tv Bloomberg Technology Bloomberg November 22, 2016 6:00pm-7:01pm EST
prosecute hillary clinton. at at "the new york times gopro mr. trump said, i don't want to hurt the clintons, i really don't. her, and his words, is just not something i feel strongly about. democratic leader nancy pelosi appears to be responding to a challenge to her leadership by the coming more inclusive. she is promising to give more influence to junior lawmakers. policy is being challenged by ohio congressman tim ryan. since 2014, says the islamic state has used chemical weapons in iraq and syria at least 52 times and targeted me saw -- basel -- mosul 19 times. report warns britain's national health service is
facing crippling problems because of a $2.3 million deficit, its biggest ever -- $2.3 billion deficit, its biggest ever. care may be impacted because money needed to improve buildings and software will need to be reallocated. i'm mark crumpton. "bloomberg technology" is next. ♪ chang and thisy is "bloomberg technology." a shipping disaster for amazon. a pilot strike threatens delivery for the e-commerce giant's they just weekend of the year -- biggest week of the year. hq -- hp's quarter will disappoint. the ceo.ear from coming up, president-elect
donald trump makes peace with the new york times, a target of his frequent tweet storms. but first to our lead, a pilot strike could hit amazon where it hurts and disrupt deliveries during the most important shopping weekend of the year. airpilots employed by abx are protesting alleged staffing shortages. x is asking a judge to force its employees back to work. amazon will benefit. sjning us to discuss is consulting group's president. an hour bloomberg news record were -- reporter covers the airlines.
michael, i want to start with you. first of all, give us the very latest, what we have learned from a bx, amazon, and the pilots. >> glad to be here. we are told these parties are in court as we speak. ir is trying to get a restraining order to get the pilots back to work and get these shipments going. it's a little unclear about theher they will get restraining order, although the conventional wisdom is they will get a restraining order, and these pilots will go back to work. it's just not clear about the timing yet. emily: rick, the captain joins us on the phone. talk to us about how i got to this point on your end. >> i would be happy to. good evening, ladies and gentlemen. we are engaging in new -- a new
political -- a new collective bargaining agreement. this strike is actually a strike over the existing collective bargaining agreement which management, because of the believe shortage, and me, it's not a ledge, the management really agrees there is a staffing shortage, so do we because we have been talking about it for the past two years, they unilaterally altered certain provisions of our contract, and that has put an additional strain on our clue -- on our cruise. -- crews. in meetings to alleviate those issues, management refused to come to an agreement with us to maintain the status quo, and therefore we elected to strike, which took effect early this morning, 2:30 eastern. emily: captain, do you see a protracted strike here or not? longe strike will take as
as it takes to resolve the issue, as the gentleman previously noted. i am not aware of where we are, but i am aware of the company filed a complaint in court. i can tell you that in my the judge will not issue an order, certainly not tonight. we will be on strike for the rest of the day and through tomorrow, and we will see how that court case progresses. think how much do you this particular issue could impact amazon, given that they do have other carriers, but also volume is expected to go up? as online shipments go up, amazon gets a lot of that new business. >> you right. the timing is the worst.
