Did the ecommerce giants 800 Million Investment into one day delivery pay off in the latest Earnings Report . Details, ahead. And twitter misses thirdquarter revenue estimates. We find out why new user growth did not translate into ad sales. Facebook dominated the week in tech with Ceo Mark Zuckerberg defending his social network before u. S. Congress on wednesday. What was scheduled as a hearing on the Cryptocurrency Libra also included issues like antitrust and privacy. Is it a currency . Are you a bank . What is this association . It is a very complex project. And as you say, it is risky. Do you consider libra to be money . I consider libra to be a Payment System. So its like me having my money in wells fargo bank. You could think about it that way. Although, the we are not a bank, we are not applying for a bank charter. But that is the problem. That is the problem. Thats what were facing here. We are not going to launch the libra Payment System here or anywhere else around the world until we get approval from relevant regulators. The american competitiveness angle and he competition with china is a National Security issue. Especially, they immediately kicked off this private partnership with companies to race to try and build a system like this quickly. Will it be possible to conduct anonymous transactions using libra . Will libra allow anonymous transactions . It is an open question. Its pretty hard to stop anonymous trading. Have i missed something there . Congressman, i think this is more of a policy issue in question. As your code currently exist, ts, can you transact anonymously with libra . Congressman, it certainly would be possible to build a system that would allow that. I want to ask you a very simple question. Mr. Zuckerberg, are you a capitalist or are you a socialist . Congressman, i would definitely consider myself a capitalist. Frankly, im not sure we have learned anything new here. Taylor bloombergs kurt wagner was at wednesdays hearing and had this to say about it. Kurt people still do not trust facebook. I think that was the overarching theme from a lot of the questions weve heard and feedback from members of congress was basically pointing out things that facebook has done wrong in the past and asking given your track record, why should we trust you with a money, withpeoples a new cryptocurrency . At the end, it was representative mchenry, after almost six hours of questions and testimony, said im not sure we learned anything new here. It was a little bit of an unfair blanket statement but at the same time, i think despite the fact that we had all this time to hear from Mark Zuckerberg, we did not really walk away with a bunch of Big Questions answered. Taylor when pressed on why we should trust facebook, what was his response . Kurt facebook is just one of 21 Different Companies that are now overseeing the libra cryptocurrency. Facebook is putting out there that, hey, we are not the only people making a decision here. We want to work with regulators. We want you to tell us how this is going to work. And it is not going to be only our call. That is obviously a very important element of all this because for those people who think facebook has too much power or it cannot be trusted, the idea that they are bringing others into the fold or that they are following rules that someone else creates, that will give them a lot more flexibility to actually get this thing off the ground. Taylor and kurt, we heard him also bring in china and say if we dont do this, china will, so we have to do is to get ahead. We have a sound byte from what zuckerberg was saying about china. Take a listen. As soon as we put out this white paper on libra, what we saw in china especially, they immediately kicked off this Publicprivate Partnership with some their Biggest Companies in order to race to try to build a system like this. Quickly, a digital renminbi that they could use as part of their belt and road initiative, their foreign and Economic Policy to grow influence throughout asia and africa and other areas. Taylor kurt, is zuckerberg right in bringing in china here or is he just playing to all of our fears about china taking over . Kurt i think there is probably some validity to this concern. Right . This idea that there are companies and the government in china that really wants to accomplish a similar problem. And they have the technical ability probably to do Something Like this. I do think this is a very convenient argument to make, especially right now and especially in front of this congress, given all the issues we are dealing with with china. With the trade war and all of that. It does seem like now is the time to play up this fear that maybe china is the real threat here. And we heard him say this last week too when he gave a speech at georgetown about free expression, he also talked about the internet rules they have in china and if Tech Companies like facebook dont support free speech, you might look up and see that is gone from the internet because Chinese Companies are controlling it. So he has played on this fear before. Taylor that was Bloomberg Technologys kurt wagner. For more analysis on the hearings and the issues facing libra in general, i got insight and sara