Transcripts For BLOOMBERG Bloomberg Technology 20170920

He was also pretrade byte Robert De Niro in raging bull. He was 95 years old. News 24 hours a day powered by 2700 journalists and analysts in more than 120 countries. This is bloomberg. This is Bloomberg Technology and im cory johnson. We bring you highlights from the Bloomberg Global business foreign. Form. We start off with emily chang and jack ma. They talk about President Trump, competition with amazon, but they started with technology leveling the Playing Field for Small Business. Shiftingk the world is from Big Companies to small companies. I am passionate about entrepreneurships. S. I think that is the solution for the century, cleaning jobs, innovation. If you are not innovative enough, you dont have a chance, so this is my passion, and i believe this is the future. You heard President Trump speak at the United Nations. What is your relationship like . He is a unique president. We had a good discussion last time talking about chinau. S. Trade relationship and things. The relationship is very critical in this century, especially the business side. I think they are making progress on that. Emily really . Trumps top trade negotiator called china and unprecedented threat. Blocked thet takeover of a u. S. Chip company by a Chinese Private equity firm. What do you make of those moves . That happens, here and there, now and then. If you see aay optimistically, there are conflicts and we should understand each other better. Therek the next two years is a lot of conflict all the time, but whether it will be a disaster relies on the wisdom of the leaders. Attacks on about north korea when he says the u. S. Will totally destroyed north korea if they threaten us . Is that the right approach . When i hear about that i say, oh, yeah, for people like us, we want peace. We dont want people killing. Of course we care about the Nuclear Weapons that could destroy massive things, but as of business people, i focus on creating jobs and doing good things come and the government has to do the right things. Emily how about your business in china, president xi jinping has been putting restrictions on the internet, your business, what do you make of that . Vpns,re shutting down the just one example of late. We probably see a different view on that. This is the way i see business. Years this is our 18th anniversary the past 18 years, i got questions on a censorship all the time. Imf first internet guy in china since 1995. America has been enjoying democracy for 250 years, and china just started in the past 30 years. Is learning aina lot of things and making progress. If there is a controversy here issue,re, it is a 3 , 5 focus on 95 of the things. Or regulation of the internet is such a new thing to any government i have been talking to thousands and hundreds of government offices every year because it is my responsibility to tell them, dont worry about it. This is the way to do it, how to do it, so i dont complain. I try my best to educate them. Emily you think they will ultimately be on the right side of history . I am 100 percent for sure. Nobody can stop the technology revolution. You celebratedy the threeyear anniversary of alibabas ipo, congratulations. Amazon and alibaba, the market caps have been flirting with each other. I know you have stayed in your regional lanes, but as you become global companies, where do you see competing with amazon directly . Amazon is an ecommerce company, and very successful, and we respect a lot, but alibaba is not an ecommerce company. We are an ecommerce enabler, sayastructure builder, so i our job is to enable more companies to become amazon. Doing a see amazon is good job and successful, we are telling everybody, this ecommerce works. Are not necessarily competing, but investors and journalists always ask. I spent little time studying how can we compete with amazon. How we can learn from amazon empowers more businesses to be efficient. Boughttheyve recently whole foods. You have been investing in groceries for a long time. Seecurious where you similarities and differences in your strategies. In the past 15 years, we have grown so fast on retail. Destroyedeople say it traditional retail. Destroying retail is not our purpose. Our mission is to help doing business easier. We cannot help the new retailer old retailer, so how can we use our market power to help traditional retail. Its not about destroying them. We want to enable them. Thats why we invest in by a lot of traditional supermarkets, malls. We want to learn come then we want to help them. This is opportunity. Gety alibaba trying to gram. Val for money what is plan b if that does not happen . Today, i cannot make comment because i know so little about the third time, so i cannot comment about that. I trust the world is going to be more openminded and globalization should not stop it and protectionism will stop, but for chinesekes Time Companies and the American Government to communicate. Emily you have said alibaba will create one million jobs in the u. S. By 2021. Tell us more, what kind of jobs . , we create ones million jobs. We want to enable Small Business in america, helping them to sell products to china, to asia, which we are pretty good at, and we think in china that we have created 33 million jobs, so each business on line can create at least three jobs, so we hope we can help one million small list ones in america the alibaba site and help them to sell to asia and china. I think westing, and will probably cure up next year. Emily last question, you said alibaba has a 3, 5, 10 year plan . 