Transcripts For BLOOMBERG Bloomberg Best 20240713

Speaks to bloomberg about the path ahead. What we are talking about now is taking it into a whole other class of objection to what the president has done. Kailey results from some of the worlds biggest tech companies. This is a year where apple is rebuilding confidence. Nothing really hurts facebook these days. Kailey plus, Sheryl Sandberg discusses bloombergs stance on political advertising. We believe in Free Expression. We believe in political speech. Kailey that is all straight ahead on bloomberg best. Kailey hello, and welcome. This is bloomberg best , your weekly review of the lets start with a look at the headlines. As the week began, a deadline for reaching the brexit deal was still looming. The eu had not announced whether it would approve an extension beyond thursday, but monday, they announced a decision that triggered another phrase of parliamentary maneuvering. Extension granted. The eu is agreeing to a threemonth delay for brexit. That will take us to january 31. Because of the extension that has been granted by the eu, it takes the specter of a no deal on thursday, halloween day, off the table. But whether Boris Johnson or not gets an election is still pretty much an unknown. The ayes to right, 299. The nos to the left. The ayes have it. Because the majority required nosnot been reached, the have it. His bid for an election on the server 12 has been defeated by parliament. He did not get the two thirds vote needed to pass the simple motion. Parliament will proceed to plan b, which is a one line bill to set the election on december 12. No deal is off the table. No deal at the end of the three months, as far as i can see, is not off the table. There is a version of no deal that could happen at the end of next year if we dont get an agreement on free trade. Bearing that in mind, we have dodged the next precipice, but it is not as though other precipices have not been ruled out for the purposes of future highstakes negotiations. Shares slumpedt in Light Trading after reporting thirdquarter earnings. The report was impacted by heavy investment in googles Cloud Computing business, which is trying to catch up with rivals like amazon and microsoft. What did you make of the Cloud Business this quarter . They are spending and wrapping up cloud, but it is showing results. 39 in sentiment. The cloud is pretty strong. What we are seeing over here is for the next year, the cloud will take center focus. They are getting success over here. They have the capacity to compete with amazon and microsoft. You are going to see cloud becoming a bigger and bigger deal for google, but it will come at a cost as they scale down business. That is largely what you are seeing in the Cloud Business. It looks like britain is headed for its third general election in four years. Labor leader Jeremy Corbyn signaling his party will seek a vote, writing, i have consistently said we was look for an election. The ayes to the right, 438. The nos to the left, 20. The ayes have it. Johnson, well ahead in the polls at the moment, gets a very unpopular leader, Jeremy Corbyn. It very hard to see whether will translate to a majority. If it does, britain is possibly set to leave the European Union early next year. Or we could see a romaine coalition coming around a remain coalition coming around. We could be looking at another referendum and possibly no brexit. Four we could end up with another hung parliament. Britain could be back just before christmas. Waiting the seventh fed decision of 2019. They are expected to cut the Interest Rate for a third street meeting. For a Third Straight meeting. Act asrops the phrase appropriate to sustain the expansion from its statement. Instead, the policymakers say, the committee will continue to monitor the implications of incoming information for the Economic Outlook as it assesses the appropriate path for the target range. Taking out the active verb suggests the fed is ready to posit the easing cycle, as long as there is nosing of can deterioration in the economy between now and the december meeting. We are not thinking about raising rates right now. There will be times in the future when that will be appropriate. What we are thinking now is that our current stance of policy is appropriate and will remain so as long as the outlook is broadly in keeping with our expectations. He was adamant about pausing. That seems to be the consensus in that they want to pause. They want to move any future rate cuts out to 2020. They dont want the market to force their hand and have to cut later this year. It seems to me that if you say you are not going to cut further unless you see serious deterioration in the economy, and you are not going to hike further unless you see inflation picking up, this is a fancy way of saying pause. Apple shares jumped in late trading after reporting fourthquarter earnings that beat across the board, topping estimates for both last Quarter Results and next quarters forecast. Sales see iphone declining. Why are investors shrugging this off . That is a good question. I think expectations earlier this year were so low after the last Holiday Season when apple missed sales targets really badly, so this has been a year where apple has been rebuilding