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tv   Best of Bloomberg Technology  Bloomberg  September 15, 2019 5:00pm-6:00pm EDT

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taylor: i'm taylor riggs in for emily chang, this is "best of bloomberg technology" where we bring you all of our top interviews from this week in tech. coming up, oracle's ceo takes leave, mark hurd announcing a leave of absence for health reasons. we discussed what it means for the company. plus, cooking it up. tim cook takes the stage in cupertino. his deputies revealed the new iphone 11 models with new colors and three cameras.
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details on those devices and more like the apple watch series five. and linking up. we get an exclusive check in with linkedin ceo jeff weiner. his thoughts on the company three years after microsoft acquired the website. we begin with one of our top stories this week. oracle announced wednesday that the ceo is taking a leave of absence for health reasons. they disclosed the move along with quarterly earnings a day earlier than results were scheduled to be released. the company did not specify what issues hurd faces or how long he's leave will be, but the executive chairman larry ellison released a statement saying quote oracle has an extremely capable cfo and a deep team of executives with long tenure. we will cover marks responsibilities during his absence with support from the rest of our strong management team.
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to discuss, i spoke with a bloomberg intelligence senior analyst and our global executive editor tom giles. >> as far as his leave, there have been signs that he may not be unwell. what was not expected was the announcement to come today. and because they had not announced until now, there was a question mark about whether they would and whether he was getting well or not. tom: it took us a little bit by surprise the timing in particular. taylor: i want to bring you in here. you heard it from larry's mouth, does any of this change the future direction of the company? >> no, it does not change the future direction of the company. oracle is a very stable business, given a large on premise database business they have and a large applications business. the key risk for oracle and the
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key story remains how soon can they get the database customers on to the cloud? that story remains the same. anurag: i don't see any changes because of this shift. taylor: tom, mark hurd was known as working on shifting that composition from hardware to software. he touted getting to 50% software. how did he do? tom: it has been a mixed record for oracle over the last several years. their stock price, i should note, has been really over 20% gain this year because a lot of investors are looking at that staff, the deep bench. they are looking at the shift and they are starting to see signs that it is taking root. it has not been even. there have been quarters where people have doubted. on today's numbers which we will talk about in a minute, looking light. it has not been super even. however, what you are seeing is when customers shift to the cloud, that is where the growth
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is coming from. the legacy database business, traditional software has not been growing as needed. and had the shift been happening as quickly, sometimes the answer has been no. but again, when you look at the stock price, you are seeing an investor base giving them the benefit of the doubt. taylor: talk to me about the earnings. top line is a little bit of a miss. margins look healthy. what was your take away? anurag: with almost everything, there was a slight slowdown in the application business. at the same time, we saw margins expanding. we saw buybacks. overall, i was not that surprised with any of the numbers. the key issue remains how soon some of the new database products adoption goes. and that we will see from the call, how that is going along. taylor: what does a $15 billion buyback tell you? they have nowhere else to invest or they think their shares are undervalued? tom: i think it is both. are there acquisitions you can make, are there large-size
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acquisitions you can make? oracle has been a big acquirer. they have made a big acquisitions. it seems to me that there is not a lot in the pipeline right now that they want to take aim at. but they have a lot of cash. so i wouldn't rule it out. $15 billion shows a vote of confidence in their stock. when you are announcing a ceo is taking a leave of absence. again, you want there to be some vote of confidence on the part of the management. as larry said, they have confidence in their bench. safra catz, capable, very well regarded. and larry, even though he handed over the reins, he has never strayed that far from having a hand in how the company is managed. taylor: anurag, did the cloud services revenue meet your expectations? anurag: there was slight slowdown in the applications area. but, you know, overall, it is lumpy because unlike in adobe or office 365, these large enterprise deals could take
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time. as i said, nothing surprising from our side, generally in line quarter for us. taylor: tom, generally speaking, how is oracle set up among china and tariffs? it is something we have talked to so much about. what is your broad take? tom: right now, a lot of companies in the tech sector are going to be affected by the tariffs. and a lot of it has to do in areas such as hardware. oracle has not been one of the companies that we have looked at and said, this is going to be a huge hit for them. we talk about apple a lot, some of the other companies, some of the chipmakers for example. oracle, less so. that has not been a big area of overhang. i would be curious to hear what anurag says about that. but, really, the tariff issue is one we think that will hit a lot of the other big tech players aside from oracle. taylor: was the revenue not related to tariffs? anurag: i don't think so. to tom's comment, enterprise
