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tv   Bloomberg Technology  Bloomberg  December 26, 2018 11:00pm-12:00am EST

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>> i'm brad stone in san francisco, in for emily chang. this is "bloomberg technology." coming up in the next hour, who had the best holidays? apparently amazon. they are reporting a record-breaking season. plus, billions of apps were downloaded in 2018. we will discuss what is fueling growth in the mobile market. we look back at one of the biggest stories of the year. the role that social media and
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tech played in influencing elections around the globe. amazon says this holiday season has been record-breaking. more items have been ordered worldwide than ever before and tens of millions of people signed up for amazon prime memberships. the company says sales of amazon devices are up significantly this holiday season compared to last year. paul sweeney, director of north american research at bloomberg intelligence, joins us now. thanks for joining us after the holiday. these amazon releases can almost be parodied these days for their lack of specifics. what do you read from this? paul: not a lot of specifics coming out of the company, but strong retail sales during this holiday period. visa and mastercard are talking about the growth of about 5% about the growth of about 5% across-the-board. e-commerce, up close to 20% for the holiday season.
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we know the underlying demand, the underlying consumer demand is very strong. that being the case, clearly one of the biggest beneficiaries will be amazon, given their market share. brad: you make the point that it is not just amazon's party. e-commerce sales and retail sales are up across the board. who else do you see as a winner here this holiday season? is it too soon to tell? paul: what we are seeing across retail is pretty strong. walmart will probably be a beneficiary. they are strong online as well. any of the brands that have really invested in their e-commerce platforms as the consumer market rate -- consumer migrates, the brands that have invested in their e-commerce sites will clearly benefit not only this season, but going forward, likely. brad: three months ago, amazon gave a conservative estimate for the fourth quarter and the stock has been punished since, down almost 30% from the high in september. how do you reconcile that conservative estimate and the
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downward trend in the stock with, this week, what appears to be good news? paul: when the company reported their last quarter's earnings, they clearly disappointed investors. we had two dynamics. one was slower revenue growth than the street had been anticipating. the company is committed to investing in their business with operating expenses and capital expenses both growing substantially. you had the concern of a growing margin pressure for amazon. i think the bulls were clearly saying, listen, this is just amazon giving us a conservative guidance, and they will come in and beat strong, assuming we have a good holiday period, and that appears to be what we are having. brad: quick final question. amazon said consumers bought three times the amount using their voice on alexa and echo speakers than last year. what do you read from that? how real is voice shopping, do you think? paul: i think it's getting much more real.
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we are seeing big investments in voice-activated hardware, not just from amazon, but also google and apple. i think you will see the types of tests that these was activated services can do -- that these -- the types of tasks that these voice activated services can do continue to grow. anytime they can take friction out of the shopping experience, that's good for amazon's business. brad: paul sweeney with bloomberg intelligence, thank you. in a note out on wednesday, a wedbush analyst said the demand for tesla's model 3 looks strong going into next year. many automakers are betting big on suv's. dan is joining us now via skype. dan, thanks for joining. wall street is divided on tesla. there is something like 24
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bearish calls on the stock. you are bullish. what do the bears have wrong about tesla right now? dan: i think the bears think the capital raise is on the horizon. they think profitability is not sustainable. the biggest thing, they are underestimating core demand, especially on model 3 into 2019. when you look at europe and china coming on, we think many of the bears -- skeptics have underestimated unit demand by upwards of 15% to 20%. that has proved q3 was the first step forward. this order will be another feather in the cap for musk and solidify the bull thesis, although it will be a controversial bull-bear knife fight. brad: everything we've heard from elon over the past few weeks suggests he and the company burned the candle on both ends to make the third
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quarter. what makes you so confident that the kinks in manufacturing have been worked out sustainably for the long-term? dan: for the long-term, that is still a variable that they need to prove. but right now, 6000 per week is the key, in terms of what production looks like. production now, it really becomes more of a demand story. that's really the focus right now for the bulls, especially with europe coming on in the first quarter. i think you've seen the stock rebound significantly, just given what you've seen on profitability and demand factor on model 3 and the midrange. the midrange is going to be key. even the base model coming on. nonetheless, this is a proofme -- this is a prove me stock. we have not seen any bottlenecks so far this quarter. brad: big controversy appears to be a constant in the tesla story.
