Facebook takes action but does the network go far enough . Elon musk cuts a rug as the Company Delivers its first cars from the shanghai factory. Cestart, the annual conference is currently underway in las vegas. Ces is gathering the biggest names in the business of consumer technologies and served as the proving ground for Innovative Technologies for 50 years. A flying carng on with hyundai, working on air taxis to take the concept of ridesharing to a higher level. That this is say closer than you think. At uber, we have been working on elevate for about three years, developing a network and ecosystem of people aligned with our vision of bringing ridesharing from the ground into the sky. We are looking to launch our network in 2023. We have a network of now eight partners, hyundai is our eighth partner. We are excited about being able to do it. What regulatory hurdles do you expect to meet . We have to look at regulatory considerations at the local and national level. We have teams working on all aspects of it. Actually,e of this is at the national level, the regulator is the faa. We have been working with the faa on trying to identify what the key blockers are. And identify what kind of solutions we can work with industry consensus bodies on to develop the solutions ahead of time. Aboute you guys thought what this will cost for the consumers . It is certainly exciting to see the technology but when it comes to using it, what about things like pricing for the individual user . We do a lot of really deep analysis on this. We build a big simulation of how these networks work. We think we can launch this type of a service in an economically reasonable way at about uber black pricing, per seat mile. Over years, developing the efficiency, we think we can get to uberx like pricing in a couple of years. A per seatpricing on basis. How is this different from uber copter, which has already launched . Opter as ached uber c way to see how we can build those efficiencies. We are developing the Technology Behind the scenes to do that realtime matching of riders into different cars. So we can drive operational efficiencies that way. Uber copter, you can think of that as our beta version of uber air, which will launch in 2023. The company has to think about the future but also where it is spending its money. Can you give us a sense of the kind of investment you have made on this project . We have endeavored this being a partnershipdriven approach. The Vehicle Companies are the ones that will really be investing to bring these vehicles to market. We are able to leverage the Core Technology we have that allows us to build the conductivity behind the scenes. That was eric allison, head of ubers elevate. The chip market, growing optimism as 2020 takes hold. A number of announcements from the ces event. That includes micron. Microns ceo. Before i get into some of the specific announcements, talk to me broadly about where you think we are in some of these chip memory prices . Sanjay with respect to the chips, we have said that 2020 should be a good year for the industry. In our industry, because of the capex reductions, the supply growth has been slower. 5g, ai, all such as data, toare driving store that data and process that data. Itson is expanding portfolio solutions. We are wellpositioned for 2020. We are excitedly looking forward to 2020. 2019, micron produced excellent results. Strong execution on the part of micron with respect to Product Portfolio and technology. Taylor analysts on the street, namely some from cowan, upgrading the stock, saying that new smartphone launches should tighten the supply up. Does that affect your thinking as you look to supply in 2020 . Isjay the supply growth less than demand growth and demand continues to exceed given the markets such as cloud, smartphones. Increasingly, autonomous features as well. All of these are driving growth in demand. Just look at 5g smartphones. Average driving higher capacity. Phones announced with dram content as high as 12 gigabytes. Even 300 phones have six gigabytes in the. In 2020, a couple hundred million of 5g smartphones are expected to be sold. 5g is going to be a strong content growth as well as flash content growth. Ai drivenof data and features as well as immersive experiences. They drive greater demand for data which bodes well for microns business. We have exciting products that in 2019 we have announced, very well for the smartphone applications. It is not just about smartphones. When you look at clouds, servers they are requiring ai driven applications that are requiring more and more memory storage. Market applications taylor talk to be more about ram memory chip, improving memory up to 85 . How do you see that improving the datacenter space . Sanjay we announced ddr5. The nextgeneration interface for memory, server, and compute applications. Than ther performance previous generation. The liability of data storage. This is perfectly suited memory for the future. Server end data center applet the future server and data center application. Productws microns leadership capabilities. Applications, we have already been shipping for quite some time. Today, we announced our industryleading ddr5, memory suitable for data centers, enterprise, and cloud applications. Taylor you just had a resolution of the huawei licensing agreements. Are you satisfied with those . Huawei,with respect to we mentioned on our Earnings Call in december that we received the licenses we applied for. Of course, it will take some time as these applications have been granted, for us to get our new products qualified into the new smartphones of huawei. We continue to monitor the situation in terms