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software spending has little exposure to china. unlike consumer products. but when you have macro shocks, people pullback spending. you really don't need to upgrade if you don't have to because you can go around another six months before getting that new server or upgrading to the new set of software. that is where we have already started to see some kind of cracks in the software growth story with some of the companies such as autodesk, talking about weaknesses in europe right now, that is leading to software. taylor: we know that all the glitz and glam is in software. get us back to basics. how is the hardware business doing? anurag: hardware business has been weak. that has been the story for a while. people have been delaying their hardware upgrade cycles, just largely because whatever little money they have, they want to spend it on the next
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digital transformation. which means you want to spend it on either advanced security products or you want to spend it on cloud products. people take money from hardware and they are spending more on software. taylor: tom, key take away from the earnings call? all about the ceo? tom: a lot about the ceo, why didn't they disclose it sooner? there may be questions along those lines. who will be in charge of what set of responsibilities that mark was in charge of? how concerned are they about his health? how long will he be away? and certainly cloud, cloud, cloud. that is something it always comes back to. and as anurag pointed out, as people move more and more to the cloud, that is something that affects spending on hardware which has not been a real strength business for them. taylor: number one talking point from the call you want to hear? anurag: i want to see what is a -- the transition, the take for the new database product. that is a very important thing for us. that is what dictates how soon people will adopt into the cloud.
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any new applications business, bookings numbers, those would be the areas we will be looking at. taylor: that was a bloomberg's anurag rana and tom giles. i also discussed it with the former cisco ceo john chambers, he weighed in shortly after the announcement. >> my reaction first and most importantly is, as larry ellison, a speedy recovery for mark. he is in my thoughts and prayers. if you really think about the team of oracle, they work more effectively than anyone envisioned a threesome would work. larry and safran worked together for 25 years. i know all three of them very well. safra is world-class off the charts. larry has always been involved in the strategy, the vision, the engineering side of the house. i think they will navigate through this one.
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i don't think they will have any major issues at all. they have a deep company, and a lot of capabilities. as i said, larry and safra are world-class leaders that are very actively involved. my thoughts are with mark for a speedy recovery. taylor: yeah. talk more about your relationship with mark hurd during cisco and then his time at oracle. how was that relationship? john: the relationships with oracle and hp have always been very strong for me. i have a lot of confidence in hp. they helped me when i moved out to silicon valley, to understand the valley when i only had 400 people at cisco and people got us confused with the food truck company. lou platt helped a great deal. their new ceo, antonio, is amazingly good. i have a lot of confidence in the direction of hp and they did a nice job on the
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turnaround. in terms of safra and larry, i have always been close to them. both on political issues in terms of positioning tech for good in the world. they are very strong leaders. i would always bet on larry and safra and mark together. i would bet on them in the interim. they have got a deep team. as an investor, i think they will navigate through this very well. taylor: that was the jc2 ventures ceo and founder john chambers. coming up, wework's ipo woes. why the company is looking to make changes at the top. will the changes be enough to save the ipo as investors seem worried. we discuss next. and later, watching your health. why apple is betting its wearables transformed the health industry. highlights from the big apple event day in cupertino. this is bloomberg. ♪
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taylor: welcome back to the "best of bloomberg technology"
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this week brought a flurry of activity from the technology ipo front. including cloudflare, wework, and peloton. to break down the ipo landscape we talked about how wall street was interpreting the ipo parade. >> truly amazing. we have reporting that they boosted the price range from 12 to 14. the question is where will it price? just two days ago, we had a lot more optimistic sentiment around some of these big ipos. a lot of them that upped their pricing actually did a very well. everybody but uber and lyft, really. taylor: talk to me about peloton which seems to be another big success story.
