Apple brings home hundreds of billions of dollars in overseas cash to the u. S. We have the stories. Now to our lead. Amazon has narrowed the field 2, its second proposed headquarters in the u. S. 20 cities made the cut. The project is expected to cost 5 billion and create 50,000 jobs. We caught up with our reporter a ceo. Zon along with i wound read too much into the three areas around washington, d. C. , because amazon ,s likely targeting labor pools and those very often cross geographic lines. Even though that could simply be amazon focusing on that general area, but it has to negotiate groupsfferent political because of geographic boundaries. Has been your intel digging into the tech hubs in the country. What did you find . We looked at a lot of our data, which we have on almost half a billion people in terms of their skills and capabilities. What you find is that a lot of the bigger cities like new york and los angeles tend to have the most candidates to pull from him about when you look at the list, you have proximity to universities. Proximate toing carnegie mellon. Still looking for if youre looking for Technology Fact if youre looking for technology la talent, that would be a factor. Selina what is the process to narrow it down . What will happen in the next 10, 20, 30 years. Where do people want to live . They will factor in public transportation, cost of living. I think it breaks down to talent. Can they find enough talent in that location . The people want to live there do people want to live there . Whatt kurt selina characteristics do you think amazon is looking for . I think the main thing a size of labor pool and the type of talent. Amazon churns through people. Typically people have three years or so at amazon. If youre talking about 50,000 employees, you have to take into account attrition for that. Toina what will it take attract people to the city they choose and where are they going to come from . Will they be Silicon Valley transplant, organically grown . This is why education and the University System are so important. Livingey look at cost of and their hometown, they love to say they would love to stay if there were enough jobs. Move has their own hometown does not have enough economic opportunities. People move because their hometown does not have enough economic opportunities. They will be able to keep the talent there versus watching the talent leave and go to other places. One other factor is amazons focus on a diverse workforce. If you think about where they might be greater pools of diverse candidates, that might be a factor. Selina amazon has received huge tax breaks to build its delivery and Warehouse Systems across the country. What benefits do expect them to get for this new headquarters . Thef you think about warehouse jobs, those are generally lower skilled and lower paying. It is going to be easier for justifyans trying to even better deals. This is huge. 50,000 jobs, total compensation including benefits and the 100,000 range. These are a big economic impact. Whatever you saw for the warehouse is, you can expect to see that and more so for the headquarters operation, which is trained professionals earning good salaries and buying homes in a good economic homes and a good economic ripple effect. Completelyzon has transformed seattle, brought great economic wealth as well as strains on the infrastructure. What do you think this means for the chosen city . Is huge. K it not only do you have the commitment amazon has made them a 50,000 jobs, but it is the followup effect. Amazon will base their headquarters there. You will bring other companies, other innovation. They may be more appealing now to live there, go to school there. It is huge. This is why have seen so many mayors go to Great Lengths to try to attract amazon. Was a ceo and spencer. Facebook had a lot of thing on capitol hill this past wednesday, but our next guest inks it still has much more to come clean about. If you like bloomberg news, check us out on the radio. This is bloomberg. Selina a story we are watching. R will be game limiting uber will begin limiting the time u. K. Drivers can spend on the road. It will require drivers to take a six hour break if they worked for 10 consecutive hours. To enforce this compliance, workers will be prevented from logging into the app during rest key. During rest periods. Wall street had been expecting a drop, but the companys guidance is worse than what analysts were anticipating. Representatives from facebook, youtube, and twitter were on capitol hill this week, but this time to testify about how they are fighting online extremism. They appeared along with a former fbi agent before the Senate Commerce committee, and they were pressed again on a lot of the same topics that came up during last years hearings on russian interference in the u. S. President ial election, but perhaps the most dire warning came from a senator from montana. This is a really important issue. All of the questions that were asked before, but our democracy is at risk. We have got to figure out how to get this done and get it done right and get it done quickly. We may not have a democracy to have you guys up to hear you are. Facebookn response, touted the media giants efforts. 