tv Bloomberg Technology Bloomberg February 15, 2019 5:00pm-6:00pm EST
♪ emily: this is bloomberg technology. trade progress. president trump reiterates that he may extend the tariff truce with china and take steps to sell the deal to lawmakers. uber's losses continue through the fourth quarter of last year. sales are slowing. what does this mean? and bezos fails on new york.
the fallout from amazon scrapping its hq to plans. how this could change how all companies do business with government. tech -- talksde will continue in washington. two days of high-level talks in beijing have wrapped. the chinese president says negotiations have achieved progress. president trump was positive about some kind of a deal friday. >> tariffs are hurting china very badly. they do not want them. if we can make the deal, it would be my honor to remove them. we are having billions of dollars pouring into our treasury. we have never had that before with china. the u.s. is scheduled to raise import taxes on billions of chinese goods if the world's two biggest economies cannot resolve their differences. sarah mcgregor joins us now from washington.
what we know about what kind of progress is made? >> that is a great question. we keep hearing from the trump administration. of talks weround have heard this line. but we have not presented with much evidence yet about what that progress is. we hear that china has agreed to live more soybeans and energy products. reformse large-scale are a black box. we do not know china is budging on these issues. it is hard to believe that it would. such a large-scale overhaul to their economy that they would agree to. we are led to believe that there is a lot more work to be done on these core issues. emily: how else could this escalate? ahead to are looking this march 1 deadline and trump
repeated today that there may be some wiggle room there. we reported earlier this week that the white house is thinking about a 60 day extension that would take us into late april. a little room be here for a deal to be made. could escalate would be the trump administration levying more tariffs on china. china has retaliated every time there has been a tariff imposed. there's every reason to believe they would do the same. if the trump administration keeps hitting more chinese goods, that will affect your laptops and computers and toys, the things consumers really want here in the u.s.. that would have a much broader impact on the economy and on popularity. enforcement, ip protection, technology, all of these are sticking points. how might those progress? sarah: that is the million-dollar question. ofna has come adamic course these talks, announced tweaks to
some of its policies. many would say it was things they already had in the hopper or small changes. executive accused implement and might not make a difference unless they upheld them in their courts and their police forces. if the trump is willing to take and go with them, there might be a deal. but there is a lot of doubt whether this overhaul of the economy and china will really be something that can be achieved, whether it be by march 1 or another 60 days tacked onto it. earlier this week the wall street journal reported that china is considering an additional 200 billion in u.s. chip sales to china. -- how doesct in this fit in? sarah: donald trump has rail against is trade deficit. tech would be a big win.
if you buy soybeans and more manufacturing goods, that is products that are from key trump's support base is politically an important product for america. that when you start to look at the high-tech piece of the puzzle that is more lucrative for the u.s. thes only one piece of puzzle and these key ip issues and economic overhaul of china's economy, that is what trump has promised to deliver and anything less than that, whether it is purchases of chips are soybeans, it will fall flat. emily: bloomberg's sarah mcgregor for us in washington. thank you so much for that update. we will continue to follow the talks next week. uber reported fourth-quarter financials showing slowing growth and continue losses. these could cast a shadow over their ipo plans. its regulatory battles with new york city are heating up. cooper is suing the city.
joining us to discuss is eric newcomer. what is the significance of the suit? ic: uber is playing it hot and cold with the city. uber is trying to fight back on the caps that limit how many drivers it can have on the streets. i think it is seizing a moment where amazon has just left new york and there is a friday afternoon announcement that it is going back to war with the city after a brief cooling-off. . what does that mean for longer-term plans in new york city? toc: i think it is trying walk a fine line here. this is not a scorched earth suit. it is clearly something that uber has felt strongly about.