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what is the tone with peloton? >> the story is similar to everybody else. we were saying everything was ok, but remember when smiledirect cloud was going to market, they were up. the nasdaq was up. for cloudflare to fall so much has cast a cloud over a lot of these listings. what is really happening is investors want to see a stronger bottom line. revenue growth is not enough for a lot of these companies. we have had ceos of investment banks coming out and saying so for the first time all year. taylor: what changed? >> for one thing, investor sentiment. we have a lot of people say they want to invest in stocks that are steady, value stocks instead of growth stocks. remember, there was the wework cloud over everything and people were looking for not only
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companies showing stronger revenue growth, but also governance they are comfortable with. thing is, we are in the late stages of an economic cycle. people are starting to, at some point, get more cautious on their investments. taylor: we talk about cautious. you earlier were talking about how the nasdaq was higher. we did see another ipo, smile direct club, how do they end up doing? >> down quite a bit, more than 25%, something unseen since 2008. we have not seen a company priced above is range and went to markets and dropped in the first day of trading. we saw uber drop but their price was at the lower end of the range. cloudflare, we are waiting for their pricing tonight. whether or not they price in the range they have increased does not indicate whether they will trade well tomorrow which is scary for investors.
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taylor: another thing that is scary for investors is wework. what happened? sonali: we are waiting to see if they will kick off the roadshow, monday. bloomberg has been reporting all week that the valuation could be as low as 15 billion. to put that in perspective, goldman sachs was thinking it was worth 65 billion over the 47 billion they fetched in valuations. so we are watching valuations go way down. we are in a situation where softbank is considering more private capital invested to help turn it around in a place where they can go public and would be more pleasing to investors. all of that is still up in the air and it's yet to be seen how they will get it done. taylor: there was also there is news they are removing the founder's wife from the succession plan.
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>> we will see. we still have the voting shares adam newman has which is in 20 times more power than other investors. depending on how they change the corporate governance, it will be a big deal for how investors view the stock. if softbank does take a bigger stake in the firm, they already have a bigger stake than newman, so who controls the company? the wife stepping back is one thing, but there are a lot of governance challenges they are facing. taylor: finally, as you take a look at the landscape of the ipo's, who is to blame? is this the bankers fault? the company's lack of profitability? sonali: people like to blame the bankers very quickly for pricing an ipo too high. normally, institutions like to pop.
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but this market is a tough one. all year, like i was saying, the ipo's traded very well but now we are in a situation where it is just not working for them anymore. taylor: that was bloomberg's sonali basak. coming up, delivery game on. this luxury delivery platform is ramping up its competition with amazon by shaving a day off its free delivery service. we hear from the ceo imran khan next. and if you like bloomberg news, check us out on the radio. you can listen to us on the bloomberg app,, and in the u.s. on sirius xm. this is bloomberg.
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taylor: is two day free shipping speedy enough? verishop does not think so, which is why they announced free one-day shipping for all purchases.
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they are going even one step further, allowing all customers to benefit from the offer without a membership fee, subscription, or minimum purchase. but is it enough to compete with amazon? to discuss, i spoke with the ceo imran khan. he is also the former chief strategy officer at snapchat. >> in our company, we believe customer first, employee second and shareholder third. and we are maniacally focused on making customer life better. we launched with two day shipping and saw the possibility - positivity from our customers. we wanted to make things better and that is why we have launched free one-day shipping. taylor: so you say customers before shareholders, how are shareholders responding to the increased costs? >> customers are happy, they will become loyal and that will
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drive significant lifetime value. the way we are orienting our company, we're just one year old, but the way we are orienting is focusing on the long-term thinking about the long-term value of customers. we believe that by delivering value on daily basis by delivering faster and having the best selection and quality and customer support, for example, we put our customer support phone number at the top of the site. by doing so, we increase the lifetime value. if we do that, that creates long-term shareholder value. taylor: amazon and walmart have also come out recently with free one-day shipping. how do you compete? >> first of all, we have to recognize that e-commerce is a large market. if you look at retail sales in
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the u.s., it is $5 trillion and only 10% is online. so retail is one of the biggest market opportunities out there. so we don't think it is a zero sum game. we think there will be multiple players who will serve the customers and we are really focused on serving them better. we are focusing on categories like fashion, beauty, kitchen, and we are really focused on servicing the customer better. we believe the market is big enough for multiple players to do well. taylor: that was verishop ceo imran khan. from competitive shopping to competitive gaming, there are more than 2.6 billion gamers in the world and most consider themselves competitive gamers. that has given rise to e-sports companies and competitions. in fact, intel just announced another big e-sports tournament in tokyo, around the 2020 olympics. i talked to the ceo of super
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league gaming thursday. >> when you are entering a brand-new market space, very nascent, don't even know how to define the edges of how big the market space can be, many investors see it as a fad until they have children or grandchildren who game. then, the light bulbs goes off. you realize it's not something you grow out of. they are spending just as much time watching other people play as they are playing themselves and this is something that is becoming increasingly multigenerational. now, with that, i will say we are uniquely positioned as the rare pure e-sports play. listed on nasdaq. most activities are private investments with high valuations. when it is an early-stage space, often people think and worry about a bubble. what i would tell you is this.
