Transcripts For BLOOMBERG Best Of Bloomberg Technology 20240714

Details on those devices more. Licitg up, we get an three years after microsoft acquired the job listing site. We begin with one of our top stories. Oracle announced wednesday that the ceo is taking a leave of absence for health reasons. They disclosed the move along with Quarterly Earnings a day earlier than results were scheduled to be released. The company did not specify what issues he faces or how long hes leave will be, but the executive chairman released a statement saying quote oracle has an extremely capable cfo and a deep team of executives with long tenure. We will cover marks responsibilities during his absence with support from the rest of our strong management team. To discuss, i spoke with a Bloomberg Intelligence Senior Analyst and our Global Executive editor tom giles. As far as his leave, there have been signs that he may not be unwell. What was not expected was the announcement to come today. And because they had not announced until now, there was a question mark about whether they would and whether he was getting well or not. It took us a little bit by surprise the timing in particular. Taylor i want to bring you in here. You heard it from larrys mouth, does any of this change the future direction of the company . No, it does not change the future direction of the company. Oracle is a very stable business, given a large on premise database business they have and a large applications business. The key risk for oracle and the key story remains how soon can they get the database customers on to the cloud . That story remains the same. I dont see any changes because of this shift. Taylor tom, mark hurd was known as working on shifting that composition from hardware to software. He touted getting to 50 software. How did he do . Tom it has been a mixed record for oracle over the last several years. Their stock price, i should note, has been really over 20 gained this year because a lot of investors are looking at that staff, the deep bench. They are looking at the shift and they are starting to see signs that it is taking root. It has not been even. There have been quarters where people have doubted. On todays numbers which we will talk about in a minute, looking light. It has not been super even. However, what you are seeing is when customers shift to the cloud, that is where the growth is coming from. The legacy database business, Traditional Software has not been growing as needed. And had the shift been happening as quickly, sometimes the answer has been no. But again, when you look at the stock price, you are seeing an Investor Base giving them the benefit of the doubt. Taylor talk to me about the earnings. Top line is a little bit of a miss. Margins look healthy. What was your take away . Anurag with almost everything, there was a slight slowdown in the application business. At the same time, we saw margins expanding. We saw buybacks. Overall, i was not that surprised with any of the numbers. The key issue remains how soon some of the new database products adoption goes. And that we will see from the colors, how that is going along. Taylor what does a 15 billion buyback tell you . They have nowhere else to invest or they think their shares are undervalued . Tom i think it is both. Are there acquisitions you can make, are there largesize acquisitions you can make . Oracle has been a big acquirer. They have made a big acquisitions. It seems to me that there is not a lot in the pipeline right now that they want to take aim at. But they have a lot of cash. So i wouldnt rule it out. 15 billion shows a vote of confidence. When you are announcing a ceo is taking a leave of absence. Again, you want there to be some vote of confidence on the part of the management. As larry said, they have confidence in their bench. Safra catz, capable, very well regarded. And larry, even though he handed over the reins, he has never strayed that far from having a hand in how the company is managed. Taylor did the Cloud Services revenue meet your expectations . Anurag there was slight slowdown in the applications area. But, you know, overall, it is lumpy because unlike in adobe or office 365, these large enterprise deals could take time. As i said nothing surprising from our side, generally in line quarter for us. Taylor tom, generally speaking, how is oracle set up among china and tariffs . It is something we have talked to so much about. What is your broad take . Tom right now, a lot of companies in the tech sector are going to be affected by the tariffs. And a lot of it has to do in areas such as hardware. Oracle has not been one of the companies that we have looked at and said, this is going to be a huge hit for them. We talk about apple a lot, some of the other companies, some of the chipmakers for example. Oracle, less so. That has not been a big area of overhang. I would be curious to hear what anurag says about that. But, really, the tariff issue is one we think that will hit a lot of the other big tech players aside from oracle. Taylor was the revenue not related to tariffs . Anurag i dont think so. To toms comment, Enterprise Software spending has little exposure to china. When you have macro sharks, people pullback spending. You really dont need to upgrade if you dont have to because you can go around another six months before getting that new server or upgrading