tv Bloomberg Technology Bloomberg February 24, 2017 5:00pm-6:01pm EST
trump told conservative activists there will be no more big of the national trade deals and promised to take a tougher line on trade. seven g.o.p. governors are calling for changes to medicaid. they are also urging washington not to scrap obamacare without a viable alternative. they want congress to adopt an alternative to change medicaid from an open-ended federal entitlement to a program designed by each state. the proposal saturday. authorities have been the last holdout from the protest camp in north dakota. there is tons of debris to be cleared. a highway bridge remains closed at a court battle hundreds of protesters remain in the area. democrats invited immigrants to president trump's first address to congress in an effort to put a face on people potentially hurt by the administration's policies. they include an iraqi american doctor who discovered elevated levels of lead in children i and
a pakistani-four dr. that delivers critical care. global news 24 hours a day. this is bloomberg. ♪ cory: i am cory johnson and this is "bloomberg technology." the bad week takes an ugly turn. the company accused of stealing intellectual property from google. it all unraveled with an email. we will tell you that story. peter rawlinson has a next act, inventing a new electric car. you've got to see this cool ride. goes were no other student service has been before. and oscar nomination.
but first, to the lead. we began with one euro crisis p.r.ber that got worse -- crisis for uber that got worse. board members were unhappy with the investigation. waymo filed a lawsuit against uber claiming it still designs -- stole designs a discovered when waymo was accidentally cc'd in an email. eric newcomer joins me. tell me what happened. >> as google tells it, a supplier sent them an email. they opened it up and see this circuit board that looks similar to their own system except it is labeled uber's auditing. i think that is where they begin to get tangible evidence. cory: i will call it google. >> a lot of brand confusion.
cory: google gets this circuit board in an email and it is the wrong file meant to be sent to uber. knows the guide was one of the important developers quit and started his own company which was quickly acquired by uber. >> right. anthony is now the man of the hour. we learn a lot from this lawsuit. he talked to uber before he started auto. , hisogle points out self-driving trucking startup has taken over all of uber's autonomous team. they are in charge of the self driving cars in pittsburgh that were kicked out of san francisco and all of that. cory: let's go into more detail about what came out of the lawsuit. about this was not a case of documents being backed up or they were on a usb drive. this is weirder than that. >> the picture they pay is much
more intentional. this is anthony going in and downloading 14,000 files onto his hard drive and then taking those with him. and then changing the operating system to effectively reformat the drive. cory: he has a company laptop. he brings in an external drive. he pulls a bunch of stuff onto the external drive, disconnects and downloads a new operating system on the laptop to erase all traces because if there is any company in the world you can fullback technology, it is google? he stopped using that laptop and moves on to other ones. that is the case. spent manyns, google thousands of man-hours putting together these different designs. i love that they talk about the unused designs, the ones where they went down the wrong path.
lidar.et's talk about it is not relating to a polygraph machine. is akin to radar, radar using lasers. >> these are the lasers the self-driving cars send out to get a picture of the world. google did some work to figure out its own way to sense where theything was an position tree, the dog running across the street, so they would have an advantage over other self-driving car makers. cory: lots of companies are using lidar. we will have a company on later in their easier to drive car with all sorts of tools. these were particular designs the company was trying to own over all of the competitors in space. >> is either trade secrets. this is are they -- these are their trade secrets. this is how they are supposed to
have an edge in turn this into a business. i'm not a lighter expert -- lighdar expert. to gets it positioned the most information efficiently? and then there's the matter of price. we have not talked about the supply chain part of this. you have to acquire the pieces used to manufacture this and figuring out the proper supply chain gives an advantage over another company to have to spend months figuring out the supplier network. cory: i was born in michigan. when i was a little kid, cars were everything. everybody else was in that business. there are all of these little companies. there was room to start up companies to create the windshield wiper or the light on the mirror. it was a different company. now you have got not just google and uber and tesla. but you have delphi, ford, g.m.