7500 now have more than people who are working to review terror content and other potential violations. Who are180 people focused specifically on countering terrorism. Facebooks efforts against all my next Reason Online extremism arent the only things the company is having to defend lately. The very nature of the company is being questioned. They have unleashed pandoras box. They have 5 million advertisers cycling through the Network Every single day. There is no way to check how the to eachers get matched individual user. There is billions of channel on the new tv and there is no way to be accountable to all of that complexity. The have unleashed this civilization scale mind control machine. People use facebook. That is more than the followers of christianity. These products have daily influence over that many people. It is massive. What do you think of the changes facebook recently announced . It is a step in the right direction. Mark zuckerberg titled his post is we are embracing time well spent as the future of the direction of the company. Came from myself and my colleague. It is great they are embracing the concept, but the challenge is it goes against the advertisingbased Business Model. You cant ask somebody whos entire stock price is codependent on telling wall street that we have this many units of people day. It is simple multiplication. If they are going to say we are going to cut down on how much time people spend, they can do a tiny bit, but not that much. Are they willing to example willing to examine the Business Model . Emily you called facebook a living, breathing crime scene for what happened in the election. What deeming . What do you mean . No one actually has access to what happened in the election. Only facebook has that data. Can we trust facebook with telling us the truth . If you look back at what they yearsaid since literally a ago when Mark Zuckerberg said its a crazy idea that fake news had any impact on the election and then continuing to withhold and delay and differ the release of information. Ads, it was 100,000 in then a lot of researchers did lots of background research, finding that the Russia Campaign people,ed 150 million and facebook did not admit that until the day of november until the day of the november 1 hearing. Not earned our trust. In that way, its a living, breathing, crime scene. Youyou first starting first started drawing attention to this when you were at google. What were you raising alarm bells about and what was the response . I what i said in 2013 was, was a product manager feeling frustrated. I didnt think we were taking our responsibility seriously. I made a presentation that said never before in history have 50 engineers 20 to 30 years old living in San Francisco influenced what one billion people are thinking and doing with their time and their and we have enabled this channel that is exploiting peoples cognitive biases. We are exporting peoples psychology. We at google and other Large Technology companies have a moral responsibility in addressing this problem. The presentation with viral. It spread to 20,000 people. It became the number one mean in the internal culture tracking system. I ended up working on this topic ever since 2013. This was way before fake news and the election and everything else. It was an awareness that these Technology Companies have a larger influence on culture, elections, Childrens Development and M Development that almost any other actor. How did larry respond . Across the company, there is a real seriousness and taking to heart the message. Google is really an ethical country ethical company. Advertisingbased Business Model means all of these attentionbased companies, youtube, snapchat, twitter, facebook them are all in the business of capturing peoples attention. Is how do we get billions of hours . Emily did he share your views or sympathize with them . I dont sit i dont recall specifically. The conversation mike to get avoided, because it is a comparable to look at. The conversation gets avoided, because it is uncomfortable to look at. People want to know, how much time are people spending on the web versus in an app . As soon as you measure it, they try to maximize how much time they are spending. What do we actually care about . Should these products be designed for addiction, which is what they are designed for now . It has Health Consequences for children. Emily what are those confidences . What are those consequences . There isnt a lot of research on how tech impacts children. There is a great article that got a lot of traction. Of thes about many cultural and social impacts on how addiction to smartphones have changed our relationship, changed childrens relationship and childrens dynamics. People are more isolated, more depressed. Snapchat puts the number of days in a row that you sent a message as a kid to all of your friends. The number is a manipulative design technique to keep kids on the hook, to keep the ball getting tossed backandforth everyday. If they dont, they lose the number. Kids start defining the currency of their friendship based on whether they are sending this empty message backandforth. Snapchat, that is the number one way for teenagers in the United States to communicate. You have teenagers out there feeling empty messages back and forth. Is this designed to help us or addict us . Emily you mentioned the article in the atlantic. There really was no stand taken. It is fairly neutral. In part, i think, because we dont have a lot of the answers. Think what we can know is the motivations. If you look at what are thousands of engineers at facebook go to work to do everyday . How can we strengthen the Public Square . No. Thousands of people go to work