even though they do business with ups, fedex, who have the withty to help them handling some of their volume, gearing up what that will be a challenge, and there will be some implications in terms of timing for delivery of those packages. they could get delayed by a day or two. it is not critical that those packages have to be there in two days, because a lot of those packages are for the holiday season. however, it is my view that the courts are not going to let the becauseo for long, this has never happened before, where the courts have allowed .he public to suffer emily: amazon has been working on its own fleet of cargo jets to help carry the load. how much did that actually impact the growing amazon business -- how much could that
impact the growing amazon business going forward? >> they have secured the use of 40 jets. what they do is they fly their merchandise to these various fulfillment centers around the country, and the idea is to get the merchandise closer to people to allow for these two day deliveries and even same-day deliveries. it is a big push for amazon. i think one of the interesting things is, well this strike caused them to second-guess anything? they really relied on ups and do a lot ofusly to this flying, and now that they are going to start doing it themselves, are they going to rethink that? are these strikes and shortages of pilots going to come back to bite them? i think that's an open question. emily: captain, we have heard that some airlines may actually honor the strike and pick up the slack. what can you actually tell us about that? >> within our system, we have a
sier company known as ati that has flown trips in the service of amazon, that i was made aware of today. that's true. limited flights, i believe they have eight airplanes and service -- in service. last year was the biggest holiday shopping season amazon had ever experienced. wheread one major snag they did not anticipate the demand from third-party resellers. aside from this particular strike, what do you think the challenges will be for amazon to overcome this particular holiday season? >> i think they have made several changes during this year to prepare themselves for the season. they are working with the big carriers at ups, fedex, the post office. the post office handles more volume for them than the other
two combined, and the post office has a large network. they are delivering on saturday and sunday for amazon. and they have contractors and various markets that they will be able to leverage, including regional carriers. plus, i would disagree with what michael said. i don't think amazon is going to foract from using companies flying. all of their airlines have union pilots, and they have experienced the same thing. thatnk this will be a blip will be forgotten in a day or two. ish, president of sj consulting group. captain, thanks for joining us by phone. and our very own michael sasso of bloomberg news, thank you. coming up, the debate of over how to moderate online discussion since the presidential election results --
emily: the election has divided with theoff and online discussion of fake news on facebook was the surge of harassment on twitter. meantime, donald trump is using twitter to call out those he thinks are wrong, airing his grievances with everyone, from the cast of the musical of "hamilton" to "the new york times," before meeting with their editorial board today. joining me is the cofounder and ceo of a startup building a
community platform with the goal of defeating trolls and online abuse. you used to work at red bank. -- at reddit.main there has been a rise of hateful accounts on twitter. we are seeing folks identifying themselves as part of an al t-right movement. monitor,u plan to moderate, or even suppress this kind of discussion? guest: we think about it as a cultural problem. of course there is technology for preventing these kinds of things, but what other companies have forgotten is what we are dealing with is a culture, so we raise enough money so we can spend enough time on private beta so we can start communities to actually cede our culture. i think what you will see is on twitter, what you really have is
a culture of hate. you have a culture of harassment. by having a culture of these things, they are encouraged and spread far and wide. emily: so how do you actually change that? outit did not start thinking they would be breeding a culture of hate, and neither did facebook or twitter. these networks sort of become what the users want them to become. sure, but you have to focus on it from day one. and i know that personally, that these other platforms really did not. what you focus on in a startup is growth at all costs. especially when your business model is advertising, you are forced to focused on growth at all cost. -- focus on growth at all costs. when something will exponentially grow your platform overnight, you go with that, and if that happens to be harassment and hate, you are incentivized to go with that.
