tv Bloomberg Technology Bloomberg February 20, 2018 11:00pm-12:00am EST
alisa: i am alisa parenti in washington and you are watching bloomberg technology. president trump posted a white house ceremony for the u.s. safety medal of valor award. the awards are given each year top asserts who have exhibited exceptional courage, regardless of personal safety, in the attempt to save or protect a human life. the president has directed the justice department to ban the use of accessories it known as bump stocks. they allow semiautomatic rifle's to be fired more rapidly. the gunman who killed 17 people at a florida high school last week used in ar-15 style rifle.
a group of students who survived that school shooting are on a 400 mile state trip to the capital to pressure lawmakers to change gun control laws. they plan to hold a rally and it will mark one week since that mass shooting in parkland, florida. a london-based lawyer, alex van der zwaan, admitted he misled investigators about the last time he spoke with rick gates, a former associate of asked trump campaign chairman, paul manafort. 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." russian bots take on u.s. gun control. butia is in during it twitter campaign against america. plus, walmart margins hit record lows. how investors are reacting. a potential gold mine for advertisers looking to cash in on the newest era of connected cars. but first, to our lead. russian bots were caught following certain hashtags following last week's florida school shooting. just one way to widen divide among the u.s. electorate on how to handle gun control, making compromise even more difficult. this happened with past issues like the nfl and then debate and the 2016 presidential election.
and, allegedly telling in the election. twitter and facebook are facing renewed pressure. are these tech giants doing enough? welcome selina wang, covering the story from bloomberg. also, a senior policy adviser for the counter extremism project, who joins us from d.c.. you have done so much work on counterterrorism. what do you make of how these russian bots are approaching this new particular tactic? a big week with the pressure on tech. not only did you see their russian bots, but last week of the mueller indictment. twitter and youtube all mentioned. that is because the tech companies have a number of problems on their hands. afterts, which came out the florida shooting, with divisive rhetoric and fake news, conspiracy theories.
this is not new. but the concern is that the strategy will be taken again in the midterm elections and also by terrorist organizations on this platform. i think what we are seeing is another issue of a tragic school shooting, they are trying to exploit and a saw the ability to do so, despite reforms that have been made. emily: walk us through this. >> i spoke to the researcher of the hamilton project that has been tracking this. he says it is almost exactly the same as what happened in vegas. day one, the bots are re-tweeting breaking news. day two, they are trading -- tweeting implications of the most extreme and divisive issues and opinions on gun-control. by day three, this is when they start to promote conspiracy theories. and they want to start to destabilize american trust in
public institutions, saying the government, the media, the police are all lying to you. this is something we have seen over and over again. you mentioned earlier the nfl and them issue and the presidential election. there are fears this same playbook will be applied to the midterm elections coming up. emily: how big of a concern is it that this could move not only from sowing discord on social media, but fabricating real-life events? we now know the russians were behind creating a real-life islam protest in texas. could we see more about? >> absolutely. this is right out of the russia playbook area they will repeated because they do not need to employ a lot of resources. it is easy and they have been effective. what needs to happen is that tech companies need to take steps not only to get down content that violates their terms of service, but there are other measures they can take. obviously, you not going to be able to control what every individual writes online if it
, does not cross a particular threshold. with ad buying, there are specific measures that congress is pushing them to take going into the election. on bots, companies are not in favor of these and trying to crack down on it. why are there so many bots operating on these platforms? that is a measure that if twitter was serious about -- i have seen different levels of reporting, i have seen that 50% of accounts are bots. in any case, there are enough messages ofing the the fake news, russia up again do counterintelligence , operations that may influence our midterm elections. so if the companies are serious, there are clear measures they can take to crack down on some of this and make a real dent in the problem. unfortunately, we have not seen that happen yet as evidenced by , what has been going on this week. emily: you cover twitter and know extensively what they are doing and not doing. how are they actually cracking down here when we know a lot of bots have been kicked off the platform, but there is no more than enough. selina: twitter is doing all
they can, but there are more -- they have multiple constraints. they have had financial issues. they only recently just reported profitable real quarter. they are dedicating as many engineers to this issue as they can. but we have not heard them take steps to address the problem. even though these algorithms twitter has are getting better and better, they are changing their tax it -- changing their tactics faster than twitter can keep up. i have spoken with people who work at twitter or worked at twitter who described it as a whack-a-mole problem. the moment twitter changes their algorithms to address spam and bots we see a new pattern , emerge. that is the challenge they're up against. they have made steps for transparency. dhey are starting an a transparency program for the 2018 elections. they are trying to make sure they keep it as clear of russian meddling as possible.