and they are all hiring in silicon valley going after the same talent. >> it is hard for a small self-driving car company to stay independent for long. what is interesting is we don't think of uber as a small startup anymore. if this were a tradition of case, people would be more disturbed google was going after uber for trying to make moves. for his crazy here is it is a true trade secret case, an employee stealing what google alleges our trade secrets. cory: doesn't google have an investment in uber? uber uses google maps. >> uber is still reliant on google's maps. they are trying to move away from them. sort of a friendlies -- fe renemies turned into pyrenees at this point --.
pure enemies at this point. cory: place that rewards theormance over fairness, suggestion is it has run amok. you have a woman being harassed --her boss and she has told is told the employer is a heart performer -- high performer. the suggestion is the ends justify the means none of that is fair. but that is what this looks like. >> they are two very different cases. uber is owning it and investigating it tried to figure out what is going on and how culpable they are. eric holder is insisting he is independent and has full prerogative to question everything in the company. on the self-driving car part, uber is defending itself and saying they did not do anything wrong. this is a crazy lawsuit, we will fight in court. inhink the responses
situation are very different in the cases. cory: uber is a big swinging company. they go after things in a very different way. grateful for their service and the entertainment value they provide me. thanks for keeping us straight on all things related to uber and beyond. capitalizing on u.s. expansion. in announced an aggressive push to 54 new cities including birmingham, alabama. that puts it in nearly 300 cities nationwide. $20ng up, peter thiel's billion data mining company is spreading its tentacles across europe. all episodes of "bloomberg technology" are now live streaming on twitter right now. check it out. every weekday, 5:00 on wall street, 2:00 on west coast. this is bloomberg. ♪
cory: the sec put strict rules on charter communications in its time warner acquisition. he's looking to ease the requirements which might be disconcerting to people that thought they were necessary. they had demanded charter build broadband connections to 2 million new locations including 1 million and places already serviced by competing providers. therding to fcc official, was a dropped part of the requirement the company already agreed to. move shows they may seek to revise or eliminate other conditions on charter as well. the data mining company known for being rich and part one
secretive the less private and secretive, not unlike its founder. us onher cofounder joined what they are up to. this is a fascinating company. we don't know a lot about it. may be because the first customer was the c.i.a. or n.s.a. >> it was the c.i.a.. part of the reason we don't know much about it is it is not an apple on your phone. this is a geeky data mining company. disparate setsf of data from all over the place and minds it for meaning -- mines it for meaning. the net result depends on who is using it and for what purposes. they have government customers and a bunch of commercial ones were recently. cory: the story the company tells about itself is meant to sound the oracle. oracle's first customer was the c.i.a.
it went on to sell to corporate america and become the backbone of every company from c.i.a. to bloomberg that use oracle. it seems this is a secondary notion of that. now you have all of this data. palantir can figure out what it means. >> a little different in that what it sells is not so much the database. it is about connecting all of oracle to other people's databases and silos left over from the 1980's and 1970's for the government and connecting it together and mining it for patterns where humans might overlook it. for example, let's take its use in the special ops division in afghanistan. it pulls together information about a terrorist, for example. drone footage, information gathered about individuals suspected of being terrorists dating back decades, as well as
weather conditions, and on the ground footage as well taken live from cellphones. cory: cellphone data, drone imagery, video data, old textual stuff. it can take all the stuff and create order where there is not any. >> exactly. it can do the same thing for her bickeringer she's, out who is buying it, how much, what the weather is like when sales are great. how that tracks with marketing and advertising. cory: let's look at europe. >> they have been growing like gangbusters. they had tripled their business there every year for the past three years in large part because of that growth they are on track to be profitable this year. cory: is this real? i have not used it.
