Skip to main content

tv   Bloomberg Technology  Bloomberg  April 12, 2018 5:00pm-6:00pm EDT

5:00 pm
gas attack in syria. sanders says officials are assessing the intelligence and are engaging in talks with u.s. allies. president trump spoke to british prime minister theresa may and french president emmanuel macron to discuss the situation. meantime, the rush to move biological samples out of syria during the attack may have yielded results. od fromorts urine and blo bodies collected in douma have tested positive for chemical weapons. we spoke to reporters today after an emergency meeting of the security council. the aggressive policies of some governments, council ing,ers, are hav
5:01 pm
preparations they are making. nebenziabassador added the first priority is to avoid global war. i'm mark crumpton. ♪ emily: i'm emily chang, and this is bloomberg technology. coming up, unfriending facebook. privacy concerns on the social media site are taking a toll, with users deleting profiles at an alarming rate. bitcoin back on the move. the cryptocurrency shoots up within the hour. we will chart the reasons behind at. a look into what could be the future of sin tech. the future of robots taking
5:02 pm
advisory roles managing wealth. concerns about facebook privacy is taking a toll. a research group conducted a survey to find out how serious americans are taking it. nearly 1 in 10 americans have deleted their facebook account on privacy concerns. about 35% say they are using less than they used less than . co-founder mark zuckerberg testified on capitol hill for 10 hours over two days over the latest crisis surrounding cambridge analytica and russian election-meddling.. joining us from vancouver, elevation managing partners director. here with me in new york, sarah frier, who just flew in from d.c.. what are lawmakers doing? now?is facebook doing
5:03 pm
sarah: during the 10 hours of testimony where zuckerberg says , i'll have my team now? sarah: during the 10 hours of testimony follow-up with you on that -- now that is happening. there are questions from congressional staff. now facebook has to go through an answer them all. it will take longer than the five seconds zuckerberg had to respond. emily: and he said "i will have my team follow-up with you" many, many times. how satisfied are you with what you heard from mark zuckerberg, and how satisfied were you with the questions from lawmakers? >> i would give both mixed results, for concerns about the structures of the hearings themselves. in the senate hearing, in the first hour and a half, there were at least a dozen different issues senators raised, areas of really serious concern, and that helped mark respond. he did not have to worry about prosecutorial technique being
5:04 pm
used on him. he could say, i will get back to you, and move on to the next topic. the problem with that -- and this is where i think he has a real issue -- facebook may be like a rock, but this scandal is like water pouring over it. rock.l erode the the trust in facebook is in severe jeopardy right now. mark and cheryl have no one to blame but themselves. they handled this thing in a cavalier fashion. we are talking about democracy, civil liberties, the rights of human beings in places like myanmar and the philippines. they have to be more focused. emily: that said, mark zuckerberg told us it hasn't had a meaningful impact on usage. sheryl sandberg told me and sheriff friar only -- sarah frie r only a few advertisers have cut spending.
5:05 pm
roger: i don't know about the survey, it is easy to say whether you have deleted the app or haven't. i would be stunned if we have not seen a change in usage at the end of the quarter. i think the erosion of trust is so staggering at this point, from facebook's point of view, it goes after what the business really is. i think they have forgotten they don't have a birthright here. they require consumer's willingness to work with them. mark's response to those questions, particularly senator durbin's question about his hotel room, would he diagnosed where he stayed -- he divulge where he stayed, invasions of privacy, those things are a tel l. these people view us as fodder for profits, not even as
5:06 pm
customers or human beings. emily: something came up specific times in the house, where i believe the questions were better formed than the senate hearings. how does facebook track users, including users who have never facebook in the first place? take a listen to that exchange. >> you are collecting personal information on people who do not even have facebook accounts, isn't that right? congresswoman, i believe -- >> yes or no? >mr. zuckerberg: i don't believe that is what we are talking. >> you acknowledged you are doing that for security purposes. you are collecting data outside of facebook. likesomeone has a facebook that borchert that, -- like or share, that data is being
5:07 pm
collected by facebook, right? mr. zuckerberg: yes, in order to share with your friends -- >> so for those that don't even have facebook, i don't think the average american understands that. emily: roger, isn't it true other internet companies do similar things, like google, and if true, what is so bad about this? roger: i think there are a million things wrong with it. yes, lots of companies do it. i use an application on my computer to block these trackers. for every application, there are 10 or 15 different trackers they are trying to insert into my browser as i travel around the web. the whole thing is a massive invasion of privacy predicated on a lie, on the notion that none of this is going on.