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let's talk about demand. my understanding is that a federal tax credit gets cut in half at the beginning of next year towards buying electric vehicles. how do you see that playing out? what will the impact be on demand for tesla's model 3? dan: it's a bit of a pull forward, especially in states like california in q4. going into q1, you will see some of those units that pull forward. the street has model that pretty much correctly, but as that comes off in terms of the full forward, europe comes on, especially with production coming on in january going through the first quarter. right now there is a pull forward. that gets have going into the first -- halved going into the first half, but in the midrange comes on, much lower price point. that's the core part of demand.
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that's the key part of the tesla bull thesis. the $35,000 -- that goes more to the masses, where you see volume spike, as well as europe and china coming on board. brad: dan, we are seeing more economists predict a recession for 2019. how vulnerable is tesla in that scenario? dan: look, they are vulnerable like any auto manufacturer. when you look at recession, especially on the high-end, that's the one where you definitely would, i think demand would come down pretty significantly. nonetheless, if you look at tesla, you could sum up what's happening in china in terms of some of the subsidies as well as the price cuts that have happened there -- the u.s., so far through the first half, we feel strong. that's going to be the key here. you look at recession, the economic indicators. thus far, we have not seen any
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stock that is leasing the channel. that's going to be, as we get into 2019, a big debate for tesla, as they need to prove themselves every quarter, just like we saw last quarter. which i think shock the bears -- shocked the bears that continue to think this is not the disruptive technology that we believe it is. brad: it certainly did. dan, last question for you. tesla -- tesla's twitter is a reliable form of entertainment. one of the features is customers who seem to be complaining about service issues directly to elon. i understand that is anecdotal, but does that concern you at all? dan: fundamentally, as you have more customers come on board, even internationally, you will have more inherent customer service issues, as well as something tesla is going to need to expand. also, it's musk taking himself out personally. even look over the weekend.
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he responded to a customer about the ev tax. about what happens if a car that they ordered did not ship by december 31. he said, tesla will cover that. that was a big overhang from a bunch of investors. it speaks to worries, the more they respond. tesla, they have to grow up. i think this is part of that maturity process as they go through this. brad: well, maturity is certainly something that investors will be looking for more of when it comes to tesla. dan ives and wedbush, -- at wedbush, thanks for joining us. the use of voice assistants has grown, but who is really leading innovation in this space? if you like bloomberg news, check us out on the radio. listen on the bloomberg app,, and, in the u.s., on sirius xm. this is bloomberg. ♪
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brad: the use of ai invoice assistant technology has -- in voice assistant technology has exploded among consumers and businesses. who's taking the lead in 2019? here to talk with us, the ceo of pryon. thank you for joining us. i want to start with some ancient history. more than a decade ago, you started yak. you sold it to amazon.
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it became one of the seeds of the very successful alexa voice assistant. now our homes are littered with these devices. back then, did you ever imagine that this would take off as quickly as it has? >> well, i don't know if it took off as quickly as i hoped. obviously, many of us in the field have been toiling away for decades, in some cases. but it's such a powerful way of interaction. it is the first way that we learn to communicate with each other as humans. the power of the voice is really something that is a demarcation line in terms of when a baby first starts interacting with the world, essentially becoming a more active participant in it in that environment.