10 three 3, 5, gears is the plan, five years is the strategy direction come and 10 years is the vision, so we always have to think about it. Since 1999 when i started the business, doing business in ecommerce it is like a 10,000 meter marathon, so you should run as fast as a rabbit, but be as patient as a turtle. You have to be very patient and think about the future and then you can be happy. 102 years is your plan, right . 2101, where did you get that number . 1999, lastborn in century we had one year, this century 100 years plus one year, we cross to centuries. Two centuries. The more accurate you are, the more serious you are, colleagues, friends take you seriously. Cory that was jack ma with emily chang. Watching, have been toshiba has agreed to sell its flash business for 18 billion. Capitalrs led by bain with support from dell, apple provide financial support. Toshiba expects the deal to close by march 31. Coming up, much more from the Bloomberg Global business form. Tim cook talks about apples responsibilities as a global civic leader. This is bloomberg. Cory from immigration to climate change, apple has taken an aggressive stance under the leadership of tim cook. A different approach than under steve jobs. Sat down with megan murphy at bloombergs Global Business forum to discuss apples role on the world stage. As a ceo, one of your primary responsibilities is to determine what the values of your company is an leading accordingly. The thingthing is president kennedy used to say that originated from the bible, to whom much is given, much is expected, and apple has had some access, and so we feel responsibility to give back, to help in some of societys , and so forblems us, we tried to look deeply at is the government working on, that are key in society, and think about the skills we have. There are some issues where we will not be able to help realistically, but there are some we can amplify government ororts working hand in hand, we can pretty much do ourselves. Apple has always been at the core about changing the world, and arguably you cant change the world if you are ignoring the world, so that is the way we look at it. As a ceo today and in the past as well, i think silence is the. Ltimate consent if you see something going on that is not right, the most powerful form of consent is to say nothing, and i think that is not acceptable to your company, to the team that worked so hard for your company, for your customers or your country or for each country you happen to be operating in. It. Is the way i see i have to say that i am more optimistic today than i have ever been. I mean that sincerely. That is despite some times not ,eeling like that, but over all we have an incredible opportunity, because never before have i seen the ability all across the world to Work Together on some of these common issues. We all talk about the lack of innovation, whether preparing workers and children for the jobs of tomorrow and not yesterday. Apple has been invested in education, particularly coding. Is that moving as rapidly as you think it needs to to address what jack ma calls the third technological revolution . I have been heartened by the Public Sector here. To engage andess be aggressive we started many years ago crafting a language that would be as easy to learn as apple products are to use. Designed a curriculum. We found an incredible number of pulling theions curriculum, then took that to community colleges. Are already talking to 33 Different Community College Systems in the states, huge systems with hundreds of thousands of people, and so i am toing an incredible desire bring coding to the masses. This is in my view one of the keys to the middle class. Manufacturing was a key for the. Iddle class years ago coding is a key for the middle class tomorrow and today to be frank. There are mass shortages in the world, and not just in tech. Coding has become fundamental to all of our businesses, whether running a retailer or automotive manufacturer or what ever you may be doing, or the guy on the Street Corner actually. Teachershave not seen not willing or wanting to do this. I have seen a lack of Development Dollars being spent in schools, so we are training teachers right now. I canh every classroom, honestly say, through every classroom we have an income at we have had found willing teachers, administrators, and the kids are more engaged in ever before. Kids want to learn about the digital economy. They are growing up digital. Is not good for them to grow up digital, then go to school and be in an analog world. It does not work. It turns them off. So i am seeing incredible Government Support there. We are running apple on 100 Renewable Energy in the u. S. And many other countries around the world. I have seen incredible Government Support there, particularly china. We now run our chinese operations on 100 Renewable Energy. And we areng well, spending a lot of time on human rights. We believe everyone should be treated with dignity and respect and that if you are born with a disability, we want our products to work with everyone, whether. Ou can see, hear, or not of course we are trying to do our part in enlarging the definition of human rights for everyone. Have thethat, i immigration discussion earlier, it plays into that as well. Cory that was tim cook with megan murphy. Didi constantly expanding in china. We will hear how, next. This is bloomberg. Cory i want you to check out the after hours trading of blue apron. Rising, ais bluemay be a sign that apron could be a takeout target. Ride hailing giant didi chuxing raised 5. 