tv Bloomberg West Bloomberg August 18, 2015 4:30pm-5:01pm EDT
, all of taylor swift's music videos, interviews, and more. xfinity is the destination for all things taylor swift. emily: tech investors get worried about china. thed the following u.n. be tip of the iceberg? i'm emily chang. this is bloomberg west. comcast and nbc reach for a younger audience with buzz feed. theal media is ripping up election playbook. all of that ahead on bloomberg west. first of our. turmoil returns to chinese markets. top investors are dumping
stocks. 6% wiped off the index. index faringy worse. 7% down, adding drama to what has been a rocky summer. how worried should tech investors be? how will global tech be impacted? economistd by u.s. , we had been talking about chinese tech companies. what about global technologies that have exposure in china? guest: the question is how far is the currency going to be moving? it need to evaluate whether is their cost basis or predominant sales market. producers who are domiciled in
mainland china are going to be much more competitive. that could be good news for them. that is a key reason why china is allowing the currency to fall to stimulate the export sector. otherech companies and mainline companies doing business in china are going to face smaller corporate profits. emily: it is interesting, companies like facebook, google, twitter are not even in china because the government has locked them out but what about these other companies we are talking about here? enormouslys important for apple and qualcomm. china is 12% of their revenue. devaluation is going to
reduce apple's revenue in dollar terms by $30. how does apple compensate? it has to raise the price, which is difficult to do because they were at the top of the market and they are facing competition, or the business becomes less profitable for them. the additional problem is the chinese economy is slowing. we are in a bad period for luxury consumers. selling between $900 and $1200. these are luxury products. penetrate more markets in china. they're going to have trouble selling those phones pretty have been selling well in
beijing emily:. china accounts for a quarter of revenue as far as june goes. let's talk about what it could mean for longer-term demand. the iphone is $300 more expensive for consumers. you have the smartphone market saturating. could that kill demand? iphones inmand for china? guest: sure. it depends on how the chinese economy performs. there a big question marks there. the chinese equity market is manipulated to some degree. the second factor is going to be how far this runs. a lot of folks are saying china more openlywards a traded currency prithee want to be the reserve currency print the other camp says maybe they are devaluing to stimulate the sector.
i fallen that camp. yuan is not the going enough to jumpstart the economy. if china wants to be -- [indiscernible] emily: how much further will it fall? guest: if china wants to be competitive in the u.s., look at the other major trading partners , the mexican pesos have moved 12% -- 25%. canadian dollar 20%. japanese yen 20%. china has moved 4%. there is a place for it to move if they are playing that strategy here. i'm not a strategist. i will avoid making an explicit forecast but if china was to return back to the same level of competitiveness in the u.s. with major trading partners it would require a 20% move. emily: if that happens how
worried are you? guest: i would be enormously worried. i don't believe it is going to happen. you would have a few percentage points down but i would view this development as a long-term positive. the motivation behind china's move to a more fixed flexible exchange rate is to motivate to global reserve currency status. you will see a big increase in demand for assets. i can see a case for appreciation. emily: what about the markets? guest: the stock market is a lottery in china. it is not the economy and the economy is not the stock market. broadly speaking there are still companies trading beyond any measurable fundamentals. even some are somewhat vague. there is not the degree of to beis of companies
confident in those earnings. at the same time there is interesting value stories starting to appear in the of less pressure per there are some interesting value ideas there. emily: all right. we are one to keep our eye on china. we look at where the markets opened today. winky for joining us. button -- -- thank you for joining us. ted benson turned his button into a system to log information about his baby. is made up of a wi-fi radio. when you press a button to connect to your wi-fi network and links it to a google spreadsheet. says connecting to the wi-fi
could allow users to do almost anything. amazon unveiled the button in march of this year. it costs five dollars. coming up, buzz feed gets an investment from 30 rock. and how the pentagon is drastically expanding its drone program. and being chased down by robots may be closer than you think. check out boston dynamics robot taking a test run through a forest. ♪
-- natalielie stream story are watching. the purchase comes on the tail end of an investment that was announced last week. acquisition raises softbank state to 80%. sprint's stock rose 4% today and was up 37% this month. they see the turnaround efforts taking two years. dismaloff of last week's media earnings, universal invested in buzz feed. nbc universal invested the same amount in box media. what does it mean for the future of digital media companies? keith, $200 million is a lot of money. i hope buzz speaking keep it out. guest: buzz feed has been
innovators in bringing to digital content to the world. it is the new way things are going to operate. nbc was smart of making this investment. this is the future for ways you reach millenials. emily: you see buzz feed forming partnerships with universal, yahoo!, everyone is trying to figure out how to get people to see their stuff. platforms,t of these they have aggregated big audiences. smartly, a of new media and new wave companies are integrating and doing partnerships because they can tap into that distribution quickly emily:. who -- quickly. emily: who gets the better end of the deal? guest: it is the rare opportunity where it is for both. they get a great valuation per
they get to work with an old media player. for nbc they get to be nimble during a time when the media business is changing so rapidly you have to find ways to innovate. it works great. emily: what is buzz feed really? do they get the olympics? it happens once every couple of years. guest: right now they have funny videos. but they get is data. a lot of these new companies understand how to use data, to understand what viewership is doing much more than the companies per there are a reason they are looking at them as experts in this field. they can use the analytics to drive monetization. comcast is looking into launching a major online video platform, that what can you with what verizon seems the working on. read, itom what i have
is a mixed between what verizon is working on, and what youtube is going to do. it is called watchable. a lot of these copies are going to be a part of that. of the oldattempt and new coming together. everyone is trying to figure it out. emily: where do you see this going, the future of partnerships? for therad was right reality of data, being able to put massive amounts of data together to deliver that to advertisers, that it is the future for that is the biggest challenge media is having, declining ratings. you are able to precisely target who you are reaching and deliver that audience behavior, that consumption pattern back. this is the future of where advertising is going. this is the future of media. emily: what about the future of
where live video is going? there is paris go. it gets a lot of buzz but it hasn't really taken off. you have these french media veterans trying to create a live video competition to netflix. where is this going? first we are in the generation of video in general. look at the cisco data. 85% of all the internet data traffic is going to be video. we are still in the early leanings of this process. [indiscernible] emily: why is it taking so long for periscope to take off? guest: they put up some numbers this week that were pretty impressive. emily: hard to judge the numbers. guest: we have done more live streaming the anyone. the industry is growing. live is a different medium.