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right now, the projections are that e-sports will be a $3 billion global market in 2023. i used to run a $3 billion business for bp and i would not get out of bed if that is just what this was worth. i think it goes back to gaming is how people want to spend the time now and we are just figuring out how big of a category it can be. taylor: you ipo'd just six months ago, how has it been? >> it's funny. i believed i would wake up at 6 a.m. and to stare at the stock price all day. i am delighted to say i don't do that. i'm fortunate that i have a lot of investors who are excited about our delivery and tell me not to look at the stock price, just deliver. that said, it's strange. we have an experienced leadership team. top talent, from game publishers
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like take two and endeavor. what happened is we are a bunch of grown-ups who got a big jolt of adrenaline the day we went public because it is extremely focusing. with all that transparency come it also feels hugely empowering. we sit around the table and talk about opportunities we would not have dreamt of if we were sitting there in the small, privately owned space. you have got adults taking it that our credibility is on the line. we know there is money to be made and we are determined for super league to be the leaders in proving it. taylor: that was super league gaming ceo ann hand. coming up, you had better believe we were all over apple's product and services event tuesday. from iphone models to apple watch, to subscription plans for the apple tv plus, we have got you covered. that's next.
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and we are livestreaming on twitter. check us out and be sure to follow our global breaking news network on twitter. this is bloomberg.
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♪ taylor: welcome back to the best "bloomberg techonology." i am taylor riggs. it was a big week for apple as the tech giant launched its newest hardware at its annual product launch tuesday into bertino, caliph -- cupertino, california. among the items unveiled was a new apple watch and a low-cost ipad, not to mention a bunch of announcement tied to its new services, apple tv plus and apple arcade. most analysts like to the subscription price about five dollars a month, making it competitive to other streaming companies like netflix and disney. but as always, all eyes were focused on the freshest versions of the iphone. >> this is the iphone 11 pro.
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these are the most powerful and most advanced iphones that we have ever built in a stunning new design. taylor: apple unveiled the iphone 11, iphone 11 pro and the iphone 11 pro max. the iphone 11 is $50 cheaper than the iphone xr coming in at $700. the iphone 11 pro price will still hit that same $1100 mark. i asked my guests to discuss. >> this was, you know, another apple event, but nothing really earth shattering. right? it has been a while since apple came out with an entirely new hardware product that changed the game. it was really around pricing. pricing for tv plus, apple arcade, the reduction on the iphone 11, but in terms of hardware functionality, nothing really to write home about. taylor: ryan, talk to me about the iphone. as we know, it still makes up a
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decent amount of top line for the company. what was your biggest take away when it comes to the iphone? ryan: no, i think i agree with mark. not to beat his drum, but that is the storyline today. it is all about pricing. on the hardware side we saw, you mentioned to the $50 price cut from the xr. to be apple -- honest, apple in my opinion, them leading with services and partnerships that came out between arcade, and news and getting to lower costs on the iphone pricing and even watch pricing i think shows that they see that we have pushed the threshold for the average consumer pretty high on price point, and they have to be cautious of that. the important thing is keeping the install base and making sure it grows. and i think they are still doing a good job at that. taylor: ryan, are they maxed out at a $1000 iphone? ryan: listen, i don't think we would ever max things out. keep in mind, starting points are never what the highest point actually gets to. we are probably talking upwards
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of $1500 with the highest configurations. i think they will continue to push things, but i think they are realizing that their audience, who will actually pay that price to use those features , is probably smaller than it was when their highest iphone price was $800. it is sort of a changing of the times. it is not apple only that is being affected, their main competitors at the top of the market, samsung and huawei are both reading -- being affected at the same way. it is a change of the times, but i think we will continue to see price points that will fit well over $1000 and iphones. taylor: i want to come into my terminal here. what we are taking a look at in white is the average sale price, starting to rise a little bit but with the right hand column is the number of iphones sold which is slowly dipping down. what does that tell you about where we are in the cycle? mark: that there really has been a combination here of rising
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prices and a decrease, ironic given the invitation today, innovation. the changes are really all about the camera. if you go to the apple's website about the iphone 11 pro, 75% of it is about the functionality. that is what it was all about. the last time we saw a real breakthrough change was two years ago. we are expecting bigger changes again next year as prices are coming down. i think things are going to start to rebound 12 months from now. taylor: ryan, what do you make of this device no longer being an iphone but really a camera that basically just has some audio capabilities? guess it has been more than a phone for quite some time. it is a good question. to be honest, i think the features they have introduced, some of which have met some -- some people say that things like night mode have met up to what google has done and others and i , think that is great -- but what is important to recognize is what the actual consumer does
