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tv   Bloomberg Technology  Bloomberg  June 27, 2018 5:00pm-6:00pm EDT

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this is bloomberg technology. coming up, president trump steps back from china, deciding against the harshest measures for trade in the united they. -- , we uber's chief legal officer joins ahead.
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foron is rolling out a perk prime members. are they paying off? >> the white house moving forward with plans to limit china's tech investment. the president is looking to congress to keep companies from stealing u.s. property. steve mnuchin hailed the move in talking to reporters on wednesday. >> monday, bloomberg reported that mnuchin and the treasury department are ready to use a to discuss the new plan. , a venturem beijing
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fund that has invested over $1 billion in the last three years. i will start with you. what happens now? >> donald trump is going to rely on legislation to strengthen the laws that already exist. a transparent, interesting group of folks that are looking at each individual investment coming in and what they want to do is strengthen that even more. that means taking a look at inflect ventures and smaller deals that used to fly under the radar.
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>> as someone investing in china and u.s. technology, how does this affect your strategy? >> we look at this as a bone. we want this type of action led to greater self-sufficiency. i think this action and things eyes tot open people's how empty when it comes to court tech. it led to a push over the last few months and allow pouring into new areas.
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thean expected move here, one that started were you will see more innovation and development. reaction as they developments have played out and gone back-and-forth #-- gone back-and-forth? i am often referred to what to true meaning is an stick what is not. i think the overall view is the businessmanmp is a and understands the shareholders there. likewise, many of the chinese the money much of
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coming from u.s. investors as well. the view was that while a lot of were being used, ultimately, the statement would and not huge damage done to local businesses. >> i think this is a better course of action. they're going to use a legislative approach and i think that makes more sense. i think this is walking back and it represents a more logical approach.
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bill are expecting this and it is going to mean more the company's that are engaging in these deals. we have seen some venture capitalists pullback. the idea is maybe that is going earliern more and to an point, there's nothing like telling someone you can't do something. if you're going to tell chinese companies you cannot invest in our businesses, you can bet that is going to rub some of the had --eneurs had --
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heads. it will be interesting to see what happened next. -- what happens next. bloomberglook at my showing listed ipos. you were an early investor in xiaomi. any concerns about how they were perform given that we know some of the financials are not perfect? of underperformers
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regulations is new in that option being taken on the table certainly frustrating many. not an easy time to come out and and thecomplicated methodologies and certainly company profiles that most of them understand. it is a hardware company. it is difficult to put one finger on it and the end result i think is what a lot of people are scratching their heads about in trying to figure out how it should be valued. >> what an -- >> another one of our companies
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and another one we have been bullish on for quite some time, at least global investors pretty much aggregation are a lot of the services are e-commerce. orr food bookings ride-hailing. the numbers feels really powerful there. 700 have gone up more than in terms of revenue. i think the company is well positioned a little more understandable. maybe xiaomi is starting to lessen up. gendermberg's own silly -- bando.
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muska said that a fact and awakening.or a rude neither tesla, nor goldman sachs have responded. coming up, what it is like to have one of the most challenging jobs in silicon valley. this is bloomberg.
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>> we're watching uber's biggest competitor get a vote of confidence. , double-hailing service list value. the money will allow it to better control. multiple criminal right here in the united states. i just spoke to wes about how he is tackling the big challenges ahead and asked him about the company finally getting its license to operate in london. win. is definitely a
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at this point, in the preceding eight months, really engaged in some diplomacy. >> we would not have gotten to observers had other really since the change. >> you're working with regulators in arizona for a self driving uber killed a pedestrian. we heard the driver was watching the voice on hulu. can you share any updates on
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that investigation? >> i can't really get any updates on that investigation. happened was what a tragedy for her and her family. it is something that shook the company. just brilliant people. they came from carnegie mellon working with the technology. ultimately, and autonomous vehicle is going to be safer than a vehicle driven by human. tore's a lot of reason believe that will ultimately be true. that journey is the difficult journey so when this happened, .t should people to the core
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the incident, they review a top to bottom and that is coming to a close now. we are pleased with some of the recommendations coming out of led by fred hart, former ntsb chairman. there are things we continue to do to try to improve safety of the culture and our platform and again, we see it as intrinsic to the brand. one of your big moves has been ending forced arbitration, meaning drivers can pursue .laims of sexual harassment
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corporate america does not do this. should more companies do the same? >> i think so. we worked with advocates in the space for some time to really issue and when it manifested itself, how do you respond to it effectively and more importantly, how do you present it? one of the outcomes was our dissension for mandatory arbitration. is it is soeasons powerful in the conversations returning a sense of control to a survivor of sexual
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assault and harassment. which strips agencies for the individual like nobody else does and so the last thing you want is the process control oroses more read victimization in some sense. i'm proud that we took that step. i think there is strength in numbers. the supreme court has upheld the residents travel ban. at the same time, the president is dealing with the blowback from legal family separation at the border. is the law broken? immigration laws have been
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broken for a long time. i believe when it comes to separating children and families, then -- we are a debtor nations and that. i think -- i don't agree with the decision. that is the law of the land and we will live with it. withme of my conversation tony west, uber's chief legal officer. coming up, jenny lee tells us where she sees the most growth and opportunity. onsure to follow our network tictoc and twitter. this is bloomberg.
