know twitter is not unique in this, but is there anything in particular you learned at twitter where you saw things go the wrong way that could have been better if there had been more equality? >> i would frame it differently and that i always felt that when i had a more diverse group of perspectives on the decision to be made -- when you are a leader or manager, 80% of what you are doing is listening and gathering feedback in order to make the best decisions. if you have the broadest set of perspectives to make a decision,
that is better than making -- having a very narrow set of perspectives. emily: and think about your product. leadership team that is 10 guys, and your leader base -- you are going to have a lack of what half-year user base is thinking. that wehe benefits is had a team that matches the user base. it wasfelt that something you should work towards, to have more kinds of socio-economic, demographic, gender-based perspectives in any decision being made. i interviewe book evan williams, cofounder of twitter, and he thinks that if there were more women in the early stages, then maybe online
harassment and trolling would be such a problem because they were thinking about it. there were only thinking about wonderful things being done with the product and not how to arrest people -- harass people. do think if there were more women, the product would be different? >> there are two different things there, i'm not sure i necessarily agree that if there were more women on the founding of twitter that some of the issues would exist. it is hard to anticipate how the product will evolve and how it will be used. there always lots of unintended consequences, and even out there will be unintended consequences from a couple of years now. i am not sure of the same opinion on that point. there's no question that in the founding of any product or any toanization or business that
ofly: it has been something a charmed moment for twitter, with a surprise revenue gain and first real pop and earnings results, and we are continuing the discussion of the man who ran the social media platform, the former ceo of twitter. numbers have been looking good, but the coo recently left to become ceo of another company. how big of an impact is that? jack has been very careful and thoughtful and backfilling
the ranks of the management team over the past few years since i left in 2015. use of executive departures in 2016 come up at the same time jack was doing a great job of bringing people to fill those positions. the cmo from american express has done a great job, and the new cfo, i do know personally but everyone speaks highly of him, since the document engineering leadership team. anthony is world and a great human being, is going to be an extraordinary ceo and i'm excited for him. but jack has done a great job of building the bench over there, and keep the financial house in order. emily: do you think the turnaround is long-term or a short-term thing? we are always rooting for twitter. >> twitter is one of the most
important forms and mediums in the world. i have every belief and hope that not very long -- as a shareholder, it will continue to be an independent company and thrive. one of the many things that i adore about jack is that he is a very calm and patient and thoughtful leader. which is exactly what you want -- over the long course of the future, this is how we are going to steer the ship and build a successful company and not freak out when the market is zigs and changes in the near term. -- nowhe right person they have the company on a financial reject every -- marketory that the
can work against, will continue to be the right person to work at that company. i love that the focus feels like they have the wind in their cells, and you can see it when you hang out with folks in the company now. they are more confident and happy and they feel they have momentum. emily: what do you make of the chatter of who could be a likely suitor? it did chatter comes, when i ran the company, and every couple of months there was a story about someone or the other being interested in the company. i am confident and sure that jack has them focused on what they need to be focused on internally. the beauty of that chatter going on so frequently is that people in the company know not to pay any heed. emily: big story in wired facebook --s week,
pulling advertising from facebook and google and calling it a swap. -- a swamp. you think facebook slots to be twitter's game or is this something all platforms will have to reckon with? what will be the consequences? >> i think the biggest consequence for twitter was the statement coming out of facebook a couple of fridays ago that rethink theing to way the newsfeed work to be much more about social sharing and what your friends are up to and less about news and publishers and media. if i heard mark correctly, that to me is a big move to twitter. twitter has always been about that, what is going on in the world, the pulse of the planet, working close to media companies, publishers. they can feel that
we are the place for publishers again, we are the source, the single disillusion vehicle we are closely with on real-time event and what is going on while an event is happening. that is a giant boon to twitter and its relationship with content providers and advertisers. emily: we will be watching over the next year. former twitter ceo and founder, big as always for stopping by. operates inw breaking news on twitter. to talk. apples massive stock upgrade. this is bloomberg. ♪
retail. under pressure like never before. and its connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store