what we are trying to do is set up a business model in line with the communities, one that is in favor of the communities, so that we are forced to make decisions against these things. we can't solve the problem that there are jerks online. it's not something that we can ande, but by trying providing the tools from day one for community leaders and members to help us help them, we are going to be in a better place, at least that's our believe. emily: friday night, for example, the cast of "hamilton" delivered a message to mike pence, who was in the audience. the star saying, we, sir, are the diverse america that are alarmed that your new administration will not protect us or defend us and uphold our unalienable rights. president-elect trump said that vice president elect pence had been harassed. how do you define, and more
importantly monitor, what may or may not be harassment? was nott that the cast harassing at all. that's a good question, and there is always a great line that is hard to tread. we are lucky in a community platform, we have a hierarchy, so we have community members and are able to surface problems like that in a more organic way. i think you have real problems on twitter that the rules are not applied evenly, so a lot of the things you see donald trump doing you also saw milo yianopp doing, and he was banned. weassment is harassment, but recognize that it is a hard gray line, so we are focused on scaling our teams appropriately to our teams, which is not something you see these other
.ompanies focusing on emily: if you were jack dorsey, what would you do differently? guest: it's hard, because we have so many years of this pervasive problem. i think he needs to lay down the law. he needs to stop a lot of behavior. he needs to take actions like not allowing anybody to participate on twitter without verifying their email address. there are simple actions that people are not taking because they need to focus on growth, and these are some of them. i wrote a post recently about this. there is a lot of simple things, focusing on making sure that people have the right identity so that they can be authentic. here is a lot of easy things could be doing that they are not. emily: what about president-elect trump himself? he has not taken a break from twitter at all, to the surprise
of many. that came a survey out today saying that most people would like him to shut down his personal twitter account. trump be behaving? should behink he banned from twitter. if you were doing what he did on our platform, he would be banned years ago, because he is calling for harassment of different people, and it's not proper behavior. emily: d you think jack dorsey should ban donald trump from twitter? guest: i think he should have a long time ago, yes. emily: all right. dan mccomas, cofounder and ceo of imzy. thank you so much for stopping by. coming up, hp enterprise and the spinoff hp inc both reported earnings today. this is bloomberg. ♪
emily: you know about black friday and cyber monday, but now ebay is hoping the idea of mobile wednesday catches on. the idea is to get those headed to thanksgiving dinner to buy goods while on the road. slowestthis is the november for online sales since adobe began collecting data in 2012. after the close of hp enterprise and its spinoff printer business, hp inc. reported results. it matched estimates, but there are slowing sales. ceo meg whitman outlined where she sees growth for the company. take a listen. >> with this portfolio, we
estimate we have a total addressable market of over $250 billion. within that, there are areas of iot-growth, like industrial . we are already well positioned to lead in these areas, and you will continue to see us invest in a targed way. prete joinsord del me via skype. crawford, you just got off the phone speaking with meg whitman herself. what did she have to say? reporter: similar to what you saw on the call, what is interesting is made talks a lot about remaking hewlett-packard enterprise. they are a company focused on the enterprise infrastructure space. what people need to get their heads around is that the infrastructure is changing, it is not going away. you have to build out the cloud, build out what's in private data centers. as you just talked about on that clip, this industrial internet
of things -- there is so much data at the edge that hewlett-packard wants to capitalize on. what's different is building a overhead size structure, building a different infrastructure to support a company that is just not as big, and you are seeing that as the company hits its one-year anniversary of hewlett-packard transformation. they have gone through a lot of restructuring. what we are starting to see now is a new enterprise infrastructure focused company emerge and make business choices around capitalizing on better margin pools within that really core infrastructure space. it can be quite competitive. it's interesting, clearly when hp split, not a lot of people saw the election of donald trump coming, and his discussion about m&a yesterday with david kirkpatrick, he said that bigger can be safer in
today's unpredictable what'sment, not knowing really to come in a trump administration. do you think two hp's are better off than one hp with donald trump running our country? guest: i really can't comment on that. you i can focus on is what are seeing emerge in these companies. i have spent a lot of time with both hewlett-packard and hewlett-packard enterprises. if i could sum it up in one word, it's focus. this company, through their focus, has a lot more options, because the sales team is more focused on what they are selling, the products, the absolute amount of time they can spend on crafting the portfolio, that kind of stuff is just stronger than it has been in the past, and you really saw that in the eula packard -- in the hewlett-packard, the hp inc. today, you saw
the systems group growing 4%, and that is faster than the market. what person is in charge, meg on the call mentioned she did not see the likes of having a significant impact on near-term results. longer-term, tough to tell at this point. emily: quickly, what is the progress you expect to see with the cloud, giving the giants that are amazon, microsoft, and google? is going tohpe focus on is helping companies with hybrid cloud infrastructures have the best infrastructure, and they are going to go after the highest margin pools. don't forget that hpe also has significant relationships with folks like microsoft azure, and they want to have profitable deals in that business. that's where you really want to benchmark them, can they be
profitable over time supporting the public cloud? that's really a big part of their strategy. thanks aswford, always for stopping by. coming up, all four major u.s. stock benchmarks rallying to records. the dow hitting 19,000. what does it mean as we look ahead to 2017? and if you like bloomberg news, check us out on the radio. you can listen on the bloomberg radio out, bloomberg.com, and in the u.s. on sirius xm. this is bloomberg. ♪ seeing is believing, and that's why
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united states out of the paris agreement, the recently approved global accord on climate change. during a meeting today with "the said,rk times," mr. trump quoting, i am looking at it very closely. during the campaign, mr. trump called climate change a hoax, threatening to pull the u.s. out of the agreement. partyposition nationalist is proposing to endorse erdogan's bid for more power. it is close to an agreement with the ruling akp party on a new constitution. change the wants to political system from a ceremonial presidency to an executive one. north korea is rejecting condemnation by the united nations on its human rights record. pyongyang says the u.s. is the worst abuser of human rights, and that european countries are committing crimes against humanity.