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>> airbnb, xiaomi, they are
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oneg companies that have thing in common, investment from gdd capital. one of the driving forces behind the company's success is jenny lee. with our series to explain where she sees the most growth. is consumer for us buying habits. strategymerce upgrade likeis includes companies alibaba. actuallyre seeing is
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off-line, so the off-line companies are leveraging data to in try to serve them better terms of what they are shopping and buying off-line. that is a big piece for us. the second area of growth for us is around social. if you think about in the u.s. you can only find a facebook every 10 years. a china, you can always find facebook like model every three to four years.
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the key is content and feature segmentnd a different of users. we invested in a company that is the number one. we have another investment in the company that only targets generations the -- generation z. theou think some of examples can be growth over? we are not seen many success stories of chinese social tech migrating successfully. based --ese company based in shanghai launched four the companyecently,
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was acquired. chinese -- seen they are going to southeast asia. largest. of the >> how many are you looking to pull off? over the last three years, six at its -- exits. >> given that you are based in silicon valley and in china, how did the decisions play into the way you operate?
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>> we need to know which directions we need to go. short-term, the countries will not benefit. longer-term, china may come out. jimmy lee speaking to tom mackenzie. coming up, amazon prime ministers -- prime members can now use discounts at whole foods. this is bloomberg.
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♪ this is bloomberg technology, i am emily chang in san francisco. amazon prime members when i get 10% off at whole foods nationwide with a new note, of wholeexpansion foods grocery delivery and five new cities and apartment delivery highlights management pping on online sho point spri joining us on the e, anthony and a senior
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bloomberg tech editor. anthony, why raise the target? amazon continues to eliminate the pain points for online shopping. has over 40% market share in terms of u.s. online purchases. -- the amazonon locker inside your apartment building. 47 -- 24/7 and it is better for the buildings because buildings are being overrun by packages. rollout forhe whole foods of savings for prime members nationwide and the fact that they are now delivering in 19 cities and will be doing more, we think it is going to
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spur additional grocery orders. these are ways that amazon is making it easier and easier to shop online and shop at amazon. let's talk about the whole foods roll out because some people of contended that amazon has made whole foods worse, not better. people do not understand what they are doing but they are trying to get their 10% off. is it really paying off for amazon yet? >> i think it will. that used to be a saying amazon has many small advantages but they need to create a rope of them together pretty now they many big advantages. there might be some pain points to get prime shopper's whole foods but i think it is going to pay off more. >> when is it going to pay off? anthony: in terms of old
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-- all foods, it is already paying off. whole food sales is running in the teens at this point. like brad said come i think there will be some a learning curve for consumers, but this was a business -- jeff bezos says that your profit margin is my opportunity. higher profit had margins than conventional grocers so they are going to invest in delivery to gain more market share. oflet's talk about some these new businesses that amazon pairing up with amex, the health care initiative which we know is going to run but we do not know exactly what they are going to do, how big of a piece of a pie are these businesses? business is a
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multiyear efforts to sell office furniture, artwork, power tools companies. just like they do with credit cards to consumers, they are going to give it to small businesses that use amazon business to buy more so it is a logical step in that breed health care, this is a not-for-profit business. he is their that she is the -- he is there to experiment, i think he is going to have a pretty clear, blank sheet to go and try new things -- ont down on i n unneed businesses. >> germany want amazon and ebay to be liable for a vendor sales tax. do you think this will hurt