of any other changes that occur with respect to u. S. China trade relations. We hope this will continue to improve and go in the direction where there is a level playing field, respect for intellectual property. Leveraging capabilities and doing business based on free market economy. Taylor micron ceo sanjay mehrotra, thank you for joining us. Coming up, the battle against deepfakes. Facebook draws the line ahead of the 2020 election, but will it be enough . This is bloomberg. Taylor so, was facebook the reason donald trump won the 2016 president ial election . According to one former facebook executive, the answer is yes. He said, he did not get elected because of russia, cambridge analytical, he got elected because he ran the single best Digital Ad Campaign i have ever seen, period. , desperately wanting to pull any lever to avoid the same result, he cant endorse that action because we cant become what we fear. Speaking of facebook and the election, the company says they are tightening their policy to combat the emerging threat of deepfake videos on its network. The new rules will not totally eradicate deepfakes. Videos manipulated for purpose of parody or satire will not be banned. The political realm is a little bit of a gray area. Discuss, laso jeanclaude, and with me in studio is kurt wagner, who has been covering facebook for us. What do we know about these new policies today about the deepfake videos and what happens if a politician uses them . Kurt they are treating it in the same way as like hate speech, for example. This is the kind of thing that anyone on the network ma including politicians, is not ,llowed to ship network including politicians, is not allowed to share. They cannot share deepfake videos as ads or regular content or a will be removed. But it gets more complicated. Facebook has a specific policy around newsworthiness. Bethey deem something to completely newsworthy, they might leave it up. Taylor does this go far enough in your opinion for facebook to come out and say they will be removing some of the deepfake videos . Every time with facebook, it is not going far enough. It is always too little, too late. I am sitting here in las vegas, a year ago, we saw fake doctored crash,f a tesla supposedly crash, that went around the world in a matter of minutes. Vegas doess in las not stay in las vegas. Kurt, we were talking about the stance on political ads, where facebook took a handsoff approach. Is this them acknowledging they may need to do a little bit more in regards to the dissemination of deepfake videos ahead of that election . Kurt it is tough. These are videos that are doctored using Artificial Intelligence or really intense technology. Facebook got in trouble when there was a video of nancy pelosi that was shared with her appearing to slur her speech. The words she said were the words she said, it was just slowed down to make her look or perhaps appear inebriated. Tot was a damaging video Speaker Pelosi but it did not constitute to being deepfake. What that did was at least raise the issue very clearly with facebook that this is going to be something that happens a lot in 2020, excuse me, and they need to be prepared with some kind of policy. Taylor what is your view on facebooks stance on political ads and what appears to be removing the deepfake videos, a bit more of a handson approach . Jeanclaude it is just not defensible. What facebook is doing is just not defensible. We have been talking about politics but a lot of the deepfakes or doctored videos impact brands. We just listened on bloomberg to all the efforts going on with uber and autonomous vehicles. The trust that is going to be needed by the public to go in these Autonomous Cars is going to be a lot more than we have right now. , they dont trust ai dont trust av, and they certainly dont trust facebook. And itng has to happen will pbably be a conversation of new startups, new ai startups, plus human intelligence, probably working for brands which are most impacted. Imagine if there is a fake video of michael bloomberg. There are plenty of deepfakes or kurty doctored video like just said, with nancy pelosi, where you can slow someone down just a little bit and created a lot of damage. A tesla exploding in the shanghai garage got the tesla stock to drop 3 last april. One can expect to see more of of high brandeos as well as brands their Business Leaders and celebrity endorsers. There has been a lot of fake videos. There are tens of thousands of views of her in deepfake porn. It will go on to affect many personalities and brands, not just politicians. Efforts towards brand safety, be can expect the future to a little better. I am very pessimistic shortterm because the ai folks, even mark zuckerberg, who has been promising, pledging to Congress Since last april that there will be a lot of Ai Investment in removing this harmful content, that is not happening. There is a deepfake challenge, which is basically what facebook makes in a morning. There are hundreds of millions of videos being watched on facebook every day. Jeanclaude goldensteain bloombergs and kurt wagner, thank you. Bloomberg technology is streaming on twitter. This is bloomberg. Taylor electric vehicles are a big focus at ces 2020. Crossover has been viewed as a success. Ken washington about the companys push into evs. We are moving at a time where you have to try different things. We have tried a few things and we now have a clear strategy. We are committed to putting smart vehicles and a smart world that is increasingly vehicles in a smart world that is increasingly effective and smart. Connected and smart. The ford mustang has rate features in connecting to the smart world