pushing for congestion pricing as they focus instead of a heart cap. it is not going to win over the mayor's office, which has pretty much had a hostile relationship with the company. they do not have a very good working relationship. the ideas we will not win over the mayor. we can fight them in court. emily: talk to us about these financials. down 15% for the full year. eric: there are lots of ways to slice these losses. if you look at the gap figures, the adjusted figure which is one $1.8 billion.- the issue here is competition has continued. therery turn, uber hoped would be a moment where there would be less competition so it would be able to extract for-profit. that has not happened. competition in latin
america. lift remains competitive in the u.s. it is harder for it to turn money into revenue which translates into a challenge spot in line. it is competition that is hurting uber's business. there is no sign of it abating. emily: will this impact the ipo process? eric: i think investors have a long time horizon here. they see all the areas where uber is expanding. food delivery. logistics. scooters and electric bikes. uber has done a good job of saying there is a bigger story here and we are going to change transportation dramatically. today that has been a message that investors have been enthusiastic about. if that rationalizes with a focus on the path to
profitability, that would be a change of pace. it is something i am eager to say. foolishtransition from private market investors to more skeptical public investors plays out. in the meantime, the story and china has been involving and very disturbing ways. two women passengers were allegedly murdered by a driver. the company is cutting the thing percent of the workforce, 2000 jobs. tell us more about what you know here. eric: the china market has been challenged. uber feel smart that they stepped away and sold their china business. dd faced a lot of competition. and much more scrutiny from the ofernment about the quality the drivers and the public up at the safety there.
i think that is all coming home to roost. it is really posed a challenge for didi's business because safety is at the core of what these companies do. the publicnot ensure and regulators about this, there will be all kinds of challenges going forward. emily: this on the back of explosive growth leading up to this. coming up, facebook attempting to avoid being hit with billions of dollars in fines from a u.s. regulator. we will look at how the ftc. and if you like bloomberg is, check us up on the radio or the bloomberg app or our website or sirius xm. this is bloomberg. ♪
emily: facebook is negotiating with the u.s. trade commission over a multibillion dollar fine. there are claims that they violated a consent to create. facebook promised it would implement data protection initiatives. but in december, the ftc said facebook had violated the agreement. we are joined by david mclaughlin in washington. david, this pertains to the cambridge analytic a situation, which impacted 87 million users. >> the information at this point is preliminary.
what we know is that the two , facebook isking cooperating with the agency, answering a lot of questions about the cambridge analytica issue. looks to be going is this could be a settlement that potentially could be in the billions of dollars. bloomberg was not able to confirm that there has been an actual number put on the table or that both sides are discussing an actual number for a fine. that sort of looks like where this is going. the other big question though is the conditions that the ftc might put on facebook as part of any settlement. conditions on how facebook conducts its business.
entitled tocc is find $41,000 per violation. we are talking about 87 million users here. multiply those two numbers it is far more than a couple of billion dollars. is this fine enough? if you do the math the way you explained it, you are talking about a mega-billion-dollar fine. i don't think it will get there. no proposal has been put before the commission yet, let alone the five commissioners. it is a little early to try to figure out what the size of that fine is. the ftc is under pressure to demonstrate that it has bite, not to spark. -- bark. i do expect the find to be with a b. don't think it will be set
at the maximum that the law allows. it will be far more than the biggest find to date, which was about 22.5 billion that the ftc find against google in 2012. if the ftc days to prove that it has a real bite, why negotiate at all? >> i think the reason to negotiate is if you do not negotiate and simply take it to car, i do not think it is necessarily a slam that they will win and prove violations of the consent decree. the ftc only gets the fine here because there has been a did -- violation of a consent decree. there are some gray areas about what circumstances got consent from users. cases or otherr situations the ftc might be reviewing. is not ato court
slamdunk. it would be a long battle. they would prefer and facebook might prefer to reach a resolution. they will get to a number. the real issue, or just as will be thes what other stipulations and requirements that will be part of this order? how long will facebook to bound by them? that is an equally part of the remedy here. facebook actually be forced to change its business practices as a result of whatever is decided here? >> yes, potentially. that is certainly what a lot of privacy advocates want to see. they will not be satisfied with just a big fine. to the old settlement in 2011 that got us to this situation. they point to that and say the ftc but a lot of conditions on what information facebook was collecting from users and it was
not enforced and did not work. around, the ftc needs and there isugher a lot of pressure on the ftc at this time, not just from privacy advocates but from capitol hill. there's a lot of criticism of the agency that they have been asleep at the switch. fair or not. this is a moment where there could be privacy legislation passed this year. plenty of people think this enforcement power should just be taken away from the ftc. the chairman is really under the gun to do something pretty big. emily: what exactly did facebook do wrong and the cambridge analytica situation and how does it differ from every other facebook scandal that seems to break on a weekly basis.
