tv Best of Bloomberg Technology Bloomberg May 12, 2018 4:00am-5:00am EDT
is putting contractors on notice. officials from top tech companies intended a meeting at the white house f-150 on artificial intelligence. it was not just tech. officials from goldman sachs, boeing, and the -- cbs got an invitation. we covered the meeting. ben: there are signs of tensions easing and in there was the first lady who released her initiative of anti-bullying and anti-opioid campaign. amazon up a shutout at that, and the trumped weeks at amazon have settled for now, along with a little gesture with the first 's initiative seems like
there could be a cooling of the tension. emily: is there a signal from anyone other than the president himself from within the administration that amazon in particular has something to worry about? there is regulatory concerns about the tech and amazon gets lumped in with that. and on the postal service they it appears to have been settled, but who knows, it is so erratic and it seems we are what one "washington post" headline away from another trump tweet. emily: ben, what do we know about this meeting? ben: we have 40 companies from high-tech sectors and lots of industries are going be implementing ai, and the message they are appearing is, look, we regulateushing into th
what you are doing, go out there and develop and we didn't cut the first online before alexander graham bell made the first phone call, we are past that, but that is the message we are hearing. emily: what are we expecting with regards to u.s. competitiveness when it comes to other countries like china? >> china is in a lot of ways animating this whole conference and it is unclear to me how much that is work to be the focus of these individual breakout sessions. the agenda focus is on applications and sectors like energy or logistics. there's no question the white house is feeling pressure here to make sure america stays competitive. we feel we are first, but the pressure that you and i hear a lot from the industry is we are worried are going to lose our advantage in the coming years. emily: spencer, when it comes to ai in particular, talk about what amazon might be pushing for
with respect to other tech companies like google and facebook and apple. spencer: amazon wants to steer the conversation towards how ai is beneficial and get it away from this notion of job killing robots. in particular what they want to do is try to impress upon the government, the need for ai and in health care and health care innovation. they have a lot of cloud solutions that are embraced by health care startups and technology companies, and that is an area that is subject to heavy government scrutiny and regulation. they will try to message how ai will be used to save lives and prolong lives and reduce hawker health care costs, that kind of thing. emily: ben, talk about the state of ai regulation or the lack thereof. part of the problem is real regulation could be years away , if it happens.
ben: almost everybody i have democrats, politicians, people in academia they say this is years away. ,i think a lot of companies are looking for two things. the first is standards, how good does the ai need to be and what does it need to do? the other thing they are looking for is to understand how the current regulatory environment. spencer mentioned health care, how is that going to apply if ai is making decisions about your health or aiding in diagnostics? what the industry wants to know is how exactly to think about those issues before they look at any kind of new, broad-based ai relation act. emily: you know so much about how much these companies are lobbying congress, what they're are asking for, and what kind of many are spending. talk to us about how lobbying
efforts have changed or evolved under the trump administration. ben: i think you see this interesting aspect of lobbying, people closer to the white house in a way they didn't -- and certainly with obama when friends the tech sector companies, and these companies increasingly going to the white house and to the vice president's office. i think that is a major issue you are always seeing increasing spending in these things. the other think you are seeing is they are going to the white house and looking at these court issues. ai regulation training is a huge place where i think the white house and technology really get together, even as you see the things that spencer was talking about, the "washington post" tweets and concern that tech and the white house are going head-to-head on issues like immigration or other social policies. emily: two of the richest people in the world are showing no love bitcoin.
bill gates said it is an asset class. the reversal from just a two years ago when he called exciting. war and has called it "probably rough poison squared -- war and buffett has called it "probably rat poison squared." coming up, we will talk with 's ceo.ceo -- uber this is bloomberg. ♪ this is bloomberg. ♪
uber is getting out of this world boost. the right hailing company announced a partnership with nasa. an effort to move the world closer for an air traffic management system for a world of flying cars. in conjunction with its right hailing network to possibly developing taxi like vehicles. is open to get it self-driving car us back on track. a self-driving vehicle killed a woman in phoenix. dara khosrowshahi joined us at the uber summit. dara: for us, it really brought home this idea of a safety has to come first, and as it relates to that tragedy, we have grounded our autonomously, and
that was a decision that we made. >> any sense for when you will start driving again? dara: it will be in the next few months, we don't know, but the time will be right when the time is right, because we are doing a top to bottom safety review, both internationally and with independent folks coming in to take a look at our culture of practices, etc., so when we get back on the road, we all know as a team we are getting back on the road as safe as possible and responsible way as possible. it hits home how important safety is and how to engage with regulatory partners and various players who have played this game and have worked in the safety environment for a long time and have established long track record of success here. we have to learn here. >> can you tell us about the status of the ntsb investigation? dara: it is ongoing.