different interactivity and way you watch the videos. it is a different thing but it is equally as powerful. emily: you how i feel. i think it is important. thank you for joining us. in drone news, the pentagon is planning to ramp up drone usage by 50% over the next decade. the move will expand surveillance and intelligence collection in areas including the ukraine, iraq, the south china sea, north africa. the plan expands the united states capability for lethal airstrikes, responsible for 3000 deaths since 2004. hillary,m trump to social media platforms may be the stars of the presidential race for the new way they are
as they drive. the technology will roll out this year but restricted to test areas currently off-limits to drivers. is riding high after the first gop debate. 24% of voters are backing from, making him the front runner. he is beating competitors on social media. his rants reach 3.8 million followers. social media is no longer a supporter of a strategy. they are becoming the strategy. snapchat is playing a new role in the election with nine candidates. will it actually help? steve hilton is with me for more uses of data.
we're going to get with that in a moment. social media has been ripping up the playbook. donald trump comes in and just explodes it all. how is trump and social media changing this election? guest: it's interesting how it is not changing things. if you look at how it has ,emocratized parts of our lives our access to information, going on vacation, all of these things that have been changed, politics hasn't. in fact you are seeing thing goes going the wrong direction. if you are participate. more and more of the funding of campaigns is concentrated in fewer and fewer hands. that is the opposite of things we want to seeing. more people funding campaigns for that is going backwards despite the social media. emily: interesting.
not for lack of trying. a debate on twitter, jeff and hillary throwing barbs at each other. keeping to the narrow political audience. if you want a healthy democracy we have to get water for dissipation. emily: how do they do that? sayt: our approach is to the starting point has got to be objective information. one of the things research shows as people are sick of the spin and the things candidates say and they don't know who to trust . they have no idea who to support. a partisan you have no idea. are starting point is to get objective database not on the opinions of candidates or their policies that of what we, our research shows, is the predictor how they would behave in office,
who gives the money. emily: you can basically taken issue like guns. write your stance on that issue. it will show me several candidates that actually have a dog in the fight when it comes to guns. i can donate to their campaigns. is that the best way to get people to take action? guest: there are many ways. people,he is getting making it easier for people to find candidates that match their priorities and donate to their campaigns because we believe if we increase the small donors we can dilute the influence of the big money donors. it is not just about having money. many tell is election time they literally have no idea who the candidates are on the long ballot, for political positions like statewide races that
determined things that affect people's lives. emily: this is about educating people. guest: through data that is objective. and simple tools they can use on their cell phone, presented in a lives.y can use in their which is so far untouched by that. emily: have you think the presidential election is impacted? have you see crowd pack? guest: we launched a year ago for the midterms. variousbeen testing things out. the best response we have seen is when it comes to those local elections. we did an experiment in have manyia, you elections going on but philadelphia was one. we gave people information about everyone on their ballot.
right down to local judges, offices that had never been informed about. we found great interest from young people. we found that nearly half of the people that used our election guide were under 34 years old. people say young people are not interested. if you give them the right data in a simple form they do get involved. emily: which brings me to snapchat. you have been talking to snapchat about working more closely. what you think is snapchat's role here? i think i'm too old. i agree with you. i'm older than you. i'm totally too old. i will have a cell phone. that is how out of touch i am with that. the thing with all these technologies in terms of reaching people is it is right and you understand why candidates want to try to reach peak will in different ways particularly younger people, i
don't think it is about the method of reaching them, it is about the message of the candidates, where they stand, and whether they are offering something people want for you can use these new ways of reaching people, but if they don't want what you are selling it will make any difference. our approach, the starting point is to get people objective information they can believe and that is the starting point for engagement. emily: we are went to check in with you as the election progresses. i would love to see how that thinking evolves. thank you. tomorrow, i'm going to be speaking with the cofounder of kik. it is taking on a $50 million investment. that is tomorrow right here on bloomberg west. ♪ ♪