tv Bloomberg Technology Bloomberg February 3, 2017 5:00pm-6:01pm EST
role requiring advisers on retirement accounts to work on the best interests of their clients. more thanas revoked 100,000 visas since the ban on travel in the u.s. for people from seven middle eastern nations. that is according to a government lawyer who spoke at a hearing in virginia. the u.s. has imposed new sanctions on iran. 12 companies are among those penalized for supporting the missile program. meanwhile, iran is retaliating with sanctions of its own. they say they will respond in kind to the treasury sanctions and have a list of u.s. companies they say support regional terrorist groups. a judge refused a request from a
mexican drug lord. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. ♪ ♪ caroline: i am caroline hyde, this is "bloomberg technology." the resistance continues as tech closes ranks. recruit topility to talent from overseas, our panel debates. the world of daily fantasy sports is hoping to score a touchdown. ng gives usdraftki
his take. snap reveals its complex relationship with google. we will break it down. lead, employers adding 220 7000 jobs in january, the biggest gain in several months. that president trump's next executive order relates to immigration -- many tech immigrationly on status for highly skilled foreign workers. critics say it is a way for tech companies to hire cheap workers overseas. ceo.us, a
the criticism is there on the h-1b said. it is misused. you actually written about this at length. is it the case that it is being misused? requirement is well below the average salary that software engineers, particularly in the technology injury -- industry would be earning. ,here is a great business model they can bring people in with these wages, but this harms the bay area in particular. there is the argument -- yourextent that concern is that if we lifted the minimum wage, we would see a
skyrocketing in the amount that are being paid and pricing some companies out your -- out. >> i think if you were going to compare, you would see a very different look at the kind of people they can hire. as soon as you work to level the playing field, you're going to us.a big challenge ahead of notall, part of what is being said in this conversation is this is not just about tech companies. entire economy is filled with companies that are all technology companies. they all need great tech talent. the pipeline, we will see wages rise and a real shortage for companies that need that kind of high skilled talent. thecaroline: there is a case of throttling be made by michael. you feel there is a way of
changing the h-1b visa? >> michael had some good points. some companies don't have the same financial resources, but if we look at the proposals, the minimum wage would be up to $130,000 a year. people to look at what in the technology industry are being paid. that is well within the range. see a startup being disadvantage. the throttling in different industries is an issue. these are the kind of issues that should be debated. i think adjusting potentially by industry and carving out different requirements for different types of work is something that is worth discussing. caroline: michael, i was reading that 150,000 new jobs per year
are treated in tech. do we really need it 5000 visas to fill that? the talent pool in the united states, is it so small that you need the 85,000? >> sadly, it is. there is a shortage of about 110,000 per year. we are seeing and will continue to see until our country makes it a priority to educate people differently starting in grammar and middle school and high school, we're going to continue to fall short. was sayingh what haj about a minimum. it ensures that the jobs are going highly qualified people and are not taking away a job for someone who could do it here. caroline: it sounds like you are both talking about this needs to be debated, not rushed through.
