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tv   Bloomberg Technology  Bloomberg  November 20, 2018 11:00pm-12:00am EST

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our $225 offer. that's $150 off the mattress, plus a free pillow - and free shipping too. go to buyleesa.com today. you need emily: this is "bloomberg technology" in the next hour, volatility remains the main headline with apple and tech at large leading the way. where we stand in the markets now, we break down tech's role in the slump. new york paid $750 million to fund elon musk's solar factory but it looks more like an empty walmart with idle machinery and employees who feel like the stepchildren. the guy who ran moonshot project
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for alphabet ceo larry page has launched what he hopes to be the apple store for doctors offices. we will explore it in tech savvy preventative kicks. first, to the top story. tech volatility is the new normal. the selloff in momentum stocks continue with the latest slow coming from renewed concern that demand for the apple iphone has slowed. apple has seen a 20% plunge from its trillion dollar high and the other stocks are following suit. here to paint the full picture is luke kawa. walk us through the reversal that we saw today and how it fits into the broader context. luke: it has been front and center focusing on tech's role and it has been playing the starring role, but one thing interesting that happened during tuesday's session was this big reversal, shares of companies
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like nvidia, square, facebook, they both opened very much in the red. at one point in the day, nvidia was up as much as 15%. that is the kind of move that investors, when they see it, they think without a capitulation bottom. at one point on tuesday, tech stocks were leading to the downside. later in the afternoon, they have recovered to trading in line with the markets. we will see where it goes from here. a lot of people are focused on price action and some of those big names as indicating a bottom. emily: we are seeing company specific stories in the middle of the broader page. apple with concerns about production cuts, facebook with concerns about mismanagement, push back against amazon and hq 2. how much of this has to do with the broader theme versus specific stories?
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luke: everything. some is getting hit worse than others. two depicted, i would say it is a lot like a barbell strategy. what is getting hit most is the -- names, you're saying that your fanged heavyweights on one end and even worse are the recently ipo stocks and the ipl u.s. equity etf's. it is the newbies and more established heavyweights bearing the brunt of the pain. when you kind of scratch below the surface and look at both realized and implied correlations on the nasdaq 100 constituents, you see we're kind of out of the throws or panic days of the selloff. one would hope or expect if you are bullish on tech stocks. those implied correlations have kind of come in a bit which is assigned that investors are starting to distinguish a little more company by company on the fundamentals. on the other hand, you have over a quarter of constituents -- of nasdaq 100 constituents
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trading above their 50 day moving average. in terms of a capitulation bottom that some expect, that is something that is in the opposite direction and have-nots -- have not quite gotten that yet. emily: amazon and netflix have been hit but if you take out discretionary stocks, it shows really, the broader stocks are suffering even more so, but then you see them pick up more recently as amazon and netflix have come down. what is your take away their? -- there? especially heading into the holiday season. luke: it is such a different year for judging u.s. consumer stocks. in 2017, you just had to prove amazon was not eating your lunch completely and taking away your business immediately and you were pretty much fine. the bar to success was pretty much low. right now, with those consumer discretionary companies in the
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firing lines, both from freight costs and rising labor costs, a lot of companies have more exposure to labor costs then say your amazon. to pick a product, xrt which is the equal weight etf, it has had more than 100% of shares sold short. short interestw come in a ton. it has become a victim of its own success where just by holding up the bar to impress investors, has gotten a lot higher and people are no longer betting on retail to fail as quickly or as much as they were in 2017. emily: luke, i know you will continue to follow these names more. will this continue? will tech continue to underperform? our next guest says the risks are just beginning. jim joins us from minneapolis. here in the studio we have bob o'donnell.