and it has selfdriving Driver Assist technologies. We are also showing off how the world can be thought about in a way with a simulation table we are calling the city insight studio. These working together is all of our plan to bring smart vehicles into the smart world. How do you stimulate demand evs . How do you have ford plan to do that . That byare going to do bringing great vehicles that people are going to love that they can afford, that will integrate into their digital life. It was really important to us mustangdesigned the mach e to bring in features people would use. It will have a smart phone feature. Examples of how we are bringing technology into the electric Vehicle Market that will stimulate people to want to buy these vehicles. Once you drive or ride in a vehicle like a mustang mach e, we are confident you will love it. That is why was important to bring it here so people could see the vehicle and see the kind of technology. We think an Inflection Point is coming and the mustang mach e is the beginning of that Inflection Point. Do you think you are doing a good job monetizing the data from four vehicles right now . From ford vehicles right now . Do you think you own that data and can do more with it . Ken it is important that the data is owned by our customers. We want to use that data to create more value. We can treat that data with the care that it deserves and we can turn it into value. Sync platform as part of our strategy to do what you said, to take that data and turn it into value, not just for ford, but for our customers, giving them experiences like better voice recognition. Artificial intelligence capabilities so that as you use the vehicle, it can improve and do more things for you. We are using that data to teach the ai algorithms how to serve the customer better. The biggest question, when do we get the f150 ev . Announcedve already that is in our Business Plan and we will be bringing that to the market in the next few years. Taylor that was ken washington, ford cto. Upll ahead, tesla revs production in china, heralding what could be the dawn of new competition in the Worlds Largest ev market. This is bloomberg. Taylor this is bloomberg technology. We bring you the latest in mobile tech news. Im taylor riggs in san francisco. Haidi stroudwatts is in sydney. Tencent and its partners are seeking a 3. 4 billion loan to fund their purchase of universal music group. They agreed in december to buy a 10 stake. Bank of america, bank of china just bc and commercial bank of china as well as Morgan Stanley are expected to provide the funding. The results of 53 5g auctions in taiwan are blowing away have exceededthey 3. 3 billion in a country where consumers are the biggest of data in asia. Tictoc whenmp for it comes to politicians, only this time its dealing with impersonators. The app does not have a robust Identity Verification system to certify accounts and that has led to multiple accounts of as it facesg National Security scrutiny. Those of the top stories we are watching. Taylor samsungs preliminary fourthquarter earnings, analysts estimate a profit decline for the worlds secondlargest chipmaker. The Company Shares have surged 44 over the past year as the market continues to look for concrete signs of a turnaround in the global memory chip industry. What are you looking for in these earnings . Samsung dominates the andstry both dram memory memory use for storage. The expectations for that segment of the market are very robust. People want to see a steadier 2020,e and recovery in whatever they can give us on how does trending to be very useful. Separately, from the consumption angle, the picture in 2019 was much better than initially feared. Some of the to see strength continue in 2020, particularly 5g and in china. We will see more trans and samsung is expected to be leading in both of those segments. Not that quarter is strong from a demand perspective, but we want to see trends move in that direction. It is spreading that investment around. Absolutely, from a capex perspective, samsung is in the lead, compared to someone like micron, and it wants to keep that. The more it can invest in that, the faster it can produce higher in chips in highvolume. That means a lower cost profile and higher price profile, expanding Gross Margins for them. Thats where the tricks you want to have up your sleeve. Taylor when we look at competitors in the handset are keenke apple, they is there any indication that it will help boost demand . Trend 5g is clearly the thats going to dominate 2020, particularly in asia. Theou want to see transparticularly strong, samsung has a dominant position in china and has a strong share position in china alongside huawei, so its going to benefit from that. It is also the android leader. Those are all positive trends for 5g. One of the things who want to the 5g adoption widened both stateside as well as nationally. Just because profits are declining doesnt mean they are not growing and expanding, but do you think they will turn that around . Anand we want to see memory turned the corner and demand exceed supply which we think will happen in the second half of 2020. That will push samsungs profits in a much more robust way. Is going through a tough time from a tv perspective but memory is the key fulcrum. Taylor thank you for joining us. Much more still ahead, stick with us. This is bloomberg. Maker electric vehicle fiscal is showing off its vehicle for the first time. 060 in two seconds. It will cost about 37,500 dollars before the available tax credit, or you can lease it for 370 a month. The lease terms come with no longterm contract. They want to offer Insurance Options and service