Customers will be enticed to upgrade. , ourng into palantir exclusive conversation with alex why protesters wont stop them from doing business with the Trump Administration. Hp, the ceokeup at resigning, leaving the company to attend to a Family Health matter. By the be replaced current head of the printing unit of hp. Inhas been instrumental improving cost structure and organization, helping profitability. To discuss coming in king has been covering discussed, ian king and dan morgan. Dan, you have a position in hp. Ian, i willtart start with you. I had a chat with them both. He reassured me this is personal and not a decision he took lightly. He has to go back to his native austria to deal with his family situation. , noe is no background story corporate scandal, no push out. Of a. P. Up shares over in the took split with hp. What is the hpe. What is the impact . Whitman back to meg splitting up these companies. Everybody was putting their money on hpe. Hpit is interesting to see doing so well. It looks like they had a pretty good quarter. Printing was down 5 . There were concerns in the previous quarter surrounding slowness in growth in that area. It looks like personal computing was up 3 . Overall, a pretty good quarter, a beat in terms of bottom and top lines and consensus estimates. Emily tell us more about the guy replacing him at the top, a 30 year vet, started as an engineering intern, navigated part of the split and was they are that time. Is that he from this has spent the last year working with the board on a strategic review. The main take out from the language was basically improving the way the company does business. I think investors will focus on that and look for him to explain what he means, how does he think he can make the company more efficient. Focus on people would reducing that headcount. October 3 is when he will talk to investors about what his plans are. He hasdan, even though been able to improve the balance sheet, you have a pc market that is stagnant. What are the challenges ahead for hp inc. , and who is the main competition . Q, weu think of hp remember when they bought compact and became the number one pc player. It is a very mature business. They did edge up growth in the quarter, which is strong, but it makes you scratch your head on how they can make this thing grow. They have been relying mostly on Share Repurchases in terms of increasing the dividend, which is over 3 , and that has been driving a lot of the attraction to the stock. They have some new 3d Printing Technology theyve been working on that wall street is excited about, but in terms of their core business, pcs, when the data comes out, youre looking at very low or no growth at all, or how do you continue to move forward when your environment is so negative . It is a big challenge for hpq. Emily hp had been impacted by the trade issues between the u. S. And china. They manufacture many devices in china. How does that change her view on the company . Is it impacting where you are placing your money . We have a pretty good position in both. We owned it before the stock, so we would look at it as a dividend stock in regards to investment. Tariffs, they are a company like the semiconductor companies, potentially apple, that will be heavily scrutinized. As you mentioned, they have production facilities over there subject potentially to being subject to a tariff the Chinese Government could push against him, so we have to monitor the fundamentals going forward, but at this point, we are holding our shares. And ian king,gan thank you both. Lets switch gears to another come thesalesforce maker of cloudbased applications, a fourthquarter revenue forecast the top estimates. I want to bring in a senior jmplyst at securities. What are the highlights . One, is the core business to growing . Is something bad happening in europe . And three is around tableau. On all three fronts, they did well, of the stock has reacted. Emily lets talk about tableau. Huge acquisition, a lot of attention, how will tableau be integrated . That is the question. We will find out. The bear case is they will sell the existing products to their existing salesforce customers. That would be boring. The interesting case is they would take the smarts, knowledge those people have and start to build really interesting analytic apps. Emily do you see salesforce continue to use acquisitions to stay fresh. We have seen the rivalry with oracle, and i wonder if Marc Benioffs secret to not becoming oracle is to continue to buy . You have to be careful. I think tableau will work out well. He has to keep innovating his own products. The last three to four years, they had some things that did not work out so great. Einstein, i think the jury is out on einstein. Jury is out on that. They have to make sure they innovate themselves. That is where the big push is in terms of core values. Emily what are the biggest threats to salesforce, and upstart, oracle . That they dont deliver good, new products, upset their customers and their customers dont buy more stuff. It is that simple. The customers have to trust them, like what they are doing, and keep buying more stuff. Emily how are the trade issues impacting salesforce . They dont do much business in china. They dont have Hardware Components coming from anywhere, but what does have an impact is on peoples confidence. If they start wary about a macro