emily: do you agree, or think twitter can do more with the financial resources and power it has? i think you hear that rhetoric from all three of the big players twitter, , facebook, google, you hear them repeatedly saying they are doing all they can. but if you look at these companies and the amount of money in the companies, they are technical wizards. they are able to do a lot with your data when they want to do a lot with your data, and i think they can do a lot more to address these problems in society from terrorism to , russian meddling to other nefarious foreign actors that are trying to be meddling in very us ways as well. particularly when the line is being crossed and laws are potentially being violated, which is what is happening in terms of ad buying. if they don't fix that, that will continue to be a violation of the real world campaign election finance laws. i don't think the tech companies are going to have the luxury any longer of being able to operate in this free space where laws are potentially being violated and things that would not slide
in reality are able to fly online. i think what is going to happen here is you are going to see not just the public start to get fed up with this, but you are seeing other parts of the private sector, most notably advertisers. you have the unilever executive a week or two ago threatening not to buy ads on these platforms because to be frank, ad companies do not want baby product ads or ben & jerry's ads running on platforms where there is jihadist content, russian bots undermining our election. it is bad form for advertisers. so i think you are going to hopefully see the tech company step up. there have been a number of hearings on capitol hill and i think you are seeing pressure out of the u.k. grilling tech executives a week or two ago and you have seen them being grilled on capitol hill. emily: robert mueller has indicted three companies, 13 individuals with relation to , russian meddling in the u.s. election. how is that related to the activity we are seeing now? are these the same parties who
are behind it? >> we are seeing, what russia has been doing is much more well-financed, well-organized, and sophisticated than what congress could have even imagined. i definitely think that has created fear among lawmakers. and these tech companies themselves. they can be well organized themselves to combat this issue if they had operatives in multiple countries. they had very sophisticated measures to try to cover their tracks. they were buying servers in the u.s., computers here, doing sophisticated tactics to cover up what they were doing. there are many tactics these companies could employ, which are not doing. someone who has testified many times says that twitter should ban all social bots. knowing what twitter's mission is, this is not something they would do. but there are more obvious drastic measures they can take. there are calls these companies need to integrate and talk to each other more and have some sort of shared database about a
-- of these foreign influence networks and bots and influence how to more easily and effectively target them together. emily: tara, what is next? i mean, the midterm elections are coming up. are they going to be potentially another disaster? tara: potentially, they are. they are coming up quickly, and i don't think we have seen the amount of reform that would be necessary to prevent the same type of meddling we have seen happen on these platforms. our best case scenario is we will see more of the same and that people will be more aware of the problem so they will not perhaps fall victim or pray to the narratives that russian bots or russian intelligence operations are trying to carry out online. people might look better at the information that is coming to them, but i don't think we will see a dramatic change unless the tech companies undergo dramatic measures over the next year or so. what is troublesome is, it is not just about the midterm elections. i mean, this is about potentially any significant
event or issue area in american domestic politics when we see this happen after terrorist attacks, after school shootings. we see terrorist groups exploiting these albums as well to help radicalize people. this is a problem. the same technical issue is at the heart of it, but it is permeating a number of really important issues right now, and i'm hoping you'll see a groundswell of movement by the companies. i think for the next election what we really want to hope for is that there is no hacking into our election systems, which we have been lucky enough to not have anything dramatic on that front because that would create ra -- that would create real h avoc. it did not successfully interfere with people's voting or vote counts or anything like that. so a best case scenario unfortunately will be more on the same on the platforms and nothing that directly hits the election system itself and the infrastructure. emily: this is something we are going to continue to discuss.
