tv Best of Bloomberg Technology Bloomberg July 27, 2019 4:00am-5:00am EDT
♪ emily: i'm emily chang and this is the best of bloomberg technology were we bring you all of our top interviews from the week. alphabets, and facebook all release second-quarter report cards, we break down the results. facebook results are overshadowed by a new antitrust investigation opened into the new ad and mobile business. this after facebook paid a record fine to settle privacy
concerns. and the proclaimed arrogance of silicon valley. ripples ceo has called facebook's libra pitch to lawmakers somewhat sumptuous -- presumptuous. we asked how it is impacting the broader crypto market. to our top story, facebook, tesla, alphabet, all reporting second-quarter earnings. amazon and alphabet reported thursday. for at-bat, it was about sales and regulation. two guests waited. -- weighed in. >> 85% of revenue in google is from the ad business. i think that given the competition they will be facing, you do not want to be in a spot where you have north of 80% of revenue coming from advertising. so i think they will place a bigger emphasis on the cloud .usiness how much successful they have?
they ared to say facing massive competition against microsoft and amazon who have had a lot of success and put significant dollars so i think it will be something that is hard to get out of there but still -- out of. but still a significant part. emily: they did by look or earlier this year and i asked if acquisitions in cloud would make sense. they said they were open to acquisitions but there is lots they are doing organically. at the same time she said they are still interested in acquisitions, she also said organic is doing well. so it is certainly interesting given the antitrust scrutiny that google might hesitate to do more acquisitions in the near future. is that what you would expect? i think the cloud business is
important strategically. look at what microsoft just did with open ai, investing billions. it is a company but also a nonprofit. i think google will look at the cloud business in a similar fashion. the technologies of the future that will be scaled out, obviously, the cloud business will be important. it is a platform for this new businesses. amazon will continue to push that business to the bottom line, it is incredibly important for the stock price. heavily incso i so the bottom line numbers. for google, i don't see it quite that way. strategic to more google than it may be for amazon. emily: that was estimize founder and forrester analyst.
on thereet -- on amazon heels of a record-setting prime day. in, advised clients to buy expecting strong revenue growth and operating income. from an analyst after the e-commerce giant reported that insight from an analyst after the economic -- insight from an analyst after the giant reported. intricateow much this stop writing prophets, i think this may be the canary in the coal mine. it might also be a one quarter blip. but that is something that may be more concerning as we go forward. emily: it is interesting singling out aws given how we were talking about google's cloud business. business cloud continues to grow, what do you think the slowdown or the disappointing numbers have to do with? is it because of competition or
amazon-specific issues? >> i don't think it is specific issues so much as the competition. microsoft's cloud business is up over 60%, so we know that business is on fire. kingthe stopping -- stal horse is google. you hear that there are signs of life here. if that becomes a strong third player, now amazon is competing with two and that can eat into the top line. the companyfo said didn't spend more than what they said they would on the same day delivery and that it has been more difficult to execute van expected. i can echo that as a customer. it often does not work out. what are you watching their? -- there? >> topline growth is driven by the commerce business.
i was expecting investment to pay off in q3 and q4. if we are already seeing an acceleration, we could be looking ahead to an explosive q4. consumers have to develop a habit. that habit, they are not feeling the impact of that one day delivery. those habits will get ingrained in q3 and then cement themselves. i think that is where we will see the upside. emily: let's talk about the rest of the year, going into the holiday quarter. lots of acceleration is going to be happening. you have got cyber monday, black friday. how do you expect amazon to perform, relative to the , in the e-commerce unit, in particular. >> there are a few advantages and q4, particularly in light of the one-day shipping initiative. i don't know if folks are
thinking about this, but we got into a compressed holiday season. andays between thanksgiving christmas, this year, 27 days. that really advantages someone like amazon. we always see them increase their share later in the season as consumers don't have the same confidence as getting deliveries on-time. that season will really be to amazon's advantage. emily: that was an analyst for the marketer -- for emarketer. analysts visit the white house. of the biggeste tech companies to talk about the fallout from the trade war and the ban on huawei. and if you like bloomberg, check us out online, on sirius xm. this is bloomberg. ♪
emily: white house officials are sending a delegation to china led by robert lighthizer. this is after a high-level meeting with the trump administration and ceos from google broadcom, cisco, intel, and qualcomm. it was geared towards easing a sales and on -- ban on huawei. i spoke to a representative from arizona's seventh district. iswhile way is not -- huawei not an independent actor, it is an arm of the chinese government.