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jim, we are going into a holiday season and a few weeks of big discretionary spending. there is talk of a santa claus rally. the think that will happen over the next six weeks, or du think we will have to wait until next year to potentially get out of it? jim: i think the biggest thing in the room is the u.s. economy is headed for a significant slowdown. not necessarily a recession but growth is headed for 2% or less which is more than what wall street expected for the slowdown. i think this is why it is not just a tech event, it is an entire market event. it goes beyond this art -- the stock market as well. there is falling commodity prices, blowing out in bond spreads, so there is recession fear. certainly, what has added fuel to the fire is that the leadership, the place where everyone has money, the thank -- faang stocks have unraveled and that is generating more fear than having the stock market fall.
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i do not think we will have a christmas rally. i think we will have a capitulation panic, maybe before the year is over, where this thing goes below the overall stock market goes below lows we saw this year and much lower creating panic. that could be a great buying opportunity, but we will have to wait and see. emily: is the fear warranted or overblown? bob: short-term it is warranted because we are living in an era where there have been unrealistic valuations for a lot of these companies. it is finally coming to roost. we have to look at the more macrolevel. fundamentally, these companies built up valuations that most people said this is not realistic. in a way, it is not surprising. we finally see a mature tech industry that is being perceived not as a teenager, but somebody in their 30's and more mature in
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terms of their perspective on the world. all of these things influence this and fundamentally these are still strong company's long-term. in the near term, these valuations need to be corrected, and wall street is taking advantage of the turn down to readjust the valuations. emily: is this about valuation or is this about sustainability of the business models? if people are not buying iphones are buying into facebook, isn't that the problem? jim: i think it is more about the latter. i think it is more about not so much adjusting valuations as it is adjusting growth rates for the industry as a whole as well as these companies. i'm not a tech expert but it seems to me the pace of innovation in technology has really slowed. from what it was that really drove this. from the outsider view is the iphone.
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the ipad was big buddy becomes a bigger iphone and the i watch has not been earth shattering -- iwatch has not been earth shattering. they have been the same now for a time. i think the constant pace of innovation to more dramatic products that drove demand half t -- demand has slowed. it brings into question what growth rates are you going to put on a company like apple? is it hitting the mature cycle where you have to downgrade that? there is also challenges to the entire internet. who gets to decide what constitutes hate speech, fake news, or manipulation or is it all free speech? are we going to have the internet open or will it be regulated? who gets to be the moral authority to do that? the decisions on that will affect the business models of a number of these companies no doubt. not to mention how much can you use user information in reselling for example. there is challenges to amazon's
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monopoly status. much like there was to microsoft in the past. i think there is just a number of challenges to an industry that was way over grown from an industry perspective. when you put those two together, it is a challenge for that second or as the overall market. emily: how big a threat do you think regulation is or is it more about trust in these companies? people start to fundamentally question do i want to share my data with facebook and can i trust them? bob: regulation is an issue for facebook. i am not as concern for any of the other faang stocks. emily: despite the monopoly problems? bob: i think there are issues and i understand that there are concerns around specific areas on the rate of innovation p or fundamentally, if you look at what is going on in tech, there are a lot of very interesting developments, but they are taking longer to play out. the growth expectations of what
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has been -- expectations have been called back. these were based on growth expectations that could not continue forever. those growth expectations are coming down and there is a recognition they could not possibly continue. there are things coming. i think there will be interesting things in 2019. foldable phones for one. a lot of people have their doubts. emily: you are bullish on foldable phones. i'm not so sure. bob: all kidding aside, the truth is, the general market has been concerned with smartphones being the last big innovation. i'm saying look, is there a different way to think about these devices? i think it is an interesting category and brings the wild factor back in that we have not had in a while and gives people a new way to consume services like netflix on different devices. emily: there you go. the foldable phone, just for you, bob. thank you both. coming up, u.s. tech companies stock priceave a
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rollup poster, but it is looking even worse in europe. if you like bloomberg news, check us out on the radio. listen on the bloomberg app, bloomberg.com, and, in the u.s., sirius xm. this is bloomberg. ♪
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emily: it has been a rough go for u.s. tech stocks as volatility continues. that pain is an exclusive to the side of the atlantic. in europe, blue-chip tech stocks have been tumbling too. is fallen bydaq 13% since in october record, in europe, the stock 600 tech index has fallen even more. alex west is standing by. why is it worse in europe? >> what happens is that the europe index has a component
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sub category which is the tech stocks. there are not that many of them. there are 21 think. that means when there is big movement, it is exacerbated. the two of the stocks account for 30% of the weight. that is huge. asml makes machines and then in turn makes semiconductors. they have been able to keep the stoxx plumped up a little bit as a group until the past week or so. the thought of a slow has been negative for those two. that meant declined elsewhere dragged the rest of the market down. emily: there are names in the chart that we don't know as well. ams which is a key apple supplier, walk us through the stocks really dragging the market down. >> ams is by far the worst performer.