miller, Deputy Director of the open markets institute. Karen i think nothing was answered other than the commitment that libra will get regulatory clearances before launching. But from whom, how, for what, and whether the product exists after that i think is very much still to be determined. It was a promise, but not one with any specifics, any timing, or in my opinion, any clarity. Taylor and sara, are the problems here not about libra, but the fact it is libra and facebook and that facebooks name is attached to this project . Sara i think that certainly does not help. From the hearing today, there are two takeaways in my view. One is that libra is toast. Number two is that Mark Zuckerberg got roasted. Like, you know, he did not do himself any favors here. But the idea that regulators in the u. S. Or around the world are going to allow Mark Zuckerberg to potentially undermine the entire u. S. Financial system is highly unlikely at this point. So i dont think he did himself any favors at all, and it just opened him up to being a punching bag from both the right and the left on a whole host of issues that went far beyond libra. Taylor karen, you chuckled a little bit when sarah said that libra was toast. Do you agree that libra feels a little bit dead on arrival . Karen ive said before that i think this is the worst Product Launch ever, and that is counting the new coke. The reason for that is because they did not understand a very fundamental fact. The payments system, currency, financial transactions, its about other peoples money. Social media raises a lot of privacy and many other issues, but youre putting economic equality on the line when you start taking other peoples money, and i dont think to this day Mark Zuckerberg or facebook get that. This is different. Congress told him that again today from both sides of the aisle, as sarah said. And im not really sure they get it now. Taylor that was part of my conversation with karen, managing partner and cofounder of federal Financial Analytics , and sarah miller, Deputy Director of the open markets institute. And coming up, an earnings bonanza this week. We begin with the path to profitability. Tesla roars with surprise profits in the Third Quarter, impressing invenstors. We hear from an analyst. Plus, wall street expected growth from amazon this earnings season. Did they deliver . And if you like bloomberg news, check us out on the radio, the bloomberg app, and in the u. S. On sirius xm. This is bloomberg. Taylor tesla shares spiked in after hours trading after the wednesday Company Reported a surprise Third Quarter profit. Tesla ceo elon musk took to twitter, less then one hour later, saying he was super proud of teslas team for great execution and the support of tesla customers is greatly appreciated. With more on the earningspershare picture, margins, and what the company says about china, i spoke with dan ives, an analyst from wedbush securities. Dan if you look at the margins of profitability, that to me is the feather in the cap, and i think that is the surprise. This is something where they need to deliver here, and this is something where if they can maintain this, this could be a potential game changer for them Going Forward. Taylor the problem is you cant cut your way to growth. So if you are seeing a topline decline for the First Time Since 2012, is it sustainable to cut your way to growth . Dan well in our opinion, that is going to be the challenge for them, to navigate profitability while they are trying to get to growth, given what is happening in china. That is going to be the key in the conference call, a major shortcoming you are going to see, but that is really the key for musk Going Forward. Taylor dan, part of the profit picture and revenue picture has been the competition we have talked about between the s, x, and y, and the model 3, which is that lower margin. How do you feel about the composition . Dan its gonna be look, with model 3, given where margins are that is going to be difficult to get there from a margin perspective. Y is going to be key going into 2020. That will be a big focus on the conference call, as well as china and the gigathree buildout. Taylor that was dan ives. Amazon reported thirdquarter earnings thursday. And one of the big indicators of growth was expected to be the companys free oneday delivery. For more, i turned to our guests. Guest going into the quarter there was a lot of angst around cost. We knew oneday shipping would bring some variability in costs with it, albeit for a couple of quarters, and the variability played out. They are also spending a lot on content, aws, advertising division. So there is a spending cycle going on which makes the next couple of quarters, the anxiety would continue from a cost perspective. But where it is paying off, you are clearly seeing a sales impact because of one day shipping. It will pay off longerterm in terms of market share and Revenue Growth, but as far as cost of variability is concerned, we think that will continue for a few quarters. Taylor are you concerned about the rate of spending . That impactnd side, on the bottom line, or is this one quarter and we should brush it off . Deren i dont think it is one quarter but it does not concern