we cannot trust it will not have negative consequences. huawei was working with a shell company in north korea, supplying them with technology that was explicitly banned through our sanctions regime. this is why we have joined with congress when gallagher from wisconsin to enforce the sanctions regime we think is being effective. the president should not do a one-off trades for farm goods for something that could significantly impact the future of both our country as well as our allies. some in the are business community, including many high-level tech ceos who will tell you privately they see usesidence that huawei this equipment to spy. what would you say to that? >> [laughter] i hope they would just read the panda shell corporation that would allow huawei to do
business, so clearly, this company is not operating on the up and up. known two, it is well that they must make any assets available to the chinese government. and while i respect a lot of these companies, their goal is to have the highest profit margins for their shareholders. as a member of congress, the most important thing for me is national security. and this sends a bad message to oversee allies who we are trying to convince not to incorporate wei into theua national security apparatus. it makes it very difficult for us to share information. emily: you referenced a report that huawei has partnered with a chinese state-connected company panda to improve things in north korea like the wireless infrastructure. they have been partnered, according to the washington post, for eight years. , saidesident, when asked
he did not seem particularly alarmed. how does this new potential revelation about while way -- about huawei and north korea, how does that change your level of objection? >> i object even harder. i think other corporations and members of congress should be worried about this. the fact that the present does not seem to understand the problem or scope tells you that we should question his judgment when it comes to decisions on this very key issue. the president does not understand the full scope of what is happening or what could happen should huawei have access to our market and that of our allies. play essentially trying to a trade war against each other. we should not be trading access
to the five d market for -- 5g market for us to go back to the pre-trade war, us selling farm products to china. this should be separate because this will have longer lasting affects -- effects. emily: that is my next question. the leaders of these u.s. companies will say the blacklisting has significantly hurt the bottom line. some of these companies provide supplies and chips to huawei smart, laptops, and consumer products that they say do not have much of a threat to national security. what would you say to those ceos? >> they are wrong. it is the determination of the u.s. intelligence community, as is congress, that they are dangerous operators. nation toe right as a stop corporations from engaging
with other countries and entities that put our national security in danger. i don't see these companies complaining about us having a sanctions regime against iran or other bad actors around the world. they do not have a right to corporate profit at the sake of national security. that is just how it is. -- it is,ely, unfortunately. hopefully, we can stop them. emily: what would you like to see the trump administration do? >> i think the trump administration should continue with the sanctions regime they have and go stronger. hopefully, that stays. if the president does not do that, i think the house and congress should pass a new sanctions regime or continuous wei-zte to make sure we are enforcing good order and discipline to protect our national security interests. emily: since i have you, i have
to ask about iran. the president defends withdrawing from the nuclear deal, and in the meantime iran has seized a british oil tanker. tensions seem to be escalating, what do you think the u.s. should do? >> we have to respond, but in a measured manner with assistance and concurrence with our allies, especially britain and european allies. , we have totime recognize that us leaving the jcpoa as a knee-jerk reaction to anti-obama policies has created this situation. evensays they will comply, though they are not receiving any of the economic benefits. but there are still other areas we have to keep. the last thing we can afford and the last thing we need is a war in the middle east that is not
even in our national security interests to engage in. we have a lot of other tools of the toolbox to both keep iran in check, and at the same time, de-escalate the situation through diplomatic means. emily: speaking of tension at home, the president is under fire for what some have called racist language about four democratic congresswoman of color. do you believe the president's remarks are racist and that he is stoking racial tension? especially given his response, or lack thereof, to supporters at his rallies? >> yes, of course. this is not the first time the president has used race as a way to engage and enraged his base. presentember of this started off his political career accusing president obama of being born in africa. then he accuses a mexican-american judge warned in
indiana of having dual loyalties -- born in indiana of having dual loyalties. so it is not a surprise he describes for american women is not being american. these women are of color. she does not describe nancy pelosi or any other women that are white as being un-american or not loving the country. he is clearly trying to drum up the base of his support that is racist and does believe in these racist theories. emily: that was congressman ruben gallego of arizona's seventh district. coming up, tesla shares fell in after-hours trading after the company pulled back on profit promises. we break down second-quarter results. and later, we talked to ftc commissioner know if phillips about facebook's record fine. this is bloomberg. ♪
emily: tesla posted losses and backtracked from profit forecasts as part of the second-quarter report. cash and deliveries of emerged as the biggest challenges to growth. the company announced the longtime technology officer is stepping on -- down. i covered the challenges with max chafkin the bloomberg businessweek and a tech analyst. >> i think the 5 billion on the balance sheet is a great number. i think march is probably why the stocks are down -- margin is probably why the stock is down, and i think margin is actually, if you go through the numbers in detail, better than expected. and i think forward guidance of being gaap positive on that income is good as well. it's kind of an overreaction to the downside in my opinion. emily: if it is an overreaction, it is a big overreaction. shares are down 10% right now.