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it is a company that went very hard and fast into the components for 3-d sensors and that is now what apple uses in their face id. a rate of senses. they have not met the orders they were expecting. they have been directly impacted by the slowdown for the top line and top range iphones. they are down about 50% on the year. the weight index is quite small and now it is having a real impact. we have asml which is a huge company with a 70 billion euro market cap, but they are the maker of these machines to make semiconductors. sales have not been performing that bad and they raised targeting to 2020. -- competitors means that has to carry over into their shares. that has had a downwards. we then have nxt.
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they have been up recently but another company which supplies automotive industry, huge exposure there. feeling some of the pain of the trade war with china. emily: i know it is hard to generalize, but we talked about how the big screen phones are a huge hit in asian markets especially in china. how is the european customer different? do they have tech preferences that are unique? alex: it's interesting. in the u k the iphone is massive, but on the continent, android is bigger. the spending on services is more in europe with skepticism when it comes to facebook, google in particular. that is partly due to the regulatory atmosphere here. there has been more measures put in place which is not only directly punished some of these companies, i think of facebook and google in particular, but it has changed the mood and the approach and their willingness
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to engage in platforms. emily: alex webb for us in london. holding it down for us on the other side of the atlantic. alex, good to have you here on the show. coming up, uber's ipo strategies takes shape. a plateau and the mains ridesharing company. the company hones in on three giant countries still largely untapped. we will bring you the latest, next. "bloomberg technology" is livestreaming on twitter. check us out @technology, and be sure to follow our global news network, @tictoc, on twitter. this is bloomberg. ♪
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emily: as uber prepares to go public next year, it is gearing up to tell investors much of the growth will come from food delivery, self driving cars, and scooters. in most major markets, it is either one or retreated, which means the ridesharing businesses
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plateauing. thinks to a diplomatic approach, there are a few markets out hold nearly tantalizing possibilities. here to tell us about those markets, who else but our bloomberg tech reporter, eric newcomer. which countries and why? >> germany, japan, and argentina are three major prospects. japan has one of the largest taxi markets in the world and has proved to be one of the most intractable businesses for over. -- uber. that's an area where there is more potential growth -- emily: does uber have penetration in japan? eric: they have a couple of taxi partnerships and a couple of cities. the idea is you will book a taxi. all the ideas of we will hold down our peer-to-peer model has gone away and now the taxi market is big. that is their way of having a hailing present in a company.
