Broadband be a polluted night sky . We will take a look at a looming debris problem. Facebook plans to create its own crypto currency is not getting love from u. S. Lawmakers area you can now add jay powell to that list. Project libra raises many serious concerns regarding privacy, Money Laundering, Consumer Protection and financial stability. These are concerns that should be thoroughly and publicly addressed. Facebook has a few billion users. You are looking at the possibility of a very broad adoption and if there were problems, they are associated and any oflaundering the things we were focused on including the company they would arise to systemically important levels because of the size of the facebook network. I think it cannot go forward without there being brought satisfaction with the way the company has addressed Money Laundering and all of those things. The number of concerns i listed at the beginning, data protection, consumer privacy, all of the things will need to be addressed thoroughly and carefully and a deliberate process that will not be a sprint to implementation. In joei want to bring weisenthal and max to discuss this area it seems like everybody had a question about libra. Why the skepticism . It gets to the general skepticism about it though. You heard jay powells opinion on that plus the fact that facebook has so much power. That is something we have all been reckoning with over the last couple of years. Jay powell was talking about libra posing a real threat. That the scale of facebook size,. Ny problems would be magnified is he right to be concerned . Listening to him, i was really struck by this is something that is on his mind a lot. A lot of the lawmakers were asking him about it. I think in the past when it comes to cryptocurrency or blockchain or other endeavors, you got the impression that they are like if is something we are watching. This is more than that. These are serious concerns. On the part of the fed to understand what they are doing and see if it passes muster. There are reasons for them to be legitimately concerned. Of ifs raise questions this is going to be a more efficient way to transfer money from person to person around the world, how can you do that and also remain consistent with banking and payment regulations in all of these countries and these are legitimate reasons to want to take a go slow approach to make sure this isnt a regulatory arbitrage to get around the existing rules of payments. Even though jay powell and the fed are taking their time examining facebooks plans, it seems like not all lawmakers understood what they were talking about. Ais was an exchange between congressperson and the fed chair. This libra business is disturbing. We all know libra is the london interbank offered rate. Very critical. It is apparent that libra is going to leave us or being removed. The potential ramifications of the end as lever scheduled and nears i think there are 300 trillion less and contracts referenced in five different currencies. Emily while it looks like the congressman was laughing at himself a little bit getting them confused, do we know that lawmakers understand what they are trying to regulate here . Of markminds me zuckerbergs testimony where we had silly or out of left field questions. Facebook will try to use that and say washington, d. C. Doesnt know what they are doing. Other than the fact that people are confused and potentially billions of people suggest that we should be educating ourselves. Emily i have to know your reaction to that moment. It was a funny question. I have a lot of sympathy for the politicians especially on this topic. How many people have we interviewed in technology or who described themselves in blockchain or crypto or bitcoin and it should be worrisome and i think it is a case for slowing down. Tech Companies Think they are going to reinvent the while lawmakers are struggling to wrap their head around it, these kinds of exchanges say slowdown. Speaking of regulating, who actually does have the authority to regulate cryptocurrency and what facebook is trying to do here and watch this thing in the next year . Is it the fed . Not just u. S. Regulators will be concerned. The fed will definitely have a role in this. Libra will interface with the banking system. There is going to be a yacht money or fiat money or others that back libra. Its going to be a global currency, they will have to at some level deal with regulators and every country in which they want to operate which is why i think part of the appeal may be regulatory arbitrage. That will be a major headache and you have to wonder if the crypto approach is a shortcut. Its a good reason for people to be concerned. Emily whats interesting is that jay powell talked about how the fed has met with people from facebook before this announcement happened. Now that facebook has unveiled the plans and the reaction has been what it is, you wonder did facebook miscalculate what the reaction would be . They have been in the middle of a firestorm since 2016. A huge public firestorm. Now they are putting a target on their backs. Did they think that this would distract us from the other conversation about whether facebook is having an improper role in elections . I think it is a very interesting and old Public Relations move in the sense that you expect facebook to go into a cave and spend a lot of time saying we dont have that