to the new set of software. That is where we have already started to see some kind of cracks in the Software Growth story with some of the companies such as them talking about weaknesses in europe right now, that is leading to software. Taylor we know that all the glitz and glam is in software. Get us back to basics. How is the hardware business doing . Anurag hardware business has been weak. That has been the story for a while. People have been delaying their hardware upgrade cycles, just largely because whatever little money they have, they want to spend it on the next transformation. Which means you want to spend it on either advanced Security Products or you want to spend it on cloud products. People take money from hardware and they are spending more on software. Taylor tom, key take away from the Earnings Call . All about the ceo . Tom a lot about the ceo, why didnt they disclose it sooner . There may be questions along those lines. Who will be in charge of what set of responsibilities that mark was in charge of . How concerned are they about his health . How long will he be away . And certainly cloud, cloud, cloud. That is something it always comes back to. And as we pointed out, as people move more and more to the cloud, that is something that affects spending on hardware which has not been a real strength business for them. Taylor number one talking point from the call you want to hear . Anurag i want to see what is a the transition, the take for the new database product. That is a very important thing for us. That is what dictates how soon people will adopt into the cloud. Any new applications business, bookings numbers, those would be the areas we will be looking at. Taylor that was a bloombergs anurag rana and tom giles. I also discussed it with the former cisco ceo john chambers, he weighed in shortly after the announcement. The reaction first and most importantly is, as larry ellison, a speedy recovery for mark. He is in my thoughts and prayers. If you really think about the team of oracle, they work more effectively than anyone envisioned a three some would work. Larry and safran worked together for 25 years. I know all three of them very well. Safra is worldclass off the charts. Larry has always been involved in the strategy, the vision, the engineering side of the house. I think they will navigate through this one. I dont think they will have issues at all. They have a deep company, and a lot of capabilities. As i said, larry and safra are worldclass leaders that are very actively involved. My thoughts are with mark for a speedy recovery. Taylor yeah. Talk about your relationship with mark hurd during cisco and then his time at oracle. How was that relationship . John the relationship with oracle and hp have always been very strong for me. I have a lot of confidence in hp. They helped me when i moved out to silicon valley, to understand the valley when i only had 400 people at cisco and people got us confused with the food truck company. Lou platt helped a great deal. Their new ceo, antonio, is amazingly good. I have a lot of confidence in the direction of hp and they did a nice job on the turnaround. In terms of safra and larry, i have always been close to them. Both on political issues in terms of positioning tech for good in the world. They are very strong leaders. I would always bet on larry and safra and mark together. I would bet on them in the interim. They have got a deep team. As an investor, i think they will navigate through this very well. Taylor that was the jc2 ventures ceo and founder john chambers. Coming up, ipo woes. Why the company is looking to make changes at the top. Will the changes be enough to save the ipo as investors seem worried. We discussed next. And later, watching your health. Why apple is betting its wearables transformed the health industry. Highlights from the big apple event day in cupertino. This is bloomberg. Taylor welcome back to the best of Bloomberg Technology this week brought a flurry of activity from the ipo front. Including cloudflare, wework, and peloton. To break down the ideal landscape we talked about how wall street was interpreting the ipo parade. Truly amazing. We have reporting that they boosted the price range from 12 to 14. The question is where will it price . Just two days ago, we had a lot more optimistic sentiment around some of these big ipos. A lot of them that upped their pricing actually did a very well. Everybody but uber and lyft, really. Taylor talk to me about peloton which seems to be another big success story. What is the tone with peloton . The story is similar to everybody else. We were saying everything was ok, but remember when cloud was going to market, they were up. The nasdaq was up. For cloudflare to fall so much has cast a cloud over a lot of these listings. What is really happening is investors want to see a stronger bottom line. Revenue growth is not enough for a lot of these companies. We have had ceos of investment banks coming out and saying so for the first time all year. Taylor what changed . For one thing, investor sentiment. We have a lot of people say they want to invest in stocks that are steady, value stocks instead of growth stocks. Remember, there was the we work cloud over everything and people were looking for not only companies showing stronger revenue growth, but also governance they are comfortable with. Thing is, we are