slowdown, people could pull in their spending on software and that could be an issue. Emily thank you for the additional context. We will see if we find out more about tableau. Meantime, another social media crackdown tied to the hong kong protest, this time you two. It has disabled 210 channels intended to spread disinformation about the hong kong protests. Both twitter and facebook suspended account backed by the Chinese Government used it to undermine the protests. Youtube said the activity was coordinatedith the chinarelated behavior discovered on facebook and twitter. All three services are blocked in mainland china. Awayg up, apple just weeks from revamping its most important products. We will bring you the details on the newest iphone next. You can check us out on the radio, the bloomberg cap, bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. Is getting ready to unveil new hardware in the three weeks, including iphones, ipad, and largest laptop in years. The main feature of the iphone will be a camera that can capture ultra wide photos and videos. Are julie and bob , reporting on new details for the upcoming funds, new camera, wideangle photography, the ability to edit video. What are you most excited about . The wide angle camera is nice. We have seen this on other phones. Samsung and others have had this for a while. It makes a big difference. That is one challenge with the smartphone camera, so people will like it, but it is not enough. Even the other things they are doing to get people excited. The thing i am most interested in is this notion of shatterproof. People have been working on improving the rigidity of the display. How many people you see with broken phone screens, so having that, if it does what it implies, could be a big deal for a Certain Group of people, but again, at the end of the day, apple is a year behind the rest of the micah when it comes to technology the market when it comes to technology. 5g or a 3dot have camera until next year. This is the challenge they face this fall. Emily that is one thing these funds wont have come 5g. Julie, what is your analysis . How many people will buy these fair,nds with, to be exciting upgrades. Nerd, but i be the think the camera is exciting. Soera and media cell phones, i think consumers will be excited. I am excited about enhancing the transition so i can consume media and create media, and in addition, the better the camera, the better the chips, the faster the network come of the better the Computer Vision is, and it sets the stage for future experiences on smartphones that are much more immersive. Phones, wes not just have a refreshed ipad pro, entrylevel ipad coming to , butons of the apple watch obviously apple has been working to build out its service offerings, apple tv plus, apple arcade coming this fall, and for the first time, the iphone made up less than half . That was a huge market for the company. People have been concerned with the Smartphone Market slowing down, people are extending the lifetime of all the phones they spreadnd so they have to the wealth to different devices. They are giving more love lately to the mack, which is great. They have this new macbook coming out. The ipads, apple watches memorial. The story they will tell more incremental. The story will be the new hardware with the services. Im sure we will learn more about the services and how they tie in. To make it work better on apple hardware than other hardware platforms, so that will be interesting to see him tell that story. We are still in this era of apples cycle that is lower than people would like to see, so that raises questions longerterm. Emily julie, would you agree . Engineer,being the these are big steps forward. If you think about the future of experiences, more immersive, better Computer Vision is a better speech analytics, they are doing a lot to create a platform that will go beyond Media Consumption and control, but setting the stage for a platform for health care, education, financial services, commerce, and other categories for consumers, so i am impressed with the technology and engineering and what they are setting themselves up to do here. Emily bob . They do have nice technology. I am saying they are behind other people on that front. We have seen other Companies Bring these technologies out there. Apple magic is tying it into services, health care. We will see what they do with Computer Vision. That is an exciting area that will be important. A lot of that is softwarebased. We will see what happens down the road, the ability to do 3d scanning, but again, that is probably not coming for a little while. That enhances ar as well. I agree we will see enhanced experiences. I just think it is more software than hardware. Emily new details about apple tv plus they will be unveiling in november, new trailers for the shows. How optimistic are you about the streaming service visavis netflix, visavis disney . I think it is absolutely the future. I think it is market competitive. It will be interesting to see how this moves forward, how important it is for consumers to have media that works with the Apple Ecosystem versus the libraries of competing services. This one is hard to tell because they dont control the entire ecosystem of hardware here. Emily bob, meantime, a trade war raging, apple becoming a poster child for the trade war. Luckily tim cook can pick up the apple, andily for