me. What you have seen is amazon prove to the market they could drive profitability. They pulled unprofitable products, they emphasized aws. When you have seen in 2019 is that increased spending on the things that will drive more customers to you is amazon all over the place. Oneday shipping, getting products back on the shelf. So i think what you are going to see over time is their strategy is world domination. Anywhere you can buy a product, want to online, they offer that to you and they will figure out how to monetize it in other ways, advertising, aws. Taylor and is market share dominance the right strategy . Even though it is not translate into the bottom line . Guest i mean, they have proven it works. If they want it to work, it will work. At the same time, with aws specifically, there are concerns about growth slowing. It is a number of 36 billion. They are market share leaders in infrastructure services. So that adjustment needs to be happening in terms of what the expectations are for that revenue size. That does not concern us. If you actually look at the advertising division, you saw growth acceleration this quarter. And what we feel happening is now advertising will slowly take center stage as aws takes a more mature role. Taylor we have a chart showing Revenue Growth for Amazon Web Services. How concerned are we that this is slowing . It is slowing multiple quarters in a row. Deren there is concern, but i think there is a big market out there for them to go after. And i believe that microsoft is doing a good job and google is investing heavily in web services but amazon has a big leg up because of its deep customer relationships. Taylor i was speaking with a jefferies analyst who brought op microsoft yesterday. He said microsoft and their azure products will benefit from the shift to the cloud more than amazon. Are we beginning to see Amazon Web Services and some of their cloud products start to lose some of the market share . Guest im not sure about that in terms of amazon losing. Microsoft winning, yes. And that is the hybrid Cloud Strategy they have been successfully executing against and it should continue to benefit them. And like you said, the end market here keeps growing at a healthy pace. There is enough room for three players. But google has also stepped its game up quite a bit in the last couple of quarters, really. And we are going to see those results. But at the same time, i think amazon can hold growth in the 30 plus range, but advertising, disclosure of advertising is going to become more and more critical. This business can be significantly bigger than what it is right now. They have the opportunity, they have better targeting in many ways because they are almost just before the decision. So they have a very good roi potential. And as this business gets bigger, they might pull the disclosure card. Remember how aws was disclosed and suddenly the the profitability perspective was changed . So now, weight will shift more and more on advertising as aws plays a defensive role. Taylor if that were true, why are we looking at a lower than forecast fourthquarter Topline Revenue if they have that advertising power muscle . Deren i think they are probably looking at Consumer Spending and making sure they are conservative for what is a big Holiday Season for them. But i do agree that when it comes to the areas of market share they are growing and the investments they are making, then their ability to juice more revenue out of that same transaction through advertising, i think they have a lot more opportunity. Meantime, snap posted strong user growth in its latest report card. They said there were 210 million daily active users of its photo messaging app snapchat in the Third Quarter. Shares of snap have more than doubled in value so far this year. Michael of Pivotal Research joined us right after the analyst call. Behael i think there may was a little bit of disappointment from shorter term investors with regards to being a bit of deceleration relative to q3. I feel like the company addressed it pretty well. The u. S. Growth, which i think this is still viewed as being a more u. S. Centric story, was extremely strong, and they are adding more users in the rest of the world. Theres a little bit of a lag, but it feels like they are getting the right pieces in place in regards to monetization. Taylor and are you happy with the updated guidance you are getting from management on the call so far . Michael yeah, i think they are fabulous results. There has been a wall of worry with regards to user growth. The user numbers were fabulous for the quarter. Outlook was very strong as well. And, i think when you talk to the company at this point, i would say ownership has probably been a bit more hedge fundcentric in nature. They have been spending a lot time with the long only community. The feedback i have heard is it is great. We love to own stocks when they jump 20 . We dont like owning them when they basically go down 20 . So i think they are doing an effective job tightening up the range of expectations. And i look back objectively and im like, 50 Revenue Growth, that is fabulous. Those are terrific numbers. Taylor michael, im showing a chart to our audience of the