president obama today awarded the nation's highest civilian honor to groundbreaking actors, athletes, and innovators. tom hanks,ncluded bill and melinda gates, and michael jordan. medal ofdential freedom recognizes contributions to the national interest of the u.s., insecurity, and its culture. i'm mark crumpton. it's just after 6:30 p.m. in new york, 10:30 in sydney. paul has a look at the markets. good morning. start -- we are off to a good start on the dax -- on the asf's. -- asx. the a goody to day with all the resources stocks, rising strongly in london trade. crime results were doing quite well this morning.
this was after australian officials have the opportunity -- it could be two months before charges are related. take a look at some of the other indices around the region. .ikkei futures looking positive there are a few stocks to keep an eye on in terms of earnings. publicld's largest lead -- largest publicly traded jewelry chain's profits fell by 22%, but that is an improvement of the year previous. more from "bloomberg technology" next. ♪ ♪ this is "bloomberg technology." all four u.s. major stock
tuesday, withlied the dow jones topping 19,000 for the first time. however, tech stocks have not been part of the rally, last peaking october 24, two weeks before the election, a high has not been seen since 2000. with investors more confident that the fed can withstand a rate hike and adjust to donald trump, what does it mean for tech m&a and ipo's in the new year? here with me now, president of gmc group. the markets have been on a roll, but tech has not been part of the rally. why is that? hard to say. markets have been up in small caps, in particular. think a lot of the bigger tech companies are multinational in scale, and i think that the policies are's generally anti-trade, those cuts
of things really affect people's viewpoints of the bigger companies, amazon, microsoft, ibm, since those are the largest market cap companies affecting the whole indices. google downook, since the election. to you think that will keep up, or that once we start to see more certainty around trump's policies, that could change? guest: i think it could change. i think the tech sector will probably rejoin this rally at some point. i think we will talk a little bit about ipo's. the backdrop for ipo's is very good. i think people are looking for high growth in the markets today. we see a lot of growth in technology, especially in .loud-based software platforms anurag: -- 2016, pretty dry
years for tech ipo's, and now we have surprises of the election of donald trump and brexit, so perhaps companies waiting for her certainty have not have gotten it. what does it mean for 2017 in terms of ipo's? guest: the backdrop for ipo's has been really good over the last six months. we have had low volatility in the market, five months of inflows into equity funds. we've had generally good performance. sector, for the ipl's that have come out in 2016, the 5%.age ipo is up by 30 in technology, about 45%. so people are making money, and outside of these returns, by betting on new companies in the ipo market. a couple weeks before the election, we really saw an
activity, but as the election got closer, people got more uncertain, and that trailed off. i think we are set up for a much more robust ipo market in 2017. emily: so how many more ipo's? but thet's hard to say, backdrop for cloud deals has gone up significantly. emily: snapchat? guest: that's right. there was a deal yesterday opted in the cyber security space. there's a lot of companies that have filed. jmp securities is an active underwriter in the technology and biotech targets. -- markets. we saw a number of companies left underwriters in the fall. we know that there are a lot of companies lining up to go public in the first quarter of 2017. emily: what about him in a?