we need people at the table discussing this with donald trump and congress and the senate. what about your client response thus far? the travel ban, as well. are we seeing people fearing getting jobs? >> with applications from engineers across the world, especially those who have special visa arrangements with the u.s.. australia and canada are examples. it is easier for them to get into the u.s. to work. we're already seeing canada theirto paul's -- pause job search. there is so much uncertainty. caroline: michael, same question. are you seeing a concern from people looking for jobs within the u.s., and your clients, are they looking to hire outside the united states? are they looking for more offshoots? >> we are absolutely seeing this
and have a situation right now where some of these people are trying to rush through a visa for fear it would not be available in a few months. there is fear and panic going around everywhere. i think we don't come up with a at a way to approach this, we are going to see industrywide and economy wide problems we don't have enough people and people are no longer choosing to come here to innovate. there is a story floating around about a gentleman from india who could not get a visa and ended a $7rming what is now billion company in india because he cannot do it here. of course there are a lot of factors that might have been different, but do we really want to drive those kinds of businesses and entrepreneurs from our shores? veryve to look at this closely because innovation is popping up around the world and people will go where the talent is. caroline: a word of warning to
the company to cloud-based subscriptions. announced stan miller as the executive vice president of worldwide sales. the position had been empty for year. large internet comings are increasing their r&d spending. what is behind this uptick? ofning us is a manager internet companies. great to have you on the show. you noticed this trend. i wanted to get your perspective on why. growth ink, 50% operating. that is a big step up. amazon is deciding on things like india, video content, amazon fresh. google has not given so much guidance, but the margins were all of these companies are
almost certainly accelerating their spend. for amazon, the big ones are fresh, getting more video content into customers hands. it is building out the alexa system. vrebook is making bets on and they are -- ar. they have new areas they want to invest in. they do they have reached a point of scale but not a point of maturity in there are a lot of new investment areas. caroline: you mentioned margins. want to bring you to the operating margin of facebook. it has been on a relative upward trend. this is a great piece of bloomberg intelligence. -- vin go into the the i take her. is that going to increase? >> probably not. they can probably keep it where
it is, but they have the same problem as google. their core business is extremely hard -- high margin. for facebook, most things they going to will probably be somewhat diluted, but not dramatically. the opposite end of the spectrum is amazon. >> i am mark crumpton. we want to break in to bring you a video message from president trump on facebook live. >> he is widely respected by aeryone, and the judge has proven track record that makes him the ideal person to fill the vacancy left by the late, great antonin scalia, a truly fabulous justice. two years ago the senate hisimously approved nomination to serve on the 10th circuit court of appeals.
i urge members of both parties nomination, and to support our laws and freedoms. this week we took significant action to roll back the massive regulation that is devastating our economy and crippling american companies and jobs. that is why i have issued a new executive order to create a permanent structure of regulatory production. this order requires that for regulation, two old regulations must, and i mean must, be eliminated. it is out of control. the january employment report says that the private sector added 227,000 jobs last month. that has to do with the spirit outcome -- our country now has. the labor force, participation also grew. you can be encouraged about the progress of our economy. it is going to be a whole new ballgame.
there is still much work to do. that i can tell you. the first day,on black history month. i was pleased to host african-american leaders at the white house. deliveretermined to more opportunity, jobs and safety for the african-american citizens of our country. everca can really never rest until children of every color are fully included in the american dream. so important. i think probably one of my most and maybe my most important goals. it is our mutual duty and obligation to make sure this happens. at dover air force base on wednesday, i joined the family of chief special warfare operator william ryan owens as our fallen hero was returned home. he gave his life for his country and for our people. family, to him and his
a beautiful family, is eternal. got has truly blessed this nation to have given us such a brave and selfless patriot as ryan. we will never forget him and never forget those who serve, believe me. i will never forget that my responsibility is to keep you, the american people, safe and free. that is why last week i signed an executive order to help keep terrorists out of our country. it establishes a process to establish new vetting and mechanisms to ensure those coming into america love and support our people. that they have good intentions. on every single front we are working to deliver for american workers and american families. you, the law-abiding citizens of this country, are my total priority. your safety, your jobs and wages guide our decisions. we are here to serve you, the
great and loyal citizens of the united states of america. the forgotten men and women will never be forgotten again, because from now on, it is going to be america first. that is how i got elected, that is why he voted for me, and i will never forget it. god bless you and god bless america. >> that was president trump speaking on facebook live. "bloomberg technologywe now return to -- we now return to "bloomberg technology." now in progress.
bowl 51 is just around the corner. the annual championship game is the biggest event for the nfl. one company that depends on the kings. draft we checked in with their ceo. an interesting question, because fantasy points typically reward offense. defense a doofus -- position you choose, but it is one of several on the roster. few extratually had a fantasy points and bigger performances. if you factor in the defense, new england has the edge and will probably win. it could go either way. it will be exciting to watch. caroline: what about commercials coming from you?