confidence, the confidence of wall street. The holiday forecast for this holiday period beat expectations by 1 billion or 2 billion. There is nothing getting over the smartphone market. It is saturated, and apple cannot escape that. Continuing like political criticisms cannot stop facebook. The social Network Sales rose better than projected 29 . It also added about 35 million new users. It seems that nothing really hurts facebook these days. Investigations by four different groups, yet they have record quarter for sales. Still 35 million new users, including 3 million of those who came from the u. S. And canada, which a few years ago he started to think facebook had finally saturated. It was a testament to how big of a business they have built that they cannot really be derailed. Not just derailed, but even heard by the types of drama they are even hurt the types of drama they are dealing with outside the company. The United States and china seemed ready to sign the phase one of their trade deal. President trump met with meets with president xi at the meeting. She like has canceled that summit. The meeting still seems to be on count. Some kind of a deal will be done. The question is whether or not it is logistical and that both sides will agree on the terms of venue and push ahead with signing some kind of interim becomes or if they put off the deadline. The expectations remain that both sides are pushing for a deal and they will want to time it similar. There is an element of doubt in the process. Chinese officials casting doubt on a longterm trade deal with u. S. Ahead of that phase one agreement. While trump is saying, we could do a couple phases, china and the officials are trying to send signals back to washington that you called this a phasing of a big trade agreements, but we did not really sign up for that. What we are hearing and reporting today is that china has got no interest in dealing with the broader structural issues with this economy that the u. S. Is demanding in a phase two. 128,000 jobs added to the u. S. Economy in the month of october, smashing expectations. And despite the gm strike the census workers finishing up their work. Do you see a turnaround in retail jobs, Financial Services hiring, the revisions to september. Maybe powell will come up with a hash tag mission accomplished. These numbers across the board are virtually a blowout number. Quite unexpected. Dont write off the economy just yet. It has a lot of fundamental strength. 48. 3, sub 50. Industry, 12very out of 18 reporting contraction in october. Can you see how this tension between the United States and china are starting to bleed into the manufacturing segment of the economy . I think there have been impacts. I think the economy is stronger under the surface. I think this investment will be on the way Business Investment will be on the way back. I think on trade where there is uncertainty, i grant your point. China looks better. U. S. Nda still. Looksgood reports on capitol hill art still good on usmca. Canada andnd mexico are giant markets, so that will be very helpful as well. Lets see. Lets play this thing a day at a time, a month at a time, and so forth. Kailey still ahead, a conversation with facebook chief operating officer Sheryl Sandberg. Plus, exclusive insight on the fed. We have made some adjustments in our policy rate. We will continue to give significant support to the economy. Kailey next, a deep dive into a flood of earnings reports with european banks front and center. About 60 of the drop in revenues your own year is the impact of decisions we made. Kailey this is bloomberg. Kailey this is bloomberg best. Im kailey leinz. Lets continue our global tour with the earnings reports from companies around the world. Hsbc was the first of major banks to release results. Hsbc missed on the Third Quarter. 12 to 5. 3t fell billion. They also drop their profitability goal, and warned of significant restructuring charges. When you look at what we have announced today, you can see within the results a mix of the good and the less good. But has changed over the course of the year is a fundamentally different position on a few things. Firstly, the Interest Rate outlook changed. Isondly, i think the market continually choppy, which is impacting wholesale banking business, particularly here in europe. Thirdly, issues like brexit and some issues around hong kong, like trade tensions and the current protests we had not anticipated at this point. ThirdQuarter Results were boosted by gains of the key trading units, bringing a little bit of relief to the chief executive as he seeks to emerge from the spying scandal that dented the banks reputation. Do you feel you need to rebuild trust with some of your constituents . No, not from what i can see. There was a lot of resignation, which was carefully fed. There were also a lot of lies, which my staff know to be lies. You have not had clients actually question by pulling out money . Zero impact. Zero impact. Stilltsche bank shrinking, even after getting rid of unwanted businesses. The countrys largest lender posted its first results after it decided to exit from the equities business. Deutsche Bank Reported a 30 decline in earnings. About 60 of the drop in revenues year after year