we have been working hand in hand with them, and we have given them the data that they need. we will not be tweeting ahead of their findings. [laughter] >> elon, take note. dara: i don't know what you are talking about. [laughter] >> there have been media reports that this is a group moving fast to meet benchmarks and deadlines by the end of the year. what do take away from that as a you move forward, and do you set ambitious goals we heard here. elevates? dara: we can't sacrifice safety. there are trade-offs in life, and i do think you have to be aware of unintended consequences in anything you do, and there is a balance which is what the push seems to be ambitious. you want want to push them to innovate. you want to get teams to be
uncomfortable, but at the same time you, really have to check yourself and go back to the first principles and ask yourself, are we doing the right thing? are we pushing too hard? and is it coming at the cost of safety? if it is, then you have to take a step back. one of the unique characteristics is we are a core technology company, and that is our root. we will live because of the talent of the technical people we have in our offices. but what makes us different as a technology company is we don't just deal in bits and bytes. we are at the intersection of the digital and physical world, and it is hard enough to create a delightful digital experience when you push a button and something happens. what is harder is when you push a button and a car shows up. traffic can get in the way, a driver may decide to do
something else, or you push a button and a burger shows up. to make that experience delightful, dependable, affordable, is a very big challenge. that is where this idea of being a company that pushes forward and a company that challenges the status quo but understands we don't just live in a digital world, we also live in a physical world. that comes with compromises and that comes with responsibilities that we have to be aware of. reportedly lost all contractors who could not encourage tesla employees to work.for their and even was sent out to tesla employees warning that all tesla workers worldwide would be denied access into tesla factories. wrote "bye note
default, anyone who does not have a reputation on the line will be denied access to our facilities on monday morning. this applies worldwide. time to scrub off the barnacles." off comes after musk cut "boring wall street analysts." matt brought us the details. matt: they are scrambling to make these model 3's. theeems like the stress of moment is starting to show. wechat emily: isn't the goal -- emily: isn't the goal to make more, not less? findthere is a way to more for tesla was relying on the is outside companies, pretty
much why not too much of a normal part company. he wanted to justify the new contractors. now we have this memo where he says you have to vouch for it. emily: is this because contractors are not living up? max: we do not really know. tesla has been spending a lot of money. it is surprising that you try to make as many cars as possible you try to cut staff at this moment, so it is kind of a head scratcher. emily: investors are still talking about this bizarre earnings call, let's take a listen to his exchanges with analysts. elon: we are going to youtube. sorry. these questions are so dry, they are killing me. we are talking about, like, a 3% to 5% difference. solve.omething we will
next. boring questions are not cool. next. >> i think if people are concerned about volatility, they should not buy our stock. elon: i am not here to convince people to buy our stock. >> i know you mentioned the kilowatt charger. elon: i told you guys to ask questions that aren't boring. emily: he talked about a millennial-focused channel called hyper change television who ended up getting into 23 minutes of q & a with musk. i i set up a campaign, and had a couple hundred viewers emailing tesla's i.r. team. i sort of crowd source of much of question for viewers and
subscribers and pitched it to elon and tesla. julia: could you not have waited for a shareholder day or an annual meeting, which is where shareholders were in a hurry they earnings call this? typically for shareholders. galileo: the quarterly conference calls are also for updates on the business. timeframe going into the financials. i would say i could have died more into the financials. i do think there is a place for this more strategic questions on the conference call. the huge energy stores project in australia, which elon must have referenced here and they are working gigawatt hours projects because of that success.