are you putting your marketing budget to work. there was a lot spent this time last year. is that being cut back this year ? >> we did not do much advertising this year. we've never been -- done a super bowl commercial. it doesn't make a lot of sense, we advertise at the beginning of the season. lester we did a tremendous amount of advertising, starting in 2015. this season, not nearly as much. caroline: for what reason? >> last time, we got some blowback that we went overboard. people working sick of the commercials. -- were getting sick of the commercials. there was a business benefit but we felt like after such a heavy advertising year, it would make sense to not go so heavy the following season. caroline: you are now looking
for new customers in new regions. you have a license for multi-and you're looking into -- license for malta and you're looking at europe. >> we have been granted a controlled skilled gaming license in malta. in europe, if you are a member , and you have a license, you can operate it anywhere as long as the place to operate and doesn't have their own explicit regulations. there are a number of places in europe that don't explicitly operate in the skilled gaming category. we can enter any of these countries, germany is the largest market and will be our first. caroline: a date? >> by the end of the quarter. we will have an announcement soon. caroline: 57 million people
playing fantasy sports. where is your market share? >> we are pretty small. we have about 7 million registered users and about 40% of the customers pay. we are relatively small. we are excited about the future. the next wave will be about capturing the people who bring in their friends. caroline: you are going to be merging with another company that is going through antitrust regulation. where do you stand? >> we are still working to get that through the fcc, and that is something i should probably not get too into because the lawyers will get upset, but it has been very well received by consumers. everybody is excited because there are so many things we've been asked for by our customers, innovative things that i think are really going to transform the game and make it better and
more exciting. we have not had the resources to do it. both companies have been double paying for so many things, recently a lot of lawyers in that category, and it doesn't make sense when you know you could be driving innovation faster, you know you have customers desperately seeking experience and you want to get the hard part is having the resources to execute. what gets me excited about the potential for the merger is we will be able to deliver a better product to the customer then we would be able to as a single company. caroline: those legal fees doubling up, they might be needed to persuade you don't own too much of the digital fantasy space. how much of the market would you own together? 95% or something? how would you convince them? 57 millione about people playing fantasy sports,
and the majority are playing on espn and yahoo! and cbs. we are small relative to those. the daily version of the game is relatively new. yahoo! is the only one in that group that offers it. there is no reason the other companies won't jump into it when he gets bigger. we feel like right now, with 7 million registered users, we're pretty small potatoes. we want to compete with the big companies. we'll want to be a small piece. they want to be a big these of that 57 million playing. the numberabout half of people that claim to be sports fans. with is a lot of room innovation and coming up with new type of creative contest to reach a broader audience. draftkingshat was ceo. coming up, as flashy $3 billion ipo. we will break down everything
president trump and the australian prime minister. >> it is something he's extremely upset with. he does not like the deal, but out of respect, he will allow the process to continue under the conditions that had been set , there will be extreme vetting. deal calls for the u.s. to resettle a group of refugees currently being held at detention camps in new guinea. an investor plans to take a closer look at you in peacekeeping operations. this comes as part of a goal to reduce contributions to the world body. yuans focusing on 16 missions -- u.n. missions. europe will work with the u.s. even if they can't find common ground on a host of issues according to the irish prime minister. he spoke at the eu summit today in malta. >> your president has a
different personality. white europeon cannot work with the u.s.. we have to focus on working together. >> u.k. and ireland will avoid a when brexit is finalized, he says. after 38 years in power, and goal as president says he will s present -- angola' president says he will not stand. as a top oilgeria producer. negotiations to release a doctor that allegedly helped the cia pinpoint a summer bin laden --
osama bin laden is gaining traction. he has been jailed in pakistan for five years. in -- an attack outside the is bringing of y'scerns of the citi ability to host the olympics. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. ♪ ♪ caroline: this is "bloomberg technology." it has been a full week since president trump signed controversial executive orders on travel to the u.s.
this week, he seeks to continue his agenda. addressed concerns in a statement, saying he plans to bring this concerns up in a meeting with the president. what went down behind closed doors? kevin joins us. give us the inside track. taxes were looked up, was immigration? >> yes it was. from of ceos not only silicon valley but the business world and more traditional wall street -- main street nexis. -- wall street-main street nexis. that the sources i am speaking with familiar with this meeting tommy the concerns -- tell me the concerns were made clear at the meeting. there was controversy with the
uber ceo saying he would drop out of the advisory board. this is an interesting dynamic because quite frankly, these ceos spent the last eight years complaining about president obama's regulatory policies, but are now facing criticism from a potential consumers not only in silicon valley but throughout the country who are concerned and disagree with the president's policies, but they still need to engage. that is the tight rope a lot of these folks are having to walk. wereine: certainly, we hearing that the head of blackstone, he was talking about the fact that the uber ceo was not there. are there any other difficult situations? any other ceos under pressure? >> look at walmart. we are around the corner from a
major tax reform package to come out of silicon valley and a groundwork is already being late on capitol hill. they're working with the house could -- health financial house financial committee. walmart is one of the largest retailer to garner an adjustment tax. not only does this impact immigration policy, but also the border adjustment tax. a huge opposition from the retail industry. that is brewing and that was brought up at the meeting. the overarching focus for president trump is job creation. particularly in manufacturing. this is something elon musk has, he says, i can make jobs in america. people working in harmony together. what about the tech situation?