it through your mobile app. Delivery is slated for 2022. Generateny wants to the majority of its profits from software and services over the longterm. Henry, thank you for joining me. Talk to me now about this ocean suv, and mostly the pricing as you aim to undercut tesla, for example. Thank you taylor. One of the big things for me is, ive always designed luxury cars for over 100,000, and embarking on this, to get affordability on the street, we had to completely rethink the automotive segment. First the business model, how do we get cars directly from our factory to consumers without all the middlemen . ,e have developed our own app thats the first step. The second step, i believe there is a consolidation happening in the car industry around electric vehicles. Verybody needs partners we have lined up some amazing partners, some very big conglomerates across the world to get lower cost, all the electrical components. Combine that with this very good purchasing power and a completely changed business model. Weve been able to put together a vehicle that we can put on the market, more attractive than a similar gasoline car. I think we might be the first to do that. Taylor youve talked about some of the shifting strategies over time. You were originally looking at a hybrid plugin payment you have switched to a full battery. Why the change . Henrik i think today we have reached the point where batteries are good enough for a 200300 mile range that most people would like to have. Also, battery pricing is coming down. Specifically we have a deal with a very big group and between several brands we share the purchasing power to go out and get batteries at reasonable prices. A fullyhowing today functional, fully drivable prototype made out of steel the fully certified, finished developed battery pack. What we are showing is that is actually possible by collaboration, by changing the business model, to actually put a vehicle on the market, 37,500, which looks like a more expensive, luxury suv, and you would expect this type of pricing. Thats because we dont have brickandmortar, we dont have a bunch of middlemen before it reaches the consumer. It goes straight from our app. We have conversations with our customers through the app. To be on your phone every moment you are awake, we have access to you and you have access to us. We interchange messages, the latest photos, we have already started taking orders and we can see where the orders are coming from. Taylor you also have the goal of bringing solidstate batteries. Experts say we are years away from that. Where are you in bringing solidstate batteries . Henrik the solidstate batteries will not be in the initial vehicles. We are still developing them. We are building about 20 batteries a week at our lab. We have to get them up to highvolume production. The point is, we now have hardware where at any point in time again put in batteries and add software to this vehicle. Were planning to on the vehicle fleet financed by Credit Suisse and others and make sure we owned the fleet, that means in six or seven years from now, we keep putting these vehicles back out to the market, so we have recurring revenue, but we also have hardware where we can keep applying the latest software or even other hardware because we own the fleet. Taylor you are also talking that comes from all Recycled Materials. Is it really all Recycled Materials . Everything, not but all the carpet is made from Recycled Materials from the ocean, like plastic bottles, fishing nets. Ecosuede that is made from recycled tshirts. Use thatfacturing, we in the back and the trunk. We are trying to make this vehicle as sustainable as possible. This is where we need to move in the world. We have to bring it into where we want to go in the future. We cannot keep on producing vehicles the way we do it today if we want to keep private mobility. Its great that we have car sharing and ridesharing and all that, but at the end of the day, people like their own cars, which means we have to make them more sustainable and more clean so they can fit into our society. Tesla ceo elon musk has something to celebrate. Tesla has kicked off production in china. There is a tesla plant outside shanghai. The company handed over the first model to the public, but is a different model ev that musk is excited about. Peopleably even more prefer an suv than a sedan. Willnk ultimately, model y have more demand than probably all the other cars that tesla provides. Taylor i want to bring in at hall, who covers tesla. Model start with the three we just finally going to the public. This is a big deal. It sets it apart from other models. Its a whollyowned tesla facility. The speed of construction really astounded people. A year ago it was like a muddy field, and now they are having a big party. A lot of Chinese Government officials were there. A charttake a look at im showing inside my terminal. Fora is the largest market evs. They have some of the most demand. Can they actually capture that Chinese Market . Is this the first step in what could really set tesla apart . Having local production helps lower the cost. Right now tesla is assembling the cars in china. Full on production will happen and then they can lower the cost to the consumer more. Right now they are still high compared to locally made cars, but they will be able to lower the price. Taylor the soundbite we heard in the beginning, he was talking will top alland the other models combined. Before onsaid that the Earnings Call. What was news to me is that they will begin model y production in shanghai as well. Launchds like they will on two continents in parallel. I think they have learned a lot of