in the late stages of an economic cycle. People are starting to, at some point, get more cautious on their investments. Taylor we talk about cautious. You earlier were talking about how the nasdaq was higher. We did see another ipo, smile direct club, how do they end up doing . Down quite a bit, more than 25 , something unseen since 2008. We have not seen a company priced above is range and went to markets and dropped in the first day of trading. We saw uber drop but their price was at the lower end of the range. Cloudflare, we are waiting for their pricing tonight. Whether or not they price in the range they have increased does not indicate whether they will trade well tomorrow which is scary for investors. Taylor another thing that is scary for investors is wework. What happened . We are waiting to see if they will kick off the roadshow, monday. Bloomberg has been reporting all week that the valuation could be as low as 15 billion. To put that in perspective, Goldman Sachs was thinking it was worth 65 billion over the 47 billion they fetched in valuations. So we are watching valuations go way down. We are in a situation where softbank is considering more private capital invested to help turn it around in a place where they can go public and would be more pleasing to investors. All of that is still up in the air and its yet to be seen how they will get it done. Taylor there was also there is news they are removing the founders wife from the succession plan. We will see. We still have the voting shares adam newman has which is in 20 times more power than other investors. Depending on how they change the corporate governance, it will be a big deal for how investors view the stock. If softbank does take a bigger stake in the firm, they already have a bigger stake then newman, so who controls the company . The wife stepping back is one thing, but there are a lot of governance challenges they are facing. Taylor finally, as you take a look at the landscape of the ipos, who is to blame . Is this the bankers fault . The companys lack of profitability . People like to blame the bankers very quickly for pricing an ipo too high. Normally, institutions like to pop. But this market is a tough one. All year, like i was saying, the ipos traded very well but now we are in a situation where it is just not working for them anymore. Taylor that was bloombergs sonali basak. Coming up, delivery game on. This luxury Delivery Platform is ramping up its competition with amazon by shaving a day off its free delivery service. We hear from the ceo next. And if you like bloomberg news, check us out on the radio. You can listen to us on the bloomberg app, bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. Taylor is two day Free Shipping speedy enough . Verishop does not think so, which is why they announced free oneday shipping for all purchases. They are going even one step further, allowing all customers to benefit from the offer without a membership fee, subscription, or minimum purchase. But is it enough to compete with amazon . To discuss, i spoke with the ceo. He is also the former chief Strategy Officer at snapchat. In our company, we believe customer first, employee second and shareholder third. And we are maniacally focused on making customer life better. We launched with two day shipping and saw the possibility from our customers. We wanted to make things better and that is why we have launched free oneday shipping. Taylor so you say customers before shareholders, how are shareholders responding to the increased costs . Customers are happy, they will become loyal and that will drive significant lifetime value. The way we are orienting our company, were just one year old, but the way we are orienting is focusing on the longterm thinking about the longterm value of customers. We believe that by delivering value on daily basis by delivering faster and having the best selection and quality and Customer Support, for example, we put our Customer Support phone number at the top of the site. By doing so, we increase the by doing so, we increase the lifetime value. If we do that, that creates longterm shareholder value. Taylor amazon and walmart have also come out recently with free oneday shipping. How do you compete . First of all, we have to recognize that ecommerce is a large market. If you look at retail sales in the u. S. , it is 5 trillion and only 10 is online. Serve retail is one of the biggest Market Opportunities out there. So we dont think it is a zero sum game. We seek multiple players who will serve the customers and we are really focused on serving them better. We are focusing on categories like fashion, beauty, kitchen, and we are really focused on servicing the customer better. We believe the market is big enough for multiple players to do well. Taylor that was verishop ceo imran khan. From competitive shopping to competitive gaming, there are more than 2. 