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that's what was really exciting to many of our colleagues that were working together to make this happen. brad: i know, igor, the you are focused now on bringing this technology into the work -- the workplace. we will get to pryon in a moment. amazon has about 50% of the market in the u.s., but google home is right there and growing quickly with 30%. apple just entered the market. how set do you think this competitive dynamic is? does amazon have an enduring lead, or do you expect to see new entrants and start up -- startups and maybe a reversal among the current players in the coming years? igor: we had a big breakthrough at yak. they didn't want apple and google knowing that they basically had a drop on them in 2011 and were bringing it to market in a new and novel platform. that caught everybody by surprise. now, if you look at apple, facebook, google, and amazon, their instantiations of these
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products are reinforcing their core businesses. so if they are making money through devices, that's how they are doing it, in the case of apple. with google and facebook, they are going to reinforce advertisement revenue. with amazon, they want to reduce the friction between you and any of the commerce that they are projecting forward. are you a believer in voice shopping? igor: i think it is real. if you look at some of the normal things that most households require, i think it can probably do 80% of the things that we need that are repetitive. i know that amazon is banking on that. brad: let's talk about pryon. augmented intelligence. what is it? can these sorts of services have the same impact in the office that they are having in our homes right now? igor: well, i think if you look at some of the technologies that we use at home and try to
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imagine what they would look like in the workplace, lightweight messaging may be -- twitter-like engagement. we may use facebook at home, but it is an entity like linkedin that we interact with in the workplace. we see the same delineation is going to happen between the types of ai's we use at home and the type we use at work. augmented intelligence is as follows. one of the core precepts that uber was founded on was the concept of what would happen to productivity if we gave everybody a chauffeur. you didn't have to tend to a car, pay the insurance, worry about keeping it in repair. it's the same thing for us. where we talk about augmented intelligence is, imagine that you can give every worker in an enterprise the equivalent of an executive assistant that was a nobel laureate.
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what would that actually do for their productivity? we end up wasting almost 1/3 of our daily lives just trying to access and interact with different systems around us for processes, decision support, and knowledge access. how does augmented intelligence help reduce the frictionality between you and those resources? that's what we are betting the whole company on. brad: igor, that does sound like a compelling vision, but it is one you share with some pretty big companies. amazon, ibm. you recently hired your chief scientist from ibm's watson project. why is a startup set to succeed against these goliaths? igor: i think in some cases they have a vast portfolio that we need to tend -- that they need to tend to, whereas we are betting the whole company on this future. we are specifically focused on solving some of the accuracy and security considerations that are
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necessary for the adoption of this form of artificial intelligence in the enterprise. in many cases, one of the traditional questions that any venture capitalist would ask you and they ask the same questions last time -- isn't some entity going to come in and overturn the market that a startup is operating in? at the end of the day, they view us as outsourced r&d. we do some of the critical work of proving that a market exists, then they seek partnerships with us later on. that's the future that we are looking forward to. brad: ok. we have to leave it there. igor jablokov, ceo of pryon. thanks for joining us. coming up, a new report says the average mobile user spends three hours a day on apps. we will discuss who is winning the battle for screen time next. this is bloomberg. ♪
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brad: over the last year, the use of apps among group -- mobile users has grown even larger with a few key winners in the space. here to discuss what to expect for next year, we're joined by the evp of marketing sites at a global provider of mobile data. thank you for joining us. lots of good numbers in your recent report. downloads up 10% over the last year. how do you characterize the strength of the mobile app ecosystem in 2018? >> thanks for having me, brad. given that we are able to serve the world's biggest brands by delivering the data and analytics they need, we have a unique view of what's happening across the globe.
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when you look at downloads, for example, we are talking first first-time installs. it's indicative of the sheer breadth mobile serves. its social, its games, music and entertainment. it's retail, banking, travel. the market is incredible healthy, whether you look at it from the perspective of downloads, time spent, or monetization. brad: users spent nearly three hours each day in apps. impressive. again, up 10% over the last year. but a little worrisome, too, that we are staring into our phones for that long? danielle: it is frightening that it continues to go up. at some point there has got to be an upper limit. we are looking at closer to four hours per day. it is really important to just take into account the sheer ways that mobile serves us. we use it to communicate and socialize.
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that's half our time. that is 90 minutes or more spent shopping, fintech, banking, giving us access to information, allowing us to plan travel and get around town, allowing us to learn and share information, to be entertained. it really does serve virtually every corner of our lives. you could argue, is it too much. you could also argue it gives us this democratized access that we didn't have before mobile apps. brad: we are ending the year here with the sense that facebook is in trouble. yet in your report here, four of the top five apps downloaded were facebook, messenger, whatsapp, and instagram. what do you take from that? danielle: habits are hard to break. it'se end of the day, about the fact that convenience trumps everything.