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with their camera. and i think to be honest, not just apple but for some of these others, some of the features they are integrating, a lot of that is done through software, not just modules or number of megapixels and so forth. i don't think everyone is actually utilizing that to the full benefit. having said that, everybody wants the latest and the greatest, right, so i think it is important that they continue to innovate, and clearly, they have been a market leader in photography and they continue to be so. taylor: that was the idc program vice president ryan reith, and bloomberg's mark gurman. apple also debuted an always-on display that never sleeps as part of its series five watch unveiling on tuesday. apple says it continues to pursue ways to boost health, as ceo tim cook pointed out. tim: we are a really excited about the impact the research app can have. it gives us, all of us an , amazing opportunity to
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participate in health research that could lead to innovations to improve our health and the health of future generations. taylor: to discuss, i spoke with creative strategies principal analyst carolina. >> i think nobody has actually thought about the always-on screen. a lot of people have complained from the get-go that that was a feature that consumers wanted, especially consumers that were trying to switch from a traditional watch to a smart watch. but today was really about moving the little if you like on the health side, and really hearing apple clearly that this is an area where they want to continue to develop, they want to stay for the long run, and creating a health research app speaks to that. taylor: is pricing at $399 competitive or expensive? carolina: $399 is competitive and even more competitive is the
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$199 price point of the third generation apple watch. we always get excited away with latest models, but when you look at the lineup, that is where it is becoming more and more obvious that apple wants to get consumers that part of their install base to venture into new devices. you might be an iphone user and have yet to find out what the value add of an apple watch might be. $199 price point is maybe an easier way to get you to try the 399. taylor: so the $199 for the 3 that they lower today, you think that is a good thing that the company is doing? carolina: absolutely. it is getting that entry-level more interesting for consumers. we had a bit of an impasse on the android side as far as android wear and new devices coming to the android ecosystem
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you know outside of fitbit, which i am sure today is going to look quite worried about the $199 price point. we haven't seen a lot of uptake on the watch form factor. there are lots of fitness bands out there, but not so many watches. taylor: right. you mentioned fitbit. and i was looking up at earlier -- at that earlier as well. how concerned should other wearables be today? carolina: i think they should be quite concerned. i think apple watch has become the smart watch the rest of the industry's looking up to, and the $199 price point is pretty competitive, with a device that does not feel like you are really compromising on your experience. and that is a core part, you are not getting a device that you feel does not give you the key features that you want. so why not try and see what it can do for you?
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taylor: talk to me finally, carolina, about integrating services and doing health research. what about the future of health and apple excites you? carolina: yeah, i think to me that is the next level. it is not just something that apple wants to do for the goodness of the human race. [laughter] so to speak, as far as making us all more healthy, but it is really a good way to get people to see value from the ecosystem at a level where it impacts their lives. it is not just about entertainment. it is not about having a gadget, it is really having a device that can make a difference in your life, and they played a video during the keynote that spoke to that, having people that have had arrhythmia, heart arrhythmia highlighted to them by the watch, you know, and having -- being able to get to the hospital in time and prevent
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something that would have changed your life forever. that is very powerful. taylor: that was creative strategies principal analyst carolina millanesi. coming up, the intersection of technology and medicine was the focus on a series we called wired for health. we introduce you to some of the innovators and investors who are disrupting the industry in big ways, next. and it has been nearly three years since microsoft and linkedin linked up. we will have my exclusive interview with the linkedin ceo jeff weiner next. this is bloomberg. ♪
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taylor: all this week, "bloomberg techonology" explored medical technology in a series we called "wired for health," where we looked at how innovation played a crucial role in sustaining health. to give you some context, 21 years ago we saw the first robot assisted heart bypass surgery. today practically every
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operation in the united states uses robotics. so where will the next 20 years take us in terms of innovation and disruption? glenn schneider said by 2040 health care as we know it will no longer exist. he joined us to discuss. monday >> by 2040, we expect the health care system to be from -- be fundamentally different from what it is today. it will be one where the consumer managers their own health care and controls their own data, and it is going to be a system and acute intervention, and also that businesses will take on very different roles than they have in the past. taylor: my take away was that the consumer is taking their power back. i have wearable devices, power over my data. what is the technology that is driving that? glenn: it is the same technology that is driving a lot of consumer-driven control data. -- control nowadays. we shop online.