is the impact of decisions we made strategically and announced in the light. The underlying performance of our core business is only down to the low Single Digits in revenue terms. Given we are executing a very significant restructuring in the businesses, we think it is a sign of stability and success. Thirdquarter earnings have reinforced its dependence on a driving latin American Business as it continues to struggle in europe. While brazil led growthacross the banks latin american operate led the growth across the banks latin american operations, it decline 30 in the Third Quarter. What can you do in terms of resolving the weak core in europe . We are increasing the number of customers. Second thing is improving efficiency and profitability. The third is given our model, we have very good Growth Opportunities in the americas that more than compensate europe. Paribas posting a rd straight gam] gain they fired shots at european peers. Also on forex or the g10, we barely stayed there, served at adaptednts, and we have the bank so we can serve clients in an optimal way. That led to a very positive evolution. Smartphone sales were up from last year. Shares gained as investors see a return to profitability, with a recovery in the memory chip market. What was the bid, what was the offer . I was not as impressed as shareholders were. I think there are a lot of concerns they need to be aware of. First of all, the chip business, it is a huge business, and it really fell off a cliff. The smartphone business, it had a good quarter. It was the second highest sales on record. What is interesting is if you compare operating income for the Smartphone Division versus a couple of quarters ago, six quarters ago when they had a similar sales level, operating profit was a lot lower. Landminesthe investors wanted to be wary of need to be wary of because components are weak and their brand of products are weak as well. Fullyearutting its sales outlook. The carmaker sees fewer car deliveries this year on a faster than expected decline in auto markets around the world. Markets around the globe are becoming more and more competitive and a bit more cautious in terms of forecast. Overall, we know what needs to be done, which is basically getting our act together in terms of successful launches of new products to come, but also being very cautious. General motors announced earnings, well above estimates. I would say Third Quarter is a very strong quarter. The underlying business was very strong, driven primarily by north america. Crossovers have been driving the earnings power of the company. Obviously, the strike had a significant impact. It was . 52 for the quarter, and two dollars for the year. Separating that out and looking at the underlying performance, we remain strong. The seasonng off with some strong numbers. Atusted net income came in 2. 25 billion dollars, compared to estimates of only 1. 77 billion. Estimates have been lowering analysts had been lowering their estimates. What did they get wrong . The big drivers were a strong result of our downstream business, which was helped by oil trading. That was something the analysts would be able to track. Then mix was not quite as bad as expected, which led to a lower tax rate than first anticipated, and signaled the markets two or three weeks ago. Alibaba, shares rising today. Investors digesting the latest earnings report. Alibaba beating on all metrics in that earnings report, with top sales coming in at 16. 9 billion. That is 40 higher than a year ago, but what we are looking at is a continuation of slowing rathe slowing revenue growth, despite those big numbers. Their core Commerce Business remains dominant, core commerce making up some 86 of their revenue stream. If you take a look at the pink, that is the Cloud Computing stream. That amounts to about 7 of the business, and that grew by 64 in the last quarter. Theabas biggest day of year is still ahead of them, the big shopping extravaganza. That is on november 11. Last year, it netted more than 30 billion of sales in just over 24 hours. Kailey youre watching bloomberg best. Im kailey leinz. Facebook reported earnings this week and Beat Estimates on revenue and user growth, but there are still clouds hanging over the side social networking juggernaut. The Company Remains under pressure for user privacy and security. Although twitter announced it will no longer accept political advertising, facebook does not intend to follow suit. In an exclusive interview with caroline hyde, Sheryl Sandberg explained why. We are not doing it because of the money. This is less than 1 of our revenue, and the revenue is not worth controversy. What mark said is we believe in Free Expression. We believe in political speech. And ads can be an important part of that. Where we are really focused. Is on transparency we put out an ad library. We announced a tracker, which means you can see any add anyone is running who is a political candidate anywhere in the u. S. If it is not targeted at you. That kind of transparency we think is really important to people understanding. You also talk about investing, investing in protection. One of the things we talked about on our Earnings Call was the size of the investments we are making, working with election