they are challenged weekly by the press from multiple investigations. is what happens here so much more egregious than all of these other things? should the ftc investigating a lot more? >> there are certainly other things for the ftc to investigate. isember, cambridge analytica not a classic data breach. in which there was an and filtration by a threat actor and they reached can they got a whole bunch of personal information. that came later. the issue here is that the sharing of information with a and not fully appreciating exactly what that analytica writes to. the issue for the ftc is whether or not facebook fully realized that by having users download appcambridge analytica
and use it to answer questions, whoever access to the questionnaire was getting information from their friends as well. the real issue is that they either knew what they were doing wereailed to police it or they monitoring their contractual policies and sharing information with third parties. that is what makes it so different. people had no idea. if i download this app and answer this question there, i am giving access to my friends information. that is what makes it stand out as an issue. a data breach.s that is troublesome in and of itself. not having control over your information because you're using apps takes it to another position. emily: we will have to leave it there. this is the data that ended up in the hands of the trump campaign. we will continue to track what happens between fox -- facebook
amazon, weall things want to bring and spencer in seattle. is there any chance that amazon will come back to the table in new york? r: that is an interesting. . who knows? presentinghing amazon from growing its dozens in new york anyway without all the pomp and circumstance around . second headquarters big about how google came out of nowhere and bought an entire city block. there could be some truth to that. even if we do not see some kind of renegotiation going on. what do we know about how negotiations fell apart? that is the big takeaway now. it did seem really last-minute. there were negotiations until
the day before with amazon and some feelings on the city side and some of the union representatives that things were looking fairly smooth and they had some sort of agreement on how to meet everybody's concerns and move forward. then the very next day the phone call came about the plans to retreat. just an hour or two before it was the announced. toly: we will continue follow how this develops and whether amazon starts to look elsewhere, even though they said they'd will not be. news, they let the $750 million investment in an electric truck maker become official. why would amazon want to be investing in electric trucks? spencer: it is an interesting development, given all of their logistics ambitions of late. let's just think about how they started delivering packages from doorsteps on their own as opposed to relying on the postal service or ups or fedex.
they have their mobile application that helps people use their own cars to deliver packages, kind of like a uber. ast summer they announced call to arms to entrepreneurs saying hey, start a business, hire some people, we will give you a steady stream of business. that grew very quickly. this year, there were thousands of drivers over the holiday season and these new amazon vance making deliveries around the country. that is something they continue to recruit four. if you think about how electric trucks could fit into that, it could be very appealing to them, especially their growing concerns about emissions and having zero emission vehicles. this could be a strategic long-term acquisition. fascinating bet that we will continue to watch. coming up, arc conversation with a sports ceo. why he thinks fortnight is the perfect communal game. this is bloomberg. ♪
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♪ welcome back to bloomberg technology. i'm emily chang. all-starannual nba technology summit is underway, exploring trends, innovations in sports and technology. we sat down with the chief innovation officer for the nba and asked how social media is playing a role in content creation for the league. take a listen. amy: we see our games on tv as reels and the social media as snacks. the players are developing content. the teams are developing content. we have 1.5 billion followers amongst players, teams and the
league. our job is to engage fans globally. different platforms and testing and learning is a big part of that. >> talk to us about the platforms, because traditionally you go to a game, you have men, women, e-sports, streaming. what is the biggest potential? amy: we think the gaming aspect has a lot of potential. we have the nba 2k league broadcast on twitch, the g-leauge. we are allowing people to vote for the mvp in the g-leauggue game. at the end of the game, he can take direct questions from fans. >> where is the most growth? we talk about e-sports a lot and it being a $1 billion business by 2020. where is the biggest growth? amy: e-sports, going back to the global opportunity, to engage our fans. we have the potential of having an e-sports team
internationally. we see that as a fantastic opportunity. >> you were just in china. talk about that as an opportunity. what are the challenges? everyone has a china strategy. amy: 300 million people play basketball there. 640 million people watch the nba there. we have phenomenal partners. i was amazed at the amount of people loving basketball. the challenge is how far away it is, but we are really focused on how we capture that market in unique and different ways. they are so forward-looking, tech savvy. they love consuming the nba. >> interesting prepping for this, you've got a lot of owners who come out -- it's a political, social activist world. how do you balance letting players, owners express their opinions, balance the situations