max, there is a disappointment on profit. the company turned profitable at the end of last year. that reversed at the beginning of this year. elon musk said the company would become profitable later this year. it looks like that's not going to happen. >> they are still trying for it. it should be said there are two things going on with tesla. one is that they've been pushing like crazy for volume. they want to be a large volume car manufacturer, one of the biggest in the world long-term. this car that they are selling , the model three, does not have great margins, it seems. they pushed so hard to get the price down to that magic base price, got there. it has come up a tiny bit, but the margins are supertight on those low in cars. -- low-end cars. as people by the cheaper model three, they are moving away from tesla's more expensive cars, so there is a pressure on profit
that is, at the very least, a near-term problem and critics are going to say this is a long-term problem. they will say this is a company that will have a hard time getting to profitability. emily: is it a near or long-term problem? >> it's not true. the model three they actually had better margins quarter over quarter, x credits, which everyone wants to look at. so it's not true. they are making improvements on gross margin, so i'm not sure what that statement is. emily: max? >> yeah, the company is not profitable right now. they obviously like to get profitable. i think in the long run, they want to be more efficient in the factory, be more efficient in their operations. that's the message we've been hearing from elon musk basically for the last year, and then they want to get these new cars out, the model y, which could be a huge boom for the company. that is the category of car most
americans are buying, and also getting to china -- emily: it is a cheaper suv. what is the status of it? is it going to be here next year? >> well, you know -- emily: inquiring minds want to know. [laughter] >> i don't have any inside information. certainly the big effort tesla is doing right now on top of building a giga factory in china, which would be huge. the chinese market is the biggest market in the world for electric vehicles. emily: what is your take on how much china can change the tesla story as they continue to try to get new models to the market? >> we don't have any production in our numbers from china this year. i think what is most underestimated about everything here is the brand in china and how it has kind of become a wildfire there and how many cars it can sell, and i think that is
upside. just back to the cash flow they generate during the quarter, it is a couple hundred million dollars, so the idea they don't make money is completely wrong, and the headline needs to change. there's $5 billion on the balance sheet. they are not going out of business. you have other oem's that have really hard problems, restructuring problems, and it's not tesla. it's xyz, german manufacturers. they are getting their lunch eaten by tesla. emily: there's a point there and -- in that if you talk to people who own teslas, they love their cars. they are not focused on the ins and outs of if the company is making money, how many delivers they are making, what production looks like, so how much does that matter? >> it's huge. making a good car, if you are a car company is definitely the
most important thing, more than anything else. and to ben's point, one thing about the conversation that has changed over the last year is about a year ago, people were saying the company is doomed, they will never get to volume production, and now, the debate is a different debate. it is is tesla a niche manufacturer? that would be the bear case. the bull case is this is a company that is going to be bigger than toyota, daimler, and so on, and if you are elon musk, that is a good shift in the conversation. you don't have as many people going around talking about this thing collapsing any day. which was happening a year ago. emily: talk about a shift in the conversation. it has been a little bit more restrained on twitter, let's say, since his settlement with the sec over how he is communicating with the public. what is your evaluation of musk's leadership, given some of the hiccups over
the last year? >> i think people want to invest with musk. i think him being more restrained or quiet is helpful. i think that being cash flow positive is helpful and having 5 billion bucks on the balance sheet is helpful for the growth managers that have not been paying attention or cannot own this or are of avoiding it to come back and buy it at a lower price then, whatever, a year ago where they were. emily: that was max chafkin and tesla analyst ben kallo. facebook marches forward with an ftc settlement in the rearview mirror and a new investigation underway. they posted second-quarter results, shares are up more than 50% as most of wall street says
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of bloomberg technology." i am emily chang. facebook second quarter is out, the company can grow while feeling the heat from regulators worldwide. after the announced a settlement with the federal trade commission to end a probe in its privacy practices, the social media giant confirmed it is being investigated by the ftc on antitrust over its social media ads and apps. estimates,e users be but with its reputation under assaults, how? we have multiple parts of the