lessons. Most people in the world want suvs as opposed to sedans. Taylor the Biggest Issue was the production. How did they avoid that in china . It appeared to be a seamless rollout. Its hard to say. Tesla has sort of reinvented the wheel many times. Oftene learned painfully the challenges of manufacturing and then they kind of power their way through them. Whatever they learned from getting the model three up and running in fremont, they took that to china and improved on it further. Taylor we were speaking with the micron ceo at the top of the hour. That tesla . Isk goes that route . There is always a risk. Ip they have,he it is pretty solid. It would be hard for someone to just copy them outright. Frankly, none of the share price has done anything to squash the bears. Racell writings sell tings. Does anything calm down the bear chatter that you hear . Analyst still think the company is overvalued. They want to see a sustained profitability. Tesla surprised everybody with this thirdquarter profit. What is there guidance for the year . Are they going to do a Capital Raise or pay off all their debt . There is still a lot of questions about tesla as a business. Taylor thank you for joining us. Still ahead, lenovo once the first ever portable pc with arguably a steep price tag. Will look at what is behind the cost and who is in the market, next. This is bloomberg. Itsor lenovo is putting faith in the future of portable screens. Hoping to instill confidence in a category that has had some technological setbacks. There is no crease in the display when it is fully unfolded unlike others. The thinkpad x one goes on sale midyear at 2500. Lets bring in the north american president of lenovo. Ray to have you here. Talk to me about that price point. It feels like it is priced by a computer, but the attachable keyboard makes it feel like a tablet. Is it a tablet or a computer . Its a good question. A lot of the genesis of the device was the Customer Research we have done. A lot of customers on a tablet, pc, and smartphone. They were looking for a way to consolidate all those experiences. From a price point standpoint, it adds up beyond that. In terms of early adoption, some displays are still quite expensive. Theres a lot of things that will depreciate in cost over time. We still think it is a bargain. Over time there is room for that to come down. Taylor at that price point, what are you forecasting in terms of unit sales . Thats a really good question. It is still early, but it will certainly be in the tens of thousands of units as early as launch. There is a lot of excitement. What is important to us is that we get the experience right out of the chute, and i think sales will naturally follow. Taylor youve had a prototype a year or two ago. The hardware has changed a lot since then. What have you done to improve the hardware . We have been at this for about 35 years. Theres a lot of things we can do to drive innovation. We believe that gone are the days of judging a good product by speed. Its about the experience it delivers in the impact on peoples lives. We are having a lot of conversations about the chipmakers today. It was notable that you chose intel. Some of our reporting shows it is a little bit slower than some of the others at a similar price point. Why intel . A good job code designing this with us. They are close partners, but we have multiple partners in this cpu space. For this particular architecture , intel made the most since at the time. At the end of the day, its a way we wanted to design a device that people will buy. We will probably have both vendors broadly positioned throughout our entire portfolio. The rhetoricu see as improving we are showing nine straight quarters of revenue growth. Businesshe fastest pc in 2018 in north america. We are the Fastest Growing again in 2019. We do business in 100 80 markets around the world. We are very proud of our heritage and culture. We are very diverse and two thirds of our revenue action comes from outside of china. Were wellpositioned for any dynamics that the trade war potentially brings to us, so we are following it very quickly. We are in a position to manage it very effectively. Us a numberyou give on the headwinds that are now tailwinds . We dont look at it from a market standpoint or headwinds relative to trade wars. Basisrkets on a global are flat, slightly up or down, depending on the region. In north america, we have showcased share growth over the last two years. We are still number three from a pc standpoint. Our product strategy is playing out beautifully and believe we have significant room to grow. If you look at the Microsoft Windows refresh, there are still tens of millions of users out there who have still not migrated to windows 10. Theres a lot of things in the background that will continue to fuel the pc business. The biggest market in the world is north america. Taylor the smartphone park it, we talked about 2020 being a big year for big upgrade cycle. Do you expect a similar upgrade cycle in the pc market in 2020 . We do. Our data suggest we still have tens of millions of users that have not yet upgraded. The majority of the recite refresh cycle is potentially is a lot oft there the conversion we will still be chasing. Taylor that does it for this edition of bloomberg technology. Check us out at technology and be sure to follow our global, breaking news network at quick take on twitter. This is bloomberg. Haidi good morning from sydney, markets have just come online. Kathleen im Kathleen Hays in new york. Sophie welcome to bloomberg daybreak asia. Our top story this wednesday, washington remains on alert in response to the seller suleimaniling killing