we hear about these things. i wonder how the stuff gets used. i cannot think of any great technology i have heard about and reported on until i use the thing. data inot actually find this spreadsheet or whatever. >> that is a good point. that is one of the reasons they keep engineers on site for the setup because there's a huge amount of customization that comes into play. it is not just a set it and forget it software program. it does not work unless the data is flowing into their platform and people are using it properly to ask the right questions in the proper way to pull out information they want. havese of that, they have had a high burn rate because they've had to employ all of these humans. cory: is it going to be easy to use like a microsoft powerpoint or will it be like crm that was so hard to get up and running
that customers spent millions of dollars before they could turn it on? >> that depends on the customers as expertise as well as how well the training goes and the like. cory: we shall see. it is a fascinating notion. it could be an interesting company. we appreciate your coming. two companies are deepening ties. they are doing a joint investment venture. 54.5% stake in one of the existing subsidiaries and spending $609 to do it as both groups step up investments in the technology sector and consider expansion in the united states. the deal reportedly expected to take effect on march 1. the stock we are watching, hewlett-packard enterprise. the biggest share plunge since october of 2015. the same time the company officially and else a split.
time, too. interesting times where you have companies like j.p. morgan talking about using consumer data they get from their customers to offer new financial products. and some concerns from authorities about how personal information is being used. what do you make of this? >> i think it is fascinating to watch. if it was not so harmful, it would be kind of funny. we are seeing a texas two-step. the big banks and brokers are doing two things. number one, they have descended on washington and are trying to repeal or delay the fiduciary been something that has worked on for six years which is very simple. it says if you are selling a retirement account like a 401(k) or something like that, you need to do so with the best interest of the customer in mind rather than just lining your own pockets. cory: imagine.
>> imagine. that is number one. number two, they say the consumer should be able to figure it out themselves. piece just say the second is they are trying to restrict the access customers have to their own financial data at these banks and brokers so how can the consumer figure it out on their own? it is to protect substandard products and high fees. cory: it is interesting. it is the worst you worry about. obvious, you should not sell your customer something that will hurt them. you would think that. industryle work in the look at a new rule as going to empower more lawsuits. it is not really protection, it is a regulation.
>> yes, it probably will empower more lawsuits. but when it does, it is probably a good thing. fidelity which is by far the biggest provider of 401(k)'s in the world were sued by their own employees over the fees within their own 401(k) plan. you know? attitudeo change the of banks and brokers towards being something to where we are trying to work for the best interest of the client. cory: tell us about what personal capital is. >> it is not a roble advisor. we are not a robo-advisor. we get linked into that category. it is an investment service that you can buy online and it is all done without rhythms. we have software algorithms. we are digital.
we mary that with human advisors. it is the way to go. it is the magic formula. deliveryt defines what of financial services will look like 10 years from now. cory: it does take the notion that people want advice and do not want us to go online. our friends take the opposite approach. they say the millennial customer does not want someone to talk to. they find they get in the way. they want to go online and get their money safely invested with low fees. >> i think for a lot of people, that is right. robo-advisorsnk are good services for people who have relatively simple finances. once you have complicated finances, once you are building your family, you are thinking about owning a house and retirement in putting the kids through college, when you are in
that situation, you really need something far more sophisticated. cory: just 30 seconds left. when we have low fee structures possibilities like personal capital, like vanguard, like robo-advisors, do you think eventually the jamie will run upe world against it because they are running fundamentally higher fees? >> the whole world will have to adopt to the new realities of the fact we are in a digital age. cory: bill harris, always good to see you. glad you are still around, guy. mores raised $500 million in pronouncing. the company plans to use the money to expand internationally. the new funding brings the so