President Trump seems to like that, but you have tariffs going into effect on air pods and the apple watch. You are right. These are real world. Be, kudos to tim cook to willing to make that call and get things done on their behalf. That is fantastic, but at some point it does become a concern. China plays a along game, so even if there is a shortterm blockage, that longerterm issue is a big concern that will face apple. Everybody else as, not just apple, but apple is that poster child in that regard. Emily julie, how concerned are you about the longerterm position of apple given its business in china and all the manufacturing it does there . I agree with everything bob said. Inlso believe that apple is an enviable position because so many other customers are fluent. They can roll out new earbuds and charge 159 and it will probably not impact their sales that much. They are in a good place. Odonnell, i bob am sure we will see you in a couple of weeks. , when thesefour devices are unveiled. The booming business of esports, could it be the next thing for arlie in eSports Bubble . We will talk about that next. This is bloomberg. 2018, esports cash of the attention of 400 Million Viewers worldwide. Media rights revenues per esports top 180 million. One Company Thriving is allied esports. The Company Recently went public after being acquired by black ridge. The ceo joins us now from the nasdaq. Public rather than a tradition why go public this route then a traditional ipo . We were offered an opportunity by a person who did ipo many times. And he offered this presented this opportunity and we took it. We believe having a public platform would help to push the business forward. Talk to us about how the esports market is changing. It has gotten big, but now you have talk of an eSports Bubble. Are we in any Sports Bubble . I do not see any Sports Bubble. Esports is at the heart of video gaming. We have 2. 4 billion people playing video games regularly, and esports is at the heart of that. Viewership has surpassed 400 million on a global basis, and it is growing fast. As an industry, it is still in its early stage. The participants are all huge party, so we have for me this opportunity in front of us. Cupy the fortnight world was a huge success. Events, butiple do you believe fortnight the game could be peaking, because there is concern about the. I would say it is still a wonderful title. We have run many events with epic before. Last year, the event was hugely successful with more than 2 Million People watching it, unique viewers, so it can create some amazing numbers, but there are more titles going into the market. Overall total viewership is extremely strong. Emily talk to us more about how you make your money. When you host a tournament, how do you make money off of that . Company,ny other media we have sponsorship and work with a lot of partners now. Mexico that is selling the content we produce together, so it is like any media company. The largest with Shopping Mall owner and operator in the united states. We are also working on the simon cup, an event we designed just for them. They are working with us to present opportunities to their sponsors and talent as well, so we are no different from any other traditional business in terms of how to monetize it. It is just how content is delivered and how sponsors can wrap their heads around this new opportunity. It would take a little bit of time, but the potential is huge. Emily we will continue to watch how the esports market involves evolves. Thank you for joining us from the nasdaq. Coming up, jordache changing its controversial policy. We look at what prompted it and what is different, next. This is bloomberg. From the couldnt be prouders to the wait did we just winners. Everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. Now you can share it between lines. Mix with unlimited, and switch it up at anytime so you only pay for what you need. Its a different kind of Wireless Network designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you preorder a new samsung note. Click, call or visit a store today. This is a very consequential change and something we always work on. Weve been talking to consumers, dashers, third parties validating what were doing now. We taken time to make sure were doing something so important correctly. What other changes . Whats the new policy . Under this new model, theres base pay. Here will be tips on top under this new model, every dollar a customer chips will be dasherspockets. Will increase base pay across all orders. That means on average, dashers will make more money in this newer model and we will keep the transparency we have always had which means we will show every piece of the order of front. Up front. Have others telling Business Insider that nothing has changed. What is your response . This change was difficult. There are lots of dashers who really like the old model. They like that consistency, so we have to make sure that as we shift a new model, we would with dashers. It emily i ask you this question but there i come on, are continued questions about how sustainable this on delivery ondemand food delivery model can be. Can you earn a living for door doordash or for uber eats. Some of these workers say they make a dollars and hour. Is that sustainable for them and or you . How do you make this model actually work longterm . At the start, it is