with all the managing a huge industry in the league? amy: it is important to give players and owners, especially players a platform where they can use their voice and speak out to whatever cause is important to them. we want to make sure they feel supported. obviously, diversity is a core value of the nba. we really want to embrace our players and enable them to freely speak. >> talk about the wnba and the opportunities there. where you see the most growth. amy: it is important to me especially as a woman that i work for a league that embraces diversity in the nba, but we have our own women's professional league. we see tremendous potential. it is a league that has been around for many years. but we think in today's society, it is primed for capturing a new audience as well. people who care about progressive women and what women are doing not just on the court, but off the court. >> when you think about technology, one of the elements
that comes to the floor is gambling. it is a totally different environment now. this startsategy as to set in for the nba? amy: first and foremost, integrity. it is happening already. we just want to embrace it and make sure it is regulated in the right way. for us, we see engagement has the opportunity. when people bet or do fantasy gaming, they watch for three times as long. for us, that is great opportunity to make our games more unique and engaging for fans. nbay: that was amy brooks, chief innovation officer. sticking with the annual nba tech summit, we also caught up with ted leonsis to talk about everything from the nba's media platform, tech partnerships and the potential growth for e-sports. take a listen. ted: the nba is a platform that is no different than google or
amazon. we have a big corporate structure in the league. we have multiple app. nba 2k,a, g-leauggue, summer league. the data that we generate is deeper, more real-time than anything that you cover at bloomberg in business and industry. grew a your company platform, starting from terminals to a small group, now it is a gigantic media company focused on financial services, i believe the nba will continue to grow on a global basis. >> that did not happen by accident, right? it feels like the nba is around the corner from other leagues. you know other sports as well. ted: when i was at america withne, we used to do --
commissioner stern, commissioner.com. he really started this tech conference. this tech conference is one of the most important industry events. everyone who is in technology wants to come. in media, because our game, our sport is the most valuable content, the most valuable data in the whole media landscape, it's very relevant to older people. i call this modern nostalgia. i walked by and saw kareem abdul-jabbar. kareem.n, i grew up with it is very, very relevant for millennials. it is fast-paced, real-time, lots of data. it is very relevant to the next generation, gen z, who will never get cable. who want to interact with
entertainment and stars. we're leaders in e-sports. i've been personally been making huge investments in e-sports. liquid with peter gruber who owns the golden state warriors. >> how big is that going to be? ted: it is going to superset all of the leagues in terms of engagement because it started globally. it didn't start in north america, canada. it is something that started globally. it is free to get started. i made an investment in epic and fortnite. it is the perfect communal game. together andting playing a game. they survive on the island and they are talking with their friends. it has become a platform. >> has it become bigger than you thought? it has become a
juggernaut. did you anticipate it would be this big, fortnite? ted: yes. [laughter] >> i think it, a lot of people lagarde -- not you -- i think it caught a lot of people offguard -- not you. it happened for a lot of people. ted: the management people at epic have been in the industry a longtime. their ceo as a good touch with the publishers and the studios and understanding what is going on. what he was able to do was make an exchange. i will give you for free a real communal piece of software that will activate friendships, viewing -- i think it is the first multiuser game that was designed to be easy to follow. we play in league of legends,
overwatch leagues. if you have not played the game, new to it and get dropped in front of a television, it is hard to understand what is going on. fortnite, you can understand it. it is building a platform that is global and worldwide. teams, and owners, the league developing interest partnerships whether it is intel, tech companies -- is that how you do it going forward or acquisitions of you guys getting closer and closer? ted: partnerships are very important. we right now are very focused on giving a lot of value to our media partners. i think gaming and gambling -- i was head of the nba media committee. i saw that they wanted our content but they were very nervous about what the future would hold because it is not so much cutting the cable. it is that young people never