much power dont worry about us and instead they have gone completely in the other direction. People were worried about this Imperial Company that was acting like a country and here they are saying we want to have a bank and a de facto currency of the world which is very bold and maybe they dont expect it to entirely work but on the other hand we are not talking about facebook and disinformation we are talking about very ambitious ideas that is something that Mark Zuckerberg is happy about. Emily certainly a different narrative the not always in facebooks favor. Thank you both. Sticking with facebook, it bloomberg correspondent spoke toh a congressman of ohio hear with why they are working on bipartisan regulation for digital currency. The act is something we started working on it is a nonpartisan bill that provides regulatory clarity. It went over well with some of my colleagues. Is the companies that are leaving the u. S. Arent leaving to avoid regulations, they are leaving to find legislative certainty and that is a big part of why facebook is launching libra in switzerland. Ask what with legislation do . This is about the certainty. The key is we have heard from a lot of businesses saying im because other countries we dont know who our regulator is or how this is going to roll out. It is very hard to make a business decision if you have no regulatory certainty. They are saying can you please tell us the rules of the road . Get our direction from so we understand the framework for how we operate . That is what this comes from. It is a great bipartisan effort. This is about making sure that american businesses can be successful here so we can have growth here in this sector. The other big things is that if Congress Fails to act, the best way to protect consumers is to close the information gap. Sponsors love big gaps in information. They understand it, people get that it is hot and consumers are often the victims of fraud. We need legislative certainty to protect consumers and the investment in the United States. Frankly even the innovators. It is something that libra is launching, this is work we have been doing for close to two years now. Hopefully this will push the momentum to get the certainty that the market needs. What specifically with the bill do for a company like a spoke . Besideswe go through making clear definitions of what counts in this space, it then says who do you have to work with . , making clear these are places that will have oversight responsibility and help develop the rules of the road. I believe we should get rid of unnecessary regulation. Oute is no reason to have of date regulation on the books and there is a lot of it. You have old rules that dont make sense for the new world and that is what we are all focused on. How do we make sure we have a new framework where people can operate and keep the jobs and growth here . We have led the world in the economy. Other companies are saying since we dont know here, we are going to go elsewhere where we have the certainty and we are losing jobs, losing investment and businesses. We both agreed that we cant afford to have that. Perspective,ket there is a bit of a regulatory turf war in terms of the tech sector and private sector. This would help alleviate it. Yes the sec has issued pieces that are guidance but not rules and not binding. Certainty. Ont have even something that was initially deemed a security will not be eventually. They are putting this out there to tell every company come check with us. You cant have company by company come check with you and you dont need a patchwork of legal decisions. You need to know if youd meet this criteria you are not a security. You might be a commodity or good or service. Commodity can be all of those things. Up, our interview with the lse and ceo. This is bloomberg. Executives have converged at an annual conference. I am here with the coceo of atlantia. What are your impressions so far . It is amazing. Like Walking Around inside of business books. It is a starstruck atmosphere. We have a real place here and we are to do some real work. Who is the most interesting person you spoke to . I have been tempted to ask for my first or second selfie ever. How did that go down with your bankers . Fine. Nobody disagreed with our statement about the m a process. They may have disagreed with our way to attempt to improve it or solvent but it has been pretty well, the legals like it less than the bankers. Is free to use. Everyone can use it. Has the been any uptick that you know so far . Asked not so far. We have done 20 plus deals and we are experienced at doing this. Have put down a set of terms that we think are very reasonable and fair on both sides. Bitif anything a little buyer unfriendly. You end up hating each other by the end of this lawyers bludgeoning each other back and forth area there is a negative environment created which is similar to what you have seen an early stage finance. You see using this standard dock, people are comfortable with that. You have to get that stamp of approval. Should the same thing happened there where the venture capitals are more friendly to the company and give them less power . It is confusing from a vc perspective because for them that is an exit event. They are trying to maximize the speed with which they get their money and how much money they give. They are not necessarily incentivized at that point to be