important to understand who these tubs of workers are. 80 of them have jobs, especially when they are delivering on doordash. It is important to understand who these types of workers are. I think there is a lot we have to do for these workers. For example, its not just about pay, though thats a critical ingredient. Doordash was the first food offerry service to insurance. Its not just about the pay model but also product changes to make sure it keeps Getting Better for them. Emily meantime, you have been making acquisitions. You reports this week bought a selfdriving Car Technology company. What is the vision their . Does that mean no dashers . Does that mean an Autonomous Car is going to bring me my food . Were always working on technologies that solve real problems for consumers, merchants, and dashers, and were looking at how technology or merchanta dasher in order to offer a better experience for customers. We dont have any news to share today emily but you did buy a self driving car company. I have to say every day is about solving problems at the intersection of have technology and humans work together. Emily you also bought caviar, a food delivery company, from square. How will that be integrated into the existing platform . We are very excited about caviar. It is a service you may have used. Tostart, its about adding restaurant selection. Today we have the largest breadth of selection out there and caviar is independent stores that are a bit more premium in brands. Plays in different geographies than door than doordash, and we think that is a nice complement. Their primary focus has been in andes like manhattan chicago, so we are excited about the government refocus, and we are excited about the team. Emily you have taken a big. Ound of funding from softbank how are you spending that money, and how are you growing the business slowly but surely . The first thing is to remain disciplined. Sure weit is making keep doing what is best for consumers, merchants, and dasher s, and if we can work on those products, the rest will take care of itself. Emily how do you view the Competitive Landscape . Is obviously growing. Postmates potentially going public some. You have changes in the food Delivery Market happening in europe. You have changes happening in grocery delivery. Some companies doing well, Huge Companies jumping in, other companies struggling. How does this play out and what is your role in it . We have always had a saying we are customer of sus, not competitor focus. You could study this for hours end. Ays and not were customer focused, customer obsessed, not competitor focused. If you look at Something Like pizza, over half of pizza sales are delivered in the u. S. We are at the early stages of something huge, and i think a lot of people are recognizing that. We are leading the way today, but if we keep focusing on consumers, merchants, and dasher s, we will be fine. Emily thanks so much. Theng up, we pull back curtain on one of the most secretive companies in Silicon Valley. Our exclusive conversation with the ceo is coming up next. You dont want to miss it. This is bloomberg. Emily one of the most secretive and Controversial Companies in , cofounded by billion at tech investor peter thiel, the data mining and Analytics Company has come under fire. Just last week, protesters picketed the companys palo alto headquarters describing it as a dirty data company. Max got a look into their response to the protest in an exclusive interview with the ceo. Im deeply sympathetic to people who are concerned about the use of software platforms, ours and others, because of the inherent power they have. They have to be closely looked at and closely regulated in a granular, transparent way. Being a Small Company to a company that powers most of the west and its key institutions including homeland security. There are really important questions. Under what conditions can you use the software . Who can be surveilled . How does the surveillance happened . How is the data managed . Single one ofy those questions has to be decided by society in an open debate and the enforcement of which has to be clear and transparent. Thats also a Software Problem and we are very highly specialized in those problems. I do not believe these questions should be decided in Silicon Valley by a number of engineers at large platform companies. For me, the question is these are really serious consequential questions that will affect all of our lives in a very significant way, now and in the future and have already affected that people do and do not understand. Do we want a motley crew of people in Silicon Valley to build platforms, deciding which institutions were, under what conditions . Which institutions, by the way, do not work and under what conditions . We have a view which is that in societies where there is a functioning democracy, meaning that theres checks and balances in forced by a functioning judiciary, we have supplied the software and will continue to supply the software. That is, by the way, a radical position in Silicon Valley and one that has made us unpopular on the beginning. We were unpopular when we started palantir. We were unpopular when we started financing in Silicon Valley. We were unpopular when we built in Silicon Valley and were still highly controversial because we have a very differentiated view than our colleagues. Googlether words, famously basically