near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. leaving every competitor, threat and challenge outmaneuvered. retail. under pressure like never before. and its connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. >> i am alisa parenti. you are watching "bloomberg technology." proposaldent spending
would cut the subsidy for amtrak in half. , the the budget proposal administration aims to cut the $738al contribution to million for the fiscal year. rex tillerson met with the egyptian president in cairo today as the two countries reaffirmed their commitment to rattle in islamic militants in the middle east. comes as egypt is undertaking a major military operation in sinai. needsities estimate iraq $88 billion to restore that country. among the hardest hit areas is which iraqis forces aided by shiite militias and the u.s. coalition recaptured in july 2017. , president jacob zuma has been given 48 hours to resign according to south africa
state broadcaster and other networks. zuma has defied pressure to step down since he was replaced as head of the anc ruling party. his years in office have been marred by scandal. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. i am alisa parenti. this is bloomberg. after 5:30 p.m. in washington, 6:30 tuesday morning in hong kong, where we are joined by david ingles with a look at the markets. good morning. it was a good day for wall street. looks like we will be extending that global rally. japan was closed on the holiday. we are looking to see the nikkei 225 futures at the moment, looking to gap 300 points of the open there. days ine of the first two weeks that we are going in with not just gains from wall
street, but proper upward momentum. it is a retest of resistance levels, we pretty much blew through key support levels and are quite deep when you look at the key benchmarks. that being said, earnings might provide some support, and also eco-data out of japan might nudge the markets higher. we are looking at gains of the open in major markets here in the asia-pacific. more with "bloomberg technology" next. ♪ emily: this is the "bloomberg technology." i am emily chang. while apple plans unveiling new features in the fall, the most important improvement is what is
not being debuted. namely redesigned home screens and revamped photo apps. it is trying to renew its focus on quality in response to criticism that some of the company's software has become prone to bugs and underdeveloped features. i guests are still with us. what can you tell us? apple is changing its development strategy the. withstead of coming out 100-200 new features, they will focus on 10-20-30 of those and let the smaller ones fade away so they don't put too much attention on the big ones, which can in debt with things getting delayed. emily: why focus on this now versus any other launch? >> it comes down to apple's scale. apple has grown in terms of how
many devices they sell to over 100 million iphones a year. their engineering team has grown from fewer than 100 people to thousands of people around the world come at so it makes it more difficult to stick to that deadline. there is just more opportunity for failure now. they are trying to go back to their origins and focus on the quality that differentiated them. emily: what do you make of it? is 1.3 is most important billion installed base, one point 3 billion people using an iphone today. important to deliver software that is reliable, features that were. it goes back to steve jobs' original mantra. you have to maintain that group of people using it, otherwise
they will migrate to android, which has featured faster, better processing, but very buggy and not reliable. emily: market, how do expect these updates to roll out? updates ave two major year, one minor one in the march, one coming out in a tabbed to turn off the battery slowing mode, and they have one in june to be released in the september-october timeframe. they are splitting some of the features over the next two years. emily: talk to us about the personalities at play. about as aalked senior executive, but he is senior vice president of engineering. apple manyto work at years ago in 2009 and was not a
big name, then a french guy who was the head of apple software engineering left of the company and his boss retired. the ranks and was put in charge of max software. -- machat, scored software. the last year, he has been given more power and is in charge of siri as well, so his story of climbing up the apple foodchain is one of the biggest and apple history. -- in apple history. at it,when you look there has been some concern with iphone sales in the last quarter. the apple iphone is the top-selling in many categories. how much of a concern is it really? trying toare always
look for cracks in apple's foundation. there are lots of things to suggest things are going well. for example, home pod is sold out now. 20%,ces revenue has grown and they have a large amount of opportunity in services going forward. at the end of the day come at some of the software changes about making sure people find their phone is reliable and everything they use in the ecosystem is something that the lights them and is reliable -- delights them and is reliable. story out have a today about augmented reality and the company apple is backing and the other has to do with android. >> the android story is the opposite of apple's approach. apple is going for a small feature set, android, google is going in the direction of redesigning things to attract more iphone users, new