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when you have the ability to reach your primary circle, your extended circle -- whatsapp is the dominant messaging platform. the fact of the matter is there is room for new opportunities and new challengers. you look at tiktok, which is more about these short form videos that are ultimately embedded into other social platforms. as a good example of something where there is this hunger for gen-z and how they are using apps, high-frequency, more sessions per day. facebook is quite dominant, but we are spending 90 minutes per day on a whole host of other apps. brad: you just mentioned tiktok. i was going to bring it up. it is owned by a chinese company. are we seeing more mobile app trends emerge out of asia right now? danielle: i don't think you can talk about mobile and not talk about china. if you look at monetization, it is the chinese and american publishers who dominate.
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china has more mobile users than any country in the world, which isn't surprising given its population. when you look at tier one and tier two cities in china, they are incredibly mobile first. they make enormous amounts of purchases through their apps. in many ways, they are ahead of any other markets. chinese publishers, for the most part, are growing in their home market. international expansion has been limited within asia for the most part, tiktok being an exception. how did those companies expand outside of asia, and how do big publishers, whether in japan, korea, u.k., u.s., continue to expand internationally? brad: danielle levitas, thank you. coming up, from privacy issues to russian meddling. 2018 has been a bad year for facebook. but we will hear what yuri milner has to say about the social network.
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plus san francisco is taking on , homelessness with the help of the tech industry. one silicon valley tighten tells us what he is -- titan tells us what he is doing to help. this is bloomberg. ♪
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♪ brad: this is "bloomberg technology." i am brad stone in san francisco. 2018 has been a tough year for facebook, but russia's most influential tech investor is not overly concerned. zst early founder yuri milner was an early investor in twitter before going on to back alibaba. milnerhang sat down with
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at the awards and asked him just how optimistic he was about facebook's future. yuri: first of all i don't , believe it is an existential crisis. i think it is a little bump on the road. i think that facebook watch and instagram are amazing products with more than a billion people each. so you cannot really dismiss it. as an extension crisis. but i think facebook was and is an evolving system, and they've always been responding to challenges. and the challenges they are facing can be solved through a combination of human attention and artificial intelligence. elements, so you know there are , always bad actors who are affecting different products, but i think i feel confident
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that this will be taken care of through technology. you know it is a technology , company. emily: does it concern you that , you know the privacy, the , hacking, the potential election meddling, the fact that the founders of all the companies that you mentioned that facebook thought had gone one of them even tried to start , a delete facebook movement. yuri: you have to put everything into perspective. if you look at other companies who did acquisitions, the founders of those companies stayed for an amazingly long time. i mean, it should be compared to other acquisitions. it very often happens that founders are gone in 12 months, or in six months. you know, here i think they , have stayed long enough to ensure continuity and transition and i think those products will do very well going forward. emily: softbank has a lot of money in the tech ecosystem, and the saudis and the saudi
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government have a lot of money in softbank. there is controversy around it given the murder of jamal khashoggi. do you think it is a problem? well iwell -- yuri: , think we should be judging people based on the laws and the global situation at the time they were making those investments and making those decisions. so going forward, things may be different. i think, you know people are , learning as they go. we have -- the last time we have been taking money from russian investors was in 2011. emily: and you made a choice? haslinda: -- yuri: many things
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have changed since then. our investor base is very global since that time. emily: just one more question. you have invested in facebook , alibaba and flip card. , what do you think is the next big thing in technology and where is the next big thing in terms of the hot region for tech investment? yuri: well if you look at the , previous 10 years, if you add u.s. and china, that would be 90% of all value that was created in internet. europe is around 3%, the rest of the world around 7%, so logically speaking, you would think that europe should be doing much better in the future, sort of catching up with the u.s. and china. i think china can increase their share as chinese companies go