growth really in those daily active users. Now hitting 210 million. What else do you need to see from this company to take on bigger Companies Like the likes of twitter or instagram, for example . Michael what i have been seeing in terms of the proprietary research that we do, i would like to see just a continued adoption of advertisers. Where if you look at twitter, pinterest, snapchat, they are still slightly more niche by way of comparison versus lets say google and facebook. Where virtually everybody is. Seeing that continue to move in the right direction, continuing to see new ad Product Innovation i think is key. But one of the things where i feel like i have gotten a lot of questions from investors is they want to understand what is the opportunity in terms of advertising . Like, chat probably is a slightly harder format to monetize in verses discover lenses snap select. And i think the message you heard pretty loud and clear from both of them on the call was this is a function of growing demand. There is more than ample supply and i think there is really a lot of headroom for the story. Taylor that was Michael Levine of Pivotal Research. Coming up, things get soggier for wework. News of worker layoffs and a softbank rescue plan. Details, next. And speaking of going public, the New York Stock Exchange president joins me to talk ipos and the rising inquiries around direct listings. This is bloomberg. Taylor it is the end of one of the more dramatic business debacles in recent memory. Softbank has come to the rescue of wework with a 9. 5 billion package. We learned this week the japanese conglomerate will get 80 of the Office Rental start up. Wework founder adam neumann will walk away with 1. 4 billion. The bailout now values the company at less than 8 billion. Bloomberg technologys ellen huet provided the latest on where things stand. Ellen there are three parts. Theres a 5 billion debt package, a 3 billion tender offer, about 1 billion of which is available for adam neumann to use if he would like to sell back his shares. And 1. 5 billion of basically an accelerated warrant in which softbank will be taking even more ownership of the company, buying more shares. Taylor the key here is softbank is coming in at a lower and lower average price for their transaction, so if there is a payoff, they could win big, but what do the other investors feel, who still bought in at these high prices and are not participating in this lower round of shares . Ellen this is going to be an ongoing conversation for wework and for the details, figuring out the nittygritty of this deal. Because as you mentioned, you are right, softbank is doubling down on its ownership of wework and buying at a lower and lower price, in particular this 1. 5 billion of the package is coming in even much lower than the tender offer. So they are snapping up shares. They clearly believe that, if in the future, this could end up being very valuable they will come out with a win. At the same time, you have a lot of employees and other shareholders are looking at these prices thinking how they will ever get what they expected this equity might be worth . And in particular for employees who joined when they sold out options, many of them are underwater. This is something that even came up today at an allhands meeting with marcelo claure, the executive chairman of wework. Employees are really concerned about how this will play out for them. Taylor describe some of the reaction you got from employees when they heard about some of these bailout packages and some of these golden parachutes, if you will. Ellen yeah, in fact one employee even called it a platinum parachute for adam neumann. They feel like him walking away as a billionaire to them, it hurts. It feels painful that the company did not even have enough cash to pay out severance packages for the thousands of employees they plan to lay off. And meanwhile, adam neumann walks away with, on top of his tender off availability, a 185 million consulting fee. Which at the allhands this morning, marcelo explained to employees that fee was something they had to pay adam to get him to agree to a noncompete and to remove himself from the board. Taylor that was Bloomberg Technologys ellen huet. And coming up, we are not done with earnings. We hear from twitters cfo ned segal after the Company Reported thursday and missed on revenue. We find out what happened. Plus, microns chief executive paints a rosy forecast on chip demand amid lingering hangovers from the u. S. China trade spat. We hear from him in a bit. And Bloomberg Technology is Live Streaming on twitter. Check us out at technology. And be sure to follow our global breaking news network at tictoc on twitter. This is bloomberg. Here, it all starts with a simple. Hello hi how can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Taylor welcome back to the best of Bloomberg Technology. Twitter shares plummeted in the double digits early thursday after they reported earnings that missed revenue estimates. It seemed the company added plenty of new users, but struggled to to sell advertising to market them in the period between july and august. I spoke all about that with twitters cfo, ned segal. Ned i would start by saying