commissions all over the world, hiring engineers, using machine, using human reviewers, doing what we can to make sure people are kept safe. So when twitter decides to go the opposite direction, does that make you question your decision . Or do you stand by the fundamental reason . Callrk has said on the that we thought about this for years, and certainly we are thinking about it now. We fundamentally believe that political ads are an important part of the dialogue and can be important against incumbents, can be important for new views. We also believe that Free Expression across the board is something that we stand for as a company. People all over the world are using that. Certainly politicians are using that, but people are using it. That is how you see our growth continuing. More a little bit about politicians, because it will be a tough year in terms of regulatory scrutiny. Do you worry about talk of the Business Model being under attack . How do you see your role in educating those on capitol hill about this . Toi think we really have help people understand that targeted ads and privacy are not at odds. We can do both. If you are an advertiser, whether the Biggest Company in the world or the smallest company, and we have 7 million advertisers, 100 40 million businesses using our services. You want to show and ad to me,n in their 50s, thats who live in california. We take the ad, we show it to that person, we give you back aggregated results. We can do very good ads targeting that makes it good for people and helps advertisers rea reach the right person without violating privacy. That is something we have to do a much better job of explaining. Kailey coming up on bloomberg best, we will sort through more of the weeks most important news. The Auto Industry has a murder in the works. Has a merger in the works. In the head of one of the Worlds Largest companies explains why political disruption might actually be good for his business. If you are affected by brexit and you dont feel so great, what is better than something to help you through the day . Beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. Kailey welcome back to bloomberg best. Im kailey leinz. From chile to china, 10 starace to westminster, civil unrest is weighing on businesses. Bloomberg spoke with several top exec it is about the impact of these unpredictable headwinds. Lets start with tom mackenzies exclusive interview with the ceo of c trip. The travel Service Company has seen its shares a direct hit from the global trade tensions and protests in hong kong. Hong kong, it has a negative impact. Think it is a onetime kind of thing. A strongill make investment. To and out ofvel hong kong has been under significant pressure. Can you quantify for us how it has played out for ctrip, in terms of the demand for mainland tourists who are looking to travel and stay in hong kong . Wethe one time impact roughly estimated around 5 of our total revenue. About 5 . Ok. When do you expect that to turnaround . Behopefully the area will stabilized very soon. The government and the people will look into the future, look forward. What is the best for hong kong . Economic headwinds in latin america, political instability. You have that affecting china as well, and not to mention the u. K. Brexit instabilities. Does that sort of economic environment affect you from the consumer perspective for their desire to indulge . Know, almost the opposite, i would say. China had one of its best quarters ever, the same in the u. K. You had doubledigit growth. In latin america, yes, i think the consumer is clearly more affected. There, we see a little more of the effect of the economy. But the chinese discussion, the u. K. Discussion, we are not really affected by it at the moment. I think the reason for that is snacking is different. Brexitare affected by and you dont feel great, what y toetter than a nice cadburr get you through the day . Now to another bloomberg exclusive. Richard clarida shared his thoughts at the end of an eventful week. We have ongoing growth in the economy. We have inflation near our objective. The economy is in a very good place. We characterize growth as moderate right now. The Global Economy has been slowing and that is a factor. But the u. S. Economy is very resilient, and these are good numbers. Both the gdp number in the labor market numbers have been on the upside. Those numbers, those gdp numbers, are they politically acceptable to this nation . It is great for economists like you to talk about 1. 