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we control our shopping and our banking experience. consumers want to be able to control their health care experience, too. so with that, it is a combination of sensors, pervasive sensors that are going to be in us, around us, measuring our health and all of the environmental data and radically interoperable data. which means that we are basically going to be able to combine that data and draw some insights from it and present that back in a consumer friendly manner. taylor: you talk about no more silos between biotech, pharma , venture capital health-care , companies. how do you see all of those starting to come and work together? glenn: there is a lot of collaboration. a research study we did said that 80% of medtech companies expect to be doing substantial collaboration over the next few years. that is going to be par for the course. collaborations within the industry as well as collaborations with some of the high-tech players who are
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bringing great capabilities around a.i. and data analysis that are crucial for this next wave of health care. taylor: so talk to me about a.i. it is a big was word. -- buzz word. i know a lot of people are 5g to power some of the a.i. is that the future? len: let us put it this way. today, there are over 250,000 clinical studies that occur every year, and any individual cannot absorb all of that information. the beauty of a.i. is that it can digest all that data and make some sense of it. many times health is a function of subtle correlations and biomarkers and environmental factors, and a.i. can pick up on that. taylor: on this program, it is about data privacy. in your world, what is the balance between data -- big data and more data is good versus the chance that we are going to get hacked? glenn: i think the key is people need to be able to control and give permission as to what they
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want to give their parties to analyze. there is great benefit to society and to us as individuals to have companies that can analyze all of this data. but we need to know what is being done and how to control it. taylor: that was deloitte med tech segment leader glenn snyder. if the future of health care is disrupted by medical technology, investment will evolve as well. arc investment management has identified five tech enabled disruptive platforms that should generate more than $50 trillion in business value and wealth creation over the next 10 to 15 years. they are industrial innovation, genomics revolution next-generation internet, , fintech innovation, and mobility as a service. ark invest ceo cathie wood joined me monday to discuss areas ripe for investment. kathy: well of the five we think , the most underestimated today is dna sequencing. it is really the topic you are
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exploring here today. dna sequencing is exploding, and we think it is illumina, which is responsible for 95% of all the dna sequenced around the world, including in china today, that if it reengage us in terms of cutting the cost and price well below $1000 per human genome, then we are going to see explosive unit growth. we think that if illumina were to be cutting costs at the rate we believe technology will enable 40% a year. think about that, health care, declining cost curve 40% per year, the number of human genomes that will be sequenced would move from 2.4 million isbally last year, and that half of all human genomes ever sequenced in the history of all time, to 100 million in five years, when we think the price will be as low as $100 per
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genome. so we are going to be -- yes? taylor: that is a fascinating statistic, and i am so glad you brought that up. how important is that statistic for you as an investor and let's say me as a consumer, getting that under $100? cathie: we think it is very important if we are going to start analyzing each human genome in terms of mutations. so our body is comprised of or our genome is comprised of 3 billion lines of code, effectively. and a mutation is like a programming error. and it is the earliest manifestation of disease. it can start when we are born. it may not be full-blown until we are adults. wouldn't it be nice for our genetic counselors, and that is a new job that is developing some momentum here, to identify our mutations from one example
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-- one exam to the next, and to identify cancer in stage one? that is the promise of dna sequencing costs dropping to $100 and even lower with time. and the information explosion we're going to be able to take advantage of. taylor: so kathy, with fuld this into your world of investing. -- we fold this into your world of investing. and you have a genomus etf. we have a graphic showing some of your top five holdings. what do you see within these companies to allow you to take advantage of the next revolution that you are talking about? cathie: illumina of course is a category killer in terms of dna sequencing, and it is foundational to everything else that we believe needs to happen. invitae is one of the most important molecular diagnostic testing companies. it is driving down costs. its cost of goods sold in 2013 were $1300 per test.