tara and our very own selina wang, thank you both very much for joining us. a loss for at&t in its proposed time warner deal. a judge has ruled the u.s. justice department does not have to identify whether the recommendations between the white house and attorney general jeff sessions. at&t has suggested president trump's dislike of time warner's cnn swayed the justice department decision to oppose the takeover last year. an antitrust trial date has been set for march 19. coming up, walmart is falling behind in its efforts to keep up with amazon. we will bring you the latest on the retail giant's e-commerce slowdown, next. if you like bloomberg news check , us out on the radio. you can listen on the bloomberg radio app, bloomberg.com, and in the u.s. on sirius xm. this is bloomberg. ♪
emily: walmart fell the most in over two years after delivering a disappointing annual profit forecast. the drop says the once hot e-commerce unit begins to decelerate, sparking fears in traders about walmart's chances to battle amazon. bloomberg's matt boyle covers the world's largest retailer. gadfly also with us, columnist. what caused the slowdown in web sales? >> the slowdown in web sales was caused by some holiday snafus. it took us a while to get the truth out of them over the course of this analyst call, but ceo doug mcmillon did say eventually that the influx of all the holiday related gifts and toys just through their
their system out of whack a little bit. and that prevented some orders of basics paper towels and the , like, getting to customers. another part of it they came up , on the one-year anniversary of the acquisition of jet.com. us the growth rate was certainly going to slow. they had guided to a 40% growth rate for this fiscal year. but i don't think anybody was expecting a number as low as 23% and the shares certainly reacted to that. emily: talk to us about the jet.com acquisition and how that factors in. you would hope that more of this growth would have happened organically, but how much of it was coming from jet.com? >> i think that is the big question that today's results have posed to us. walmart has been telling us all along that the core of their improvement they have seen the last three quarters have been organic sales from their own walmart.com website and
netjet.com has been a nice additive but has not been a heartbeat of the growth. this raises questions they will hit his 40% growth target in the fiscal year ahead. how are they going to do that with a stumble this quarter? emily: let's talk about the how, matt. what are the bright spots that walmart has going for it when they are going up against a company that is all e-commerce like amazon? matthew: their biggest price spot is very clear, it is food. they are the nation's biggest grocer, let's not forget that. and they now have curbside on -- grocery pickup. where you don't have to go to the store. you place your order online, drive into the parking lot, alert them you are there on your walmart app and a friendly employee trots out and puts it in your car. they have it in 1000 stores. so about half of the u.s. store based will have curbside grocery pick up by the end of this fiscal year, and that is a huge advantage over amazon, who are
still figuring out how to do food online despite the acquisition of whole foods, which got so much attention. let's remember online food, walmart is the 800 pound gorilla here. emily: so if that is the right spot, what is the dark spot? matthew: lots of other categories. apparel is a business walmart has never really gotten right. they have been trying to get back at it. we had a story friday about them launching some new clothing brands. bonobos,ght modcloth, so they are making some inroads. in the case of the food, people are shopping for price, for convenience. amazon prime is a huge benefit. walmart has countered that by saying, if you order $35 or more, you will get free two day shipping. let's remember, this is a marathon, not a sprint. walmart has had quite a few good quarters in a row. they had a bad one today, but this battle is far from over. emily: we are talking about the
last year. what does the next year look like for walmart.com from your perspective? sarah: i think we should see some interesting innovations of them in the e-commerce space that will hopefully tell us more about their long-term prospects. one is the implementation of smart card technology, where essentially you get a discount for bundling your orders as opposed to rapidfire firing off orders for individual items at a time. it helps the retailer with profitability. walmart will try to roll that out more broadly this year. it'll be interesting to see if consumers respond to that, particularly the classic walmart consumer who is budget conscious. emily: obviously something we are going to continue to follow. sarah, thanks so much as well as our own matt. thank you both for weighing in. coming up, qualcomm's offer much to broadcom's chagrin. the latest twists and turns explained, next. this is bloomberg. ♪
emily: it was a busy day for dominoes as the pizza maker reportedly fourth-quarter earnings reports. they matched wall street expectations but announced the first revenue miss since 2016. about half of domino sales is done online. but, ceo patrick doyle says the percentage of digital sales is less important than working with a customer. he spoke with bloomberg earlier. >> ultimately the percentage of sales is less important than what you do with those customers once they are there. if you got a great analytics group, which we do, you are finding ways to drive more sales from those customers once they have signed up with them. our loyalty program i think has been terrific for us and our customers. emily: qualcomm has raised the bid for semiconductors by 16% to shore up support from shareholders.