to drive up one number, which is how much our people engaging with an increasing the time they spend on these services. I want to live in a world where the Tech Industry is actually about helping humanity. There is a lot of ways they can do that. We started this nonprofit that is about changing and realigning technology with human values and what technology is supposed to be for. Why would we not have it that way . Emily have you heard from facebook, mark, cheryl, or google . Have had lots of conversations. These people in the industry are my friends. Admitis a reluctance to the extent and scope of the problem and that the Business Model is the problem. There is a lot of good intentions, but until we get clear that the Business Model of advertising is fundamentally misaligned with democracy, if the Business Model, i have to capture your attention, that means it is better for me to give you things to agree with what you are thinking than show you things that you disagree. The subscription model for facebook eliminates these conflicts . It changes who the customer is. What about the people who cant afford the subscription . They will say, do you want to introduce inequality in the system to where only some people can afford to pay . The advertising Business Model has indebted us into we have to ask, how much do those actually cost us . How much does it cost us in terms of extra data plan usage . Is a free Business Model really free when you add up the costs . Download isstuff we probably adds. If you cut that out, we would save a lot of money as consumers. We have to figure out, what are we willing to pay for . Selina that was tristan harris. Cryptocurrency crutch. 10,000. Alls below all episodes of Bloomberg Technology are Live Streaming on twitter. Check us out. This is bloomberg. Bitcoin continued its tumble at the start of the year, falling below 10,000 this week after hitting a record high a month ago. The selloff brings more trauma could digital coin market that has lost more than 300 billion in value and just four days. That pushfter a rally to bitcoin higher by 1400 last year. Aily chang caught up with partner at Blockchain Capital to discuss. Differents a couple ways to frame this. It is up 1000 over the past year. When we talk about a correction, all we have done is gone back to the alltime highs we set six weeks ago. It hasnt been much of a correction yet. What do to take a look at our chart. I want you to take a look at our chart, which shows our perspective on bitcoin. You see the runup. You also see the fall. Where do you think this is going . Is this reality . There is two different sides to the story. There is the bitcoin side. If we think about what is going on in the market, it makes sense in the context of there was a lot of activity leading up to the launch of these derivatives and futures products that to the institutionalization of bitcoin. Some of those speculators that piled in beforehand exited their positions, driving price lower. Some people were expecting these institutions to enter the market. Movingity, institutions years, not weeks or days. I still think that story will materialize, but it might take a couple months. Emily do you think we are in a bitcoin bubble or a bitcoin bubble is popping right now . I dont think we are in a bitcoin bubble over the next three years. If price goes lower, we will call it a bubble. It higher and we see three years from now, we would say it isnt much of a bubble. Emily how is this impacting the landscape . What is coming across your desk . Is it changing your level of enthusiasm . We are a venture firm. It is not affecting us a lot. We can be patient. We had taken money off the table and we are holding dry powder. , we canarket goes down buy back into the positions we like and cheaper prices. We will do that when the time is right. Emily what kind of positions do you like right now . I like bitcoin. It is the most resilient of the cryptocurrencies out there. It doesnt rotate all the way back. A lot of it stays trapped in the ecosystem. While most investors consider it to be far out in the risk spectrum, within the crypto community, this is viewed as the safe haven. Emily what about the smaller assets . What is the next big going . Of the assets could have a lot farther to go down. How do we explain those kind of valuations and price moves . Emily you cant. I think we can. Investing has been romanticized a lot over the last couple decades. As another that is an opportunity not a lot of investors have had access to. I ceos have created an opportunity for Retail Investors to participate. How do they react . They were like kids in a canister. A lot of those people are learning the hard lesson that with first aid investing, failure rates are high. Emily are you waking up every morning, checking the price . Volatile . It is. We are watching it. We are not so emotionally tied to it, because we are longterm investors. Emily this is a big move in a matter of weeks. Emily this is a big move in a matter of weeks. It is. A lot of people rushed in over the past three months, because they thought there was easy money in this market, free money. They underestimated the risk involved. This is a healthy reminder about the level of risk involved in these markets. Selina that was spencer bogart. Coming up, apple plans to bring back millions. The details on the repatriated cash, up next. Plus, a new report describes hazardous working conditions at an apple supplier in china. This is bloomberg. 