6 billion gamers in the world and most consider themselves competitive gamers. That has given rise to Esports Companies and competitions. In fact, intel Just Announced another big esports tournament in tokyo, around the 2020 olympics. I talked to the ceo of Super League Gaming thursday. When you are entering a brandnew market space, very nascent, dont even know how to find the edges of how big the market space can be, many investors see it as a fad until they have children or grandchildren who game. Then, the light bulbs goes off. You realize its not something you grow out of. They are spending just as much time watching other people play as they are playing themselves and this is something that is becoming increasingly multigenerational. Now, with that, i will say we are uniquely positioned as the rare pure esports play. Most activities are private investments with high valuations. When it is an earlystage space, often people think and worry about a bubble. What i would tell you is this. Right now, the projections are that esports will be a 3 billion Global Market in 2023. I used to run a 3 billion business for bp and i would not get out of bed if that is just what this was worth. I think it goes back to gaming is how people want to spend the time now and we are just figuring out how big of a category it can be. Taylor you ipod just six months ago, how has it been . Its funny. I believed i would wake up at 6 a. M. And to stare at the stock price all day. I am delighted to say i dont do that. Im fortunate that i have a lot of investors who are excited about our delivery and tell me not to look at the stock price, just deliver. That said, its strange. We have an experienced leadership team. Top talent, from game publishers like take two and endeavor. What happened is we are a bunch of grownups who got a big jolt of adrenaline the day we went public because it is extremely focusing. With all about transparency come it also feels hugely empowering. We sit around the table and talk about opportunities we would not have dreamt of if we were sitting there in the small, privately owned space. You have got adults taking it seriously whose credibility is on the line. We know there is money to be made and we are determined for super league to be the leaders in proving it. Taylor that was Super League Gaming ceo ann hand. Coming up, you had Better Believe we were all over apples product and Services Event tuesday. From Iphone Models to apple watch, to subscription plans for the apple tv plus, we have got you covered. Thats next. And we are livestreaming on twitter. Check us out and be sure to follow our global breaking news network on twitter. This is bloomberg. Taylor welcome back to the best bloomberg techonology. I am taylor riggs. It was a big week for apple as the tech giant launched its newest hardware at its annual Product Launch tuesday. Among the items unveiled was a new apple watch and a lowcost ipad, not to mention a bunch of announcement tied to its new apple tv plus and apple arcade. The subscription price is about five dollars a month, making it competitive to other streaming Companies Like netflix and disney. But as always, all eyes were focused on the freshest versions of the iphone. The iphone 11 pro. These are the most powerful and most advanced iphones we have ever built in a stunning new design. Taylor apple unveiled the iphone 11, iphone 11 pro and iphone 11 pro max. The iphone xr are coming in at 700. The iphone 11 pro price will still reach the 1100 mark. My guests generally to discuss. This was another apple event, but nothing really earth shattering. It has been a while since couple came out with an entirely new hardware product that change the game. It was really around pricing. Pricing for tv plus, apple arcade, the reduction on the iphone 11, but in terms of hardware functionality, nothing to write home about. Taylor ryan, talk to me about the iphone. It still makes up a decent amount of top line for the company. What was your biggest take away when it comes to the iphone . Ryan i agree with mark. Not to beat his drum, but that is the storyline today. It is all about pricing. You mentioned the 50 price cut from the 10r. To be honest, then leading with services and partnerships that came out between arcade, and news and getting to lower costs on the iphone pricing and even watch pricing shows that they see that we have pushed the threshold for the average consumer pretty high on price point, and they have to be cautious. The important thing is to make sure it grows. And i think they are still doing a good job at that. Taylor ryan, are they maxed out at the 1000 iphone . Listen, i dont think we would ever maxed things out. Keep in mind, starting points are never what the highest point actually gets to. We talking upwards of 1500 with the highest configuration. I think they will continue to push things, but i think they are realizing that their audience who will actually pay that price to use those features is probably smaller than it was when their highest iphone price was 800. It is a changing of the times. It is not only apple being affected, their main competitors at the top of the market, samsung and huawei are being affected at the same way. I think we will continue to see price points that will fit well over 1000 and iphones. Taylor here on gtv , we are looking at the average sale price that is starting to rise a little bit. And on the righthand column is the number of iphones sold, which is slowly dipping down. What does that tell you about where we are in the cycle . It tells us that there really has been a combination here of rising prices and a decrease, ironic given the invitation today, innovation. The changes are really all about the camera. If you go to the apples website about the apple 11 pro, 80 of it is about the functionality. The last time we saw a real breakthrough change was two