5 billion, one of the largest rounds of funding ever for a tech company. The goal is to bankroll expansion beyond china and into driverless technology. The president gave a presentation at the Bloomberg Global business form where she highlighted growth and plans for the future. 25 million brides take place on didi every day, twice as many as the other markets worldwide. Rides take place on didi every day, twice as many as the other markets world wide, and we see results coming out of our efforts. There were 25 million drivers who earned income on the platform. Cities are working with us to completely redesign their Traffic Signals and vehicle lanes. As you can see, we have already seen congestion time reduced by 20 to 40 after only three months of work. Also, the deep learning technology allow us to put more people into fewer cars, so 4 million passengers use our carpool products every day, and that alone takes away millions of tons of Carbon Emissions every year off the road. Technology also saves lives. , thelly, the mortality road mortality rate, is 1. 6 miles,per 100 million 1. 6. By adopting the new safety drive technology on didis, that number got lowered 2. 6 per 100 million miles. Lastly, the whole rideshare redefiningcompletely the car industry, the next generation of cars will become greener. As a matter of fact, we are already running the Largest Electric vehicle fleet worldwide, and the number is growing very strong. But this is just the beginning, that this is a problem we are facing together. Thats why we remind ourselves every day that we need to work harder and collaborate with as many people as possible. That is why we have invested in seven leading players around the globe in the rideshare industry from Southeast Asia to the middle east, from europe to latin america, to the United States. We believe in sharing. We think sharing the best practices, the best product, knowledge, will make our industry grow faster, and that can benefit more people around the globe. Cory that was didi chuxing president speaking at the Bloomberg Global business form. Coming up, another powerhouse panel. Bill gates and Masayoshi Son on innovation, technology, and the future of business. This is bloomberg. Mark i am mark crumpton, lets begin with a check of first word news appeared a collapsed mexico 25ys school is where teachers and students were killed. Others are digging through the rubble of collapsed structures searching for hers searching for survivors. Confirmed dead, mexicos 1980 five. Uake since Jeff Sessions says he believes the Trump Administration will be all legal challenges to its proposed order wall with mexico. Anyone has a right to sue, but his responsibility is to defend u. S. Of borders. He expects construction to commence when congress provides funding. Irans president fired back at the u. S. And defended his position in the nuclear deal he struck with six world powers. Cheat or deceive anyone. We have ourselves determine the extent of our nuclear program. Achieve sought to deterrence through Nuclear Weapons. Mark he says it is a waste of time to meet with President Trump who blasted the deal on tuesday. Pushing ahead with a Gop Health Care bill on the senate floor next week, the Graham Cassidy bill gives a block grants to individual states. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im mark crumpton. This is bloomberg. It is just after 5 30 p. M. In new york. My colleague paul allen has a look at the markets. Futures modestly high right now, up five points. The u. S. Dollar took a hawkish queue from the word of a december rate rise and possibly for more in 2018. It touched . 81 before the fed meeting. Pushingline seems to be ever higher. Nikkei futures up higher this morning, Central Banks will have a decision in the coming hours. We will be watching for any news on possible reduction of bond purchases and elsewhere. To holdis expected steady at 2. 5 . Im paul allen. Welcome to bloomberg im cory johnson and for emily chang. Top investors all gathering at the plaza mount etna plaza hotel in manhattan. Bill gates,with pepsi ceo, and softbank ceo tayoshi son. N ma last year years the innovation of the microprocessor, using it as a base to create internet, that has changed the lives of almost everybody under us. Going forward i think it is. Ccelerating even more i think in the year 2000 you lost 70 billion of net worth, what did it feel like to lose 70 billion of net worth in one year . Masayoshi son it was a crash. Everybody crashed. I the bottom of my crash, revived my spirit of fighting. Actually, it felt good. Forhe way, many dont know, three days i became richer than bill. But then 12 months later i became almost broke, 99 drop in our share price, 99 in one year. One other question about your career, at one point you made an investment of 20 million in a Little Company called alibaba, it became worth about 90 billion and now about 130 billion, how did you decide that alibaba was a good investment . And do you have any