9 as a center tendency, but is that politically acceptable . I will not get into the politics. Our job at the fed, we have a dual mandate. We have made some adjustments in our policy rate. We think they are and will continue to give significant support to the economy. And we have a favorable outlook. Lets talk about the outlook and the balance of risks. How would you describe the balance of risk around that outlook . Kurt i would say for most of the year, the balance of risk has been tilted to the downside. Not so much because of the u. S. , but we are part of the Global Economy. We have a global slowdown. There is some disinflationary prices. We felt it was appropriate to make adjustments to provide insurance or cushion against a softening Global Economy. You saw that at the imf a week or so ago. We think the economy is in a good place. The balance of risk still tilted to the downside . I would say somewhat. Looking at the economic assessment, we are trying to understand what the Material Outlook would be for another move. What is a material reassessment of the outlook . How much data does one need to make that assessment . What is the baseline outlook . The baseline outlook is for ongoing, t continued growth. If we saw cumulative evidence that we were missing on employment, we were missing on inflation, and we were missing on the growth needed to sustain full employment and price stability, we would have to factor that in. We will be datadependent, but we are saying our outline now, the data is in a good place. Every meeting is a live meeting. We are trying to figure out when the next meeting is. Do you need a month of data to take another look at this . Do you need three months of data to take another look at this . We meet three times a year. If we need to, we have had meetings in between. We take the data as it comes in. Momentous week on capitol hill, with several witnesses testifying in the congressional impeachment inquiry. Thursday, the house voted to move the investigation to a news phase to a new phase. On friday, nancy pelosi sat down with a conversation with david westin in new york. We have decided that we are going to defend the constitution of the United States. That is the oath of office we take. For a long time, i have resisted whether the equities of this is divisive for the country. But what the president did removes all doubt that we had to act upon that. And this is not about his personality, his policies. That is for the election. This is about defending our democracy, which the president has said, article two says i can do whatever i want. It doesnt. Article two makes him a monarch if he interprets it that way. That is not what our founders had in mind. A republic, Benjamin Franklin said, if we can keep it. We believe it is our time to keep it. We believe that times have found us. You served with mike pence when he was in the congress. What would he be like as a president . I have no idea. We havent even made a decision to impeach. This is what an inquiry is about. But you started a project a process. The logical extreme is removal. I dont think it is extreme if he has violated the constitution. Our responsibility in the house is to make the judgment about impeachment, and that would go to the senate and they would have to decide whether they are honoring their oath of office to protect, defend our democracy. Because this is what changed everything for me. Me to impeach president bush for the war in iraq. What could be worse than that . Election, it is not about the impeachment. I thought it was wrong that they impeached resident clinton. I dont like impeachment, it divides. Whatever you do, remember that we are one. And i think that is important. What we are talking about now is taking us into a whole other class of objection to what the president has done, and there obstruction of justice provisions in the molar report. Perhaps some of them will be present. But that will be part of the inquiry to see where we go. Kailey youre watching bloomberg best. Im kailey leinz. Lets resume our round up of the weeks top news in business, finance, and politics. An election in argentina unseated the incumbent president and had Immediate Repercussions for investors. Is tightening currency controls. That is after opposition candidate Alberto Fernandez won the nations president ial election. It is slashing the cap on dollar purchases, suggesting 200 a month. That is much lower than the previous limits of 10,000. The victory signals a return for the south american nation. Onwill take over from macri december 10. Perhaps not as big as we thought was going to happen. It was eight percentage points. I think the big problem for investors is that fernandezs tone was not so conciliatory. It was more campaign rhetoric. I think markets are looking for Something Like moderation from fernandez. The good news is that for investors, macri did quite well. He got 41 percentage points, which in the lower house of congress he might be the biggest party. There should be checks and balances on the leftist who comes to power in december. Boeings ceo facing u. S. Lawmakers this week, pledging his commitment to safety before the Senate Commerce committee. We are committed to answering every question that regulators have, and the airplane will fly when everyone is convinced it is safe. You had a number of senators pressing on commitments to changing that relationship between the faa and boeing. Obviously there was some sort of lapse in how that relationship worked. You did allow these two planes to crash. But while mullen berg talked about needing to get that balance right, needing to evaluate improvements, he was not willing to commit to real change. They are trying to make changes, but i dont feel any of these changes have real meat. Boeing takes accountability, but let us to this point where we have to make these changes. I dont think we have seen that yet. The bank of japan says Interest Rates could go lower if needed. Walk us through what we learned, and what it means for the lower for longer conversation. 