backed off a 10 billion contract with the. Epartment of defense you are basically saying not going to happen at palantir . Just to add a little color with this, many people believe i happen to share this belief that the present and future ability to control the rule of law and its application will be determined by our ability to harness and master Artificial Intelligence and its precursor, machine learning. Very radical decision to say you will not help the u. S. On this. I believe it is every right of google and their engineers to make a decision. I believe, however, that they should not be making this decision. I dont think any other Consumer Internet should make the decision. U. S. Legislators and voters should make this decision. To factor, google and other companies are deciding what the role and stature of the u. S. Will be in the present and future. I think most people, including myself in this country and around the world are very uncomfortable with the idea that google and other companies will define who are the winners and , and theday, tomorrow day after tomorrow. If that is your position, if you think the small number of People Living on the island seems to be devoid of any of the cultural norms that the rest of us tend to share should make these decisions, that is a radical position you have to bring to the American People and explain to them why you are making these decisions. We have a very controversial position that makes us largely unpopular. We believe that those decisions should be made by the u. S. Legislature, by our representatives, and by the courts, and that we as citizens should agitate for views that we believe. In other words, palantir is going to work with either government, if its the Trump Administration or we have worked for three administrations. As long as the judiciary is putting checks and balances on the limitation. On the implementation. I think some of these laws should be changed. I grew up in a progressive family. I got a phd in what could amount to progressive german thought, living half my life and what could be thought of as the most progressive part of the world. I believe that there are checks and balances. I do think our legal system is way too brutal and that we need to have a discussion about that. I dont believe the brutality of our legal system should be adjudicated in a tiny island of on which people live that have very different ideas about how the world should work than the majority of our citizens. Another person who made a similar critique is peter thiel, cofounder of palantir, investor in the company. There has been a suggestion that reader teels closeness to the Trump Administration he is a major donor has somehow benefited the company. Im curious what you say to that. What is true is peter and i have had a long, deep, and important friendship. I view him as a close friend, and it is true that i value his opinion and he plays a role in palantir. It is ludicrous to believe that a relationship between peter and this administration has helped our company in any way, especially given the fact that i have and quite obviously and more probably than i wanted a critic of this administration. By the way, as a matter of fact, it takes 10 years to build the kind of Customer Base we have built. Most of that Customer Base was built under the obama administration. I dont see any material evidence for this, and, quite friendly, i just view the claim as ludicrous. We have seen people from outside organizations protesting in front of your office. What about your employees . We hire people who are critical thinkers. We avoid hiring people that would look at a complex issue see a lack of complexity. By the way, not just in the context of homeland security, in the context of our software fighters. To help war these are very complex issues. What does it mean to provide data protection. Largelyess of palantir came down to the fact that we took issues people that were simple link data protection, transferring data in a highly classified and secure environment, making data platforms work where there is high latency, making data platforms work where allies are sharing subsets of data, and we provided solutions. Tir is housed by highly complex tinkers. We have complex and a virgin views on many issues. There is a very vigorous debate and not everyone agrees with our policy and that is ok. We want those kind of people. Palantir Ceo Alex Karp speaking with max, who joins us now. What is your reaction to some of his responses . Max for me, the headline here palantir is trying to stand up to the protests. They have been under a lot of fire, and you have the ceo we are with the administration on its implementation policy, if you like it or not. The second thing happening is karp saying peter thiel is an investor and close friend, but we are our own company, and we exist outside of the Trump Administration. Ntir is a big defense contractor, they definitely have done well over the last few years, they also do have a lot of contracts in europe. Ofdefinitely is a big part their business, but he is emphasizing it is not the only part. Emily you also talked to him a little bit about his politics, and he alluded to it there. A progressivep in family. You talked to him about who he voted for, who he is likely to vote for, and its not donald trump. Max yeah. He donated to clinton. As he said, his left of center on most issues, though