years ago. We are expecting bigger changes again next year as prices are coming down. I think things will start to rebound 12 months from now. Taylor ryan, what do you make of the device no longer being an iphone but really a camera with some audio capabilities . Well, i guess it has probably been more than a phone for quite some time. It is a good question. To be honest, i think the features have introduced, some of which have met some some people say that things like night mode have met up to has already been done, and i think that is great but what is important to recognize is what the actual consumer does with their camera affiliate and i think to be honest, not just with apple or some of these others, some of the features they are integrating, a lot of that is done through software, not just modules or number of megapixels and so forth. I dont think everyone is actually utilizing that to the full benefit. Having said that, everybody wants the latest and the greatest, so i think it is important that they continue to innovate, and clearly, they have been a Market Leader in photography and they continue to be so. Taylor that was the idc Program Vice President ryan reith, and bloombergs mark gurman. Apple also debuted an alwayson display that never sleeps as part of its watch unveiling on tuesday. Apple says it continues to pursue ways to boost health, as ceo tim cook pointed out. Tim we are a really excited about the impact the app can have. That gives all of us an amazing opportunity to participate in Health Research that could lead to innovations to improve our health and the health of future generations. Taylor to discuss, i spoke with Creative Strategies principal analyst. I think nobody is actually thought about the alwayson screen. A lot of people have complained from the getgo that that was a feature that consumers wanted, especially consumers that were trying to switch from a traditional watch to a smart watch. But today was really about moving the little if you like on the health side, and really hearing apple clearly that this is an area where they want to continue to develop, they want to stay for the long run, and creating a Health Research app speaks to that. Taylor is pricing at 399 competitive or expensive . Carolina 399 is competitive and even more competitive is the 199 price point for the apple watch. We always get excited away with latest models, but when you look at the lineup, that is where it is becoming more and more obvious that apple wants to get consumers that part of their installed base to venture into new devices. You might be an iphone user and have yet to find out what the value add of an apple watch might be. 199 price point is maybe an easier way to get you to try the watch. Taylor so the 199 for the 3 that they lower today, you think that is a good thing that the company is doing . Absolutely. It is getting that entrylevel more interesting for consumers. We had a bit of an impasse on the android side as far as android wear, and new devices coming to the android ecosystem outside of fitbit, which i am sure today is going to look quite worried about the 199 price point. We havent seen a lot of uptake on the watch factor. There are lots of fitness bands out there, but not so many watches. Taylor right. You mentioned fitbit. I was looking up at earlier as well. How concerned should other wearables be today . Carolina they should be quite concerned. Apple watch has become the watch the rest of the industrys looking up to and the 199 price point is pretty competitive, with a device that does not feel like you are really compromising on your experience. That is a core part, you are not getting a device that you feel does not give you the key features that you want. So why not try and see what it can do for you . Taylor talk to me finally, about integrating services and doing Health Research. What about the future of health and apple excites you . Carolina i think to me that is the next level. It is not just something that apple wants to do for the goodness of the human race. [laughter] so to speak, as far as making us more healthy, but it is really a good way to get people to see value from the ecosystem at a level where it impacts their lives. It is not just about entertainment or having a gadget, it is really having a device that can make a difference in your life, and they played a video during the keynote that spoke to that, having people that have had arrhythmia, heart arrhythmia highlighted to them by the watch, being able to get to the hospital in time and prevent something much worse. That is very powerful. Taylor that was Creative Strategies principal analyst carolina millanesi. Coming up, at the intersection of technology and medicine, with a focus on wired for health. We introduce you to some of the innovators and investors who are disrupting the industry in big ways, next. And it has been nearly three years since microsoft and linkedin linked up. My exclusive interview with the linkedin ceo is next. This is bloomberg. Taylor all this week, bloomberg techonology explored medical technology in a series we called wired for health, with a look at how innovation played a crucial role in sustaining health. To give you some context, 21 years ago we saw the first robotassisted heart bypass. Today practically every operation in the unite uses robotics. Where will the next 20 years take us . My next