vonnie: do you feel little used ?y elon musk no, i think it is a bit of a win-win. it is developing a long-term storage. emily: galileo russell. to be fair, max, he did ask a lot of questions people would love to ask. said, this is a company that has not turned a profit in its 15-year history, so analysts are right to wonder. concern whenthe you saw the stock price fall in the wake of this call is what about having a youtube personality, a fan boy analyst on the call, it was more about the reaction and the seemingly erratic demeanor of elon musk.
that is a company totally dependent on this one person, and that is why people are paying attention to his essence -- eccentricity so closely. deal that will shake up tv and broadband in europe -- vodafone challenging on its home turf. we will hear from deutsche telekom's ceo. later, one of the biggest startups and e-commerce is speaking out for employee benefits for all. we will hear from rent the runway ceo jennifer hyman. this is bloomberg. ♪ hyman. this is bloomberg. ♪
walmart is paying for a 70% stake in india's largest rt, as walmartka looks to fend off the biggest company in the nation. speaking of deals, vodafone is europe's fragmented telecom market with an 18 housen euro deal to buy a one third of liberty global, taking assets from germany, the czech republic, and romania. is global push for scale from digital players. throughout the industry, particularly in germany, where vodafone is reshaping industry trade we spoke exclusively to deutsche telekom's ceo tim hodges about the tie up. totallyhink the deal is unacceptable.
you can have cable businesses in one piece. it was sold in three pieces, and now they are coming together under the roof of vodafone. second, we were building, let's withthe rule of germany infrastructure. now let's see where vodafone is now going. businesss seen in the case today on this subject. the media industry is almost 60% of our tv market is monopolized by this cable operator in the future. is this good for democracy or the mediaod for companies in society? so i question that. another thing, 25% of our households in germany are insufficient, and there is no exit for deutsche telekom. my last point is we have a fully regulated deutsche telekom in the whole market where we are
building infrastructure on an annual basis. and theyregulated, have claimed that they are on eye level with us on future. something has to change in the regulatory environment, because if they are a giant in this environment, as they are claiming today, what does it mean for regulation? therefore, we are asking for more deregulation for deutsche telekom going forward. we are fighting for fair competition for the industries of our customers. matt: what are you specifically going to do about this? are you going to go to regulators with these complaints? you are already purchasing something from liberty global. tim: i think there is no m&a possibility in the market we are operating. that is for sure.
what i would do is to make sure that politicians and the leaders , the authorities deciding on this deal understand the created bytuation this transaction. i am not asking for the next telecom, something specific for our company i am asking for , a fair competition and possibility we are able to fight with the same weapons and send with the same pricing and with the same infrastructure network as they are going to be able to do so. matt: let me ask you about your t-mobile unit merger you are pursuing in the u.s. with sprint. regulators in the past had an issue with this combination, why do you think it will go forward this time? tim: the market has totally changed. if you see today, all the cable companies, from comcast to
charter, are announcing that they are going to a market that is having a fixed and mobile combination and shows the market is not just a pure mobile or pure fixed market, it is a converged market. the second one we see is there is a need and the rule of america is getting competitive and very well installed 5g infrastructure. if a small player is going to be able to create this efficiency, we need scale and the capability to utilize this infrastructure. our commitment is to build a 5g infrastructure not only for big cities but especially for rural america on top of that. emily: that was stored to telekom ceoeutsche tim hoettges. fromg up, we will hear chamath palihapitiya.
discussing,een executives attended a meeting at the white house on artificial intelligence. it was the first meeting between amazon and the white house, after president tran -- trump began targeting the company. to chamath palihapitiya who left facebook when it was young and began his own firm. it is making big ways in how business gets done in silicon valley. take a look.
chamath: it is too nuanced to understand so long away and these meetings probably say there is some effort they've given. the reality is people in silicon valley don't understand with -- what ai is. so until we grapple with what it is and what exists with fact versus fiction, it is probably going to take many years before the government really understands what is at risk. emily: we saw the mark beforeerg testified congress and lawmakers did not seem to understand how facebook works, that said, do you think tech these to be regulated and you think congress can design the right regulations? chamath: the right way to think about this is when technology was a smart part of the coming was best left alone and we did a good job of self-regulating. now the reality is technology is pervasive and there's no industry that isn't being remade by something new using technology at its core.