former president obama's health care law at a meeting today. ohio was among 31 states that expanded medicaid under the law. president trump says there will be no more big multinational trade deals in a speech to conservative activists, the president promised to take a tougher line on trade. president trump: we are going to make trade deals but do it one-on-one. if they misbehave, we terminate the deal and they come back and we make a better deal. none of these big quagmire deals that are a disaster. just take a look at nafta, one of the worst deals ever made by any country having to do with economic development. >> president trump also blasted the news media for using unnamed sources and promised to start building a wall between the u.s. and mexico soon. the french financial prosecutor's office has decided to open a judicial inquiry into aid given to
family. the former front-runner admits he hired his wife and children but says the jobs were real and the practice was legal at the time. marine le pen is refusing to be questioned by police over a fake jobs scandal. she has rejected a nonbinding summons from investigators. they are investigating her use of european parliamentary money to pay for party work. the international olympics committee is suggesting further adjustments are needed in the way olympic hosts are chosen saying the process produces too many losers. the changes could result in the 2024 and 2028 summer games being awarded in september. los angeles and paris are the remaining candidates on a list that began with five cities. in what could be a major break for bill cosby, a judge ruled today that just one of the several accusers can testify at his trial. the 79-year-old tv star is set to go on trial in june, accused of sexually assaulting a former
temple university employee in 2004. in asia, malaysia says a chemical weapon used to kill the exiled half-brother of north korean dictator kim jong-un according to a preliminary report the vx nerve agent was found on his face and eyes. he was killed in kuala lumpur last week. andomats, colleagues, relatives gathered in moscow today to attend funeral services for russia's longtime ambassador to the united nations. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. i am alisa parenti. this is bloomberg. ♪ cory: this is "bloomberg technology." i am cory johnson. we have been discussing a rough week for over. -- uber with a sexual harassment claim and waymo
alleging the theft of trade secrets. >> it does seem like google is sort of kicking over while it is down. they have had a terrible week. exposed anthony who left in generally -- january to start waymo -- cory: he was profiled in "the new yorker" and the embodiment of silicon valley trying to do impossible things. >> very brash, very ambitious. he started this at the university of berkeley. 510 and was working on it on the side with some of the same technology waymo is accusing him of stealing and taking to uber. like radar with lasers. >> is fairly expensive.
costs are coming down dramatically. i think google was paying upwards of twice as much, $64,000 for some of the original models. the timeline for thomas vehicles is far away because to make them commercial, the equipment is expensive. the costs are going down. that might be uber's have to say we would ditch the stuff google says was stolen and build our own lidar from scratch. goodwill said you cannot take our guy and i were files. >> it took years to develop it and it took you a matter of months. what is fascinating about this is if the allegations are proven true, he downloaded 14,000 documents. you did a search that tripped
him up. serverched this external to the computer. this is google you are working for. they know how to track what you do on the computer. they know what you are doing online. you might have wanted to be more discreet about it. if these are true, these are allegations at this point, but an incredible digital paper trail left behind by the sky. -- this guy. fall.tesla stocks the company is going through $1 billion in cash and a quarter. they have announced plans to spend another $2.5 billion before the year is out, before july. and even then, they only have $3 million left in the bank. that is not a great time for the stock to get crushed. >> it is not looking like people are that concerned about the cash pile so much as the product roadmap. they have these ambitious production rules.
are those overly ambitious? there are still questions about the solarcity deal. cory: that is tom giles and mark rogan. what do you do after you create the tesla model s? if you are the former lead engineer, you start your own car company and call it lucid motors. the first lucid car is the air. it is electric. 1000 horsepower. . slated for full production in one year. he brought it to our studios. i asked him about taking his express with tesla to start his own company. >> the goal was to prove the viability of the electric car and show the benefits of going electric to prove it was not just possible, but an electric car could be superior to its existing internal combustion engine counterparts. superior in so many ways.
instant torque, comfort, so many dimensions which have not been perceived possible. cory: torque alone, that initial speed from the tesla model s and roadster, fantastic pickup. >> the roadster proved that. it was transformative. it exploded the myth that an electric vehicle was like a golf cart. issue of the reliability, distance, also started to loom large. has been around for many years. cory: you take wrote learning and create this. what am i seeing? this is a beautiful car. >> this is the next generation electric car. this is taking it to a new level. cory: what do i see?