the new all-cash offer is valued at $43 billion. qualcomm is fighting off a takeover attempt. it rejected a $121 billion offer from broadcom. joining us now, ian king, who covers all things qualcomm. walk us through the new developments that happened over the weekend. >> the weekend did not start off well for qualcomm. this morning, the two investment advisory services that work for the big investors tell them you should look at it this way, or vote this way. they came out strongly against qualcomm and in favor of broadcom than people have been expecting. emily: how so? ian: they did not give broadcom the full flight, but they said the managing is much better. glass lewis went even further. emily: what does this mean for nxp? i feel like it you and i have been talking about this for a
year. ian: it has been more than a year 14 months. ,this has been a regulatory approval thing. but what qualcomm did was go out and say, ok, we are raising our bid for this. this is money to bring in all of the investors like elliott, all of those hedge funds trying to hold the deal up and ask for more money. appears to have gotten over that hurdle now. emily: how did qualcomm's effort nxp affect their effort to buy broadcom? ian: that is a good question and complicated. emily: shakespearean what is going on here. ian: broadcom told qualcomm don't do it. our bid for you is contingent on you paying 110. now they are paying 127. obviously that does not look good. behind the scenes, qualcomm has a lot of cash, $80 billion, so effectively qualcomm's bid is a leveraged buyout. that cash goes away and it makes
that bid much harder. emily: you have been covering the chip industry for many years. how would you rank the level of drama we are seeing right now? is this more dramatic than you have ever seen in your career as a reporter? ian: never seen anything like this. this is the biggest deal in the history of technology, nevermind the chip industry. the level of complication when you have to go extremely large transactions intertwined. it seems like one minute one team is winning and the next minute, another team is winning. emily: do you have a sense which way it will go? ian: on saturday morning, i thought, wow, looks like broadcom is winning. then qualcomm, that dragged things back. emily: it is anyone's guess. ian king, thank you so much for giving us a play-by-play as always. coming up, one of the fastest-growing cloud and software data firms just added a
>> you are watching bloomberg, i am debra mao, with topline headlines around the world. theresa may under more pressure with the members of her party demanding a quick, clean break from the european union. they want her to take a harder approach on britain making its own rules after brexit and the nature of the transition period businesses desperately want. the opposition leader jeremy the u.k.ys keeping it inside a customs union for the e.u. is necessary for trade-in to keep a hard border with ireland. a london-based lawyer has pleaded guilty to lying to u.s. officials for a legend russian
meddling. alex van der zwaan admitted misleading investigators about his contact with gates, a former associate of one time trump chairwoman -- chairman paul manafort. this is part of robert mueller's wide-ranging and great. directed themp has justice department to ban accessories known as bump stocks, which allow semiautomatic rifle's to be fired more rapidly. who shot 70 people in florida last week used in ar 17 -- and ar-15 rifle. >> asian stocks looking mixed, slipping inrs sydney. the tech space, tmc is the biggest boost to the region. pei looking strong, jumping
the most since february. 0.9%, ledeng adding higher by consumer and energy stocks. mgm china reporting stronger-than-expected revenue growth. the mood has slipped in tokyo. the nikkei to 0.2%. take a look at the currency space, the yen losing ground. level, as the dollar firms up. the aussie has a, erasing earlier gains from the better than forecasted wage data. the korean won losing ground a second aim. is reflecting reduced investor confidence and light of issues related to the factory withdrawal and the u.s. proposing tariffs on steel and aluminum. a rebound in oil sputtering. crude and brent under pressure.
new york crude retreating from a two-week high. and deputy u.s. energy secretary saying this is the year for phenomenal growth in u.s. output. ♪ emily: this is "bloomberg technology" i am emily chang. rapid growth, it reached unicorn status last year with a $1 billion valuation, thanks to coastal ventures and greylock. now it is picking up momentum with a microsoft chair john thompson who has now just joined the board. thepson joins us with rubric ceo and cofounder. you invested in one of the earlier rounds. that's impressive in four years. data back-up and recovery, not the most obvious or sexy topic but it is still a huge need for businesses. what makes your product stand out from the rest?