he told me, not on immigration. Least not on the u. S. Left center spectrum is i guess how he would put it, but in any case, he is trying to say that the decision to do business with an government, Even Administration as controversial is the Trump Administration, is essentially and a political olitical an ap decision. You should not blame a Software Company for selling software to a controversial government, and that itself is a controversial thing to say. We are seeing pushback not just from internal employees, but also employees of many other tech companies. In that interview, you heard him coming out being sharply of that kind of external pressure. Companies like google giving in, as he would see it, to their employees. Whereas employees see it as standing up for their beliefs and for what is right, and these companies were founded on an ethical code that they feel is being violated. Emily he is obviously critical of google and googles power, but also, can you remind us of what palantir actually does and the power they currently have . Max palantir is basically a Data Management platform. Quickly,ery wonky very but the idea is it helps integrate that is, sort of makes sense of databases from inside of companies and also in law enforcement. You say that, it sounds kind of dull and boring. As we learned over the last few years, when you put large data sets together, that can yield things,etailed rings and that is where the power is for palantir but also potentially the danger. Emily great interview. You can get that full interview p, who really speaks to press, at bloomberg. Com. Still ahead, audience out with results. How the Digital Payment company is faring next on bloomberg. Emily a dutch Payments Company meeting 41 rise, analyst estimates, this less than 18 months after it held europes biggest tech ipo. It replace paypal as ebays primary payment processor last year and services Big Tech Companies like uber and spotify. Bloomberg asked how the Company Plans to sustain its growth. If you look at this market, theres always a lot of pressure, like how far you can grow, are there enough merchants to pick up, and now you have all those large names. We look at it differently because we are responding internationally, so we are in more and more markets, but also what you see is we are moving in Different Industries because we can do not only online but also historic transactions. In retail, things are changing aredly, the ways consumers shopping and the sort of service they expect. Merchants are responding to that, and we can really help in taking the hurdles out of that markets convenient, so are actually increasing or also to tailwinds to shift from cash to cards, the shift from merchant to selling internationally, so we do not feel it is a thing Customer Base. It seems unlimited one way. Its interesting because on the one hand, there really are no barriers to entry, so unless you squeeze your own margins, you are not really doing anything different to someone else, unless you have some secret sauce that you want to tell us about. If that is the situation, how do you protect your accounts from other companies entering the . Ace, and there are many i think we are quite open about our secret sauce. We build everything ourselves on a signal platform that we control very well. Engineersre than 40 who are all working on making it better for our customers, which is the merchant. , we have more functionality making a system that works better. There is a lot of consolidation, and they run many different platforms. While there chasing problems on this platform, we are spending that time just to help our merchants, so we dont believe in all those mergers. That is if you believe it is a commodity. We believe it is about functionality, truly helping those merchants, and we feel that building it yourself from a single platform is the way to position yourself. Emily that does it for this edition of bloomberg technology. We are Live Streaming on twitter. Be sure to follow our Global News Network at tictoc on twitter. This is bloomberg. When you rest on a leesa hybrid mattress, bedtime is no longer simply the time you go to sleep. Its time to switch off and catch up. Enjoy me time, and we time. 40 winks or 8 hours solid. The leesa hybrid mattress combines two technologies to give you deeper rest and rejuvenation. 1,000 pocket springs provide edge to edge support, responsiveness and comfort, while premium foams relieve pressure. Keep you comfortably cool and limit motion transfer. Leesas hybrid mattress is not only recommended by experts, experts choose to sleep on it too. Try it yourself in any west elm store. Or order online and well ship it to your door so you can try it risk free. The leesa hybrid is american made. Built to last. And, because Everyone Needs a place to rest, we donate tens of thousands of mattresses to those in need. Experience the leesa hybrid mattress. Right now, its on sale. Order today. Go to leesa. Com. Daybreakome to australia. Sophie were counting down to asias major market opens. Im Kathleen Hays in jackson hole. Here are some of the stories we are covering at this hour the pressure is on powell. The fed chair opens the kansas city symposium at the Jackson Lake Lodge with three Regional Fed Bank president s saying now is not the time to cut. the aussie dollar has been a key shield for australia, but it easing poses a threat, and