entrepreneur friendly until the end of their journey with the company. I think they should see it as these entrepreneurs have built something great continuing the process on and having a good home. People are going to pay with are going to pay. Upon itthey should look favorably. It makes the world easier and more frictionless. Next what you get by the not being based in silicone valley. We are part of a bigger trend. Canada,hop a five from spotify from sweden. There are number of Companies Growing up outside the valley. We benefit from having one foot inside the valley and one foot outside. The valley is incredible with its creativity but it does have smoke and mirrors world. Having a foot outside gives us a practical customer outlook. Sydney is a big city. We have real problems to go solve and having camps and balance has been a strength for us area you famously dont have a salesforce area your product comes wordofmouth and organically. Are, wouldnt you it make sense to add a salesforce question mark we do have a salesforce that is bigger now than it has ever been but maybe a bit smaller than companies of our size. Our goal is to make our sales process efficient and effective for us and the customer at every point in their journey. We do have a salesforce were growing larger customers but not for acquisition. Looking forward to more for you from sun valley. Uber is betting big on driverless cars. We will hear a view of the future of autonomous driving next. This is bloomberg. Emily uber announced it was spinning off its self driving car unit. This after receiving a 1 billion investment from toyota and a japanese autoparts maker. Uberong will it be until is completely autonomous . We sat down with the uber ceo to discuss this. No drivers. I think it will be 15 years or more. Around robotsma replacing humans. The reality of life is that the robots andg is humans working together. Robots are very welldesigned for replacing repetitive printable behaviors. Most of driving is neither repetitive nor predictable. There is a subset that is. What you will see with our driverless program is that we will be incredibly careful and make sure that safety absolutely comes first. We are building our driverless program working with third arties within the context of network where for example in washington, d. C. , what are the 1 easiest trips in washington . Avoid a roundabout or stay away from the airports. A set of routes that are incredibly easy to drive. What you will see with us as far as driverless, we will get machines to do the simple stuff than we will have the humans do the difficult stuff and the two will coexist for 10 or 15 years the drama time before that the press reports. Someu expect to have driverless or Autonomous Vehicles in a year or two . Within the next five years. There will be some driverless vehicles out in the market and i think it will be in a limited way. You spun off your driverless company. Why did you do that . We created a separate company where we were able to bring in some investors are. Another is strong in manufacturing kits and sensors. Building these Autonomous Vehicles at scale in very large numbers. We also brought in other financial partners. Rubenstein was david with the ceo of uber. You can see more tonight and tomorrow. Coming up, facebook has ambitious plans to improve diversity but are they realistic . Coming up the diversity officer tells us how they are planning to boost the numbers. This is bloomberg. Were the slowskys. We like drip coffee, layovers and waiting on hold. What we dont like is relying on fancy technology for help. Snail mail we were invited to a y2k party. Uh, didnt that happen, like, 20 years ago . Oh, look, karolyn, weve got a mathematician on our hands check it out now you can schedule a callback or reschedule an appointment, even on nights and weekends. Todays xfinity service. Simple. Easy. Awesome. Id rather not. Emily facebook has said big goals to boost workforce diversity. In its annual report, the social Media Company announcing plans to double the number of female employees globally over the next few years as well as the number of black and hispanic employees in the u. S. The company says it wants over half its workforce to be from underrepresented groups by 2024. I sat down with the companys chief diversity officer. There has been Credible Research to say that having goals is one of the key ways to incite change. They have said that having goals makes a difference, one of its five things you should be doing, and we want to do what is best practice. We have been building for the last six years in machinery, the muscle, the strategy, testing things. Some of things have worked, some have not. We have seen that we have the muscle to put these things on top of it and boost even further. Emily you are looking to change absolute numbers. Do you have some secret, innovative plan we do not know about that will make this happen . I wish. Then i would market that and never work again. No, we do not have a secret plan. None of this is some sort of magic thing. This is hard work, consistent attention. Inequity did not come about through some sort of organic, weird thing. It was designed. We are hoping we can design some sort of deliberate intervention. Hope Getting Better with these goals its going to be hard. Let me just a clear those goals are stretch goals. Im not saying by any stretch of the imagination