>> the way we built rubric is to connect to the public cloud and have a single software fabric that goes from one premises to the cloud. this unique architecture has prepared rubric around the world -- propelled rubric around the world into the largest enterprises who want to keep and manage their data. emily: john, you've seen so many technological shifts. what stood out to you as special here? >> my sense is that every 15 years or so, there is an inflection point in every segment of our industry. no innovation had entered this particular segment for the last 15 to 20 years. my view was, it is time. and so when i got introduced to ripul, i thought, why not make an investment in him and put a team together? because it's time for a change in this sector. emily: why use this as opposed to what amazon or microsoft azure has to offer?
with: we actually partner them. just because applications run in the cloud doesn't mean that the need for the protection of data management go away. both microsoft and amazon have deeper partnerships through rubric. emily: we hear this word partnership a lot when talking about enterprise companies. i'm just curious, john, from your perspective, who will own what and when does the partnership, you know, not make sense? make sense to own as much territory as possible? john: let's be clear the , customer owns the data. neither microsoft nor amazon nor google or anyone else, particularly around the enterprise space, should feel like they own the data. the customer owns the data. i think as time goes on it will become an issue of who has the strongest share of the enterprise. clearly microsoft has a pretty strong position. aws has done very well. primarily, i would say, with early stage companies looking for a cloud-based platform.
for those enterprise customers who really want to move their data, they have chosen to opt for microsoft as opposed to other alternatives and i think that's a good thing for microsoft and those clients as well. emily: what does it mean for the up and comers like rubrik? >> one of the great things about rubrik is it is what one would refer to as the hybrid model. it acknowledges and recognizes that is a certain amount of the data will remain on premises for a certain amount of time and a certain amount will move to the cloud so the customer gets to , make a choice as to where they want their data to reside. that is a good thing for rubrik and of the client. emily: where do you see the cloud industry going? there is all this talk about hybrid but at a certain point, again, it's about ownership, right? public cloud versus private cloud, which cloud will be bigger in the future, or will this hybrid model endure for the long term? so far, rubrik, way we
think about our business, we want to manage customer data, enterprise data, wherever it is, whether it's on the premises, or cloud or both, it really doesn't matter to us. what we're seeing in the marketplace is large enterprises are looking at public cloud and saying, how do i gain operational agility by going into the public cloud? if you look at rubrik's growth, it's indexed on the growth of public cloud. we grew from zero employees 40 years ago to 800 employees, $300 million annualized run rate. we just hired a new cfo. john joined me on the board to help us build a long time 30-year company. vision is, wherever companies want to run the application, whether it is on premises or cloud or both, we want to be the data management platform. emily: you're making a huge commitment to your customers to protect data. this is in an age where data has been -- is it more unsafe than
it has ever been before? there are so many bad actors out there. john, how would you sort of characterize the threat environment and the importance of, you know, protecting your data with a product like this? john: there is no question the landscape has changed quite substantially from when i joined simantec back in there are more 1999. experienced hackers attacking us, and, quite frankly, there are more geopolitical attacks that are hard to separate from someone in it for profit versus someone who is in it for intelligence, if you will. so i think one of the things that rubrik has done, that's quite phenomenal, is they have integrated not just data management, but security management into the platform, so customers get the benefit of both when they go to the rubric platform, which is something i had envisioned a few years ago for sure. when you look at the threat landscape and especially your c, what symante