3 surprises fromo kuroda. We were expecting hi them to ho, but kuroda says they have the room to further ease if they need to, if that momentum of Price Inflation starts to wane. Muchll, kuroda pretty pushed things down the road, saying we could possibly ease further, but not right now. We are going to take away the verbiage that says we have a 2020 deadline. As necessary, they could ease further. I am calling it the halloween hold. Mh is offering to buy that jeweler tiffany. The approach was made earlier this month. What is it about tiffany that would add to the already vast lvmh stable . U. S. , and also when we think about how they are doing in terms of the lower entry luxury price points, gifting, diamond selections, that would add to what lvmh already has. It would more than double the jewelry segment. The french carmaker peugeot and the Italian American rival Fiat Chrysler have approved a preliminary plan to combine. The resulting company would rank among the Worlds Largest automakers with a potential 50 billion market cap. Out of the proposal, shareholders of each company would receive 50 of the combined entity. At the end of the day, you look at the details of the deal, it seems like fiat investors are gaining from the deal. Peugeot shareholders are taking a higher risk. The deal is very preliminary. They have to complete it. It makes a lot of sense. More, and didg on a tremendous job of returning peugeot with profits that we have not seen for a long time. Bloomberg has learned that chase morgan is considering relocating several thousand employees out of the area to help rein in costs out of a possible economic downturn. They said they are committed to the new york area. Last year, they announced this huge headquarters they will be building at 270 park. They said we are recommitting ourselves to new york city. They have quietly been building up locations in lowercost areas like plano, texas, where they have this huge campus. This summer, they actually started work on a new tower in plano. What i am hearing is they are at some point in the future, it seems like they will have the same amount of employees in texas as they do in new york. Now to bank of america, which is planning to pay its employees special bonuses. It is the Third Straight year after recording record earnings in four of the past five quarters. The lender plans to give 1000 in december two eligible employees who earn 100,000 or less per year, while higher paid staff will receive a stock award next year. This is good news the employees involved. Obviously good news. This is the third year in a row that bank of america is doing this. In previous years, it was linked to tax cuts. This year, bank of america has had a string of record earnings. Brian moynihan issued a memo saying they wanted to share the wealth with employees. This ties into bank of americas narrative about doing good, both for its shareholders, but also for its employees. The u. S. Treasury secretary Steven Mnuchin is open to reducing regulations. On one hand, he seems to be saying, let the fed fix it. On the other hand he is saying, we are talking to jp morgan and looking at the regulations. Looking at the regulations. It is a few things here. I think you are starting to see a bit of the blame game being passed around the Financial System right now. Initially, you had people saying, this is the fed, they let reserves get too low, they mismanaged it. The others are saying, the only reason reserves got too low is the regulations are too tight. They are trying to figure out where we stand on regulation, where we stand on trying to get this market to function as effectively as possible. Toshares in microsoft rising records after the Company Secured a 10 billion contract for Cloud Computing services. Amazon was considered to be the front runner, so a big surprise. Why is this such a big deal . Because it was surrounded by controversy. First of all, it is a huge contract. It might be worth as much as 10 billion. If you look at microsofts other big contract, it dwarfs the next biggest by about five times. It also really validates microsofts azure Cloud Software as a serious competitor to amazon web services. The fact that they were able to secure a contract from a customer as demanding, picky, and security obsessed as the Defense Department is a real validation of the idea that microsoft is a serious option. The presumption is other customers, both in the government and the private sector, will take notice of that. President trump says islamic states leader is dead after u. S. Official sources raid in northern syria. He was the highest terrorist leader killed or captured since Osama Bin Laden was killed in 2011. The president recounting in detailed terms just how u. S. Special forces were able to kill this isis leader. This also delivers a political victory for President Trump as the impeachment inquiry continues to move forward. There are people in the administration who are trying to make the point that this proves that we need boots on the ground in that area. The republicans and the democrats both feel Donald Trumps plans in syria are ill considered and need to be reconsidered. Saudi aramco will start trading on the Saudi Stock Exchange on december 11. That is according to al arabia. Earned 68 billion in their first nine months of the year. One of the stellar numbers we keep learning about the company. What does it tell us . That serve cements saudi aramcos status as the most profitable company. The valuation is to be questioned. The crown prince said the company is worth 2 trillion. A lot of analysts have said it is a lot lower, between 1. 