what is special about it? >> so many things. look at the lighting system. it is revolutionary, developed in-house. this is a macro lens array. we are taking inspiration from insect eyes. each module has 487 individual lenses. we have nearly 10,000 micro-lenses powering the lighting system. this gives us significant advantages in terms of safety and efficiency. it also transforms the look of the car. cory: it is really cool. the glass goes high. talked to elon musk about the difficulty of designing this to give you a better view but more light in the face. the windshield wipers are an issue. >> it can reduce the infrared transmitted and the ultraviolet down to about 1.5%. this.o have
i think this gives the best of both worlds and an area feeling feelingfeeling -- airy synonymous with the name of the car. cory: where are you in terms of production? what is the schedule like? prototype made to look production are presented give. it will go to production in 2019. our first year, we anticipate making maybe 8000 cars. we will not be demand constrained. we will be constrained by our ability to mass produce a quality product. we can gradually ramp up production and maintain excellent quality. cory: from a design standpoint, the model s looks the same three
years into production. i don't mean to be critical of tesla, but after three years it needs refreshing. what is your approach? you can tell me i am wrong. >> it is an interesting point. the model s is quite traditional in its design from the get-go. it was styled as a traditional type of design. here we are taking what is possible in electrification. we have this long car and we have a new proportion and a new look to the car altogether. cory: agreed. is this going to have to change every two or three years? >> i really believe a great cann is timeless and endure the years. corvette was cool but
there were changes. >> that is a possibility in the future. we are going to make them in the state of arizona just south of phoenix, north of tucson. cory: what are the advantages of making it their? >> it is closer to our base in california and a great location. it has all the infrastructure. it is close to the interstate network. it has a real head -- railhead. cory: i'm intrigued by the fact that not just tesla, google, g.m., they, delphi, are all hiring silicon valley. they are at electrification of semiautonomous- cars. it is harder to hire the best people. >> exactly. it is a hot spot for talent internationally know. everyone is racing to silicon valley. there is an explosive impact
because we are seeing deflation of the electric car and the emergence of ridesharing autonomous driving. it does make a challenge greater because we have to think ahead to this new era of luxury mobility. we believe this car fits the bill ideally. cory: i wrote in the car. the coolest thing is the glass goes on the way from the back to the front making it pretty hot so they will have to work on it. it is still a work in progress. the rear seats in the back, i'm 6'5" and i was able to tilt all the way back. it is an adjusting vehicle. they have some work to do. tesla. competitor to interesting development from the c.t.o. of lucid motors. next, we take to the skies. talk to the head of a drone company that has won the backing
it is one of china's largest players in domestic online lending. now for an in-depth look at the drone industry. get a drone skyhigh our map -- air map for drones. $26 million in funding was led by microsoft, qualcomm as well. from. ben marcus with us l.a. and alan levin joins us from d.c. what are you going to do with the new money? how is your business going to change? elping millions of drones navigate today. to a more consumer focused business, we need more autonomy in the vehicles. operatehelp more drones more autonomously and extend our services around the world. cory: give me some context for this business. it but youcan do
have a different view of where they sit in the space, if you will. i think it is fair to say we are all waiting on new regulations that will allow this to happen. f.a.a. has opened the door. there are tens of thousands of people now in this commercial space. but it is very limited. you cannot fly over people. you cannot do that kind of autonomous flight we are talking about. it is still kind of a work in progress. cory: i was on vacation recently and were a bunch of tech geeks around. the rezoning so many drones and so many different kinds. whether thee regulations will be there or not. millions of drones operating today. most are around aerial photography and videography taking photos of friends and family and now moving to the
enterprise, industrial inspection. there are myriad use cases already underway legally and safely. see therender if you are going to be successful businesses making drones. this seems the making of drones is a commodity business. on the other hand, the company had a snap drone that was cool and seemed to be head and shoulders above a lot of competitors in terms of things like safety and ability to reassemble when it crashes. >> a lot of people say the hardware business is a commodity. i think building a drone is a very complex, integrated device. you have to be good at areas, flight control systems, motors and propellers, controlling's, video links. it is a complex, integrated vice. there are not many companies that can do it well.