5:08 pm
as consumers understand the degree to which they are being used as fuel for business models for which they have no real benefit from, again the trust erodes much further. it goes beyond facebook. as consumers understand the facebook is in the crosshairs because its impact on elections is so great. but in everyday life, google has a profound impact. things like instagram, snapchat, and especially youtube have an unbelievable impact on society and mental health. sarah: one of the reasons people are upset with facebook in particular is because facebook is saying, you are in control of your data -- we built this for you. it is all about you. this questioning from caster really caught at the point from djokovi zuckerberg, it is not te
5:09 pm
customer's choice when they don't even have accounts. roger: you are exactly correct. wasesentative pastor --that the opposite of grandstanding. those were brilliantly informed questions from a legislator charged with attacking the public interest. we all owe her a massive note of thanks. she literally a couple dozen other members of congress did us a public service. they exposed a lot of the nonsense going on. representative sardines asked representative sarbanes asked important questions, senator klobuchar, senator kennedy -- the problem asleep.we were
5:10 pm
we love the products, we love the convenience, we love the kitten photos,we love the but io monetize that, these companies had to get into surveillance. it is every bit as intrusive as a spy agency is, and they are not doing it in the national interest, but in their profits. emily: sarah, you are following up on interesting things like cambridge university and what mark zuckerberg has to say more broadly. what else are we, the bloomberg news team, looking into? most importanthe points in the testimony is a.i. will solve everything, all these questions about whether facebook is treating content the right way, whether they are taking hateful content down fast a.i. as aey offered to that.
5:11 pm
a.i. is trained by humans with the same biases as the rest of us. it will not end well. emily: sarah frier, thanks so much for stopping by. great work covering these hearings. coming up, to that. a.i. is trained by humans with the would you pay for facebook? we discuss the policy of subscription-based model. that is next. this is bloomberg. ♪
5:12 pm
5:13 pm
mr. zuckerberg: yes, there will always be a version of facebook that is free. it is our mission to connect the world and bring it closer together. we believe we need to offer service that everyone can afford. emily: thatw was facebook ceo mark zuckerberg testifying to u.s. senators, confirming there will always be a free vision of facebook.
5:14 pm
-- free version of facebook. does that mean there will be a paid version of facebook? roger, you have been advocating facebook to have a subscription-based model. on the other hand, sheryl sandberg told me the business model is not going to change, leverages targeted as to us in order to deliver a free version. how realistic do you think a subscription model is at this point? roger: i honestly don't know. i have been baffled by the way mark and sheryl are looking at this problem. they seem to think only their perspective matters in this, that there is no national interest, there are no other companies that should somehow come before their own. the beautiful thing about because it is a giant
5:15 pm
network, their ability to implementnetwork, their abilityo implement a subscription service at low cost is really easy. in fact, they have the opportunity to be the comcast or court -- of cord cutter. they could be the hub for everybody's media. opportunity to be the comcast ay pay for it? roger: we don't know. we'll think that is the concern. why is the concern that facebook's profits keep rising? if the 2020 elections are interfered with in the same way 2016 was, we have to ask about facebook. why is this not a national security interest? emily: mark zuckerberg said many times they are working on ai, several tools to prevent what happened in 2016 happening in the midterms this year. how convinced are you that it won't happen again?
5:16 pm
roger: i am not convinced at all. they did one thing last week, which i am proud of -- they implemented a commitment to be honest ads act, which requires identityad explicit for who pays for the advertisement -- it requires true identity. that is very valuable. it only addresses a small part of the problem, but that is the first time since the 2016 election that i have done anything to prevent the amount of interference in 2018. ears, you guys have been moving fast, breaking things, apologizing, and acting as if nothing has happened. we are past that. we have to see substantive change, and if we don't, regulators will have to step in in a big way.