5 trillion and 1. 5 trillion. Bloomberg is reporting that saudi aramco will rely on local investors and wealthy families to invest in the company, so we have to see how investors value it. Concluded officials the biggest meeting of the year in china. The gathering of the communist Partys Central Committee focused on politics, the economy, and hong kong protests. What did we learn on the official release . S the big take away i rising domestic and international risk. We know the backdrop being the slowing economy, the unrest in hong kong. Did not get any Major Economic initiatives out of it, but we got signals that they are doubling down on its control, and the party ensuring stricter oversight of hong kong. There was no sense of compromise when it comes to dealing with the protest movement here. If you want to get involved in the question of the day, how do assets react if the fed halts rate cuts . Reach out to us at bloomberg tv and the markets live team on your bloomberg. Kailey there are about 30,000 functions on the bloomberg, and we always enjoy showing you our favorites on uber television. Maybe they will become your favorites. Here is another function you will find useful, q uic that will lead you to our quick takes. Here is a quick take from this week. It sounds appealing. While barely lifting a finger, you set your thermostat, start your coffee maker, turn on the lights, fire up your favorite playlist. But what is the price of that convenience what if the price of that convenience is your personal information . Starting to sound less appealing. All of those gadgets carrying out these useful jobs are becoming the internet of things, and their increased prevalence in everyday life is considering forcing everyone to consider a fundamental give or take comfort or privacy . Tech companies, wireless carriers, and all manners of startups are racing to connect whatever they can, and the benefits have an selfevident. Smart speakers can answer questions, order groceries, or book a reservation. We have a 10 00. Electronic monitors can help patients leave hospitals sooner or allow seniors to live home for longer. Tell me what the weather is today. Looking forward, the worldwide adoption of 5g mobile technology will allow more iot devices to talk to each other without human intervention at previously unreachable speeds. That means homes that look after themselves and cars that take over the driving. As far as industrial applications, smart factories and warehouses can fulfill their own orders or notify supervisors to problems. Yet, all this promise comes with potential downsides for the customers who own these devices. First, there is security, or the lack thereof, even if the visual iot devices or secure. More devices mean more vulnerabilities. Hackers accessed the digital thermometer in a casinos aquarium and worked their way from their through the casinos network to gain access to their database of highrollers. Things get scarier when you imagine malware infecting a selfdriving car, or a surgical medical device. Other worries concern Business Practices that are legal, if not wellknown. Smart factories could be smart enough to track an employees every move, including trips to the restroom. Pressurefor blood and heart rate, but what if that gets shared with your insurance provider . It is not unthinkable a customer could sell information to advertisers, or even to hostile governments. There are already examples of potential misuse, including 2019 reports that amazon employees had listened to reportt recordif customerso using their devices. There is also the question of utility. Does your baby need a smart diaper . Does your pet need a smart door . Does the function of these devices make up for the increasing electronic waste they create . Maybe we should ask alexa. I dont understand. Kailey that was just one of the many quick takes. You can find on the bloomberg. You can find them on bloomberg. Com, along with the latest Business News and analysis 24 hours a day. That will be offer bloomberg best this week. Thanks for watching. Im kailey leinz. This is bloomberg. The game doesnt end after that insane buzzer beater. Because with Nba League Pass on xfinity you can watch the out of market games you want all season long. And with the allnew xfinity sports zone, you get everything nba all in one place even notifications about your favorite teams. Watch the dropped dimes, monster blocks, and showstopping dunks. Plus get instant access to your teams with the power of your voice. Thats simple, easy, awesome. Say Nba League Pass into your voice remote to upgrade for a great low price or go online today. Taylor im taylor riggs and this is bloomberg technology. Google gets fit. They will buy fitbit in an effort to boost hardware. Plus, a matter of national security. Tiktok is said to be under review in the u. S. And apple tv launches