government investigating facebook for multiple things. one of the most salient things about the settlement and the fine is that facebook did not admit they did anything wrong. we have not seen them show a lot of introspection about why all this happened and i think that is telling. unfortunately, the reason it happened is because they have had poor governance and it had bled out into all kinds of areas of their business and it is causing them long-term ongoing harm. emily: we are going to talk to one of the commissioners about the details of the settlement and how it will change facebook going forward in a moment. speaking about the numbers, with all of these controversies, all of these scandals, how does facebook seem to keep beating the odds? deborah: it is a tough company. it really is. every quarter i say the same
thing. they have been able to grow revenue, grow user base, despite mounting challenges. this quarter, more of the same. it is really incredible that facebook has been able to do this quarter after quarter. emily: david, i am going to push back a little. they beat on daily active users, on users, they came light on monthly active users, but do you think this is not going to impact the company's long-term reputation and ability to grow? david: it's reputation is seriously impaired already. the ability to grow is a complicated question, because, they just keep raking in the dough. they are a brilliantly designed advertising platform. and for smaller businesses, there is no other place to go with similar results. that is great for this company, but long-term, is it going to
affect them? it is absolutely going to affect them. there is no question about that. >> i would love to jump in. i absolutely 100% agree with david on that part. i think the teflon part is their ability to grow. i believe there a is plenty of consumer sentiment issues with facebook. there are plenty of growing issues with regard to how advertisers feel about facebook, but the thing is, there is still spending there and people are still using facebook, despite those concerns. emily: earlier today, zuckerberg gave a town hall at the company. here is what he had to say about the settlement. >> i believe that companies should be held accountable on privacy. this is what accountability
looks like. as part of this settlement, we have to pay a major fine and there are now very clear rules around how we need to operate on this. i believe that this is going to help us serve our community better. emily: the ftc could have sued facebook but that didn't happen. they could have sued zuckerberg, that didn't happen. they could have curtailed zuckerberg's professional responsibilities as well. that happened to a very small extent. do you think the settlement goes far enough to provoke the introspection that you believe is needed as the company continues to grow? david: i would probably have to say no, because i do not see enough introspection. if it takes a $5 billion fine to make a company finally start doing what it should have been doing all along with privacy and governance, that is a very bad sign about the culture of the
company. i do see gradual reform and consciousness raising, and changing behavior, i am not going to deny the company is any other place than it has been in the past. the fundamental reasons why this happened have not been addressed , and i think they allowed a culture to emerge which showed very little concern for some basic interests of their users, because they were so thrilled at the amount of money they were making. that is my simple analysis. emily: this is really a family of companies now. facebook, messenger, whatsapp, instagram, how do you see growth at all of these different divisions changing in the future? we know instagram continues to be a better story. we suspect that facebook proper users are getting older, growth is starting to slow. what do you see? >> instagram remains a very strong growth engine, no question.
that said, according to our forecast, instagram is still well under one third of facebook's total revenue and will continue to be that way in the next few years. it is not like growth at instagram is going to suddenly balloon this company to be bigger than it already is. the main part of revenue, the main driving force of revenue for facebook remains that big blue app. there is no revenue going into whatsapp, limited revenue going into messenger. it is really all about the blue app and about instagram, with most of the focus on the blue app. coming up, facebook faces a new antitrust investigation by the federal trade commission after it agrees to pay a record penalty for years of privacy violation. next.
betrayed the trust of its users and deceived them about their ability to control their personal information. emily: some terms of the deal, increased responsibility by the board, but little impact on the ad business. the davis settlement -- data sediment was made public. i spoke to the ftc commissioner who voted in favor of the settlement from washington. >> in 2012 facebook committed to us and to the american people that it would take certain steps with privacy, in particular it would not misrepresent the kinds of sharing going on without developers, and the kind of control facebook users had over data that they gave to facebook. he committed to having a
reasonable privacy program. it broke those promises and a few other promises. we looked at what facebook had done and we want to send an important message about ftc orders and commitments to privacy. emily: mark zuckerberg will have to certify that facebook is complying with its new privacy policies, how would you like to see his management of the company change? noah: i think, above all, what we would like to see is a greater focus at facebook on privacy. that includes mr. zuckerberg and under the terms of the order, he is going to have to focus more on privacy, but it is not just about mark zuckerberg. what this order requires beyond the $5 billion fine is attention to privacy at every level of the company. engineers who are working on projects are going to have to think about the privacy impact of what they do and if they choose not to protect privacy, they will have to explain why.