1 welcome back to the best of Bloomberg Technology selina welcome back to the best of Bloomberg Technology. Apple will return hundreds of billions of dollars in overseas cash to the u. S. In a statement, because the company said it will pay repatriation tax. Apple plans on investing in tens of billions. It will give its employees a 2500 dollars bonus after the new tax law. Emily chang caught up with alex webb. A new campus will be for support. They already have one in austin. How many jobs might that create . It would create 3000 jobs. That is good news from a political perspective, but given they have 84,000 already, it is a big bum. That is over five years. Emily what else does this mean . If you look at the numbers, the big number they want everybody to talk about is they will spend 350 billion dollars in the u. S. Over the next five years. They were going to spend that much already. Is 30 billion spent in the u. S. They still have a huge pile of cash, and that is what shareholders will be excited about in terms of buybacks and dividends. Emily what happens to the rest of that cash that remains overseas . Buybacks, shareholder returns, m a, and repayment of debt. They have over 100 billion in debt. I think the expectation is a lot of this money goes to shareholders. Emily what is the m a strategy . Make moves inhem music streaming. We think they are leaning towards making more acquisitions. If so, what kind . I did a piece about this a while ago. They are riskaverse. They did a massive deal to acquire nokia years ago. Of we have gotse a lot of money. We can use that to spend on r d. Maybe the things they are interested in, the content, and semiconductors, chips. Iny expressed interest acquiring imagination technologies. Emily how does this position apple with respect to the wider climate and what is happening with the administration . There has not been any response from trump just yet. Im sure he will jump on this as a way of underscoring what he has posited, his Huge Campaign pledge to bring jobs back to the u. S. They are bringing jobs here is the kind of platform in the political ledger book. Emily that was alex webb. Are just chinese suppliers is getting slammed for harsh working conditions. The company is under scrutiny after a rights group found violations on its factory floors. Peter joined us from tokyo with the latest. It is important to note there is a report out from china labor watch. Bloombergn, we sent News Reporters to the factory to intervene reporters to interview workers. They described harsh conditions they are working under. For uplk about standing to 10 hours straight in hot factory conditions come as they work on these iphone casings. Sometimes they say they dont have the proper equipment, including masks and gloves, in some cases earplugs. A talk about the difficulties there. They also talk about, they say there are hundreds of workers in this factory and the door only opens 12 inches, which makes it difficult to get in and out quickly. Was able to visit their dorms to see living conditions, which were difficult. They are cramped. Many workers cramped into small rooms. No showers, no hot water. It is a difficult situation for these workers. How they haveout asked for some of these protections and havent been able to get them. Safety comes to training, they say they are supposed to be getting 24 hours of training before they begin looking at the factory. In some cases, they are forced to sign up on paperwork before they finished training. In some cases, getting only an hour of training. Emily the door only opens 12 inches. How do these kinds of descriptions compared to what we have heard about apple suppliers in the past, which hasnt always reviews,most glowing the conditions . To be fair, apple has worked hard at addressing these kinds of labor issues in its supply chain. In 2010, there was a rash of suicides at the primary partner for making the iphone. Apple took actions to address that. Set up Counseling Services for some of these workers. They provided 24hour hotlines to be able to call in any issues. They set up next around factories to stop some of these suicides. They have worked hard at this. Apple has begun putting out annual supplier reports, talking about their responsibilities. Last year, they did more audits that editor before. More audits than ever before. Note, that ist to part of the Business Model. Gets a lot of attention, but what do we know about how these conditions compare to suppliers for other Electronics Companies . It is an ongoing issue in china. Have and its supply chain been working hard at trying to address these issues and make the conditions better for their workers. The ongoing challenge throughout china is they take on this hightech manufacturing. These are considered some of the best jobs in the country. The wages may not sound much. In this case, workers were making a little bit more than 600 a month, which works out then a little bit more than two dollars an hour. In china, that is a reasonably healthy wage. A may sound low compared to 1000 iphone, but it is relatively healthy. Bloombergs Peter Elstrom there. Coming up, the battle to save Net Neutrality. We will talk to one of the state attorney generals leading that effort. Huffington. A what she has to say about a potential uber ipo. This is bloomberg. Selina surveymonkey is said to be accelerating conversations with bankers to go public later this year. The company is expected to be closely watching