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-- presence in a company. germany uber has a more developed program. berlin and munich have black car services. they are partnering with fleets their popong ago lost service, which is their peer-to-peer model. i talked to a fleet manager who says in america, you might say america first. in germany, we say rules first. that is the impression in germany so uber is trying to follow existing rules there which means black cars. emily: finally argentina. eric: argentina had this huge money transfer restriction that dad,it hard to operate patchwork of laws, and then, for uber, a financial crisis in argentina has helped its because regulators are very concerned about getting jobs for drivers. there's a lot more demand to expand uber outside of what is
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aires.-- biem emily: so these are companies with high potential, but overall, isn't it a problem that the main ride service has plateaued? eric: growth is slowing and there is significant growth, under 40%, but it have to six months ago -- halved six months ago. a massive growth we have seen is slowing and that is why it is this past ride share strategy. it is a concern, but that is what the uber faces as it prepares for an ipo. emily: we talked about food delivery becoming an increasing share of the business of the business, 17% they say of the business, we don't know how much of that uber is actually getting. scooters are small. self driving cars are nonexistent. eric: right. [laughter] eric: if you want to spin it for uber, you say small things grow which means there is more potential. you see what our revenue is now, nearly 3 billion and a quarter. the fact that we have these nascent projects means we have
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upside. we don't even know if scooters work. that's the thing with technology businesses. there are signs that in a given city, models, it is either investable businesses, but the scooter generating meaningful profit for uber is a total unknown. emily: the question is, are investors going to buy the story at 120 billion valuations. eric: 120 billion, that is what it was bankers or perspective bankers are saying it might be worth, is optimistic. 76 billion or whatever the latest valuation has hovered around, it is real money getting invested at that price. i think it is plausible, but the markets are down and we will see. that is certainly uber's aspiration. emily: all right eric newcomer, bloomberg tech i know you will , keep us on it.
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the founder of the china e-commerce giant, jd.com, is trying to calm investor concerned about the company's prospects in the midst of rising competition and a global trade war. ifis also waiting to see u.s. prosecutors decide to charge him over rape allegations stemming from a case involving a minnesota college student. he said on a conference call that he will focus on new businesses and strategy. another twist in the saga of elon musk. and the leverage loan he has been seeking seeking to get for -- seeking to get for spacex. bloomberg learned the company has cut the size of the loan by $500 million to $250 million. elon's closest ally on wall street, goldman sachs was originally in charge of the deal, but spacex wanted wide latitude so they took the deal to bank of america. coming up, doctors are getting reboot with the help of ai. elon musk calls the third
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-- we will explore the potential clinics of the future. elon musk calls the third quarter the best quarter ever for solar. why are employees calling its factory an afterthought? why teslas solar business has remained largely idle. this is bloomberg. ♪
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emily: this is "bloomberg technology." health care start up forward wants to be the apple store of doctor's offices. that is, if an apple store can learn and get better with data. google's former head of special projects launched forward in 2016 to revamp the health care industry and reengineer the doctor's office. today, forward's clinics are aiming to compete with world-class doctors and tech the health industry has neglected, from sensors and scanners to ai and mobile apps. the company has raised $100 million in funding, just completing a series b. here to discuss, the ceo and founder adrian aoun.
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you started this because of a family who had a health care scare. what happened? >> not the first time in my family. every single day since growing up, i have had this looming fear that i am going to come home and one of my parents is going to sit me down and tell me about something that happened to someone in my family. it started with my grandfather and ended up with someone much closer to me. at every point, i started to realize that health care is a thing that happens to you, whether it is a heart attack that grabs someone you know, cancer that grabs somebody else. one of my good friends in middle school was pulled out of school because of leukemia. i started to realize we are these sitting ducks waiting for it to happen to you. instead of taking that as it is, one of the things we are good at in the world of technology is
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saying, we don't like something, let's see if we can improve it. whether it is climate change with tesla or drunk driving with uber. it was odd nobody was doing this with health care. that is why i started forward. emily: there is no question that doctor's offices need help from technology, and it still baffles me you cannot send a doctor an email. when you bring state-of-the-art ai, genetic testing, mobile apps, what does that look like at scale? >> your current doctor's office get worse at scale. you kind of don't want to tell your friends who your doctor is because that makes it harder to get in. technology is the opposite, it gets better with scale. whether it is more information, the ability to invest in better and better technology. the world of technology is enormous companies, billion user companies like google, facebook, apple.