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amazon overseas? anthony: i really do not think so. if you look at amazon past history in the u.s., amazon was originally very resistant to collecting a sales tax, but at some point they acquiesced, and their business did not skip a beat. they are already the low-price leader and whether they collect sales tax or not, i do not see that being a major issue for amazon in germany. about the scotus ruling does well on sales tax in the u.s.? a report about that a few days ago, essentially, it will not tax any products that amazon sells itself because amazon is already collecting hat tax. it will affect amazon's marketplace vendors, but once
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much. if do not think it impacts itself to the point that they cannot sell anymore, amazon will pick up the slack. it'll will be additional revenue for amazon. they will have to account for the wholesale price, not just the commission. we really, really do not think it is going to move the needle for amazon. >> another situation where amazon emerges unscathed? but: maybe not unscathed, it is the smaller seller that is not all to the technological challenge of tracking sales tax amazon, probably ebay will be fine. >> brad stone along with anthony chakumba.hony coming up, salesforce has
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announced an investment in the u.k. over the next five years. we will talk about all future tech investment in the u.k. next. this is bloomberg. [indiscernible] ♪ --
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♪ >> once again, the u.k. government is making up points to show off the tech themes the u.k. as hoping to be a destination for ai and cybersecurity investment and implementation. it unveiled a center just weeks after announcing billions with salesforce showing some love for caroline hyde in london has more. the cloud computing
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salesforce has $2.5 billion investment in the u.k. over the next five years. i had the chance to sit down with the u.k. secretary of state for culture. much he ask him how thinks tech giants are willing to keep investing in the country. >> large technology companies from across the world are not only welcome here to invest, to expand their operations, but they are doing so with great space. salesforce, you mentioned, over the last two years we have had major investment decisions from apple, google, ibm, amazon, and further news from amazon, samsung opening a facility in cambridge -- there is massive investment. to 2017 androm 2016 we want to keep it pushing in that direction.
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line: what about the regulatory giants? being slapped with fines, , how much do you think the u.k.'s regulatory environment is a blessing or a curse for these companies? >> we think there is an opportunity here, too. the u.k. traditionally has a good track record of writing regulation that gives us a framework with people to operate, but also, is very strongly pro-innovation. the regulatory sandbox as an of having regulations, because financial products do need a level of regulation, but also allowing for innovation having the presumption that something is ok and if there is a problem, the regulators will have a conversation.
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as opposed that you had have something approved before you can move anywhere. we have a very pro-innovation regulatory staff. we are constantly changing the law to try to update that. before parliament today is the autonomous vehicles bill and run will help us to autonomous vehicles are safely and securely, but also harnessing the new technology. likewise, the data protection the legislation into u.k. law but also exercised the level of derogations to be more pro-innovation. we think that is a really good rule and even though we are leaving the european union, we are going to keep it because we think is a good balance. companies have been born and bred in the u.k.
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and have consistently become targets. what do you think about the consolidation in the media? i certainly see it happening. maker,judicial decision i am very careful to ensure the decisions are taken clearly and objectively based on the evidence. we obviously had a very detailed process looking down at the fox takeover of sky. thatinal details of how could work without causing problems in terms of media out fory are now consultation for the next week before we come to a final decision. proposed takeover, we looked at and decided it did not to raise concern, so now there will be a takeover contest
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should that perceived as bills. -- as billed. that theion we take government does not take a generallyw on these outside of the specific rules of thumb petition media plurality and the media rules. politicians dohe not express of view between different to potential bidders is a real strength of our economy. it is a reason we get so much investment here. i'm going to keep abiding by it. that was matthew hancock. >> you did talk about the media consolidation, disney has approval for its offer to buy 20 century fox's assets.