will companies get more -- mna? will companies get more inquisitive? advisoryr own m&a businesses up dramatically this year. seen a steady increase in m&a activity. we don't really see that slowing down. a lot of the companies we deal with will benefit, at least from what we are hearing the policies lowere, lower regulation, tax rates. companies that are more domestically focused, said on cap the issues around the stronger dollar and trade policy -- so don't have the issues around the stronger dollar and trade policy, we think so far it is generally positive. emily: one of our editors suggested yesterday that bigger is safer under president-elect trump.
would you agree with that? guest: i don't know if i agree with that. the market does not necessarily agree. the russell 2000 is up 11%. that's the area of the small cap park at -- the small-cap part of the market has been rallying. there is more uncertainty for large global companies that have businesses in asia and across the world with the potential for other negative consequences. emily: any specific sectors within tech you would single out where you would expect to see activity? seeing a lot of increased activity in cloud-based software. we are seeing recent deals. we expect to see a lot more activity in that area. that has continued to be a good
area for investors. jmpk grouper mac, president. thanks for stopping by. a story we are watching, a major ad tech provider, appnexus, has barred breitbart news from using its tools because it says the online publisher violated its hate speech. appnexus says in light of former executive steve bannon being appointed to the white house, they did a lot of the website. they say there are a lot of articles that crossed the line and incite violence. hey pull andt support from sites that spread mixed information. the industry grapples with what the trump administration means for renewable energy demands. this is bloomberg. ♪
emily: apple is making its return to black friday. the check -- the tech giant will have a one-day sales event november 25. this after the company decided to forgo the shopping event last year. apple has not yet revealed what items will be on sale, but the apple watch is prominently displayed on the announcement page. shifting gears to renewable energy, and the weeks following trump's election, energy analysts have tried to guess mean -- industry will what the demonstration will mean for the sector. this week, week -- what the administration will mean for the sector. this week, we got another hand. mr. trump: on energy, i will
create many millions of high-paying jobs. that's what we want. that's what we've been waiting for. but, questions remain, like what will be trump administration due to tax credits for installing solar panels? joining me, the ceo of the largest provider of solar energy loans for consumers. hearing trump's remarks, how do you expect that will impact your business? to heart's been good from the transition team that they don't plan to target renewable energy tax credits, and that makes sense, because seller is one of the most popular things in america right now. 89% of americans support solar, ofut 85% of republicans, 95% immigrants. solar is creating jobs at 12 times the pace of the rest of the economy. of the few bright spots universally popular. i don't think he will go after
it. emily: this is a guy who believes climate change is a hoax, or at least has suggested this in the last few years. there is concern about whether tax credits will be rolled back. how concerned are you? that concerned. ultimately, this is about which electricity sources are best for the country and the economy. right now, solar is cheaper than other forms of electricity. most of the action is taking place in the states right now. the market has taken on a life of its own. actually don't think there's much he could do to slow down solar. emily: is there any upside under trump? guest: there is a lot of interesting investing in infrastructure. solar and transmission infrastructure investment are needed. we are hoping that some of the tax credits will be used to further deploy clean energy. emily: you guys are the leader
in this space, but you've got solar city also providing a similar service. how do you see yourself remaining a leader? guest: we work with almost the entire industry. we are a thin tech -- fintech company where we provide products to almost every major installer in the country. sitting across the kitchen table with someone who wants to go solar, they are using the application to get the customer instantly improved, offer them a loan. we don't compete with those companies, we work with those companies. emily: so how does a solar merger impact you are the industry? guest: we were excited to see those two bunnies come together. we work with both companies. -- two companies come together. we work with both companies. for us, it is a positive thing. we are excited to keep working with them and supporting their business. do you buy into the
sort of end to end energy service for consumers? guest: i do. most consumers benefit by going solar. at most to have driven a tesla know it is a better car than most others on the road. can bundle these together into a single offering and customers to tesla solar and solar customers tesla, i think there is something there. emily: i asked the same question ceo, what is it like being in the same industry as elon musk? guest: i am glad to be on his side. parish, ceo of mosaic, thank you for joining us. tomorrow on bloomberg, the founder of sky bridge capital and member of the trump transition team will keep his behind the scenes account on the incoming administration and weigh in on the latest appointment. tune in.