guest joined us to discuss. By 2040, we expect the Health Care System to be from the mentally different than it is today. It will be one where the consumer managers their own health care and control their own data and it will be a system and acute intervention, and businesses will take on different roles than they have in the past. Taylor my take away was that the consumer is taking their power back. I have wearable devices, power for my data. What is the technology be driving that . Glenn it is the same technology that is driving a lot of consumerdriven control data. We shop online. We control our shopping and our banking experience. Consumers want to control their health care experience, too. So with that, it is a combination of sensors, pervasive sensors that are going to be in us, around us, measuring our health and our Environmental Data and radically interoperable data. Which means we will be able to combine that data and draw some insights from it and present but back in a consumer friendly manner. Taylor you talk about no more silos between biotech, pharma and healthcare companies. How do you see those coming together to work together. Glenn there is a lot of collaboration. A Research Study we did said that 80 of Medtech Companies expect to be doing substantial collaborations within the next few years. That will be par for the course, collaborations within the industry as well as collaborations with some of the hightech players who are bringing great capabilities around a. I. And Data Analysis that are crucial for this next wave of health care. Taylor talk to me about a. I. I know a lot of people are waiting on 5g to health are some of the a. I. Is that the future . Len let us put it this way. Today, there are over 250,000 clinical studies that occur every year, and any individual cannot absorb all of that information. The beauty of a. I. Is that it can digest just all that data and make sense of it. Health is a function of subtle correlations and markers and a. I. Can pick up on that. Taylor on this program, it is about data privacy. In your world, what is the balance between more data is good versus the chance that we are going to get hacked . Glenn i think the key is people need to be able to control and give permission as to what they want to give their parties to analyze. There is great benefit to us of ready that to society and to us as individuals to have companies that can analyze the data. But we need to know what is being done and how to control it. Taylor that was glenn snyder. If the future of health care is disruptive disrupted the medical technology, investment will evolve as well. Arc Investment Management has identified five platforms that should generate more than 50 trillion in Business Value and Wealth Creation over the next 1015 years. They are industrial innovation, genomics, nextgeneration internet, fintech innovation, and mobility as a service. Ark invest Ceo Cathie Wood joined me monday to discuss areas ripe for investment. Of the five we think the most underestimated today is dna sequencing. It is really the topic you are exploring here today. Dna sequencing is exploding and we think illumina, which is responsible for 95 of all the dna sequenced around the world, including in china today, if it we engages in terms of cutting the cost and price well below 1000 per human genome, then we are going to see explosive unit growth. We think if illumina were to cut cost. We believe technology will enable at 40 a year. Think about a declining cost curve off 40 per year, the number of human genomes that would be sequenced would move from 2. 4 million globally last year, half of all human genomes sequenced in the history of all time, to 100 million in five years, when we think the price will be as low as 100 per genome. Taylor that is a fascinating statistic, and i am so glad you brought that up. How important is that statistic for you as an investor can see, me as a consumer, getting that under 100 . Cathie we think it is very important if we are going to start penalizing each human genome in terms of mutations. Our genome is comprised of 3 billion lines of code, effectively. Our mutation is like a programming error. It is the earliest manifestation of disease. It can start when we are born. It may not be fullblown until we are adults. Wouldnt it be nice for our genetic counselors, and that is a new job that is developing some momentum here, to identify our mutations from one example to the next, and to identify cancer in stage one. That is the promise of dna sequencing costs dropping to 100 and even lower with time. And the information explosion were going to be able to take advantage of. Taylor we fall this into your world of investing. And you have a genomus etf. We have a graphic showing some of your top five holdings. What do you see within these companies to allow you to take advantage of the next revolution that you are talking about . Cathie illumina is a category killer in terms of dna sequencing, and it is foundational to Everything Else we believe needs to happen. Invitae is the most important molecular diagnostic testing companies. It is driving down costs. Its cost of goods sold in 2013 were 1300 per test. It has gotten that down to 250 and it offers a test commercially for 500. What we are seeing them do now is interesting, the offering tests free to discover think it if cancer or huntingtons disease, or