5:17 pm
if i were facebook, i would embrace the data regulation going into effect. that is a good start for individual privacy. on the national security thing, i don't think they are remotely prepared to do this. they cannot have employeesprepa. they cannot have employees embedded in campaigns anymore. that was so asymmetric. they will have to pull themselves out of election politics as best they can. at the moment, they provide a substantial advantage to anyone who runs an inflammatory campaign. because facebook engagement is driven by fear and anger, things that appeal to fear and anger -- times as much17 reach per dollar spent. there is a sense we are
5:18 pm
only scratching the surface right now. what are the chances there are many more cambridge analytica type situations out there? roger: we are going to find out. what i can tell you is i am already aware of a number of things that happened in 2016 that are not understood. the role that facebook employees played in the jump campaign. the evidence is mounting they played a huge success in the trump campaign, taking data cambridge analytica misappropriated, working on the have the trump campaign -- on behalf on the trump campaign. six months later, facebook was happy to be working happy to bh
5:19 pm
the same data. zuck is going to have to work hard to convince anyone that was not going on, wasi -- going on, it was so public. more or less everyone in the united states was harvested dozens of times, and that data there, and we don't know who is using it or for what. and facebook does not know at this point because this stuff has escaped. emily: great to hear your thoughts. roger: emily, you are the best. emily: you are the best. vancouver, thank you. the home pod has not turned out to be the next big there, and 'w who is using it or thing for apple. dominated a market by amazon's alexa smart devices. coming up, can we call it a domd by amazon's
5:20 pm
comeback? bitcoin surges the most since it's december high. you can listen on the bloomberg xm.o app and on sirius this is bloomberg. ♪
5:21 pm
5:22 pm
emily: bitcoin surged more today than it has been a single day since december. the cryptocurrency closing in on $8,000. here to talk more about the jump, bloomberg's caroline hyde live from london. talk more about what is behind this specific sudden surge. surge being a 12% pop at one point. some relief for some in this market. i think there are a few reasons driving this. we have to talking about the last few weeks about coming to the end of the tax year, that could be driving selling pressure. to pay your tax, you are having
5:23 pm
to liquidate some of you are bitcoin. -- some of your bitcoin. that is perhaps why we are starting to see some appetite for bitcoin once again. is rolling out blockchain-based payments application app. shorts are getting squeezed out. if you are putting bets against bitcoin, at one point we saw bitcoin move $1000 in under 30 minutes. ure have to take on those s bets. all of these are being voiced by a well-known bull when it comes to bitcoin. you talk about soros getting his funds into the cryptocurrency.
5:24 pm
is in the past. we could see 20,000 again for bitcoin. emily: what else did you see happening in the crypto markets today? caroline: you name it, and they rose. bitcoin cash was on the up, e ther go higher. overall this was an all boats r ise kind of story. emily: talk about what barclays is saying. they say bitcoin has peaked, when obviously there is optimism from others. what is their reasoning? caroline: this really caught my eye. why? they are using a way of strategizing bitcoin by using cancer as a way of trying to visualize it. it really struck me. the headline was quite phenomenal on the bloomberg terminal, that barclays says the rise of bitcoin is similar to
5:25 pm
the spread of infectious diseases. overall what they are showing is, like cancer, you have groups who are susceptible, groups or infected, and groups who are immune. they say more are becoming immune. those that have heard about cryptocurrency, that has hit peak. they say it is universally known now. that means there are fewer people to be convinced and buy. "we believe the speculative froth phase is over and perhaps peak prices are behind us." chartve to go back to the showing that perhaps the time to buy is now. bitcoin trading just above the yellow line, which is the
5:26 pm
technical indicator showing prices could push higher. emily: caroline, thanks so much for that break down. coming up, after the hearings in washington this week, lawmakers to protect allls my privacy. we will talk about the regulatory risks ahead for facebook. this is bloomberg. ♪
5:27 pm
5:28 pm
5:29 pm
mark: you are watching bloomberg technology. a check with first world news. jim mattis says the u.s. will not engage in syria's civil war.