there should come a natural expectation we can left by the same rules as anyone else has. emily: a few months ago you talk about having tremendous guilt about what you built at facebook that caused a stir. you later said you generally -- genuinely believe facebook is a force for good in the world, that was before cambridge analytica. wouldn't know how many billions of people had their data compromised. how does that impact your level of guilt now? chamath: the reality is facebook is the company that leads, but the reality is there is a bigger problem which is not a facebook problem. it is a question among all of us as consumers. we have grown addicted to things that are free and we rarely pay for things when asked to on the internet, is not an expectation. and the rest of our lives we expect to pay for things.
ford does not give us free cars, whole foods doesn't give us free grapes. with those payments, comes expectations and privileges. similarly, what we have to do as consumers is ask ourselves, how much of this do we want to have for free? if we want rights, how much are we willing to pay for rights and that should extend to data privacy. in that is the solution of which -- to future versions of this problem. emily: so you think facebook can do a subscription product? chamath: i think that is too tactical of a solution. we all assumed the only way commitment on the internet is the gift software for free and is advertising to make the difference. the problem is we have a very weird and undefined gray area between was the consumer into is the customer and how much of a product are you a part of? i think that is where you have to introduce things like payments and subscription so those markets are clear. for example, when you look at
netflix, it is unambiguously clear. there is a relation between netflix and consumer. spotify has the same thing. apple has the same thing, when you are a customer of amazon prime, you have the same thing. there are many examples of the evolution of internet business models. in my organization, a lot of what we talk about is that. and how do we move away from relying on ad supported businesses and think about embracing subscription, because it clarifies a lot of these problems. emily: let's talk about something we don't get for free, and that is tesla. you once thought apple should buy tesla and make elon musk ceo. that was a long time ago, and now we see elon musk calling out questions boneheaded and boring. we have seen that april fools jokes. what you think about that kind of behavior? is that ok?
chamath: unlike most people who read the peanut gallery version of the call, i listen to the call, and i would tell you that a lot of the stuff is overblown. in fairness to public market investors, they provide critical liquidity for his companies. specifically, tesla is at a critical point where they may need more money so i think it needs to make sure that you have the right kind of exchange. i'm not sure if quarterly earnings calls is the best way to get at them. they are too perfunctory in general. and for a business as nuanced as tesla, there's currently no opportunity to ask the right question, and what i would rather see him do is take the four or five analysts that understand business and at the top of that list i would adam jonas and bring him under the tent and say let me explain the
businesses to you and have you articulate that to wall street. that will be a step that bridges the gap between people's interpretation of the call and frustrations with the actual content of the call. emily: let's talk about apple. in the past, you talked about their problem with innovation and we have seen apple earnings. i know we don't love quarterly earnings, but they defied expectations. by being stable and defined the smartphone market slump. do think apple still has an innovation problem? chamath: i think apple has a fantastic cash machine and has a demonstrated yet the next path is. why that is critical is the underpinnings are constantly changing, and if we move from at add services to subscription, there may be something that comes after. there is a lot of change, and in order to accommodate change, i
think the best course of action is to try many things. be ok with failure, it is learning, and refine the ultimate thing that works. i as an investor would love to see more public facing experimentation that says we know the iphone business isn't going to be around forever, so we are going to try something to that scale. they haves to them, tried things that are exceptional, air pots are fantastic and an unbelievable product. emily: and not the price point of an iphone. chamath: that is my point. it is not the thing that is going to replace the iphone business, so you have to find a multibillion dollar market. for what ever reason, there are only a few, health care, education, autos, housing, cap -- they have to try something big. emily: you talked about markets that are undervalued, el-sisi opportunity that public market investors aren't seeing?