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there is not a billion person health care system. the largest health care system is probably about 10 million or so, roughly kaiser's size, less than 3% of the united states. if kaiser was a tech company, you would have never heard of it. emily: the model is you pay a membership fee, $150 a month. what do you pay on top of that? >> nothing. emily: it is not covered by insurance? >> the problem with health care today, it is like going to the apple store, i like this iphone, taking it home, and three months later getting a bill for $850 with no insight as to what it was going to be. we said, that does not work. what you are doing by sending these bills later on is disincentivizing them from using health care. forward is a membership model flat rate with no hidden fees, no co-pays, no extra for a blood test, body scans, skin scans. all of this is included point blank. emily: is the goal to get insurance to cover it someday? >> no.
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much like most things in technology, as we continue to invest in our technology, we will be able to lower the cost. the first smartphone was $800. now you can get them in the middle of india for $20. why isn't health care following the same trend? emily: you have three clinics, one in san francisco. southern california, northern california. you are opening clinics in new york. you have been seeing a lot of patients due to the air quality and fires. >> it is worth noting we have about five clinics. emily: five clinics in three areas is what i meant. >> the fire is a great example of where the health care system fails us. today, you go about your life, inhaling the smoke. you wait for it to get super bad, then you start having problems. you become sick. then you call the doctor. isn't that too late? what we did with our members is proactively reached out and said, can we give you smoke masks with filters?
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or can we just give you advice? maybe don't work out outside. maybe try doing x, y, or z. this allows us to prevent things as opposed to being reactive. that is the problem. the health care system and insurance system today is very reactive. they don't want to spend the money to invest in your health. emily: the counter argument is some preventative health care tells you you are healthy, great, you don't need health care. >> almost absurd notion, what does it mean to be healthy? we are all going to die of something at some point. i look young and healthy, but my genetics tell me that in 25 years i am very likely to be developing heart disease and probably have a heart attack. even though i am healthy, i should be working on that now, not waiting decades. emily: you ran special projects for larry page, who has a lot of special projects.
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what was that like? what do you think about what google is going through now with the harassment? the way that he personally has handled some of this misconduct. >> let's take that as two separate issues. when i learned that google was the notion of taking technology and applying it to different industries. when i founded sidewalk labs, we said, what can we do by taking technology and applying it to urban environments? what i said with forward is, let's take the same technology, connectivity, things that get better with scale, data analytics, ai, mobile access, let's apply that to the world of health care and bring it into the modern era. to your second point -- emily: let's not be over focused on the future when we also have to focus on the present. >> absolutely. both are super important. when i look at google culturally, i think -- when i was there, i worked with super amazing people.
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across the board, really wonderful people. it is very clear it is hard to maintain culture. especially as you scale and become so large. one of the things we have tried to do at forward is duild that in from day one. i'm super proud to say our company is 60% female. our company has tons of representation of underrepresented minorities. one of the things that does is bring diversity to the table, allows you to get ahead of these problems. the same way we want to be preventative on health care, let's be preventative on culture. emily: where do you think google went wrong? >> i was not there long enough to tell you. i wish i had those answers. i'm probably not best equipped for that. emily: adrian aoun, fascinating what you are working on. we will continue to watch. amazon reportedly is bidding for the 22 regional sports networks that disney will divest as part of its fox deal. cnbc says that includes the yes network that broadcasts new york yankees games.
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coming up, has elon musk forgotten about his solar factory? why critics are saying the tesla ceo has not done enough for giga factory number two. plus, weight watchers is an iconic american company, but it has a new name and a new approach to doing business. how does tech fit into that vision? we will find out. this is bloomberg. ♪
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emily: in buffalo, new york, there is a 1.2 million square-foot factory inside a tesla solar factory. the gigafactory 2, a sequel to its enormous battery plant. while the battery plant employs more than 7000 people, employees describe gigafactory 2 as an afterthought, stepchild.