advertiser sentiment continues to be strong. But we did see more seasonality than we expected in july and august, and we also had a couple of product related issues, where some settings did not work as expected, which we realized during the quarter. That impacted us by about three or more points in q3, and we expect it to have four or more points of impact in q4. Taylor so fixing those settings is good from the Consumer User , perspective. How is that going to impact your financials perhaps even more into 2020 . Ned we are working to remediate these things. And remediation first means communicating clearly so people understand when something did not go the way we expected it to, to the people who were affected to our other stakeholders. There were tweets about this stuff during the course of the quarter. Second is to make the setting work the way that we had expected it to. And then, we work with partners and we think internally about the best way to make sure that we are giving people as good an experience as possible on twitter. Which means the tweets that they see, the ads that they see, we are respecting their settings but finding a way to get them a good experience. So an example would be weve got measurement partners who help advertisers understand the success for their campaign. We are working harder to get them better data that respect the User Settings but understand their campaign is working the way they thought. Taylor a lot of people said this was a little bit of broken trust with customers and this was an opportunity for regulators to talk to you about data privacy. Have you been in touch with regulators about data privacy and controls over that . Ned we are always in touch with regulators all over the world, because it is an important part of us understanding their priorities. And its really important to understand the principles we use to make decisions about what questions we ask people, how we display our policies on the service, and how they play out in the product that we deliver. When we do that, we find we can come to better conclusions and we can lay our policies out better for people, and they can understand our business better as well. Taylor that was twitter cfo ned segal. It was a positive picture for Software Giant microsoft as the Company Reported firstquarter growth in nearly every arena on wednesday. Sales and profits topped analyst projections, lifted by demand for azure, Cloud Computing programs, and the cloudbased version of microsoft office. We talked to jefferies analyst brent thill for his impression. Brent the cloud they are crushing it. It is absolutely incredible, a 33 billion run rate that they accelerate actual Constant Currency growth from 15 up from 14 last quarter. They have really embraced the shift to cloud, so both amy hood, the cfo, and the ceo, satya nadella, really got ahead of this, ahead of anyone. They are taking share from oracle, ibm, many others in the industry. And we think that the momentum continues. What is notable is they have massive backlog, meaning many of the contracts they are signing, they are not recognizing revenue in the quarter, but they are recognizing the revenue over multiple periods. The future for investors is incredible, because these are multiyear contracts. It used to be 10 million, 50 million, 20 million and now are measured in the billions of dollars. That gives you future visibility. That is why the stock continues to grind higher. Obviously, i think it is off a little even the overhang over tech right now with texas and a number of the other Software Names trading off. Overall, you know, you cannot dream up a better quarter. Taylor that was jefferies analyst brent thill. Chipmaker Texas Instruments struggled to allay investor concerns. The Company Posted a weaker than expected forecast on tuesday. It is another sign that a rebound in demand for semiconductors will take longer than expected. I caught up with bloomberg techs ian king. Ian we are expecting things to continue to decline but that, if you like, a better rate. The declines will be smaller. What we actually got from Texas Instruments was the reverse. Instead of being at 3 , 4 revenue decline in the fourth quarter, they are predicting one as bad as 14 of the midpoint. Taylor we had thought that a lot of their sales came from stable investments. You think industrials and auto sectors. Did any of that stability help them . Ian absolutely not. No. Communications equipment was arguably their worst market, down 20 . Automotive was also one that they cited as being considerably worse pretty much across the board. These sectors in communications, taylor they do also lead some of these sectors in communications, like you mentioned. Thats the one area where they dont have a lead. What can respect from that company in the communication sector Going Forward . Ian they were not at all positive about that. Their chips are an important component of cell phone systems, so if you are looking for a readthrough on whether the big telcos are spending on their networks, this would not be a good sign. Taylor i want to pull in some conversations weve had about the trade tensions. We did hear from rafael lizardi, the cfo of the company, and i want to take a look at what