to whereif you go back we started, over the next 15 or 20 years, consumers are going to realize that they are going to want rights and be the ultimate customer. that means that businesses like netflix, spotify, and other subscription-based, are going to do incredibly well. i think they will massively outperformed other kinds of business models. in part, that means that other kinds of businesses will get revalued and reevaluated. there is the scepter of privacy risk and regulation. to me, we are spending a lot of time of finding companies that is expressed that view. emily: that was chamath palihapitiya. millions of cars come
emily: and activist firm representing tesla shareholders once the carmaker to shake up their board. the investment group opposes the reelection of three board members who are up for vote. the board claims tesla has veered off the path to profit. this week, google introduced new products and tech upgrades at their annual developers conference, pushing the limits of artificial intelligence and augmented reality. we caught up with alphabets vice president. take a listen. the big thing we highlighted
today were updates to google lens, a capability that lives inside the camera that lets you search what you see, basically. >> talk about your visual positioning system, something we are all familiar with. try to off the subway, find where you are going, and everyone turns to google maps. the frustration there is you are not sure where you are going. >> the situation is familiar. you get off of a taxi and try to figure out where you are, you walk 10 feet, see if your blue dot moves. that is because urban settings means gps does not often work reliably. so we have been working on a vps, a visual positioning system , kind of like you and i would use, landmarks to figure out where we are. it uses features of the environment to figure out where we are, and where you are going. google has been sitting on
these massive assets of maps for a long time, was it technically difficult to integrate what you are doing? talk about why it has taken so long. some earlyd explorations of advanced walking navigation in the keynote, and that is the culmination of a number of technological investment. from computer vision of making find exactgns to locations, and then building out our maps data set. we did not see any vr, ar headsets. are you taking more time thinking about mobile phones instead of headsets? >> we really believe in the long-term potential. we think they things will happen in both in the coming years. are seeing is, because everybody has a smart phone enormoushere is an
opportunity to improve products and user experiences using the devices we already have. that, ands is about you will see some more things over the next couple of days. >> do you think the vr market is five or 10 years away from taking off? >> i don't have a crystal ball. we are seeing promising adoptions of it in enterprise and education. we believe in its long-term ,romise, and just last week unveiled our first stand-alone headset. that was the alphabets vice president of the vr and ar. blackberry is in the midst of their second act, moving toward software. a big part of their future is automated technology. automated cars are shaping the future of transportation. willsmart phones, they come with their own operating
system, and that is where black area comes in. software used in honda and bmw, to name a few. we caught up with their ceo on thursday. >> i find it almost laughable to talk about why we put a passenger or a person to manage a self driven vehicle. think most of fatalities or accidents are caused by humans. as i point out in some of my one point 3 million fatalities every year around the world, 50 million people getting hurt, 90% is because of human error. so i think we need to perfect technology, but saying let's just do patchwork and put a driver in the car to manage a self-driving car, it just sounds funny to me. emily: clearly the technology is
not safe enough yes, but not having a driver sounds scarier. john: true. first, let's talk big picture a little bit. it is never good to have a fatality with a self-driving car. but, the statistics show that today's car, although still very unsafe, on the other hand, it saves a lot of lives. let's say you cut fatalities down by half, 600,000 people have save lives. ought to focus on making the technology safer, then arguing about a stopgap solution. if it takes longer it takes longer, but you have to go full steam ahead on the safety and security side. emily: is it ideal not have to -- drivers in there at all.
to have a systems safe enough to not have drivers. you think even if they are, that there should be no driver in the car? john: they do not need human intervention and i hope that is the case. emily: can we get there? yes -- john: yes, it might be 2021 or 2025 different managers talk about when they will release the car. we should take time, as the technology and automotive sector should take the time to get it right. emily: you also think that there are privacy concerns. john: there is an argument about monitoring. anytime you put data on accessibility whether internet or whatever it might be, it creates that hole.
it has been talk a lot in the past six months. i think also an area of concern, but i am back to the original thing. it is a great idea. it is a when and not if when cars are given safely. there will not be zero accidents, but we hope it will cut down a majority of auto the counties. i want to ask you about this. take a listen. >> you need a federal standard because that will get away from a lot of states conduct with -- coming up with with different initiatives and how they work towards it. caution is the name of the incas were talking about people's lives and that is what we have always said and that is what we continue to say. emily: what would you like to see happen with regulation? john: i am a big time, making sure the private sector's themselves regulate first. i think it is up to us to develop standards.