5:30 pm
concern is a practical that we don't at to any civilian deaths and do everything humanly possible to avoid that. we are trying to stop the murder of innocent people. on a strategic level how doing this from spiraling out of control. mark: he's is the goal is that the fate of the islamic state. vehiclesof military and to a town where a suspected chemical attack killed 40 and wounded hundreds more. russia's military confront the syrian government is in full control of the area. a wide-ranging confirmation hearing for mike pompeo -- he revealed he met with special counsel robert mueller's team, but what if this goes what he said. added that if confirmed,
5:31 pm
stood to make the iran nuclear deal would be a priority and because vacancies at the levels of his department the moralizing. its largestnducted fleet review since 1949. oversaw. xi global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. it is just after 5:30 p.m. time in new york and 7:30 a.m. friday morning in sydney. paul allen joins us with a look at the markets. onit was a bright finish wall street with all the major -- endingd higher higher. 1%,the nasdaq is up around and this is after we had trade tension easing and talk on the middle east as well. donald trump suggesting china
5:32 pm
markets relief of taxes and tariffs and the dialback on the war rhetoric. asia-pacific, we see a bright finish, with futures higher at three tents of 1%. mckay futures out of chicago 9/10 of 1% higher and the aussie dollar stabilizing. the yen a little weaker against the dollar. oil continues to show solid gains. opec raising global demand estimates, and gold a little weaker as well. i'm paul allen from sydney. more from "bloomberg technology" next. ♪ emily: this is bloomberg technology. the facebook hearings signaled that era of self revelation for social media is likely over, and
5:33 pm
calls for more oversight over facebook is going. earlier today on public television, scott stringer, who runs the city's tension fund pushed the break up the power within the social network. take a listen. >> separate ceo and chair and add more independent. directors have more transparency and that's get to the root of what is happening here. anddemocracy is at stake, when of the biggest companies we invest in is also at stake. i want to bring in robert atkinson from washington state think tank, you see one shareholder say we should separate the ceo and chair position, at mark zuckerberg holds both positions and he has more power than any seo has ever had within a company. to think that is going far enough or is that going too far? robert: i can't comment on management issues in any particular company. but i can comment on is the
5:34 pm
hysteria that has gripped washington, if not beyond that, over this issue. we should take a deep breath and calm down. particularly troubling, you had a prior speaker -- roger mcnamee, proposed a european-style privacy rule in the u.s. because of a violation of a european company, is already subject the european policy rules. this talk is incredibly risky. we have to in analysis of the impact of what is called the gdp it would be very detrimental to the u.s. digital economy. i think we all need to take a deep breath. the other thing i would add here is that facebook has gotten in trouble because it shared data researcherdemic who violate the terms of service.
5:35 pm
andbook is a well run well-regarded program that academic researchers around the world -- particularly in the u.s. -- have found critically audible to find new insights. for example, they used research to better predict when women are about to have a baby and have a baby, and who is most likely at risk for postpartum depression. a lot of amazing research has been done in a completely privacy productive way that facebook has engaged in. and somehow we are going to throw the baby out with the bathwater, i fear. emily: i want to know why you think this could be damaging, and mark zuckerberg said himself that gdpr is good if it applies as a standard ground facebook and the world, despite there are no laws here mandating it. robert: i can speak for mr. zuckerberg. emily: that is what he said. i can't say why he would
5:36 pm
say it, but all i can show and demonstrate is there is clear evidence. which waslaw to gdpr, much more onerous -- kathryn tucker, a researcher at m.i.t. compared the european privacy regime to the u.s.. what heard research found is that at effectiveness -- ad effectiveness in europe is up to 60% less effective. 6% less money you can monetize a 60% less money-- you can monetize in europe because of privacy rules. the want of all internet companies to have 60% less money? that means less innovation. -- the big area you mentioned with ai, we released a report to weeks ago looking exactly at the provisions in and how itge bill,
5:37 pm
is going to negatively affect ai. if europe stays with the gdpr, we can be rest assured they will be a backwater to artificial intelligence. legislation makes it almost impossible to use data for machine learning and analytics in europe. emily: you believe current laws are working? robert: i do believe current laws are working. remember, who violated the laws here, it wasn't facebook. emily: 87 million people they have had data mishandled. people, all facebook users, potentially had public data scraped. and our elections were meddled by a state actor, and we will never know if they swayed the outcome or not. how can you say our current laws are working? robert: let me be precise. our current laws with regards to privacy is working. the political interference issue
5:38 pm
is a little different. there is work either new laws or corporate agreements on practices are important. on the privacy side, the current laws are working. the researcher in england violated the law. cambridge analytica violated the law. what are we going to do? cut your handoff if you do this? law,already violated the and privacy regulation would not have changed this outcome, one iota. emily: but the cambridge scandal was used to target people to meddle in the u.s. election. robert: and cambridge analytica broke the law. we have a law, they broke the law. why would an additional law that is more stringent make a difference? we have loss against driving too fast, but people drive too fast.