more you could recommend to us . Ofayoshi son its because jack ma, his charisma and leadership. An opportunity on the upside and said this is the guy that could be the leader for this innovation. Take ahave tried to company known for selling sugar water and make it a more nutritionally eight and better company, was it hard to beat a bureaucracy . It was hard inside the company, outside the company. Me,member investors telling dont forget americans like soda and chips, we dont want you to change what you are doing. We had to fight across multiple runs. Fronts. Ple change doesnt happen quickly, it is a work in process. When you go to somebodys house for dinner, and they say do you want coke, what do you say . I say it was nice knowing you and i leave. Bill, let me ask you indra nooyi i delete. Without a doubt. Ask aould like to question, bill, i have asked before, but people are interested in this answer. We have to have Three Fingers to control, alt, delete. You are the person who came up with it doing it that way, why did you do that . [laughter] gates the hardware keyboard only had one way it could get a guaranteed and rep interrupt generated. Clearly, the people involved should have put another key on in order to make that work. A lot of machines to have that as a more obvious function. No regrets about doing it that way . It worked out ok . Bill im not sure you can go back and change small things without putting other things that risk. Sure, i would make that a single key operation. You dropped out of college. You think had you got your college degree, your life would have been better off . Like at the time it felt there was a huge sense of urgency that obviously the was revolutionary and writing software for it. If we had any hope, the quicker we did it, the more hardcore we were about it, and so i didnt want to waste a day. In my 20s i work weekends, i didnt believe in vacation. We had to move at high speed here eventually ibm did come and compete with us. A lot of companies came along later. Other Companies Formed in that period, we were really the sole survivor. Is vintage as a software company, but those are the only two companies that really survived out of that era. We were a broad company, did that forms, we were international. It would have an hard to hold me back. Once i saw the opportunity, part of what i loved it was the very relaxing when you sit in classes, stay up all night and talk to people, it didnt have that same intensity. Once i saw the opportunity i was going to leave your parents, what did they say . They said, hey, we were paying your tuition, what does this mean . I said, mom, im on leave. Which is true, i couldve gone back. Eventually the catalog changes on you and your little too old for it, but a more sure if it was going to succeed or not, so they thought maybe i would head back. But because i was single and maniacal in those days, it was the perfect thing for me. Wasne of the highlights when bill gates was asked about fighting disease in africa in the argument behind not wiping out mosquitoes entirely. Malaria is only , one out one mosquito of 1000 mosquitoes. The main thing is president setting, ifprecedent humans can go get this specie if you got rid of all mosquitoes, you would have to look at the ecosystem effects appeared they are a small percentage of mosquitoes and there are no other species dependent on that, that this new to met new genetic approach, it is still in the lab, but has a good chance of being able to knock down populations by about 99 over a wide year period over a fiveyear period. That includes nigeria as the center where malaria is a huge problem. Tool,bably need that how will we get consensus is tricky. Some people worry most people dent aboutt the prece how such decisions are made. Often hear about leaders or innovators, they often are men. Thing, menexist dont let women get the opportunity, or some other reason . On womenot an expert in technology, but i was at an and the president was saying 50 of the engineering graduates at m. I. T. Are women, but if you go to most companies, 50 of the engineering staff are not women. If you read stories about the press in the press what happens in the Silicon Valley area, women are not getting the funding. Obviously, there is some leakage between m. I. T. And in practice. If we want to utilize all the resources, we have to do something different. Intelligence al good thing for humans or not a good thing . Masayoshi son i think the misuse of Artificial Intelligence could be horrible, but there are thousands of good reasons to utilize Artificial Intelligence are good for humanity. Diseases,unsolvable solvessolvable unsolvable disasters. I think it is really good. Rubenstein, david today bill gates and pepsico charliei, and rose. We want answers about metal and meddling in the 2016 election. Democrats sent a letter asking for more disclosure on political advertising from internet companies, not least of which, facebook. It was disclosed it was paid by russians for election related ads. Senator mark warner said a hearing will likely be held in october. , thisg us now is reporter story has many components. Lets start with what we heard today about new ways to combat these kinds of ads. Most importantly an antisomatic ad. All of this relates back to the fact that facebook has this Self Service Advertising platform, anybody could go in how toide