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today, the factory resembles an empty walmart filled with idle machinery and one production line. while model 3 production in california is up to 4500 cars a week, buffalo's solar plant in new york is only producing enough panels for three to four houses per week. despite his original enthusiasm for solar, musk has yet to visit the factory himself. here to discuss is brian eckhouse, who toured the factory. what did you see? brian: it is a fascinating vision. you go to buffalo and you go from downtown to the waterfront. there are all these empty lots, brick buildings that have lost its strength. you walk inside and it is this beautiful, glistening white box and there is one line of production for tesla. the line is coming along.
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it is partially automated. there are people working there, but also a lot of empty space. emily: so what happened? brian: it is really fascinating. elon musk said two years ago that solar was really important to bringing along tesla, that energy was really critical to meeting his master plan part two, as he put it. two years ago, he had this unveiling of a solar roof, this beautiful glass tile roof in l.a. at universal studios. unfortunately for tesla, two years later there have been very few produced and installed. there is appetite for it. 11,000 people put down deposits by may, but not that many people have it installed. emily: so what is the outlook for the solar roof at this point? what is elon musk saying about it? brian: yesterday he tweeted that solar is one of his priorities.
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on the last earnings call, he said there have been some events and tesla is seeing more profitability with solar and going to next year, they are hoping to ramp it up. they hired a man from amazon to run energy and his goal is to scale it up. tesla says they have iterated it to the point where it is close to being ramped up strongly and it is a 2019 goal. emily: we will be watching to see if he pays his so-called stepchild a visit. thank you so much for sharing that report with us. alexander weygers is a forgotten figure in silicon valley history. he was an artist, blacksmith, aerospace engineer, and more, a true renaissance man. if one art dealer has his way, he will not be forgotten for much longer. ashlee vance has the story.
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ashlee: this is the story about a forgotten genius, the gifted sculptor, artist, and modern day leonardo da vinci whose ufo-like invention was the realm of pure science fiction. it is also a story about this man, his fixation with the past and living on borrowed time. this is the guy he wants everyone to know about, alexander weygers. >> this is probably the most photographed one so far. ashlee: randy discovered him in 2008, when for the first time his sculptures were put on sale. randy snapped up a lot. as an art dealer, he had dreamed of hitting it big by finding an unknown artist and making him famous and figured that weygers was his man.
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during his hunt into alexander weygers' life, randy discovered something extraordinary -- hand-drawn designs for an exotic aircraft dating back to the 1920's. alex appeared to have invented the very first flying saucer. >> that was an amazing find in itself. when i saw the blueprints, it was undeniable he was a creator. ashlee: weygers called his futuristic flying machine the discopter. it was a unique concept and one he thought cities of the future would make full use of. weygers patented the discopter in 1944 and tried to sell it. >> he started sending letters to all kinds of companies, telling them about his invention.
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ashlee: as word of the discopter began to spread, alex thought the u.s. military stole the idea. an accusation they denied, but for weygers, evidence of the theft was there for all to see as images of the copter went into popular culture, influencing architecture to cars to movies. >> there was a whole flurry of stories. the dutchman says he designed flying saucers 23 years ago. the man who invented the flying disc. he did not seem to be after compensation as much as recognition that he had done something important and wanted credit. ashlee: in weygers, randy discovered a kindred spirit, a man who lived by his own rules and created a legacy using his
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own two hands. >> what would you say to alex if you saw him now? i wonder if you dreamed about that moment or anything? >> i did dream about meeting him. figured it was the spirit of weygers telling me i am doing the right thing and i should continue with my mission. emily: another fascinating piece from ashlee vance. still ahead, weight watchers is no more. instead, rebranded as ww the company is looking to woo users with a new digital strategy. our conversation with president and ceo mindy grossman is next. this is bloomberg. ♪
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emily: the company once known as weight watchers is in rebranding mode. now ww is looking to 2019, trying to capture the holistic wellness space. key to the partnership is partnerships with startups like blue apron and digital strategy targeting beyond its base, as ww reaches out the young moms, dads, college kids, and more. we spoke with president and ceo mindy grossman. >> there are so many avenues of work that are happening right now. if you look at the last year, we launched freestyle, the best program and most efficacious program in company history for eating. we launched fit points 2.0, which took the science, similar to what we do in nutrition, and used it for customized activity. we are integrating active audio