will sign up for it. universe, ifcreen you can create an environment where people get deep into the data and engage before the game, during the game, after the game be communicating, it is good for the media partners. and then it would be good for the league, the owners and the players. emily: that was monumental sports ceo ted leonsis. coming up, surveymonkey reported its fourth-quarter results this week. we will hear from the ceo on their enterprise strategy and his thoughts on amazon's retreat from new york -- escape from new york. later, amazon's proposed expansion in new york no more. the deals proponents are very upset. we will hear from congressman carol maloney about why she is not happy for her constituents. this is bloomberg. ♪
emily: back to the big story of the week. amazon canceling its plans for a new york campus. from the beginning, amazon was criticized for failing, keeping most of the process secret. the company is now being called out, quickly pulling the plug is that of negotiating with the community. but, what do other tech leaders think of amazon's exit? joining us to discuss is surveymonkey ceo zander lurie. do you think they prematurely walked away? zander: this is a big story. amazon is one of the most valley willallibl companies in the world. amazon would have created $30 billion in tax revenue for the community. maybe the credits got a disproportionate share of the
attention. we did a survey of 10,000 people. we found detroit is the city that wanted amazon the most. over 78% of detroit residents were looking to having amazon hw q2 there. emily: i expected them to go to a place that might have needed amazon more. zander: i don't want to make a discrete pitch for surveymonkey, but part of it is these politicians that really got into the fight, they better have a keen sense of what their constituents and community wants. if you are collecting data, listening to the voices and opinions of people you are representing, hopefully you have a good sense when you push amazon away that that was in the best interest of the community. it would have created a lot of high-paying jobs. amazon is either negotiating or it is in fact not hospitable and going elsewhere. somebody did not get the sentiment of the community. emily: we spoke to a number of posing lawmakers -- of opposing lawmakers yesterday, michael
gianiaris. take a listen to what he had to say. >> i don't think that was worth it. i think the way amazon reacted to it proved my point. they were unwilling to deal with legitimate concerns that this community had. they negotiated a deal in secret. when it was discovered by the public, the public outrage this third them. all we did was raise our hand and say we have questions about this deal. emily: defending his sort of approach there. admitting it is not a celebration that they lost. zander: you talk about this all the time. it highlights big tex is increasingly relevant. we represent a disproportionate share of market cap, hiring, growth. amazon, every move they make gets a lot of attention. i think there is a lot of backroom negotiations. emily: do you do any surveys on the tech backlash and should amazon have known better that
maybe they would not be welcomed like heroes? zander: we are living in a very dynamic time politically. we look at the administration issues that are pushing people to the right and left. we know that big tech are increasingly scrutinized. the data that is being shared, job losses to a.i. companies like amazon and facebook and google's an and others are getting a lot of scrutiny. dark places for -- there are places for critics to have their voices. it is a highly dynamic situation that probably does not have a final chapter written. emily: does facebook get through? zander: i have no information about facebook. they have owned up to some mistakes and i think they are taking appropriate measures to cure them. it seems like facebook has done some incredibly good things in terms of hiring and connecting the world. sheryl and i have a
proprietary view. she is an incredibly high integrity leader. she has spent so much time and money helping others, mentoring others in philanthropy. i think she in the leadership team are digging deep to fix whatever problems are at facebook. emily: quick questions about your earnings. your report is this week. they plunged but recovered today. what happened? zander: we put up a terrific q4. i'm proud of the employees at surveymonkey. 2018 was a transformational year. really public, but reall celebrate a revenue -- re-accelerated revenue. we booked our first $10 million sales quarter and put up 80% year-over-year growth. shares had a tough day yesterday. if last september was the first day you could buy shares, yesterday was the first day long-term shareholders could
sell them. if we put up the kind of numbers wall street is looking to, our numbers will perform just fine. emily: surveymonkey ceo zander lurie, thank you for stopping by. coming up, amazon is no longer expanding into new york and congresswoman carolyn maloney not happy about what it means for her constituents. that is next. this is bloomberg. ♪
emily: congresswoman carolyn maloney has been a supporter of the now defunct amazon expansion deal in new york. she spoke to kevin cirilli in washington about why amazon ending its plans was not a win for her constituents in new york's 12th district. the fallout today is that my constituents who were looking forward to getting these it,, were very happy about i am personally disappointed. i feel like if amazon came to new york, we would have become the high-tech capital of the east coast and that would have been more jobs, more tech workers, more people in this industry. one of the challenges of new york -- i have worked with new york leaders rejected on this -- to diversify our economy. we are too dependent on financial services. if there is an economic downturn, it has a whammy on the budget of new york.