john: we will self regulate first, and then with the department of transportation's or the agencies, and create a standard that establish a minimum safety standards so that the consumer can trust it. that is what we would like to see happen. coming up, rent the jennifer talks to us about how she ensures all employees are treated fairly. this is bloomberg.
evaluation of 60-70,000,000,000 and their co-founder insists their real goal is to be an internet services company, making money off ads and online games. the united states is in the midst of unprecedented strength in the labor market. it gets below 4% in the first time in 17 years, but the workplace is changing. in 1960, only 20% of mothers but today, 70% live in households where all adults are employed. the majority of workers spent 40% -- 40 hours a week on the job and benefits like leave and health care are not guaranteed. in the tech industry, there is a rising split in the workforce. competitive pay, whereas warehouse employees can be left with little to no incentives. wrote about this
saying their employees in the warehouse have to face life events like like a newborn, grieving for the death of a family member or taking care of a loved one without the same level of benefits. jennifer hyman joins me now. -- us in new york. the change is that we decided to equalize benefits across the company, across all functions. meaning that parental leave and sabbatical policies and pay family sickly and bereavement are the same for corporate employees have the harper warehouse employees. emily: at the outset of your op-ed, you said you were not doing this and that was a mistake. why? because it was always done that way, cheaper? jennifer: when you found a business, you really take your cues on corporate culture on already successful companies. i just looked to what companies that i admire were doing. they were doing incredible generous things for their employees and corporate. they had very standardized, more
skimpy policies in their warehouse and customer service teams. i just followed suit. it really took me the consideration of now having a team of 1200 plus people with a company that is doing extremely well. understanding that i am in the position i am in because of my entire team, not just my corporate team. why is it that my pregnancy is more important than someone on my seamstress team? it is actually not. a life event is as important for any person in my company. emily: this is going to be expensive, isn't it? how do you account for that expense? jennifer: first of all, while it might be an expensive upfront cost, i do think it will all come out in the wash in terms of higher retention rate, having more productive employees. the cost of bringing in and training new employees is extremely high.
and the loyalty all the employees will have at rent the runway. what was remarkable about the changes his we did not change that much as related to corporate employees because our benefits were already really generous for that population. we just equalized the benefits and the people that at the most positive reaction to it were our corporate employees, because people want to work at companies that exemplify their values. 70% of millennial's, the majority of the labor force right now, say they will not work at a company unless they exemplify the values they had. this value set of treating everyone with respect and equally is something that is extremely important to the younger generation. emily: let's talk about some other companies with these two-tiered workforces like amazon or starbucks. how does what you are doing compared to them? jennifer: it is very different from them. as an example, we have a policy that is four weeks of bereavement leave.
anyoneose weeks are for on the team that is grieving for a family member. that is a really generous benefit that sheryl sandberg put in place at facebook and lots of other companies followed suit after she did that, but they did that for their corporate team. why is it a death in the family is more important for some of the works in corporate? it is just not. the thing that was really important to me was thinking through the opportunity to arrive in a corporate job. what has given me the privilege of being a founder and ceo? yes, i work hard but i also grew up on the right block with the right parents. a lot of people who work on my operations team, in my customer service team did not have the same educational opportunities and certainly did not have the
same career opportunities. they work just as hard as i have. emily: what is the call to action here? what should companies like amazon, like starbucks be doing? jennifer: i think if someone works for your company, whether they are salaried or hourly, they should be treated equally. you should do whatever is financially viable within your company and stage. i'm not making the claim that rent the runway's benefits are the most generous out there because we are still growing. we are not a company the size of amazon, but i am making the promise that everyone is equal and as rent the runway continues to grow, i will continue to deliver more and more values to my employees. jenn hyman.s to that does it for this edition of "best of bloomberg technology"
♪ >> data deadline, gdp changes go into effect this month. how the new rules affect global companies. rate refocusing? what is at stake in financial instruments. comcast is expected to take on disney by making a play for the 21st century entertainment business. can either bid past approval? welcome to "bloomberg markets: rules & returns. we dive into the challenges and