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fitness within our app. we integrated headspace for content. very excited about our rewards program that has been in work for almost a year. just launched four weeks ago. does not reward you for spending money. rewards you for everything you do on behalf of your health and nutrition. you win wellness wins. we have already seen an increase of 20% nutrition tracking and 80% activity tracking. and connect communities just launched in canada and will be rolling out to the rest of the world. that is for people to find and inform. we have a whole universe of activations that not only will happen between now and the end of the year, going into 2019, when we really do the big brand relaunch, but even from there, they are constantly innovating. we have teams around the world, big teams in new york. this group out here, we are looking to double our tech
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footprint out here. it has been pretty exciting. emily: there was a big run-up in the stock, and shares are down significantly since june. what do you think investors are not getting? >> we have a lot of new investors, new coverage. i think it is a matter of educating everyone on the seasonality of the business. i think that has been the biggest confusion. you need to look at our member base year-on-year versus quarter by quarter, based on the business we're in. emily: because january 1 is a big day. >> we are kind of wellness 365 now, but there is no doubt that january -- it is just pavlovian, people decide they want to get healthier. it is important to note that our results this year have been fantastic. our subscriber base is almost up over 25%, even in the last quarter. that is 17% year to date. operating income significantly
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above where we have ever been. and we have hit every single quarter all-time highs for the company. the team has done an incredible job and it is a matter of just getting people to understand the trajectory of the business. the second thing is, as much as we have announced what has been launched and is launching, the reality is that the true brand launch and everything inherent in what we are going to be offering to the customer is really happening at the beginning of 2019. that is what we have been preparing for and activating. and what we have already activated, we have seen the impact on retention and recruitment. emily: you have got some new partnerships. headspace, blue apron, integration with voice systems. how do you think this will bring the business forward? >> if you look at where we have
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prioritized, it is -- will it recruit, will it retain, and will it elevate the brand? when you look at the partnerships, we are providing even greater value for our members. similarly with the rewards program, which we know will have an impact on retention. certainly with the move from not just being weight loss, but giving people a whole wellness platform, that's a very big recruitment message and allows us to have a much broader range of partners. what we have said is we want to own the healthy kitchen, so our partnership with blue apron. we launched the first ww freestyle cafe in barclays center. we have a whole line of kitchen products. every single food product that we make. you don't eat weight watchers food. you can eat anything you want on
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weight watchers. but the food products we make have been 100% reformulated to reflect the healthy living brand. that will be launched in all our direct channels in january. and then our first branded store for all our products will launch on amazon at the beginning of february. emily: you are a global company, in 11 countries. are there plans to expand beyond that? >> in february when we came out with our impact manifesto and our new purpose, we inspire healthy habits for real-life, people, families, communities, the world, for everyone. and that means the world. today about 70% of our business is in north america. next largest markets, u.k., germany, france. other markets in continental europe, australia, and new zealand. we have a big opportunity and there is a great need in latin america and asia. what we have said is we will be doing the strategic work on what market entries will come next and that by the end of 2020, we will start the development in new markets while building the markets we are in.
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emily: our conversation with ww ceo mindy grossman. nasa is planning a safety review of boeing and spacex, the companies it has hired to fly astronauts to the international space station, according to a report from the washington post. the move was prompted by elon musk smoking marijuana and drinking whiskey on a podcast, which reportedly rankled top officials at nasa. the review would involve a month-long assessment and hundreds of interviews to assess workplace culture at both companies. that does it for this edition of "bloomberg technology." we are live streaming on twitter. you can check us out @technology and follow our global breaking news network tictoc on twitter. i am emily chang in san francisco. this is bloomberg. ♪ [ phone rings ] what?!
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