for a flat taxd on carbon, that is something he brought up the other week in his meeting with the central. with elon musk in particular, he i think is one of the folks who has carefully navigated not being perceived as being overly effusive of being a part of the presidents economic council and advisor, informally. he has walked that line because every meeting he has raised criticism, against environmental policies, the immigration policies, and he has walked that line perhaps more than other ceos. caroline: i can't thank you enough. another great interview. thank you for saying late for us.
earlier, we spoke with the andmberg's news editor sarah frier about president trump's executive orders and highlights this week. >> we're getting a strong picture of what his orders are going to be like, what he is going to be like as president. it is like the trump we saw before the election. there have been different reactions. the travel ban sparked a strong reaction across the technology sector, as you have been following every day here on bloomberg. one person was resized as not having a strong of a reaction as other people. that raised the hackles of a lot drivers and customers.
uber could do no right. not revealed that he would be part of the council and would not come to washington. it was more in his interest to leave the council and save the business. we have learned that 200,000 people deleted their uber accounts. that is significantly higher than what happens in any given week. they were still growing, but 200,000 is a big number, and hoover was really listening. i was in an uber last night and my driver told me that he was going to go to lyft. he was concerned about the political ramifications. feel that the criticism from silicon valley
should be taken to donald trump. the silver lining this week, snap, it was official. public.went they have been private for so long. we got to see their revenue numbers, their lack of profit. their loss was greater than their revenue. we got to see their user growth. we get to see how it has been flowing. million -- 158 million. it is a healthy company. it has had an impact on how we communicate. we're sending things more visually now. we are talking to each other in a way that is more raw and natural. snape is not polished like instagram. i am one of the people --
>> i'm a millennial. i think what is interesting from the filing is they are setting themselves up to not be compared to facebook and twitter. don't know if they will get away with that, but you don't want to frame themselves in the same way. they are not trying to conquer the world with user growth. they want to focus on developed countries with healthy mobile ecosystems. their video and image has to work on the phones. caroline: it was a big week not only in terms of ipo's being announced and the public being able to get into the details, but the earnings details like apple and facebook. break it down for us. insaw a significant pop shares. >> there were questions about
the average selling prices for iphones. were people going to go to the lower selling phones. the iphone in shares. >> 7 did very well. the even higher end of the two during that critical holiday season. ofs is where apple get a lot sales. they really came through this time around. caroline: tom giles and sarah frier. coming up, we continue to dive into the latest details from snap's ipo filing. that is next. ♪
cloud services. investors should consider this before buying the stock. for more on the complex relationship, we're joined by mark, who covers alphabet. not just a supplier, but a competitor. is looking in their rearview mirror and rightfully snapfied of snap, because has hit the millennial mindset. aboutis this paranoia millennials not using email at all. there's always a fear that it will drop their products. snap has been developing some services, there are a lot of things available in the app. caroline: is not just youtube or gmail under threat, but the hardware element. we had google glasses and now we have spectacles.
>> spectacles have been more effective than google glass. glass was more serious. understand, snap has a lot of ambition in the world of wearable computing and augmented reality. that is something google has invested a lot of money and resources into. front, ason the ar well. also fascinating is the limitations that using google's cloud computing services could put on the regional diversity of snap. >> a lot of companies are diversifying their portfolio, putting a lot of money with google, amazon, microsoft. snap seems to be putting a lot of money in google. they were one of the earliest customers and our kind of locked in. amazon,ld go over to develop their own, they have a lot of people with experience with that. i mentioned china.