concerns you the most? what are the most dangerous threats that we're facing? john: the greatest vulnerability we have in the world is you and me, because we make mistakes, when phishing campaigns come our way that look real. invariably, that becomes the single most significant exposures for every organization, that one of their employees, naively clicks on a link that creates an absolute disaster. even i have done that, i will admit that. [laughter] emily: if it comes down to individual, even the most educated individuals make mistakes. if someone is paying for your service and something goes wrong, that is a big deal. how do you ensure that their data is protected? bipul: the way we think about data management and data protection, we assume something will get in and something will go wrong. platform,a mitigation a last line of defense. if something goes wrong we can , get you up and running and bring the data back to you instantaneously. that is the rubrik business. emily: a last question for you,
john. do you see consolidation ultimately in this part of the industry? john: i think right now there are probably seven or so large global cloud providers. i don't see any of them consolidating with each other. that's for sure. but that's easier said than don. it may be hard to do given the size and scale of those companies. i don't envision, however, many of what i would call the tier two players ever really reaching tier one. and i'll let you define who is in tier two versus who is in tier one. emily: i have some ideas. john thompson, chair of microsoft now, thank you both for joining us. coinbase, the largest u.s. cryptocurrency exchange is planning to roll out a long awaited software update in an effort to reduce transaction fees. the update was first made available by developers in august as bitcoin's growing popularity led to congestion in the network. most recently the company
received an influx of complaints about inefficiency and high transaction charges. coinbase said in a tweet they tuesday will begin a phased rollout this week. coming up, we'll hear from kevin mandia. how is the cybersecurity company helping to secure u.s. election systems as we come near the primaries. this is bloomberg. ♪
softbank may market most of the offering to japanese individuals. the ipo would be japan's largest in two decades. on the heels of the new accusations of russia meddling in the 2017 presidential elections, how vulnerable can companies be to future interference? askedwestin and shery ahn that question of fireeye ceo kevin mandia. >> there are technical vulnerabilities can russia hack , and steal documents? that will always be a tool in their tool kit that they can use and that's something that's obvious. we can trace it back and say the russian stole these documents and are leaking them. when it comes to the sharing of idea and ideology we're an open country and we've got to sort out as a nation where the boundaries between how people -- you can have one person in today's world be represented by 500 to a thousand online personas. that exaggerate or amplifies the influence of a single individual.
information operations like that are here to stay. i think every government will use them to some extent. we've got to figure out, how do we find them and counter them? >> kevin, you're at the center of the security storm per se. you actually released a report on chinese cyberspies. >> five years ago. >> five years ago. how does this compare, what russia has done to something , you've seen in the past? >> you know, there is a general continuum, i can tell you, i have observed russia my whole career. and on offensive operations, it used to be there are rules on the playground. whenever they hacks us they had good operations security military against military, , government against government. that started to change around 2015. their operational security slipped a little bit. meaning they weren't doing the counterforensics. their targeting broadened and the rules of engagement seemed to spiral into other areas like releasing documents. these are things they didn't do for two decades in my career but
they are doing it. so it's obvious to me we haven't settled on what are the appropriate rules of engagement between nations. >> how much is it because we don't take the time and effort to actually defend ourselves? a lot of those emails that were stolen, people say they could have taken basic steps to protect their emails? >> it's hard to defend. playing goalie against gretzky, sooner or later the puck is getting in. the same thing with russian hackers, sooner or later they are going to score a goal. >> what is to be done, if that is the situation? why should they agree to rules of engagement? >> good point, it is asymmetrical and there may not be a good reason. we have to assess repercussions, if it is diplomatic. if we just play defense, it will be a long slog and the puck will get in the net. >> just sending out hundreds of posts, picking up the gun control debate, why can't these bots be reined in?