how other Tech Companies sure the market. Other sources added that surveymonkey is considering making a lastminute bolt on acquisition of another company to enhance its value. It group of 22 state attorney generals and Public Interest groups are suing the fcc over its Net Neutrality decision. This is the latest motion in the ongoing battle over the future of the internet. The attorneyne of generals leading the fight against the fcc. It is the beginning of what i hope is a fight we can win, because if we cant, then that means a lot of people in this country will no longer have access to that energy to the internet the way they have expected it. We all want the freedom to choose. If you get rid of Net Neutrality, all of a sudden you go towards a system where the haves will have it all. Those who are hardworking will get little. What about the executive order . Is that taking this out of detail a little bit . Would a company invest in a rural area where you cant make that where you cant make that much money . That is why you need to have Net Neutrality, so there is no gaming of the system by the providers of the service. Water or education, electricity, we dont Tell Companies that get to dispense water or electricity or the places they get to provide education for our kids, you decide where you want to go based on money. We know where they will go, where there is money. They will leave everyone else behind. What can you do more than this lawsuit to try to fight this rollback of Net Neutrality. For example, is impossible to take a case against an Internet Service provider that my be ascriminating by providing lower Speed Service to some of its customers . We can continue to enforce state laws. We can make sure a company is not discriminating against communities. We can work with our state legislator and governor to make sure we passed whatever laws we can in our state to make sure we have a robust regime of protections for consumers. We are moving in all of those fronts, because this is about not only providing people with toys and freedom to choose, but it is also about keeping californias economy moving forward. The sixth largest economy in the world. Why would we want anyone to disrupt that . Who has been a bigger opponent of the policies, the entertainment or Tech Industry . Both. They both understand the consequences of not having better access for consumers. If the choice is made by those who have money, who wield power, then those in the middle, the middle class are the biggest losers. They dont have the Financial Leverage to try to attract the business their way. They will be left with crumbs. You will have different voices in the types of media you can look at or watch. Can you imagine your kids them if they use the internet to do their homework, there will be kids who have access to everything they need on the andrnet to do good work excel at school. There will be vast numbers of childrens cant afford that, and they will be behind. Are you in conversation with any Internet Service providers in the state of california . Have you notified them this will be the action you will be taking . I have been working with a number of Service Providers and those in the Internet Community overall for more than for the last year i have been attorney general. California has been moving to try to do what it can to make sure we can move forward protecting our consumers before this action by the fcc. We will continue the conversation, because we want our Internet Service providers to drive. Whenornia is the innovator it comes to the United States of america. We Want Companies to locate in california. We want them to know the innovation occurs here. We want people to know we want to do it for everyone. Becerrathat was javier im a attorney general of california. Xavier becerra, attorney general of california. Spoke with a guest. The notion is protecting the open internet as a global resource, accessible to all. We would like to reinstate those it those open internet principles. Emily others have complained about the world being about the rules being rolled back. Its a wonder we havent seen stronger action from some of the tech giants. What do you make of that . The notion is, i think most of the Tech Companies support through alliances. That is why it was important for us to make a statement in this as a petitioner so we can help control litigation. Emily you say ending Net Neutrality could end the internet as we know it. Why would that be such a bad thing . The internet isnt perfect. The internet isnt perfect, but it is the notion of the internet and the way it was set up is that we all had access to whatever information we want. I dont want to be alarmist, but think about a world, about politics. Believed aisp certain way and they blocked all content regarding the other side of that issues and no one could get access to it . It could impact not just the way people think, but it could impact democracy, the way the global world sees the u. S. As well. This is an issue, and the internet is an issue that no one country should regulate. Certainly, no private entities should determine what content you get access to. Emily how should we watch this play out . The litigation will continue. We have to see how that plays out. This is a longer process when you are in litigation. The have seen lots of legislation action right now. We could see legislators writing legislation to be able to formally codifying the open internet principles. Emily are