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global. i think that we will see more value accruing to chinese companies. emily: more than there is in the united states? yuri: well, that remains to be seen. but i think the amazing success that u.s. companies have enjoyed in the last 15 to 20 years was really based on the fact that those are global companies. emily: what about technology, what is beyond smartphones and social networks and ai? or is it ai? yuri: well it is ai. ,yes, i would agree with you. and the ai, really cutting across pretty much horizontally across all technologies. and you know, each significant company will become an ai company. was dst global founder yuri milner. meanwhile san francisco passed
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, the so-called homeless tax. voters decided to boost funding for homeless services from companies with gross receipts more than $50 million. salesforce co-ceo mark donated billions in support of the law. emily chang sat down with benioff just days before the vote. mark: we have a serious homeless crisis in san francisco and it is getting much worse. we have 70,000 homeless individuals on the streets, we have 12,000 homeless families each with two kids. and how are we going to get them off the streets? it is a problem, we know it, and that's why i'm voting for prop c. about the unfairness other companies are talking about? jack dorsey saying, there is an unfairness i find in my role as ceo of square. this does not apply to twitter. these companies would be taxed amountgnificantly larger
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than salesforce. marc: what i see is a crisis of inequality in san francisco. that is striking to me. we have 70 billionaires here in our city. that is incredible. we have companies that you report on with hundreds of billions of dollars with market cap. of course, you know, salesforce we are the largest employer here , in san francisco. not just largest tech employer. largest employer. we have a $100 billion market cap. and you just talked about a few companies. square is worth $30 billion, worth stripe is worth $20 billion, $20 billion. well the amazing thing is, these , companies can afford it. for us, it is just a $10 million tax. but these are immaterial amounts to us. $10 million does not mean anything. that is less than the private plane that jack dorsey is going to fly around on. you know that. and i will tell you right now, it is the money that we need to make a difference here in san francisco. emily: you have taken a hard line on some other companies like facebook, and in the past
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and you have said in the past , that it has caused you trouble s in your own friendships. i wonder, has this done the same? how are your relationships being affected by this? [laughter] marc: emily, well, hopefully our relationship is all right. number one, the most important thing, i feel like i need to speak my truth. sometimes that means speaking truth to power. i've had a lot of tough phone calls from executives who have been very unhappy when i say something like -- you know i , said in january, facebook is the new cigarettes. it is not good for you. it is addictive. it is being manipulated. others are trying to get you to use it in ways you don't even understand. all of that has turned out to be i evend much worse than imagined, and that is a tough conversation. this is a tough conversation, too, where i said business is the greatest platform for change. we can fix the homeless population in san francisco right now. all you have to do is vote for proposition c. and it is immaterial to our business right now, the financial members but , homelessness is material to my business. emily: apple's ceo, tim cook --
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marc: that is a conversation they don't want to have. emily: tim cook has taken on facebook t overheir date -- facebook over their data model how they handle privacy. , who is going to be on the right side of history? what do you make of the bigger tech smackdown? marc: tim cook, for sure, is on the right side of history. he and i have pushed for a national privacy law in the united states. we have gdpr in europe. that is doing a fantastic job to protect european citizens. they have more protection and control than any other region in the world. we need that here in the united states. a lot of the privacy debates we are having right in our city, in san francisco, we wouldn't be having that if we were in paris, or london or munich. we need a national privacy law in the united states. we need that now. we need some of our great senators, and some of our great congress people, and they knew who they are, -- they know who
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they are to say, ok, we are , going to write this law and get this done. we've been advocating for that. right now, our data is being misused in ways we don't even understand and all of that needs to come into the light. look companies need to start to , address their core values. what is the most important thing to facebook? what is the most important thing to salesforce? for us, we know it is trust. nothing is more important than the trust we have with our key stakeholders. that includes our employees, customers, and also our homeless. what happens in san francisco matters to me and to our employees. and you know what? even when they are on the way home from work and they are in the bart station, it has become more difficult. that is why i am voting for proposition c. emily: some say it may be a little bit hypocritical talking about privacy when this is something that a lot of companies do. where do you draw the line? marc: well, we draw the line right there by saying the most important thing in our company is trust.