now does not operate with cloud services in china, that is an area where they might turned amazon. , before: i remember microsoft really developed its own cloud, it used amazon web services. there are a lot of frannie's -- fenemies. emies.n >> alphabet is one of the biggest investors in uber, but they are also competitors. they're doing some driving cars and mapping services. i doubt that google is sitting around the board room saying, what are we going to do about snap? i don't think they're terrified of it. -- it is certainly an up-and-coming company they want to watch closely. caroline: keep your friends
caroline: in this edition of out of this world, the satellite imagery company is buying alphabet satellite imagery unit. caroline:in return, google willy satellite images from the company in a multiyear deal. financial details were not release. google changed the name to terra bella. the biggest sporting events of the year is happening this
sunday, super bowl 51, and tech will play a big role for the millions watching around the world. for the first time during the broadcast, users will have the chance to be the player. imagine what it would be like to step onto the field for the biggest day on the nfl calendar. imagine a more. intel is happening viewers a get into the arena by equipping the stadium with 5k cameras, each capturing short video lips that when pieced together, give viewers a 360 view of the game. >> and alas you to see the place of from any angle -- it allows you to see the play from any angle. >> intel claims this technology will revolutionize the experience. not just on super bowl sunday, but every game. last year, they acquired a
startup for $170 billion. intel wants to capitalize on the technology and make the experience even more personal for the viewer. >> in the future, every fan will have a player in which they can get this video format and see whatever it is they want to see on their own and they can pick whatever player they want to be a player for. caroline: sticking with the super bowl, tv ratings could be an uphill battle for fox, who is broadcasting the event. sluggish ratings. walkis could be due to cutting, but fox is taking a new approach, allowing fans to stream the game online for free. joining us now is jason.
jason, you have invested in a number of sports streaming services. the mind boggles, fox is disrupting itself. why is it doing this for free? >> they pay a lot of money, i don't know what they pay for the year, they obviously need to make a lot of money. one way to think about this is that advertisers bring a lot of dollars, in this is one way to make sure the advertising inventory is expanded so they can sell into that. they also have fox go, or online streaming platform. they're using this as a way to bring exposure to that for consumers that may have not heard of it. cbs did the same thing last year. i think they got about 1.4 million viewers. the estimates i've heard so far for this year could be maybe 15 million users watching on the internet. quite a jump. is to whet their
appetite of people who have cut the cord. certainly a unique content asset. as you look at the over-the-top streaming services these days, they are spending the lands of dollars creating original content. it is crazy. why are they doing it? in the that some part of that portfolio will be compelling and will draw people in and hold them. with sports you have essentially errant teed drama. that is why you have companies like cbs and turner with march madness, i think it was $9 million to 2032. it is a long ways away. is one of the things holding people to their cable packages. i think starting this year we will see more compelling offers
like skinny bundles that really for the first time, give sports fans national and regional coverage of the sports they really enjoy and give them the freedom to jump away from cable or they have not done so far. caroline: in the united kingdom, toy launched an entire tv get people on the internet and mobile phone. i think sports is one of those things where people have time and again been willing to pay for it, whether it is to get access to packages. the sunday ticket, which directv has had for many years, has had a homework -- has been a hallmark. sportswant to see online. media, wantingg
to get people to watch sports in more laces. -- places. i think there is an appetite for paying on sports. there is also a massive business model advantage when it comes to the viewing behavior. this is the one type of content people are still watching live. there is no such thing as a binge walking -- watching sports. you are going to watch the advertisements. like netflix, if they were going to incorporate sports, you are not going to turn off houses cards. will cable still be outbidding the top providers in five years time? >> i think it will go slow
because you have multiyear contracts. i think you will see these bundles draw more and more users. --y will become essentially there will be other bidders at the table. caroline: the competition gets even fiercer. it has been great having you. enjoy sunday, as well. now, that is it from "bloomberg technology." enjoy your sunday, this is bloomberg. ♪
>> from our studios in new york city, this is "charlie rose." charlie: we begin this evening with a look at politics. less than two weeks into his presidency, president donald trump continues to ignite controversy. earlier in week we abrutally fired acting attorney general sally yates after announcing that the justice department would not defend the administration's immigration ban in court. yesterday there was a twitter exchange accusing the iranians of ingratitude for the nuclear deal with the west. today president trump
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