was said. Rafael the weakness is broadbased. It is due to macro events, and specifically the trade tensions. If you think about when theres tensions in trade and obstacles to trade, what do businesses do . They become more cautious and they pull back. And we are at the very end of a long supply chain. And when the ones at the very front pull back, it becomes a traffic jam. Taylor so clearly putting a lot of the blame on trade. Is that valid . Ian two ways to look at it. Up until now, they have not done that. They have been reluctant to assign blame, to say where this is coming from. They say the evidence is, we cannot ignore it. But on the call, they were getting a lot of questions along the line of, look, the overall numbers in the market are not bad. How can you prove to us this is not you losing market share . The answer to that was, these markets we are in take a lot longer to shift. Of course, its the economy. Of course, its the trade tensions. Taylor that was bloombergs ian king. As chipmakers are still reeling from the u. S. Trade war and the huawei ban, micron says it is focusing on a return to growth. I discussed this with the micron ceo, sanjay mehrotra, on thursday. Sanjay 3dxpoint memory is a persistent memory. It is a kind of memory that is giving you faster speeds than nand memory, flash memory, and chip densities that are higher than the dram memory. It is really ideally suited for data center applications, suited for both memory as well as storage. So this is to accelerate deep learning type of workloads that require high speeds. What we introduce today is solid state drive. That is the fastest drive in the world that we introduced. Its really exciting. Taylor is this really banking on the future of the cloud . Sanjay 3d xpoint memory is a technology that works well in data center applications. Of course, it is a technology that can also be deployed to other end market applications, such as mobile or other intelligent devices on the edge, but no doubt data center is a bigger force, really because the trends of Artificial Intelligence today are absolutely requiring the ability to process a lot of data, gain more insight from the data, unlock data values. That means you have to be able to have memory and storage solutions, which is what micron makes. We are the only company in the western hemisphere that makes these. You have to store data, you have to access it fast, you have to process it fast. It needs the kind of solutions micron makes. And yes, they go not only in cloud applications, data center applications, but all of the intelligent applications at the edge, from smartphones to automobiles. Taylor that was micron ceo sanjay mehrotra. And coming up, first there was spotify then slack. We hear from the New York Stock Exchange president , stacey cunningham, on the popularity of direct listings and the atmosphere in a delayed wework public listing world. And later, building habitats for space. We introduce you to one Company Building what may replace the soon to be retired International Space station. This is bloomberg. Taylor there is a growing chorus on the benefits of direct listings as an alternative to an ipo. That tune is being largely led by venture capitalist bill gurley of benchmark. He is said to have planted the idea with slacks ceo, stewart butterfield, which listed in june. Spotify led the trend in 2018. And so far, airbnb has also indicated it is leaning towards a direct stock listing next year. I caught up with the New York Stock Exchange president , stacey cunningham, on monday. Stacey if you take a step back and you think about why Companies Choose to go public, there are typically four reasons. One is access to capital. So that they can raise the money. Two is having the credibility of a public listing and the visibility of that event. The third is liquidity for early investors and their employees, who very often have been getting paid in shares or options of stock and want to be able to use that and go buy a house. Four is currency, so they can engage in m a. Traditionally, access to capital has been the primary driver in raising money. What we are seeing now is, for many companies, because they are much larger, companies in the private market space, it is really the liquidity for their employees that is driving the public listing. So that allows you to ask yourself can we decouple Capital Raising from a Public Offering . And that is what spotify really started. Barry mccarthy, the cfo of spotify, asked that question. He said why do i need to go with a traditional ipo method if im not actually looking to raise money . That was really the genesis of a direct listing. Taylor how did your role change between a direct listing and an ipo . Stacey our role, we have been at this 220 years. Weve been helping Companies Come to market so they have access to capital for a very long time. The traditional ipo method we all talk about and are familiar with has really only been around since the 1970s. That does not change really our job. Our job is to help find price. With a direct listing, they are looking for that opening price in the morning to establish what the value of the company is and more supply and demand, so thats the job we do here every day. Taylor