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nothing is more important than the trust we have with our employees, our customers, our partners, even our city and our community. and can i look you in the eye and say, we are doing anything we can to have the most trusted relationships? and if there are things that come up with salesforce, then we have to address those things, but we are going to try to do best practice and always try to be on the right side of history. emily: all right. brad: that was bloomberg's emily chang with salesforce co-ceo marc benioff. coming up, we will hear from the man behind president trump's digital strategy in the 2016 election and look ahead to his plans for 2020. this is bloomberg. ♪
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brad: brad parscale helped president trump run perhaps the
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most successful social media operation in presidential election history. since then, he has been elevated to run his entire reelection campaign for 2020. emily chang sat down with to discuss this year the groundwork he is laying for this next election. brad parscale: now i think this is a successful president, trying to make the world safer. i'm not privy to all that information in the white house but i feel if he continues to make the world safer, it will be great for 2020. emily: but you have leaders in your own party saying this is treasonous, this is disgraceful. brad parscale: we have rino's within the party saying this. i think you will see it just how the president has done time after time after time, showing that he is right and he is making the world safer, making this economy better, and i believe in him. emily: the president is taking vladimir putin at his word that russia did not meddle in the u.s. election. he seems to believe the
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president of russia over the u.s. intelligence community. brad parscale: you're asking what he believes are what he doesn't believe? emily: what do you believe? brad parscale: that is not my job to get into that. you would have to ask the president on that one. emily: so as you work towards reelection, you are meeting with the president, what, a couple times a week? brad parscale: i meet with him, call him. emily: how do you handle the investigation situation? brad parscale: that is not my role. the data shows this doesn't resonate with americans, very few people are connected with it. it had no effect on the polling numbers. president trump has nothing but increased since this investigation. i think america sees it for this fake story on collusion and i continue to say that there was zero collusion. it is such a joke at least from , my part in the campaign. and i played a major role so i know it is not part of it.
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and i will continue to say that any foreign entity that does meddle in an election should be held accountable. that is not my role. emily: and yet, the trump campaign's message seemed to align very much with what russia was also trying to disseminate. for example president trump in , july 2016 saying, "russia, if you are listening, i hope you can find the 30,000 emails that went missing." which is the very same day that the russians, according to u.s. intelligence, try to access or hack into it. brad parscale: you would have to ask him. sometimes things he says live, i don't know. emily: did you see any evidence? brad parscale: i didn't see anything. emily: anything that seemed suspect? brad parscale: i don't have complete access to everything going on in the country. that is why we do have intelligence. i do not have access to any of that stuff. from everything i saw, it looks like there was no collusion, we ran a legitimate campaign, and it was the right thing. we did everything the right way. and we ran a completely legitimate campaign. and it is unfortunate that some
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people just didn't like what happened. and so they have to make these conspiracy theories up to explain what they don't like in life. emily: are you worried that americans can be manipulated online by foreign powers? does that concern you? brad parscale: no, i think americans are smart enough. i have never really believed that you are to be manipulated in your thoughts. emily: do you think voters will still track social media ads if you use them again? brad parscale: you know i'm not , one to speak on what voters can and will trust. i mean, that's a big question. i continue to think that using social media and using advertising for all businesses and all political campaigns will so be an important way to get people to show up to vote for trump in 2020. brad: that was president trump's 2020 campaign manager, brad parscale. still ahead, facebook has come under intense scrutiny following several data breaches this year. looking back on our biggest interviews this year, we will hear from coo sheryl sandberg. this is bloomberg. ♪
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brad: facebook has come under fire this year amid a series of scandals on data privacy. emily chang caught up with facebook coo sheryl sandberg in april. soon after, the cambridge analytical controversy. sheryl: we know we didn't do a good enough job protecting people's data. and i'm really sorry for that and mark is really sorry for , that. and now what we are doing is , taking really strong action. starting monday, we will be rolling out starting the process , of rolling out to people around the world, right at the top of their news feed, all the apps they have connected to and a very easy way to delete those apps. as a part of that we are going , to tell anyone who might have had their data affected -- data collected or accessed by cambridge analytical who they are. andrea looking beyond apps. we announced yesterday that we are taking steps to shut down