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it has gotten that down to $250, and offers it commercially for, or the tests commercially for $500. what we are seeing in vijay -- now is interesting. they offer tests free to discover think it if cancer or huntington's disease, or epilepsy, more about those diseases. what is happening is pharma companies, glenn talked about collaboration, pharma companies are paying invitae to deliver the free test so they can get the information anonymized and learn more about these diseases so that they can find cures for very difficult diseases. lots of collaboration among molecularotech, testing companies, dna sequencing and so forth. taylor: within etf's, i think a lot of retail investor interest.
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who are your investors? have you seen it within retail or do you get a lot of institutional interest as well? cathie: it is across the board. we manage funds across the board. so we have many retail investors. they really helped us start out that fund. now, we have institutional investors moving in to our etf's. it is very interesting to watch sovereign wealth funds who are trying to learn more about the health care systems and health care breakthroughs so that they can improve lives for their own countries. they are even moving into our f's, because they can treat our etf like a stock, and it doesn't have to go through a lot of due diligence and go to the chief investment officer. these are younger advisors who are actually very excited about what we're doing.
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taylor: that was ark invest ceo cathie wood. still ahead, linkedin is one of the few social media companies operating in mainland china. we discussed the company's operation in the world's second-largest economy amid u.s.-china trade tensions, next. my interview with the ceo, jeff weiner. this is bloomberg. ♪
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taylor: it has been just over three years since microsoft announced its intention to buy linkedin. it became a reality a few months later and $26 billion later. the job listing site is set to boast 20 million openings and around 100 million applications each month. and unlike facebook, twitter or youtube, linkedin is one u.s. tech company that does operate in mainland china. i spoke exclusively to the company's ceo, jeff weiner, on and asked him about doing monday business in china. jeff: it is still early days for us in china.
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i think the fact is by operating in china, you mean how we have been so successful. our vision is to create opportunity for every member of the global workforce. i think other companies who have a different sense of purpose or missiont overarching have probably found it difficult to do business in china because it is inconsistent with what it is they are trying to deliver and accomplish, whereas the creation of economic opportunity is something essentially every country in the world can get behind. and so our operation in china is still very early days. we have a talented team in place. we have greater focus there in terms of local development than we do in other markets around the world, trying to understand pocket markets trying to , understand cultural differences and will continue to , invest. taylor: with the trade and terrorists, do you feel any -- tariffs, do you feel any pushback being a u.s. tech company in china? jeff: not with regard to the
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nature of our business. for a company like microsoft or some of the larger technology companies there are different implications, but by virtue of the fact that we are a professional network, the tariffs are not impacting us to the same extent. taylor: there is talk that china maybe wouldn't hurt any text company but set up more red tape, rules, boundaries were -- boundaries or limits, perhaps maybe their way of putting more backlash on u.s. tech companies. do you feel any of that? jeff: i don't know that that is anything new per se. when you make the decision to operate in china, it is important that you are prepared to comply with the law in china in a whole host of different ways, whether that is new regulation, whether it is additional friction, or things beyond the regulatory purview. the competitive landscape in china is incredibly intense. so you know we continue to see , that. operating there is very different than operating in the united states, and it is part of our commitment to being in business in china. taylor: in the last few weeks, we have seen more and more probes, investigations into big
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tech over monopoly and data privacy. how do you manage to stay out of those headlines? jeff: it certainly did not start now for us. you know we made a commitment , roughly a decade ago in terms of putting our members first, arguably our most quantified value, maintaining the trust of our members. without the trust, our ecosystem does not exist. the business does not exist. and we put together first principles with regard to how we were going to leverage data dating back 10 years. and those principles were all about clarity, consistency and control. and as a result of not just talking about it but walking the walk and codifying that very early on in terms of how we prioritize, develop strategies and execute them, that has served our members very well and that ultimately has served the company very well. taylor: that was linkedin ceo jeff weiner. that does it for this edition of best of bloomberg technology. we will bring you the latest in tech throughout the week. tune in each today at 5:00 p.m. new york, 2:00 p.m. in san
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francisco. "bloomberg techonology" is live streaming on twitter. check us out @technology and be sure to follow our global breaking news network tictoc on twitter. this is bloomberg. ♪ here, it all starts with a simple...
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paul: welcome to daybreak australia. i am paul allen. shery: i am shery ahnshery:. we are counting down to asia's major market open. ♪ paul: let's get you straight to some breaking news. president trump saying he will allow release from the strategic petroleum reserve if needed. this is in response to the weekend drone attack on the


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