icons, animations, and whatnot. their operating system does not generate as much services as apple does on the revenue side or in terms of apple's growth recently, so google taking the opposite approach. optimistic are you are about augmented reality and apple's efforts there. >> i am very optimistic. our research shows virtual-reality will be a small business compared to augmented reality, which will have some massive opportunities in enterprise. reality will impact everything from medical to engineering to construction. so augmented reality should be a growth engine for anybody who is producing a smart phone, as well as the major software providers. emily: would you agree? >> definitely. augmented reality will be the
hot new topic over the next three years. apple will release their own headset by 2020-2021. emily: great reporting as always. thank you so much. thedcom has lined up one of tagus debt commitments to fund its $120 billion takeover of qualcomm. provide $100ll billion in credit facilities. provide $6ders will billion through convertible notes. qualcomm seems poised to reject broadcom's offer. coming up, amazon eliminating hundreds of jobs, the latest moves of the tech giant next. if you like bloomberg news, check us out on the bloomberg radio, bloomberg.com, and in the u.s. on sirius xm. this is bloomberg. ♪
emily: amazon is cutting hundreds of jobs in seattle as part of a broader reorganization at a company hiring in other parts of its cloud computing business. our guest is still with us, michael j wolf of activate. what do these job cuts mean. where are they happening? >> we can read a couple of things into this. to seeing headlines about amazon hiring 100,000, not cutting a few hundred, but they say it is in the e-commerce business. thatwe can read into it is
they have been automating a lot of those functions over the years, so that has likely generated some slack in how things are bought and sold, particularly the on vendors and able to dothey are things automatically over the platform that used to require manual help. there is a lot of overlap. if you look at the ways amazon ,ent against the grocery market now they have purchased whole foods and are doing delivery of whole foods with amazon prime now. inre is a lot of overlap these different divisions selling the same things, so there's likely some consolidation there. equity, the chart can show you how quickly the workforce has been growing. the white line shows the size of the workforce and the circles are where you can see slight
in 2017, jobs have skyrocketed. those circles are indicators. amazon doesn't cut jobs often. >> you should expect that where you have technology becoming more sophisticated that you will lose some jobs. amazon is creating new jobs through new businesses they will get into. they will expand in the grocery business, as well as amazon's marketplace creates jobs beyond their company. the number of companies selling their goods on amazon and through amazon's marketplace is increasing, so i would expect amazon will continue to be a huge generator of jobs in this economy, especially now that they are creating a second headquarters. emily: we still don't know where that will be, but amazon has f suspenselot o
and mystery around it. how many jobs to think they will ask you create as a result of this new headquarters? manyhave no idea how actually. the investment will be $5 billion and create 50,000 jobs. , so have 40,000 in seattle it is a huge investment and they have narrowed it down to 20 cities are major metro areas in the country are covered. it is still a signal of their are still a they job creation machine and this is a little blip along that path. emily: amazon has had a history of being a secretive company, and on one hand there being more open about the process of the new headquarters, and on the other hand are not telling
anybody anything which way they are leaning. one of our columnists wrote a piece about how amazon is ,pening the komodo a little bit but there are things they are not telling us. company does a great job of getting the best price out of its suppliers. among 20competition cities is a great day of getting those cities to negotiate against each other and give amazon the best prices, and across the board, so i think amazon is becoming more open to me yes, because they are involving other people and it is becoming like a reality tv show where we are waiting for the big reveal. emily: none of us can wait. how does the acquisition of whole foods play into this at the same time that kart is raising more money and trying to step it up? >> it is good news and bad news
kart, but the good news is that it is upping the game for every amazon competitor out there. can step up and help all the companies competing with amazon, walmart, kroger, target do grocery delivery, then that is good news for instakart. in seattle, and michael j wolf, thank you as always for joining us. >> great to be here. hear froming up, we the cofounder of a nonprofit on what they think the american dream is today and how education can shift the balance of women in technology. this is bloomberg. ♪
emily: the price of bitcoin has stabilized in the last few days, but one analyst predicts to is heading much lower if the years of the dot-com bubble are any indication. the cryptocurrency could plunge a further 90% according to one commodity strategist who says if you compare bitcoin to the historical movements of amazon omd nasdaq during the dot-c bubble, it could fall to $900. they have served as early advisors and investors at many startups, including facebook, airbnb, and uber. they are the founders of code.org.