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certain use cases and groups and pages and search and events, just the latest steps. this is going to be a long process. we are systematically looking at all the ways facebook data is used. we are going to shut them down. this is a forever process. because security is always an arms race. you build, someone tries to misuse. you build, they try to misuse in some way. we are committed to this for the very long run. emily: mark has personally taking responsibility, saying, "we didn't take a broad enough you. it was a mistake. it was my mistake." how much do you feel personally responsible? sheryl: i feelsheryl: deeply -- sheryl: i feel deeply personally responsible because there were mistakes we made and i made. for a long time, we were really really focused on building , social experiences. and a lot of good happened because of those. and when we found problems, we would shut down that problem. so the specific case of the
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friend-to-friend sharing that happened with cambridge analytica, that specific case was shut down in 2015. what we didn't do until recently and what we are doing now is just taking a broader view looking to be more restrictive , in ways data could be used. -- be misused. we also didn't build our operations fast enough, and that is on me. we had 10,000 people working in security at the beginning of the year. at the end of this year alone, we will more than double to we 20,000. are massively investing in smart technology. and we are doing all of this to make sure we get to a place where we can proactively protect people's data. emily: facebook has constructed a model which leverages -- and you are the chief architect. assuming the business model will evolve as the response of all these changes, how will that impact profitability? sheryl: we have never run this company for short-term gains and we've never run this company to maximize profits. we have run this company for the
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long-term health of our community and business. we announced two quarters ago in earnings that these investments are big and they will affect profitability and that is ok because it is the right thing to do. we want to make these investments. we will update at the next quarter. emily: so you know, talk little bit about -- you mentioned that advertisers have paused their spending because of this. how many have paused? sheryl: what matters is not how big it is but what matters is the questions they are asking. so advertisers are people who use facebook, so are investors. and everyone wants to know the same thing, which is are you protecting people's data? i think the advertisers, and people use facebook, also want to know that the good things will continue. and those are really important as well. earlier this week, i was in houston. i met this incredible man, ramon. i went to his local taco store. when hurricane harvey happened, he had no power, so he used
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facebook to find a competitor who had a taco truck, teamed up with him, and then they used facebook to drive around and find people who needed food. now those people were publicly , sharing their location on facebook. and what people want to know from us is are we going to take steps to be more protective and more proactive? and the answer to that is a firm yes. but we are also going to make sure that the good that happens on facebook can still happen. emily: with all we know now, do you believe facebook played a decisive role in electing donald trump? sheryl: there is a lot of concern about what happened in this election. we are certainly concerned about the foreign interference on our platform. the overall picture here, i don't think anyone knows yet, but it is an important question, and i think it is one that will be studied for years and years to come. where we are focused now is taking the lessons of past elections and making sure we apply them going forward. foreign interference, you may have seen earlier this week that
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we took very strong steps to take russian ira content off our site. that was the content that was in the u.s. election that we did not find quickly enough, but now we are analyzing ahead and we , found 270 pages and accounts linked to them that were deceptive, in russian, targeted mostly at russians. our message is very clear. there is no place for this deceptive content, for these troll farms, anywhere in the world. we took these down in russia. we are looking for others from other similar groups and we are going to take them down anywhere in the world. emily: mark has been asked if he is the right person to lead facebook. do you believe that he is? he says he is. do you agree? sheryl: i believe deeply in mark. mark had a vision for what social services and social sharing could be. and that vision remains really important. mark also, along with me and all of us takes full responsibility , for what is happening here.
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and we are making a very important shift. we are going to keep building social products because sharing is so important to people all over the world and we are going , to be much more proactive. i'm not going to say that we won't find more problems, we well. we are going to continue to find problems. we are going to continue to shut down situations when we find them. and this is a forever thing because security is an arms race. this is something we are signed up for, not just now, but on an ongoing basis. emily: mark zuckerberg says he hasn't seen any meaningful impact in use, but we all know people who have taken facebook off their phone, who are using instagram instead, who have sworn off social media. how do you explain that? sheryl: we take that really seriously. personally, if someone would wake up this morning or yesterday morning and said, i don't want to use facebook anymore because i don't trust them that is something i take as , seriously as possible. brad: and that does it for this
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edition of "bloomberg technology." "bloomberg technology" is livestreaming on twitter. check us out @technology. and be sure to follow our global breaking news network, tictoc, on twitter. this is bloomberg. ♪
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