this goes all the way to the board of directors. the board is going to have a new privacy committee which will have ultimate authority to oversee privacy. emily: why not fine zuckerberg directly or do more to limit his personal authority? noah: as i said, this case is not just about mark zuckerberg. this case is about facebook in general. mark zuckerberg is a very important person at that company, but he is by no means the only one. we want people up and down the line to be focused on privacy. emily: there are a lot of critics who say a $5 billion fine is not enough and that the structural changes required here are also not enough. one of your colleagues who voted against the settlement decide it imposes no meaningful changes to the company structure or financial incentives which led to these violations. instead, the order allows facebook to decide how much information it can harvest from users and what it can do with that information.
what is your response? noah: to me, there are two really important points here. the first is, what we do at the ftc's law enforcement. so, what we look at in any case is what the facts show and what do the legal obligations and did the company break the law and we try to remediate the violation of the law. we don't come in and simply tell the company what to do about everything. there are a lot of people in america who have real concern about how facebook conduct itself. that is a fair conversation that goes on all the time in homes across the country and right now in congress, which is thinking about privacy legislation. what facebook was doing in terms of ad practices is not what this case was about. this was about the misrepresentation to users about privacy and several of those things we talked about, and critically, that is what we are
aiming to remedy. emily: another colleague who voted against this says the ftc would have done better by suing facebook and zuckerberg himself. why not do that? noah: i don't think that is an accurate characterization of the state of play. the remedies we have achieved financial and injunctive, meaning the changes we are making to facebook, are very unlikely to have been achieved through a court process. in a normal litigation, you are weighing the certainty of less against the chance of more. in this case, what we were facing was a decision between the certainty more and the uncertainty of getting even less. emily: now, privacy advocates have advocated for bigger changes to how facebook attracts tracks its users and fundamental changes to the advertising revenue business.
do you think the changes here are going to be enough to change facebook's practices going forward if it is not, aside from a $5 billion fine, hitting the bottom line? noah: that conversation is really important, and it is part of the conversation that is going on nationally and in congress about what ought to be allowed and what is not allowed. that is not what this case is about. this case is about the commitments that facebook made and it's violation of those commitments, and that is what we are focused on here. of my that was part conversation with ftc commissioner, noah phillips. there were no shortage of opinions on the settlement, as well as the antitrust probe. ctot insight from former and director of research at the electronic frontier foundation. >> i think the challenges that
the order do not require facebook to prioritize above all else, it requires the company be truthful or not be deceptive again. to your point, they could actually request the same phone number they use for two-factor authentication and use it for targeting. they just cannot use it under the guise of solar collecting for two-factor authentication. this is basically companies cannot be deceptive about it, but it does not prevent them from being transparent about their practices and going ahead and doing so. emily: there are things facebook has already said it is going to do like merge the back end whatsapp messenger and instagram . i know you believe this is deeply problematic. what other major privacy issues do you see down the road that
to believe that there may be a violation of antitrust laws, that there may be consumer harm that they need to look into. that is what this investigation disclosed, and ftc has confirmed. that is basically what that means. that is about all we know right now. we also know that ftc talks to european regulators, so they may be taking cues there, but often they want to grow their own way, so it really remains to be seen what will happen. emily: what is happening right now? >> it is quite likely commissioners do not yet know if it is at the staff level. they were probably briefed on it , but do not know all the details, and that is probably by design. they are supposed to keep a wall between the investigation. i do know the practice you just described, they would be bundling, requiring that one account be forced to use a different product, so than whatsapp have a account you would be forced to
, use a facebook account, so that would be bundling. there are a number of things regulars could be looking at with regard to the antitrust investigation. the most critical piece is that when you ask the commissioner himself, is to a degree are they different, so the bureau of consumer protection and the bureau of competition in the bureau of economics, the consumer protection competition bureau's operate independently, right? the question of to what degree they are overlapping and sharing information from consumer protection investigation with the competition investigation. cto.: former ftc up, facebook's libra got little love from lawmakers on capitol hill last week. will the crypto community welcome the digital money? we will ask the ripples ceo. this is bloomberg. ♪
emily: the capitol hill hearings last week continued to roil the crypto market as most all cryptocurrencies were down except for ripple. u.s. lawmakers spent two days grilling, on how libra can shape -- i spoke with the ceo of ripple and bloomberg tech's kurt wagner. >> i think they have taken a very bold, ambitious effort, which is part of what makes silicon valley great. we have these incredible entrepreneurs who think outside the box. i think there is a little bit may be more than ambitious, maybe arrogant. the white paper articulates it is a new currency. i think the u.s. dollar works pretty well. this is a moment where i agree with the president. we don't need a new fiat currency.