and you are in San Francisco because you are attending meetings and conferences about direct listings. In your conversations, what do you hear from underwriters, who it used to be profitable to help underwrite an ipo. Now they are trying to get more involved in direct listings. What do you hear in those conversations as banks get more involved . Stacey i think they are trying to serve customers. The banks started looking at how to be helpful and provide services to customers. They are very engaged in the process and we have seen them take a real leadership position on how we can use this as an additional tool, additional product they can offer for their customers. And that is what we are seeing happen. Taylor you had said that you recently are getting more Tech Companies on the nyse, which, previously, they were listing on the nasdaq, because you modernized your rules, and you allowed nonprofitable companies to list. But was that a good decision . Do you consider yourself maybe perhaps an enabler in some of those Unprofitable Companies . Stacey i think many people do not realize that the New York Stock Exchange listing standards did not allow companies that were preprofitable to list on the exchange. And many of todays companies, over the past several years, have come to the Public Markets prior to being profitable. And so we modernized our listing standards. And since then, the vast majority of tech proceeds have actually been raised on the New York Stock Exchange as a result. But the question you are getting at is are those Companies Good for the market . Its very important for a company it is not unusual for them to be preprofitability when they list, but then have a pathway to profitability. What is their plan . How are they going to get there . And investors can share that process, and, ultimately, they do become profitable. We have seen that with tons of companies out there. Taylor that was nyse president stacey cunningham. And coming up, private companies tapped to create space habitats once the International Space station retires. We explore the feat by one bostonbased company. Thats next. This is bloomberg. Taylor 2020 has been dubbed the year of Artificial Intelligence, and the multibilliondollar Customer Service company teleperformance is headquartered in paris, france and is getting aggressive when it comes to ai both in innovations and acquisitions. I got all the details from ceo Daniel Julien thursday from new york. Daniel i dont know if im going to speak a lot about our recent partnership in nigeria. Because it is a premier for us in the country, and, in fact, it is much more to help, to develop the sales than to help to help to develop Customer Service in africa. But what is sure is that all the companies all around the world now want to deliver much better Customer Service to their customers, because the customers have taken the power thanks to internet and the smartphone. Taylor and the idea of chatbots is very, very interesting. There was this statistic that we would be speaking with chatbots more than our spouses. Do you see the becoming more absorbed in this . The first time i heard about chatbots about for five years ago when it came, i was a little bit depressed. Because my job is to have an army of Service People helping the customer to solve their problem on the daytoday. And i was thinking, my god, all these chatbots, they are not going to do the job. That was four or five years ago. And guess what . Our company has never grown more than over the last five years. In fact, what is happening is the world is demanding, is more demanding, every day. And so yes, we need the chatbots to help. They are assisting bots that help our customer experts to better serve the customer. I would say the chatbot does the rational part of the job, brings the information to the customer exports. Customer expert. They manage the emotion. Because, you know, the customer is still a human being. Taylor how are you also using ai and your business in content moderation . Daniel in content moderation, i would say, typically, ai does and is relevant for 95 of the work. But still, ai has difficulty in contextualizing and in understanding, in making the difference between what is offending, not offending, what is part of reality, what is part of a story. And so the role of the ai is to trim, is to, i would say, eliminate maybe 95 of the issues. The problem is that there are 5 of the issues that need to be reviewed by human beings. And these human beings, by the way, teaching the ai to do a better job, but you know, it is a race that is never going to end. Taylor that was teleperformance ceo Daniel Julien. Finally this hour, over the past few decades, the International Space station has allowed astronauts to live, work, and conduct research in microgravity. But with the stations planned retirement by 2030, private companies are being asked to create the next generation of space habitats. Ai spacefactory is an Architecture Firm in boston and proposes an idea to send a 3d printing robot to mars which can then harvest the materials found on the site to build the next generation of space habitats on mars. It is technology on the cutting edge. We will return american astronauts to the