are they still stuck on the stuff they started talking about two years? ago? ournew issues coming up -- new issues coming up? >> i think we are are well long from where we were two years ago. at that time, the industry was frustrated at the slow pace. in the last two years, we have seen the explosion of new rules expanding uses. what the industry really wants to do is fly long distances to allow robotic or autonomous flights and then to fly over people. the drone you mentioned is a good step on how to get there if you can create a drone that breaks apart if it hits the ground or a person and does not hurt them. that is the sort of technology they are looking for to try to expand this. cory: you have seen this snap drone? >> i have heard it described. cory: do you have one, a drunk?
>-- a drone? >> i do not. in d.c., they are not permitted because of security concerns. cory: our drone reporter does not have a drone? >> i am ashamed. sorry. cory: i did not mean to call you out in public. that speaks to it. that is the problem you are trying to solve, the management of multiple drones when they seem unmanageable. >> i think there are practical solutions to a lot of these problems. one of the issues identified in trying to get drones to flyover enforcemente law community was concerned they may not be able to identify the operator of the drone remotely. there are relatively simple solutions to that. they are available in different chunks depending on the type of operation. i think when the industry can get around standards for those solutions and persuade
regulators this is a safe way to operate, we will be there. i'm expecting this rule will be involved in the summertime and we will see more flights over people. you: besides the fact that are awesome and the air map is awesome, what does it mean that microsoft and qualcomm are invested with you? >> microsoft is a leading technology company around cloud computing, enterprise services, qualcomm is looking at extending its mobile phone into the autonomous drone. we are excited to work with these technology partners to bring about the future of unmanned aircraft in everybody's daily life. cory: it is cool stuff. thank you. titan is up.e tech two tech titans are up for academy awards, six in fact. we will talk about that next. this is bloomberg. ♪
♪ cory: a big weekend ahead for hollywood, the academy awards on sunday. some familiar names. there is a new player grabbing attention. reporter: the biggest winner at the academy awards show might be a tech company. for the first time, an online video service is up for six oscars. including the top prize, best picture. you're probably wondering who. the answer, amazon. last year, the tech giant acquired "manchester by the sea" at the film festival. the price, $10 million. the film grossed $61 million worldwide. >> what we are really about in
film's movies you are going to care about, movies that you will talk about, and movies you will remember. we are looking for visionary films by visionary filmmakers, stories that are smart and interesting, set apart from the crowd. reporter: it is amazon's hollywood approach that has the makers intrigued. for this partner, it partnered with roadside attractions to distribute the film to cinemas keeping it off its amazon prime video service for a theater-first strategy. a win could give amazon a leg up on the other streaming giant, netflix. netflix is no stranger to the academy awards. earned its first oscar nomination in 2014 with a feature documentary. all of the streaming nominations have been in the documentary feature category. netflix says it is not interested in offering a theatrical run and would rather push content first directly to subscribers.
but amazon's strategy may have an advantage for the long haul. since it owns both the movie and streaming platform, it can offer its prime subscribers access to "manchester by the sea" globally and indefinitely. cory: that does it for this edition of "bloomberg technology." monday, we will be broadcasting from the mobile world conference in barcelona. talking the c.e.o.'s. that is it for now. this is bloomberg. ♪
♪ announcer: from our studios in new york city, this is "charlie rose." jon: good evening. i am jeffrey toobin filling in for charlie rose. democratic state attorneys general have emerged as powerful forces fighting president trump's agenda. leading is
eric schneiderman. his office is fighting the immigration ban as well as president trump personally in the now settled trump university lawsuit and his continuing investigation of the trump foundation. i'm pleased to have eric schneiderman at charlie's famous table. dhs this week
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