we are going to a 50 at, but we have chance we will hit these goals and 50 chance will not and we are going to push as hard as we can. Lot, whyget asked a cant even facebook to better . Why hasnt even facebook done better . There are a couple of things. We have doubled down to try to address it. Things like is there bias in the workplace tackle how do you evaluate people . Emily you say there is bias, verizon famous. Everywhere. This is why i say humility is important for every group of people to recognize we are not special, there is no fairy dust we sprinkle on people when they walked through the doors of facebook. Theyre the same people they were when they got up that morning and got ready in their communities. Everybody has bias, so you address that. Hand, a leader who does model it helps us tremendously, so seeing that there is an expression you cannot be what you dont see. Seeing a woman who represents what we hope for, which is leadership and influence and success has been useful. That is why we have seen women in leadership numbers have then the most improved of all. You alsoso report more women in tactical roles because those are technical roles. Women hold only 25 of those roles. Blacks and hispanics, only 5 . I said there are things we control and things we do not. We are 100 focused on our environment, opportunities. We have expanded internships by many factors, but when you are pushing against the situation where only 18 of the people graduating with Computer Science degrees in the United States are women, how do you get to 50 . Emily that sounds like type plan problem, which many people say is a myth. There is not just a pipeline problem there isnt. Thats why i say theres stuff we own. Are we being fair . Are we creating opportunities . Are we weeding out bias . We have increased from 15 five years ago to 23 women in technical roles. We have surpassed what would be an obvious market availability number. How much more can you do, right . Im saying to get to 50, we need to have a lot of comprehensive work and we do some of that investing in the long term as well to get more people from underrepresented backgrounds doing technical subjects, studying Computer Science and computer engineering, data structures, out the rhythms, so we work with universities and build tools so people can put in something called tech prep. You can put in your zip code and see where you can get training in your neighborhood. Emily ive made the argument that Digital Privacy is a womens issue. Its not a women only issue but it is a issue women have a unique be one. Women are more likely to keep their profiles private, perceived more risks online than men. Its pretty obvious most of the product decisions at facebook were made mostly by men. Do you think facebook would have issues around privacy of particular, so many issues if there had been more women at the table from the beginning . I think you dont know what you dont know. Having more diversity on every team is going to produce better results and we have seen examples already now that we are increasing the diversity of our workforce of how decisions are changing and how products are improving because we have different people there. Slant,ng to say they yes. Everything is going to be better if we have more diversity. we interviewed a former facebook employee last year that said facebook has a black people problem not just affecting black employees bud black users. The naacp called for a boycott last year. Not just affecting black users. Es but black what is your response to that . My response is there will be a distribution of experiences and responses to everything. My response is also that in people issues, there will always be a complexity which what is required of you as a company is to look at them headon and constantly be trying to improve responsibility for things you can change. There may be people who step up and say they have an amazing experience. That does not mean the other person is wrong. It means there is a range. Emily will you admit this impact the product, the impact of decisions that are made . Absolutely. Were not doing this for some beauty competition and how many numbers we have versus the body else. What would be the point of that . The more diversity you have, the better decisions you will develop. Everything we do is complex if you think of the scale we operate at, to connect to other human beings and we want that experience to be as good as it can be. Emily this goal is really exciting. It does put another target on facebooks back. Just today, the fed chair ,riticizing libra, lawmakers skewering your cryptocurrency plan, you have fake information you have fake news, misinformation. Why put another target on facebooks back when, like you said, 50 50 you succeed, 50 50, you dont . Because i want to succeed. I dont know that you achieve much if you risk nothing. If there is criticism to come, i would be proud to take that criticism it is in the interest of getting what we want. Emily facebooks global chief diversity officer, maxine williams. The u. S. Has opened a trade probe into the french plan to impose taxes on that companies. He gives Robert Lighthizer of to a year to examine if the plan would hurt u. S. Tech firms and suggest remedies. Is the sameation tool the president used to impose tariffs on chinese goods because of the countrys alleged theft of intellectual property. Coming