on our own target who were going to target. People on facebook have been listing their jobs and their education with very racist antisomatic things. I live in oakland, california, and i am a dentist. But other people would abuse this . Yes. It allows other people to say i work in oakland as a hairdresser, but it also allows people to say i work in oakland as a jew hater. You can target anybody with that descriptor. It is an automatic system, kind of like google where you advertise based on whatever keywords people look things up. What they announced was a new way to go after them, which i thought was ironic, an army of people reviewing ads. Yes. In order to scale a business to the size of facebook, you need to have a lot of ease of use. This is something possible for anyone to use including potential russian Government Associates who might want to mess with him election. When it comes to television advertising, the spectrum is limited, only so many tv stations, the government was able to put restrictions saying we need to know about political ads, it we have to follow rules. Right. If youre doing a tv ad you have to reported, you dont need to do that with these google properties. The point of a both of these stories is a lot of these things are run by behindthescenes propping up gigantic business and it hasnt been scrutinized either by facebook or by the government. , Sheryl Sandberg came out and said we are not going to allow targeting by racist terms. We scrubbed our database a little bit, we allow people to report abuses of our platform. They have no problem cashing the checks, right . We dont know how much money they made it didnt seem to be a problem until Something Else found it. It strikes me that Congress Getting involved could be a problem. Theirtors disclosure to investigators has been greater than disclosure to congress itself. Wants to think about getting facebook in for a hearing. This is them sending a letter saying they hope they come up with some steps to a solution. Sarah frier, thank you very much. Coming up, our exclusive interview with tim cook, apple ceo. This is bloomberg. Let us a return to the Bloomberg Global business form and tim cook, he has been outspoken about immigration and tells us to why he believes it to be the Biggest Issue of our time. We are pushing extremely hard on this. This is i think it is the Biggest Issue of our time currently on long all of the big issues, because this goes to the values of the american of being american. Human, areo, are we we acting in a track of morality, right . These people, if you havent met them at apple we have many that came to the u. S. When they were two years old, they didnt exactly make a decision to come. They came here they only know our country. This is their home. They love america deeply. When you talk to them, i wish everybody in america loved america this much. They have jobs, they pay taxes, they are pillars of their communities. They are incredible people. And so, to me, it would be like someone coming to mike and note, you area not a citizen here, you need to leave. This is unacceptable. This is not who we are as a country. I am personally shocked that there is even a discussion of this. This is one of those things clear and its not a political thing. This is about basic Human Dignity and respect. It is that simple and straightforward. On the broader subject of immigration, if i were a country leader right now, michael would be to my goal would be to monopolize the worlds talent. I would want every smart person coming to my country, because smart people create jobs and thatis the ultimate thing creates a great environment in a country, a land of opportunity. A land where everybody can do well if you work hard. These are the things that drive people. It gives people sense of purpose. So, i would have a very toressive plan not just let a few people in, i would be recruiting. And so, i think i went to ellis island on sunday, because i wanted to feel myself, what it was like to come to the country. If you have ever sat in the great hall and one of the benches there in the early 1900s, you can feel the people in the room. You can feel both the anxiety and the hope. I think that is where we all started from. Maybe not ellis island, maybe virginia like my family, but we all started somewhere. We are all the sins of immigrants in the United States. Ofare all descendents immigrants in the United States. That does it for this edition onBloomberg Technology, thursday we sit down with the ceo of nest. Thats all for now. This is bloomberg. Who knew that phones would start doing everything . Entertaining us, getting us back on track, and finding us dates. Phones really have changed. So why hasnt the way we pay for them . Introducing xfinity mobile. You only pay for data and can easily switch between pay per gig and unlimited. No one else lets you do that. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit or go to xfinitymobile. Com. Announcer from our studios in new york city. This is charlie rose. Charlie leaders from around the world have heard today for the opening of the United Nation general assembly. President trump addressed the form for the first time. In his 40 minute speech he threatened to destroy notes destroy north korea and called iran a rogue nation. Pres. Trump United States has done very well since last november 8. The stock market is at an all