there might be some smaller markets, the argentinian peso, that might make sense. the way they rolled it out, a lot of headwinds, turbulence. it will be interesting to see how that plays out. emily: we talked about the level of skepticism and ire. one lawmaker comparing it to 9/11 and the level of danger. what happens next? >> that is to facebook to figure out. they have announced, we have this group of 28 partners that will be part of the libra association that oversees the currency. there is no charter for that, no payments have been made. at this point, it is continue to talk about regulation. on facebook's side, they need to get their team together to get this move right now, it is an idea but not something that is tangible. emily: do you think the regulators will let libra happen in the u.s.?
brad: facebook had conversations with regulators before they announced the white paper. some of those regulators had expressed concerns. i don't think facebook did enough to mitigate that and make them feel comfortable. it is very important to both the u.s. government and governments around the world that financial regulation matters. know your customer, and anti-money laundering, these are important financial pieces of our system. we need to make sure that future construct keep that in mind. the only danger happening right now is that legitimate projects taking advantage of crypto to solve real problems get caught in the crossfire. even the president came out and tweeted, i don't like cryptocurrencies. that's like saying i don't like an internet company in 1997. there's lots of shapes and sizes. what ripple is doing is with banks and regulators, it is the antithesis of how libra is approaching the effort.
emily: some have said that if libra succeeded, that would not be good for ripple. is there truth for that? brad: no. facebook is a consumer company. when they think about the problem they are solving, it is a consumer oriented problem. what ripple is doing is at the institutional level. we are connecting banks. we had one of the best weeks in our history the week libra was announced. it is a call to action for banks. someone said it is the end of western union. that is an assault on the financial sector, and they are taking the opposite approach, let's work with the system. regulations work at that point. we cannot paint with one broad brush especially at the federal level. emily: you work with a lot of banks. what did they think of the libra association? would you ever work with the libra association? brad: a lot of people signed up, the 28 members signed up, it was just an moi, no money changing hands, no hard commitment they
wanted to have a seat at the table. they wanted to hear what was going on. i would be interested to see if the 28 who signed up continue to participate. it is too early to tell. i thought it was very noteworthy that there weren't any banks or financial institutions within those 28. it is an assault on that system, it is ambitious to say the least. emily: there been reports that there has been skepticism among the partners that have signed on. what are we hearing? kurt: they are not saying anything publicly. that is one of the concerns, that facebook is out here taking the beating for themselves. , theya project they claim are a cofounder with many other companies. if i am facebook, i'm saying, are you guys in or not? we could use support out there. with the banks, bloomberg has reported that facebook and others in the association are out talking to banks right now. i think it does add a level of legitimacy to this whole effort.
right now, if you're facebook, the biggest challenge is getting those people to say something publicly so they put their name behind what they are doing. emily: on another topic, there have been reports that bank of america has taken out a patent that it would use ripple ledger. can you comment on that? >> i saw that. emily: can you confirm or kill the speculation? brad: i can neither confirm nor kill. we are working with a lot of banks around the world. some of the largest banks in the world are customers of ours today. we will continue to work with big banks around the world. i too was surprised by that patent application because we have not announced anything. emily: that does it for this edition of the "best of bloomberg technology." we will be on air throughout the week. tune in every day. we are live streaming on
jonathan: from new york city for our audience worldwide, i am jonathan ferro. bloomberg "real yield" starts right now. coming up, u.s. growth delivering an upside surprise ahead of a much anticipated fed decision. present draghi making the investors wait until september. the ecb teeing of extra stimulus, fueling inflows into every major bond sector. from high yield to emerging-market. we begin with the big issue. something in the data for both the hawks and the doves. >> the u.s. economy is doing very well.