up, we speak to the ceo of next door. About takingto say over as cfo in december after being the cfo of square. Thats next. Emily lets get back to sun valley, idaho. Paul sweeney standing by with a special guest. Hey, paul. Paul great to talk to you. Ar, we are so excited to have you here. She is the chief executive officer of nextdoor. Com. Tell us about it, what it is, and what is unique about it likeive to other sites facebook. Were all about local. We are founded on trust, so its your neighbors. We have verified those are the People Living around you. From there, we want to do three things we want to keep you informed about what is going on in your neighborhood. We want to get you connected. Most people dont know the neighbors that is a huge problem we are trying to solve. We are there to make sure anything you want to do in a hyper local fashion gets done on nextdoor. Today, were about 240,000 neighborhoods across 10 countries. The great thing i see with next door is there is not a community in the world that does not want to create stronger, safer communities. Today, we are in the u. S. , but we also resonate well in countries like the u. K. , the but,rlands, australia, frankly, the world is our oyster. You can go anywhere. North korea, you name it, there will still be a mom looking to find other moms. You might find a senior that is lonely wanting to make looking to meet other seniors. We view it as a really openended opportunity. Paul your Company Recently had a capital raise. Talk to us about that and what the proceeds are for. Absolutely. We were delighted with that fund raise. It was one of the first things i wanted to do coming in as the new ceo, making sure you have the right alans sheet to do Everything Else you want to get done. The round itself, very nice mixture of new investors coming. N, but also current investors in terms of what we want to do with it, really three things. The first is to continue to drive growth, so we continue to have global aspirations. That helps us go country by country. The second area is engagement. Once we have neighbors on the platform, how do we keep creating utility . You hire more engineers, they build more great products and they cost a lot of money to go out and higher. The third area we are digging into is the power of local business. Passions in life coming from where i was coming from before is what can you do to help local businesses thrive . We know when we thrive, communities thrive. Big issues ithe think is getting more play over the last several years, particularly through social media platforms, has been privacy. I know there have been issues about what information is shared between neighbors. Theres profiling going on in neighborhoods. How do you deal with the content that goes on your platform . Thats a great question, and i think that is absolutely something we as platforms have to make sure we are being proactive about. I started by saying we are founded on trust. We do a lot to verify that you live in that house and that neighborhood. Because of that, it is not a bot. It is not a made up person. It truly is your neighbor. Second thing we do is that once you are on the platform, it is your name and address that is seen. It never makes everyone their best selves. Clearly, when people are passionate about particular topics that can get contentious sometimes, but by having your name there, we think it makes you your better self. And having the third hes with things like racial profiling withg the third piece things like racial profiling, we have a lot of designed to help people when they make a post get into the part of their brain where you are truly thinking and we spend a lot of time talking about kindness. Ultimately, kind posts, kindness in your neighbor, that is what builds social capital. Paul thank you so much. Emily our own paul sweeney there in sun valley. Still ahead, Companies Already withng our orbit satellites plan to launch more, but how well they clean up after them . Thats next. This is bloomberg. Emily you would think in todays day and age, everyone would be online, but thats just not the case. According to the united nations, nearly 4 billion people worldwide lack reliable Internet Access. Amazon to spacex are trying to change that by launching low orbiting satellites to try to get everyone online, but astronomers see it as not all clear skies. Starlight, star bright wait, is that even a star icm the sky tonight . Objects in a trainlike formation trail across the sky. Butstars, not planes, satellites. You can expect more scenes like this one which had skywatchers head scratching, as the satellite race heats up. Elon musk plans to propel 12,000 satellites into orbit. Bezos hass jeff asked the sec to approve 1200. Private company oneweb says it plans to launch a satellite a month by december. The goal to bring Broadband Access to the roughly 4 billion people on earth who do not yet have it. See going you can forward that access to broadband is going to be close to being a fundamental need. Emily while that goal may seem noble, these satellites are designed to fly lower, leaving astronomers concerns they will interfere with observation of distant galaxies. Then theres the cost they cost nearly 1 million to produce. It cost really 16. 5 million for spacex to launch 60 satellites into orbit. 1. 