we caught up with the brothers and talked about stem education and the current status of the american dream. >> the entire vision around personalhas been relative to our background of coming to this country as immigrants. our families came to america partly because this is the land of opportunity and is a beacon for immigrants. if you can work hard and put everything into it, you can get somewhere. we have seen that come true for us in space because of our background in technology. looking at the world at age 40, the american dream does not feel like the way it was. politics reflects this as people arguing with each other, but the core argument is people feeling that opportunity is not what it used to be. can agreeing everyone on is schools should provide students equal opportunity, and
here is this feel that is the , not beingur success offered in the vast majority of american schools. the idea for founding code.org was to provide that opportunity for every american as part of fixing the american dream come because that is so important in providing opportunities for all. emily: women make up a quarter of computing jobs nationwide, they get 18% of bachelor's degrees, 7% are venture andstors, and women ceos entrepreneurs get 2% of venture funding. how do we change that? >> there are a lot of things that need to change. the part i am focusing on is the education pipeline. if we have these girls becoming women becoming computer scientists, if the culture side does not change, it is all for not.
all the numbers you suggest are the same or used to be the same in the k-12 education system. in high school, it used to be 17% women and highly dominated by white and asian males. almostle school, it is entirely male. what we have done at code.org is change the high school and k-12 picture. we start teaching computer materialsd code.org as early as elementary school. the code.org student basis 25 million students, which is much larger than the software engineering population of the nine states, and it is 45 million girls. there are 12 million girls coding on code.org. emily: how did you do that? >> the key to getting you as education -- u.s. education to adopt the science is the american teacher.
this has been a heartwarming lesson for me. at the outset i also thought it was going to be hard. how do you change the school system? everyone said don't try to change the school system. do something after school, online only instruction, and i felt if we want to reach every student, especially students least likely to have opportunity , they are not going to summer camps or afterschool clubs. we need to reach them in school. we welcome this passion in the american teacher. teachers who got into the field wanting to serve their students and feeling like they are part of a system that is stuck in the stone ages. emily: how do you recruit teachers when those teachers could be making a lot of money at google or facebook. computer't get scientist to be teachers. we get teachers to learn computer science. code.org has trained 70,000 teachers how to train our materials. year, 50 thousand
students graduated from college and computer science. that is the total number of people coming out of college. code.org has trained 50% more than that teachers to teach, so it is a dramatic leverage in terms of increasing the access to this field. emily: what are the challenges that still remain? >> funding is hard. emily: code.org is a nonprofit. >> we are a non-profit funded by the same tech companies that i believe should be fixing a lot of the gender issues in attack, part of the we are solution come as those can be should get credit for part of the work we do come amazon, facebook, and microsoft are our three largest donors. when we are bringing 12 million girls into this field, those companies should get credit for funding an operation like this that is helping create opportunity for students who
want it. of code.orgnders come much more on that interview on studio 1.0 later this year. 1.0, a greatdio and fascinating conversation talking about what they are working on. that does it for this edition of "bloomberg technology." the goldman sachs conference here in san francisco talking to a lineup of guess. -- guests. a reminder, we are live streaming on twitter. check us out live. that is all for now. this is bloomberg. ♪
>> 7 a.m. in hong kong, where live from bloomberg's asia had orders area on yvonne man. welcome to daybreak asia. tuesday,tories this asia-pacific markets extending gains after wall street shrugged off the worst week for equities in two years. the volatility index fell and the s&p saw the biggest two-day advance in 18 months. traders are still nervous about u.s. inflation. >> and from bloomberg's global headquarters, i'm remy where it is just past 6 p.m. on monday. president trump reposes widespread domestic cost cuts and congress is expected to all but ignored this budget plan. and rolling the