you speaking to other organizations that are considering filing lawsuits . We have spoken to lots of colleagues that believe strongly in this and have already joined this. There is a lot of folks out there that care about this issue, and we are and they are going to fight. Emily that was the chief legal officer for mozilla. Up withead, we catch arianna huffington. What she has to say about ubers current ipo plans and the me too movement. This is bloomberg. Sitea a chinese video backed by tencent is trying to raise money. That is according to people familiar with the matter that say it is turning 1 billion of financing as it expands its Video Streaming Service to south east asia. Tois in a similar vein instagram and paris so and periscope. Details of the deal could still change. Arianna huffington launched an app. To app hopes to offer ways connect more deeply with yourself and others. We asked why we need an apt to set boundaries. You would have thought we wouldnt need an app, but with so much writing over the last few months over how Addictive Technology has become and how deliberate that addiction is, how social Media Companies use algorithms, Machine Learning to use likes and social feedback loops and dopamine hits to keep us hooked. The app is mike a coach, a guide to help us recalibrate our relationship with our phone. The two most important features are first, it is bidirectional, so if you are in drive mode because you are having dinner with your family and a text you, i will get a text back that says ly is in thrive mode force mode until such and such a time. It will help change the culture. It will help change the cultural expectations. Right now, the expectation is that we are to be always on, need to respond to text immediately. Ae second feature is dashboard that gives you a mirror of your social media consumption. Partnershipave a with samsung. When is it coming to the iphone and what is the strategy for broader use . Iphone in come to the the next six months. We are developing it now. We have a partnership with samsung both for the app, now available on the galaxy note eight, but also we launched together a dedicated section on thrive Global Culture humanity and technology, which is all about this Inflection Point in our time. It has become a big issue in Silicon Valley and beyond about what is technology doing to us. Emily how much responsibility do you think platforms like facebook there and Companies Like apple bear for tech addiction. Apple and facebook are different. , you still hardware have some responsibility to have features that can protect come especially children, from abuse of the phone. If you are a social media theany, and as you know, in attention economy, social Media Companies are deliberately mining more and more of our attention, because that is how they increase revenue and profits. That is where it is important for social Media Companies to put the Public Interest ahead of revenue, which may seem like an impossible task, but we now know that unless they do that, the backlash is going to keep growing. Emily are there other changes you see a company like facebook should be making . What is the impact of constantly pushing notifications . I dont know about you, but i have shut off all notifications except from friends. I love instagram. I love these social media apps, but i also set clear limits to how much i use them and clear limits to how much i allow notifications, alerts, etc. To be disturbing my life. My ability to connect with my friends, colleagues, ability 2d to do deep work. 2 you remain emily you remain in a major role in the board. In the uber board. I think the company is in a strong position. The softbank deal is incredibly important. Has on its board the ceo of the vision fund. What is so important is that foss is that softbank is at the center of the ridehailing industry globally. The Cultural Values have been revamped. Tremendous progress in the last few months. He has hired a new coo, new general counsel. There is an interview in process for new chairman. I think everything is on track. Emily do you think an ipo could happen as early as next year . Already, they have said the ipo is an 2019. There is nothing that has happened that would change that. Emily you mentioned the new general counsel. How is he doing so far . Uber will continue to be dogged by these Justice Department investigations . How longh this will this cloud be hanging over the company . A cloudt think its hanging anything over the company. I think it is bringing everything to the surface to be dealt with. The company is doing great things. Issues ofas if these what happened in the past are dominating everything. The company is growing, bringing in new measures, investment, great leadership talent. I think what happening on the necessary ins order to deal with these problems, but it is not consuming. Selina that was arianna huffington. That does it for this edition of the best of Bloomberg Technology. We will bring you the latest in tech throughout the week. You can to meet each day that you can tune in each day. Tune in each day. All episodes are livestreaming on twitter. Check us out. That is all for now. This is bloomberg. The mifid squeeze, europes new regulations are damaging to asset regulators. A deal favorable for the city of london. A deal one year on, the differences the president has the towards differences in American Financial sector and what is next. I am nejra cehic in london. Is t and returns