6 billion was invested in to Space Companies this year alone according to d. C. Firm space and jewels, newly double the amount deployed a quarter earlier. With these satellites, the space economy, so to speak, appears ready for takeoff. Emily we continue our look now at how satellites can bring economy online with what of the companies you just heard about to the ceo of oneweb joins us, and the company has raised nearly 300 million to date back by softbank, airbus, Richard Bransons virgin group. If you believe Internet Access is a fundamental human right, given the scale and pace at which you and other companies are operating, when do you think that could be a reality, internet for all, thanks to satellites . Were launching satellites starting in december, 30 satellites a month, 34 per month, sometimes 36. We will have our first phase of our system giving global oferage by the Third Quarter 2021 and we will be Getting Service in some places in 2020. Our promise is low latency service and global coverage. One of the things that happens right now with satellite is people get really clunky service. Ecause of the high latency geo satellites and 36,000 kilometers away. Ours are 1200 kilometers. Everyone in the world deserves to have the best internet service, if you are in the middle of africa, asia, latin america, or in the heartland of the United States. Emily what about the cost . Difficult to calculate the cost of spacex launches, for example. How much does it cost now to launch a single satellite, and how much will that cost come down in the future . One of the things that has been exciting as the launch cost has come way down. We locked in our 22 launches. We did that a couple years ago, and we know that from then to now, the launch costs have come down about 30 . Rockets are getting bigger. That means that they can carry more satellites. They are more secure, so we are looking for that trend to continue, and that enables a lot more satellites to be launched. Atso, you are seeing cube set go farther. Ours are not cube sats. Ofatellite is not a unit measure. Its like a base station. It could be bigger or smaller with more or less capability. In your segment, you talk about bringing down the satellite cost to one Million Dollars per satellite. Youve got to remember that it used to be that satellites would cross about 150 million to 200 million and be these big things. We have taken advantage of all the advances in electronics from applied an and industrial approach, which is to say we are doing this on an assembly line. We have factories opening in Cape Canaveral on july 22, and that is coming down to one that coming down to 1 million per satellite is a big, big deal. Emily i was on holiday last week stargazing with my kids, and we saw what we thought was a shooting star and decided it was too slow to be a shooting star and too fast to be a plane and it was probably a satellite. Meantime, elon musk has tweeted these thousands of satellites already in orbit, people see them approximately 0 of the time. That said, what about the concerns from astronomers about space pollution . Is that going to be a real problem . I think there is a general concern thats real about pollution in general in space. I think the most important thing is collision and being responsible with space. I think one aspect is the visibility. At higherites are altitude, 1200 kilometers, versus their satellites at 550, so they are not visible. Leadersery much thought on this, making sure the satellite disintegrates when they come back into the atmosphere, so that you dont harm anybody. If you and i get into a collision on the street with our car, we walk away from that. If you get two satellites collide up there, they will both fragment and then they sort of pollute the area. It is really very important to inresponsible up there space. Emily you are in this space with elon musk and jeff bezos who are nothing if not ambitious. What do you have on them . We will be first with global coverage. Technology between Companies Like it and anything in telecom will tend to average out. There will be solutions. Somebody will have a little bit of an advantage for a while versus somebody else. We areantage means working on getting our climbs, our distribution. My sense is amazon will take a slower approach. Are clearly very aggressive folks, but we are feeling veryd and confident about what were doing. Emily a different view of a modern space race. Thank you so much for sharing your work with us. This edition of bloomberg technology. On can connect with us twitter. This is bloomberg. Hey im bill slowsky jr. , i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. You rambling about xfinity again . Youre so cute when you get excited. Anyways. Ive got their app right here, i can troubleshoot. I can schedule a time for them to call me back, its great you have our number programmed in . Ya i dont even know your phone anymore. Excuse me . what . I dont know your phone number. Aw well. He doesnt know our phone number you have our fax number, obviously. Todays xfinity service. Simple. Easy. Awesome. Ill pass. Paul welcome to daybreak australia. Sophie we are counting down to asias major market opens. Paul here are the top stories we are covering in the next hour countdown to a cut. The fed chief is ready to lower rates for the first time in a decade. The global slowdown overshadows a strong u. S. Jobs market. The biggest ipo of the year
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