>> we're a country that staunchly defends free speech and anonymity on the internet. this is a privacy issue. each culture will set the bar for what privacy means to them. it's hard to impose, in a global economy one privacy profile, right? but here in the united states, we allow anonymity on the internet. or at least conditional anonymity. we also allow the free expression of ideas. >> when you pose as a chinese cyber spy, you were expecting retaliation from china. the fact we have these 13 russians being indicted what sort of action can we expect from russia? >> it is hard to say. a lot of times people asked me right before the election, what do you expect from russia? there are a lot of times when there is just heightened diligence and that's one of those times. this indictment, i didn't find surprising. i would imagine there are many nations that want to influence elections in many other countries. and one of the tools you have at your disposal is information operations are influence operations where you can just magnify chaos. >> i am not going to make you
are for the foreign policy in the united states but given , your technical expertise, we hear about a bloody nose approach to north korea, this is the equivalent of that in cyber. do we at some point really have to attack them in a limited way to brush them back from the plate to use a different sports analogy? >> there will be a lot of varying opinions on that, david. here is what i think. if we launch attacks in cyberspace against russia and they are all successful and they , launch attacks back at us and they are successful we will , lose. we're more dependent on open communications. our economy has an online basis to it that i think is more powerful than any other economy. cyberdomain is probably not the best domain for us to retaliate. we're in a glasshouse and sometimes you're throwing rocks at a mud hut. we have to be careful. >> coming back to the first question, is the greater threat to have hackers that would affect the vote count? or would be more than ideological threat that you describe, we don't know what
they are saying and who is saying it? >> i think the ideological threat will be here forever. it was here before the internet and it will be here now. the threat during the elections, we'll continue to learn how to do more digital-based elections and we'll be doing shields up. everybody will be very cognizant during elections to protect the vote tally. emily: kevin mandia, c.e.o. of spot fireeye. coming up, automakers looking to capitalize on your data. the possible regulatory hurdles the effort may face. if you have a bloomberg terminal , check out tv . you can chat with us directly. just go to tv on your terminal or contact us on twitter. check out tictoc by bloomberg. this is bloomberg. ♪
-- uber'sbers go-it-alone approach in japan isn't working. that's what they had to say in tokyo on tuesday, announcing he's looking to forge partnerships. khosrowshahi made clear japan's $16 billion taxi market is already high quality but said it could become even more efficient. after japan, he's scheduled to visit india where uber is competing against another local start-up. the auto industry is racing to a new connected future. one in which wireless connections and cars combined with artificial intelligence is spurring in car advertising software powered by drivers personal data. but the big question remains, can automakers profit off all the data they are capable of collecting without alienating consumers or risking backlash from washington? for more, we'll bring in the bureau chief david welch.
david, can they? >> sure. the car companies collect a lot of data. your car knows a lot about you. it knows how many people are in the car because the airbag sensors have to know who is seated and where. when that beeps at you if you are not buckled in it knows , somebody is sitting in that seat and it probably knows the weight because the cartels whether or not to beep at you. it knows where you are going, where you have been, where you go on a frequent basis, because it tracks the frequent destinations and might even suggest your home or work. with all of that information, if you're driving a certain route it may say, why not stop for a reuben sandwich. or, here are specials on wings. all that is possible. it's not happening now. the car companies aren't selling your data at this moment. they do work with some third parties, but, you know, they are not en mass selling their data individually.
they sell aggregated data. to a limited extent and it is absolutely coming. emily: we're talking about this being focused on the actual navigation screen. we've talked a lot about distracted driving. is there a safety issue here? >> yeah, there could be. general motors has launched something called marketplace where you can connect to starbucks or dunkin' donuts and order coffee or make restaurant reservations and some safety groups have already piped up on this and wondered, okay, are we getting into the area of too much, if you're sitting there staring at your screen or even glancing to your screen, to order up your latte or whatever it is you want to pick up. is there a safety issue? gm has made the system pretty simple so you don't really have to spend a lot of time staring at it. but the safety groups are already starting to take notice of this and, you know, they are not in favor of it. emily: who are the big players trying to get in on this? >> there has been a battle on the dashboard between the automakers and companies like google and apple.
those systems right now, car play being one of them, there is already a debate over how much data those systems can access. if you want to use your apple phone, it will plug-in and go on screen. but only certain apps are allowed to go on screen and will work with your car. that is the car companies way of keeping google, if you happen to be using a samsung phone, it's their way of keeping google from mining all of your data in the car. but if you are using wze -- waze, it does flash pop-up ads. it doesn't get into the system of your car, but it does know where you are driving. it doesn't have to get into your car itself to market to you, just know where you are. period. emily: have regulators weighed in on this yet? >> not really. look, internet privacy is
something where right now it's kind of the wild west still. people are giving up a lot of their information for different services online and cars are kind of the same way. right now, car executives are saying they don't want to sell your individual data to marketers. they won't do that. but if you look at the story, they said they don't want to make that statement forever. they just say they aren't doing it right now. emily: david welch for us in detroit. david, as always thank you so , much for stopping by. you can read this story on bloomberg.com, hyperdrive a vertical our dedicated , webpage featuring our best reports on the future of transportation across bloomberg news. that does it for this edition of bloomberg technology, on wednesday's show we will hear from facebook co-founder chris hughes, about his in new book. he has great early stories about facebook. we are live streaming on twitter
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