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that is bad news for comcast which is reportedly trying to recruit private equity investors to acquire a chunk of fox's film and tv businesses. italy's it seems that disney is always one or two steps ahead of comcast here. some of the exciting meetings between bob iger and james have happened in london. >> we have become the epicenter of all things media. you are right. biggeris getting the offer here, $71 billion and one of the things that comcast prided itself is that it was more likely to get regulatory approval. today, that seems a two horse race. fox saying that disney will selloff some of those key assets, so the deal could go through. willis interesting now is we see comcast come back with a bigger amount of than $71
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billion. at the moment, it is just a $65 billion and who will be the private equity to come in and by the u.s. portion of fox's assets. comcast is really interested in international side of fox's business. >> bloomberg's caroline hyde in london. thank you. leagueng up, is an ivy degrees still worth the cost? this is bloomberg. ♪
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♪ facebook's strategy to distinguish journalism from
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commentary will come to affect in a couple of days. new approach follows weeks of criticism from notable publishers who argue that facebook's decision to categorize promotion of political content will confuse users on what is fact and opinion. episode ofst bloomberg studio 1.0, i caught up with drew faust, outgoing president of harvard university. lot of ground as she has led the university for over a decade and talked about her record-breaking amounts of -- tacklingk; social issues, all while trying to prove that it is still worth the cost. this is a great and important question because we compete based on the experience
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we can offer students, the resources we can offer faculty for their research and teaching, but we do not compete on cost. the way higher education is organized financially, there is not that sense of pressure to bring down costs. we have brought down price by funding financial aid anyificantly so that student to comes from a family that makes less than six $5,000 has to-- $65,000 a year offer no parental contribution towards room and board so it is very accessible in terms of what it costs students. of whaterms of the cost we do, that is something we need to get under control. we to address it more fully. technology will help with that. what can we do online to replace a certain
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parts of instruction so we can leave to people the parts that we absolutely need to people for and streamline some of the other parts, i think we will see that coming forward. constraining costs is going to be a real challenge for all of higher education. >> there are a lot of companies trying to disrupt higher education and some people say, a harvard degree will not matter when my children go to college. how do you respond? how does harvard stay the best? >> we have to make sure we attract the best talent and that is why affordability is so important. that thelieve experience, and you have had the experience, the experience of being in that community, living in that community with other students with whom you learn as much as you learn in any class you take, that is the core of what a harvard education is. the residential
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dimensions of harvard education are essential to the full experience of what it can be. that is not going to be an onlineby experience. the you are learning about subject matter of an online experience -- you are not bumping into somebody at a corridor and finding that they challenge you in ways you did not expect, or the way they are different from you and expand your world. that is an important part of what happens oath in and outside of our classrooms. a sense from silicon valley that stanford has surpassed harvard, especially when it comes to technology and them biggest and most powerful companies in the world. is that a fair assessment? drew: of course not.
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[laughter] we are different institutions and i think that is the strength of american education. institutions like stanford and haverd -- i do not want to a stanford-harvard competition in front of you and say, we are so good at this. we have a growing presence in technology. and in fields of engineering. andstudents concentrating engineering have tripled in the last 10 years so that is an area where we are paying more attention than we did a decade ago. but we also have such in lifeted strengths sciences, humanities, the arts, and such a commitment and social sciences. and the endeavors that are not simply involved in technology. we compete very successfully with stanford for students and for faculty.
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we are very pleased to be harvard and we expect to remain harvard. >> what is harvard doing differently to train the worker for tomorrow? >> differently from? >> it is essentially a liberal arts education. do you think that harvard needs to do anything differently to arm workers or with the skills necessary to succeed in the modern economy? are been some changes of how we approach education that respond in part to what you are saying. we find our curriculum much more oriented and our students much more eager for hands-on experience in a variety of ways. engineering is a discipline that has a lot of hands-on dimensions. our students are also very interested in making get in the art -- making it in the arts and the creativity in innovation that is part of making things as you learn. we also see students much more involved in wanting to solve
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problems and have an effect on the world. there tends to be many more internships or public service opportunities tied into curricular offerings, doing and thinking are intertwined much more closely. they used to be you thought in college and you did when you left. andthose things intersect interact with one another and that is an important part of readying students to take on the challenges they are eager to embrace. my conversation with drew faust, outgoing president of harvard university. you can catch our full conversation tonight at 6:30 p.m. pacific, 9:30 p.m. eastern. finally, snape is pushing to become a bigger player in the videogame industry. developers outside make a games to be played through the app. it has said to already have
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lined up one gaming publisher to make games. all for now for this edition of bloomberg technology. i am emily chang. this is bloomberg. ♪
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♪ >> u.s. of stocks a slide to the lowest of since may end in a new concern of china. race that gains as a hawkish larry kudlow chimes in. >> a trade and a trade war, $74 billion -- >> how electric carmakers are giving new lease on life.


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