moon, not only to leave behind footprints and flags, but to build the foundation we need to send americans to mars and beyond. This proposed mission, along with spacexs own ambition to reach the red planet, has opened up a longerterm market. And some companies are already thinking beyond orbiting habitat like space stations to actually building on the surface of other planets. David i was working in a firm designing skyscrapers. And you know, i saw elon and he landed his falcon x rocket in the middle of the ocean, and that for me was a trigger. I thought this could actually happen. It has always been my dream to put a building on the moon or mars. And if he is going at the pace he is going, it could definitely happen within my lifetime, and i want to be the one to build it. In this warehouse, alongside startups from across the u. S. , Architecture Firm ai spacefactory are refining the production of marsha, a fourstory structure they created for a nasa competition to design the next generation of space habitats on mars. David you know, when we started designing our mars habitat, marsha, i think we looked at everything that happened and kind of toss that aside. But what we were given was a set of instructions from nasa. They think the best way to build a habitat on mars or the moon is to use in situ resource use the resources that are there. If you have seen scifi movies, you might see a glass and steel domes on distant planets, but the reality is, to ship that kind of material to the moon or mars would be so exorbitant and expensive, you would never be able to build in the first place. So the idea is to send a 3d printing robot which can then harvest the materials you find on a site and build without. Build with that. The reusable print material is made of a biopolymer composite made from recycled plastic. Or plants like corn and sugarcane. And basalt, a rock found on mars and earth. David it is the rock that gives us its incredible strength. We have tested the material. It is three times as strong as concrete in compression. It actually has what we call a tensile capacity. It can prevent itself from being pulled apart. Which is something concrete is not good at. We need to think, at all times, how you optimize the amount of material you use. And that is also why this thing is shaped like an egg. And if you think of an egg, it is a very structurally optimized form. It is very, very thin, but it provides the strength that that egg needs. And that is why this is shaped the way that it is. The egg shape as well as the nested shell structure also accommodates for extreme differences in pressure and temperature on the surface of mars. But more Research Still needs to be done to find out how print materials could be gathered and how 3d printing would work in the unique environment of space. David you are dealing with a completely different set of physics and environments, which is very harsh. The cold, you know, the low gravity, the vacuum of space, you know, and finding solutions for how to build there or do anything in space just requires a high degree of innovation. Theres no such thing as brute force when it comes to space. Like, you need to think about the problem, find a very elegant, lightweight, costeffective solution. The next challenge is really going to places on end literally taking the dirt we find at the site, and beginning to print with the dirt. We need to perfect this technology on earth, and then we go prove it out on the moon, and then finally on to mars. The first customers could include nasa and Companies Like spacex, who would lease out these structures for individual missions. But before that, ai spacefactory hope their technology could be monetized as well as transformational here on earth. David the challenges of building on mars forced us to kind of make this jump in construction technology, which we can now apply on earth to build more sustainably. So rather than building with steel and concrete, which are these manufactured, very Energy Intensive materials, to go to a site, have a solar powered array that would then allow our 3d printer to print in the most Sustainable Way possible, and we never would have found these ways if it was not for the challenge of building in space. 3. 2. 1. Ignition and lift off of the falcon9 to the space station on the first commercial launch of Kennedy Space centers historic pad 39a. Taylor that is part of our special bloomberg original series giant leap. And you can check out more on bloomberg. Com. And that is it for this edition of best of Bloomberg Technology, where we bring you all of the latest in tech throughout the week. Tune in each day at 5 00 p. M. , new york, 2 00 p. M. In san fransisco. And Bloomberg Technology is livestreaming on twitter. Check us out at technology. And be sure to follow our global breaking news network, tictoc, on twitter. This is bloomberg. Paul welcome to daybreak australia. Shery we are counting down to asias major market open. Here are the top stories we are covering in the next hour. The biggest political meeting of the year in china. President xi going to the gathering of the top leaders, the latest Economic Data showing signs of a slowdown. Be prepared for negative growth. That is the warning from