epilepsy. More about those diseases. What is happening is Pharma Companies, glenn talked about collaboration, Pharma Companies are paying invitae to deliver the free test so they can get the information anonymized and learn more about these diseases so they can find cures for these difficult diseases. So a lot of these collaboration among pharma, biotech, diagnostic testing companies, dna sequencing and so forth. Taylor within etfs, i think a lot of Retail Investor interest. Who are your investors . Have you seen it a lot within retail or do you get a lot of Institution Investor interest . Cathie it is across the board. We manage funds across the board. We have many Retail Investors. They really helped us start out the fund. Now, we have Institutional Investors moving in to our etfs. It is very interesting to watch sovereign wealth funds who are trying to learn more about the Health Care Systems and health care breakthroughs so that they can improve lives for their own countries. They are even moving into our etfs, because they can treat our etf like a stock, and it doesnt have to go through a lot of Due Diligence and go to the chief investment officer. These are younger advisors who are actually very excited about what were doing. Taylor that was ark invest Ceo Cathie Wood. Still ahead, linkedin is one of the social Media Companies operating in mainland china. We discussed the companys operation in the worlds secondlargest economy amid u. S. China trade tensions, next. My interview with the ceo, jeff weiner. This is bloomberg. Taylor it has been just over three years since microsoft announced its intention to buy linkedin. The job listing site is set to boast 20 million openings and around 100 million applications each month. Unlike facebook, twitter or youtube, linkedin is one u. S. Tech company that does operate in mainland china. I spoke exclusively to the companys ceo, jeff weiner on thursday, and asked him about doing business in china. Jeff it is still early days for us. By operating in china, you mean how we have been so successful, our vision is to create opportunity for every member of the global workforce. I think other companies have a different sense of purpose or different mission probably found it difficult to do business in china because it is inconsistent with what it is they are trying to deliver and accomplish, whereas the creation of Economic Opportunity is something essentially every country in the world can get behind. Our operation in china is still very early days. We have a team in place. We have greater focus there in terms of local markets, trying to understand cultural differences, local markets, and will continue to invest. Taylor with the trade and tariffs, do you feel in a more pushback is a u. S. Tech company in china . Jeff not with regard to the nature of our business. For a company like microsoft or some of the Larger Technology Companies there are different implications, but by virtue of the fact that we are a professional network, the tariffs are not impacting us to a bit extent. Taylor there is talk that china may be would hurt any text company but set up more red tape, rules, boundaries were limits perhaps maybe their way of putting more backlash on u. S. Tech companies. Do you have any of that . Jeff i dont know that that is anything new per se. When you make the decision to operate in china, it is important that you are prepared to comply with the law in china in a lot of different ways. Whether that is new regulation, additional friction, or things beyond the regulatory purview. The Competitive Landscape in china is incredibly intense. We continue to see that. Operating there is different than operating in the united states, and it is part of our commitment to being in business in china. Taylor in the last few weeks, we have seen more and more probes and investigations into big tech over monopoly and data privacy. How do you manage to stay out of those headlines . Jeff it certainly did not start now for us. We made a commitment roughly a decade ago in terms of putting our members first, arguably are most quantified value, maintaining the trust of our members. Without the trust, our ecosystem does not exist. The business does not exist. And we put together First Principles with regard to how we were going to leverage data dating back 10 years. Those principles were all about clarity, consistency and controlled. As a result of not just talking about it but walking the walk, codifying the early on in terms of how we prioritize, develop strategies and execute them, that has served our members very well and ultimately served the company very well. Taylor that was linkedin ceo jeff weiner. That as it for this edition of best of Bloomberg Technology. Will bring you the latest in tech throughout the week. Tune in each today at 5 00 p. M. In new york and 6 00 p. M. In san francisco. Bloomberg techonology is Live Streaming on twitter. Check us out technology and check out our global breaking news network tictoc on twitter. This is bloomberg. Devices are like doorways that could allow hackers into your home. And like all doors, theyre safer when locked. Thats why you need xfinity xfi. With the xfi gateway, devices connected to your homes wifi are protected. Which helps keep people outside from accessing your passwords, credit cards and cameras. 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