emily: be a leader, not a tweeter. that's what most voters want from donald trump now that the election is over. a quinnipiac survey found that 59% of those surveyed think they should close his personal realdonaldtrump. -- ng for 140 president obama was the first president to use twitter, and his administration outlined a transition plan for trump to otus handle on@p inauguration day. however, trump's account has more followers than the potus account. hedge fund manager steve cohen is turning to tech to give his pundit match. cohen recently disclosed his stakes in startup companies.
the chief marketing officer joined daybreak america and explained his interest in tech and startups. >> if you want to know what is going on where innovation is happening, it's important to know about startups, and that's what we are trying to do, get to know those companies in the space that are relevant to asset management, which is really a diversified asset management firm. we are really excited to work with those companies to both be a climate -- a client to them and an investor to them. >> said to you drop the money and say, see you later, or do you look for a joint partnership at the end of the day? >> one of the priorities is, can we help them? if we can't help them, there are not a lot of places to get money. we are helping them day-to-day with their most strategic priorities, whether it be introduction to large banks or how to trade or, as a customer, their technology product. it's important to our investment thesis. on the one hand, it's how you
know you are making a smart investment, and number two, it's how you are a great v to these to thesexc -- vc companies because you are able to help them. >> what do you think of steve? in thes really engaged startup landscape. he is very involved, and he is on the investment committee. basically ends up with me and pete, our other partner, and steve having a talk about it, kind of giving his view and having his opinion in that process. him.great to do that with he is a liquid markets investor for 30 years, and one of the interesting things is the lands he brings. he wants to talk about multiples, growth rates, how much are we paying for this? these are things you traditionally don't hear in a vc process. it's very exciting for me. >> how do you value these ?ompanies
are they overvalued? how do you deal with that? mainly value them on revenue, if they have revenue, and there are certain multiples in the market, and if you have been doing vc for a while, you start to understand what those multiples are. over the last year, they have come down in most spaces, the exception being machine learning and artificial intelligence, warby parker's -- where the prices are still very high. very early stage deals, there are kind of accepted norms about what you pay. is a bit of anng active shape. you are betting on something big happening down the road. >> is steve cohen and active faith guide oh? how hard do you want to work -- have to work? >> we have to understand what they've got. him.very energizing for it also helps with his public market investing, because these companies are the ones that are
disrupting the big public companies. stockstrade automotive these days, you have to understand what's going on with artificial intelligence and self driving cars. for us as a firm, it has a lot of different advantages. >> your exit strategy? there's a lot less ipo's these days. normally these companies will get bought by someone along the way. , you justy nowadays have to count on that less and less. point72hat was matthew, ventures' chief market intelligence officer. atg-directv is launching next week without cbs. it is the lone holdout for the service along top media companies, and that would be cable customers. directv is now a package, more than 100 live channels delivered over the internet for $35 a month. tomorrow on the show, our guest
host bob o'donnell will check in with intel security and break down the most hackable holiday gifts this season. what you need to do to secure your connected devices. find out tomorrow. and that does it for this edition of "bloomberg technology." remember, all episodes are now live streaming on twitter. check us out at 6:00 p.m. in new york, 3:00 p.m. in san francisco. that's all. this is bloomberg. ♪
our studios in new york city, this is "charlie rose." charlie: tom friedman is here. he is a pulitzer prize-winning author. he is known for tackling big ideas and wide-ranging subjects. he has a book out which some are calling his most ambitious yet. it is called "thank you for being late." he argues today's world is moving faster than ever and will only get esther. -- faster. a