5:39 pm
there are going to be scoff lost that don't obey rules and laws, and having better and stronger laws would make any difference. the important point to remember is that the data was used in a machine readable form. it is not fundamentally clear if any individual was harmed. but cambridge analytica did is wrong, but wins server talks about how they use data, they algorithm, andn the ad says, you write your bike to work, i am going to give you a bike ad. that does not violate my privacy. emily: there's an argument that third-party that should not have information on consumers. robert atkinson, thank you.
5:40 pm
according to the ftc, the acting ftc chair says the agency expanded the settlement with the company and set the new agreement was designed to ensure that uber does not engage in similar misconduct in the future. betterment is offering wealth management with roble advisors. we will hear from the ceo next. this is bloomberg. ♪
5:41 pm
5:42 pm
5:43 pm
emily: tesla is taking the unusual step of the strong from a federal investigation of its vehicles. willccess the safety board not allow it to release information on the driver since program autopilot that was used in the crash. is the whiskers as for blaming the crash on the driver asked tesla was criticized for blaming the driver. going after high net worth clients, with cutting edge tech assure more clientele to the startup? i want to bring in john stein, ceo of betterment it with me in new york/report financial advisement, and am curious how much progress has ai made in the last year to improve what you do. jonathan: we have always used technology to reduce costs and help over this taxes and give --m full ballistic landing full holistic planning.
5:44 pm
also use it on the customer servicing site to give them more delightful experiences. the ai in terms of what is doing to manage money is in the early stages. i think that is true in most financial services companies who are beginning to start to see the power of that. emily: what does it mean, what can you do now that you might be able to do in two years? jonathan: if you believe that will have self driving cars, then you will believe will have self managing wallets. i can't imagine in 10 years people will still manage bounces between their checking's and savings accounts. emily: that is so annoying. jonathan: all of that can be done by technology, and much less annoying than having to do with yourself. emily: does this become a commodity? jonathan: incumbents are coming in and driving attention to the space and having customers to it. on these incumbents are conflicted. they are selling their own
5:45 pm
products. if you go to vanguard, you expect vanguard funds, if you go to schwab, you expect schwab funds. but if you come to betterment, we don't get paid by anyone. you don't get paid to sell you certain funds. the only way we get paid is the fee you pay us, and that makes us unique in the rubble advisor space when we are looking out in the customer's best interests. emily: do you have plans to expand, to offer checking accounts and credit cards? excited abouti am is how we help customers make the most money. i don't want to give you just a checking account, i would think you be something better and make your checking account smarter and how to make more money off of everything you own. that is what we do. you want see us just launched a checking account or credit card, will see us do think that will help you make more money. emily: how many assets to have?