along with mayor bloomberg, many other elected officials, we would have meetings and strategies. we had this competition to build this high tech school in my district. we beat out the other competition. cornell tech, training the tech leaders of the future. it was a huge investment in tech. now we had someone who could actually hire the people being trained and now they are leaving. the fallout is that all of my colleagues in congress are trying to get amazon to come to their state, particularly virginia. kevin: the real estate here is booming because of that. i want to go back to the central issue of diversification in new york, because you mentioned the financial services sector, having deep ties in new york city. to lure an amazon to new york, it would seem as if it would truly be a boom. where was the breakdown from
your perspective? what was the specific turning point that turned amazon away? rep. maloney: first of all, i would congratulate mayor de blasio and governor cuomo for fighting to win. they went into a competition where it was reported, roughly 220 localities, cities, states all wanted amazon. new york won. we are the best city in the world. we should have been rejoicing. you could be for a project while you are working to improve it. i was working with my constituents trying to get some assurances and help and commitment for entry-level jobs, lower paying jobs. and they were being amenable, they were responding to this. i think the breakdown is everybody got in their corner and they did not move. government's always a process. you can work to make it better. i think also a huge breakdown was there was a negotiated tax
refund of $3 billion. many elected officials and others were portraying it like it was a pot of money that could have gone to schools. coincidentally, amazon was building the school in long island city and pledging 30 other schools to build tech education centers in it. it would have strengthen our school system. we were working to improve it. if you don't like the deal, worked to improve it. i think also amazon had so many offers. it was not like new york was the only place they could go. washington state, they hope they will expand more there. virginia is ecstatic, they think they could come there. i would go to the floor and they would say carolyn, does not want amazon, we want them. everybody wanted amazon.
they have a reputation of really helping the community's they are in. kevin: you mentioned about the $3 billion tax refund. you mentioned the criticism from some within your party, including a freshman congresswoman, alexandria ocasio-cortez. she and others in your party are celebrating this and saying it is a win for them. rep. maloney: well, my constituents do not feel that way. many of them do not feel that way. i have to work with them on other things. for example, we are working to get a subway stop in queens. they deserve it. they don't even have a full firehouse. tomorrow is another day and we will be working together on other projects. they are all talented, but there was no subsidy. it was a tax rebate from the money that they had paid into the coffers of new york city. hundreds of million dollars,
billions of dollars over a 10 year period. 25,000 high-paying jobs of over $150,000. they would not get any type of refund or tax credit unless they created those jobs. those jobs and amazon had paid millions of dollars in taxes. emily: that was democratic congresswoman carolyn maloney with kevin cirilli. that does it for this edition of bloomberg technology. we are off monday for president's day in the united states, but we will we back on tuesday. have a wonderful weekend. you can check us out @techn tictocnd follow us on on twitter. this is bloomberg. ♪
♪ david: why did you decide to write a book on leadership? doris: i was interested by if leaders are born or made. david: you wrote that lincoln considered suicide at one point. doris: he said that he must rally or he would die. david: leadership means taking a risk. doris: a leader has to help the citizen come together. david: people would not recognize me if my tie was not fixed. they recognize me this way. ♪