5:46 pm
jonathan: 13.5 billion. and we grew year-over-year, and i expect growth to continue. emily: how do you advise on text given lots of market volatility and uncertainty? jonathan: i think it is interesting what is going on with facebook and the broader sense of wanting to write late tech companies. well, sogulation as when we get asked the question, i remind people we have been highly regulated. part of the reason i got into this business is because regulation has stifled innovation for a long time, and they saw a need to break through. as an related by the fcc investment advisor and broker dealer. emily: does that same relation need to apply to tech? jonathan: i think it needs to apply to every industry, and you need regulation to help protect consumers. emily: has what has happened in
5:47 pm
facebook impacted how you think about the user data that you have? jonathan: because we are highly regulated have to think heavily about data. we don't store anything that is too sensitive. data is important to give you a full financial plan. to bring a shoebox full of receipts and papers and headed over to your advisor to help them make a plan -- and we automated the process and made it painless and digital and seamless. carewe have to take great of that financial data to make sure it is used in your best interest. we never sell your data or rented to anyone also. nobody else has access to it, and we don't use any proprietary password. you have at specific passwords that no one else can use your data. emily: we will check in with you in a couple of years, if not sooner. coming up, who speak to a founder was swapping out the keg
5:48 pm
for nursing groups. that is next. this is bloomberg. ♪
5:49 pm
5:50 pm
emily: there are 20 cities shortlisted by amazon at second american headquarters, and at least one real estate fund is try to score the tech giant. diwali fund that manages less than $2 billion owns $10 million worth of shares in properties real investments based in arlington, virginia and the predict shares to be worth $40 a piece if amazon picks its neighborhood according to a percent of knowledge of their thinking. hub isup called naked part of the global expansion plans, and the news asked to we works advantages, on with more
5:51 pm
worldwide,ildings but come up seattle started is looking to create a we work start of space designed for women. with a newly announced $4.75 million investment, to offer a mother's room and yoga studio with a monthly potluck. joining us is the cofounder of the riveter, amy wilson. what makes you think you could disrupt that? think we can disrupted because we need to. i had experiences that are common to so many women's country. emily: like what? children, and when i was on maternity leave i talked about a promotion with my current job, and they said it was not the right opportunity. i was certainly to make it work with my children in corporate america, and corporate america is built by and for men.
5:52 pm
i decided instead of opting out, i would often by starting a business. when it took the women entrepreneurs, i can find any platform, and that is where the idea for the riveter come from. emily: how is it different from we work? when you look at the future of work, it is changing so quickly with technology. we know seem the million americans will work remotely by 2020. today to future of work is still defined by men come and leaders in the industry were founded by men and run by men and even corporate boards are all men. femaleriveter we are court and boat out to support women who are growing businesses, to women who are living solo practice and returning to work after having spent time with kids. this is both for women. emily: there are other startups
5:53 pm
out there, some of it don't allow men to work there. you do. why? take the approach we want to change the world for women, and to do that it involves all genders and the conversation. you look atays, venture capitalist funding, men are about 89% venture capital investors. we need them to be part of the conversation. standpoint, wel have so many spaces founded by women, and they also have made on our teams. thehe same time, i think spaces that are women only are incredible and are doing something powerful in the market. emily: are not as a lawyer you had bad experiences as a woman in the legal field, and you come into tech where women account for 7% of investors, and women get 2% of funding. which industry is worse for women? is: i think the meta-point
5:54 pm
-- women were not in the position of leadership in the workplace, but today we have inherited from setting the office temperature for men. emily: but tech is new. amy: tech is new, but we can't up and everything in one day. but we have to get together and say, how do we move this forward? italistmen cap investors, hopefully to get involved. is expensivestate now, what are you doing about that? amy: in the early stages of a startup, we look for opportunistic ideas. we going to spaces where we don't have to do much of a buildup were weekend come up with creative solutions. we use a model that we are
5:55 pm
using. emily: amazon is going elsewhere, i am curious what is happening in the seattle tech scene. how is that shaking up the talent pool? amy: seattle is incredible. emily: that amazon is leaving? amy: amazon is not leaving, they are adding to their portfolio. at the amazon is leaving, they are saying we need a second home because we are so big. that are so many other founders starting companies at the venture scale. that is what is exciting about looking towards tomorrow. emily: with this next four the riveter? you are small now -- how do take on a multibillion dollar giant? amy: i think we take on the giant because women need to, and
5:56 pm
we need more. emily: doing math live on the air, that was amy nelson, thank you so much for joining us. that does it for this edition of "bloomberg technology". a reminder we live on twitter and check us out. does all for now. this is bloomberg. ♪
5:57 pm
5:58 pm
5:59 pm
6:00 pm
♪ haidi: stocks rallied on wall street with the s&p 500 poised for its best to gain in five weeks. liftingresident trump the moment, saying he sees great progress with relations with china. haidi: hong kong steps in to defend the dollar and makes its first currency intervention since 2005. betty: and bitcoin is back, at least for a day, its


info Stream Only

Uploaded by TV Archive on