Transcripts For BLOOMBERG Bloomberg Technology 20170601

Russian election meddling. Global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. From washington im alisa , parenti. This is bloomberg. Bloomberg technology is next. Emily im emily chang. This is Bloomberg Technology. Coming up, the u. S. Officially takes a step back from the global effort to save the planet. Our deep dive on President Trumps decision to withdraw from the 2015 landmark paris accord that helped and how the Tech Industry is responding. Plus, a new smartphone to challenge apple and samsung seizes the spotlight. We will hear from the company about why this socalled antiiphone is a musthave product. The internet of things to come. Chinese giant baidu partners with Automotive Industry heavyweights. Has announcedp United States will be withdrawing from the paris climate pact and that he will seek to renegotiate the International Agreement in a way that treats American Workers better. President trump im willing to immediately work with Democratic Leaders to either negotiate our way back into paris under the terms that are fair to the United States and its workers or to negotiate a new deal that protects our country and its taxpayers. Emily our environment and Energy Reporter for Bloomberg News joins us now from our washington bureau. First of all, walk us through the import of this moment. It is hugely significant. The u. S. Basically brought other nations to the table under president obama in trying to create this accord two years ago. The u. S. Played a leadership role in bringing it together, and there is a real question here of whether trumps decision to withdraw from the accord over the next 3 1 2 years will encourage other countries to follow suit and leave. So far, that doesnt seem to be the case. It might actually be emboldening other countries to step up and do more. Emily when he says he wants to renegotiate, when does that process start . Jen its really unclear. Theres no real formal mechanism for renegotiating this deal. If you are looking at the construct of the paris agreement, individual countries made individual pledges that they could change at any time, generally, with an idea that they would go stronger, that they would get stronger over time. But there is no formal mechanism to come back to the table and force other countries to reup their commitments, to strengthen their pledges. There is the possibility of separate action on Greenhouse Gas emissions outside of the paris agreement, but weve seen already indications that other countries are pushing back against this idea that there could be any kind of substantive negotiation. Hy,ly bloombergs jen dloug thanks for joining us with the latest from washington. The Tech Industry has already begun to respond to trumps announcement. Teslas elon musk announcing his departure from the president s council in a tweet. Climate change is real. Leaving paris is not good for america or the world. We also got statements from microsofts chief legal officer, meg whitman, and marc benioff, who said, deeply disappointed by the presents decision to withdraw from the president s decision to withdraw. Apple didgoogle, and sign a letter in may asking trump to stay in the paris climate agreement. We know tim cook called the president to urge him to remain. Joining us now to discuss, colleen regan, and our guest host for the hour, tech economy techonomy ceo David Kirkpatrick. What does it mean for technology and Business Leaders who may not have voted for the president , but were prepared to work with him, to desert him now . David i think theyve already deserted the president on most substantive issues. Its not like they are deserting him now. The gap between President Trump and Silicon Valley is a grand canyon at this point. More interesting to me is how committed business has become, not just Silicon Valley, but most big businesses towards Climate Change remediation. The issue of whether Climate Change is happening or not is not controversial among most Business Leaders. It is accepted. The a lot of progress is still going to be possible, even without the u. S. In the paris agreement, despite the fact that everyone agrees it is a stupid thing to pull us out. F lets talk about emily lets talk about this, colleen. How are businesses going to respond in action . Great question weve seen some action coming out of Silicon Valley from these Tech Companies. If you look at whats called the in defense ofher the Clean Power Plan earlier in 2016. Weve seen them since repeat the Climate Change that Climate Change is one of the most significant issues facing our generation globally. They are putting action behind these words. They said all four of these companies, which represent 2. 5 trillion of market cap have set 100 Renewable Energy goals. On record asut saying that they are going to hit the target in 2017. We saw amazon be the number one procure of clean energyr in 2016 in the United States. Apple is even signing deals for wind farms in china in order to get clean energy for their suppliers. Very much behind this and its not just words. They are really taking action. Emily china has reiterated their support for the paris agreement. I want to take a look at the bloomberg. We have a map of the solar plants across the country. Green shows plants already in operation. Yellow shows plants that are planned. How does this map change in five years as a result of this, or does it . Colleen thats a great question. In some ways, you would expect to see the green up here even more heavily in those states in which solar is already very concentrated. Its important to talk about whats going on on the federal level, but its equally important in the u. S. To be thinking about whats happening on the state level, too. Just yesterday, the California Senate passed a bill to get 100 Renewable Energy by 2045. That still needs to make its way through the assembly, but there is activity going on at state level that will continue to drive wind and solar build. At the same time, weve seen costs fall dramatically, which means its becoming more economic to install solar in more areas of the country. From 2008 to 2016, we saw the coast cost of part of the panel fall by 90 . This is helping more states to actually invest in solar as well. Isly david, President Trump saying he is trying to protect american jobs. There are concerns about jobs in cleantech, jobs in new energy. Are we seeing this potential big Market Opportunity are we seeding this potential big Market Opportunity to other countries like china are we ceding this potential big Market Opportunity to other countries like china . David there is a massive longterm Business Opportunity in remediating Climate Change. If you think about what world war ii did or what wars due to motivate the company or country to really gather all its energies together and make rapid progress or look at what the depression did to create the w pa and all the infrastructure we created facing a crisis can be one of the most motivating things in the economy, and its happening in china right now. They are really aggressively moving forward on Remediation Technologies across the board with solar being a leading example. Quickly quick to point to Something Else relevant. In most states where they operate, the Tech Companies are the number one power consumers. Cloud centers are such a gigantic consumer of power. There was an article not long ago. The coalest virginia, state, the utility there is now shutting down coal plants and putting in more renewables, partly because microsoft and other companies are their biggest customers. And they are saying, we want renewable power. Emily this story is quickly developing. David, thats a very good point. You are sticking with me, David Kirkpatrick. Colleen regan. We will continue to follow headlines as we have them. Story, blueloping apron has filed for an ipo. The Meal Delivery service will be listed on the New York Stock Exchange under the ticker aprn. It reported a loss the First Quarter of the year. We will have more on this story later this hour. Coming up, the mastermind behind android has unveiled his latest creation, but is there room in the market for yet another smartphone . We will catch up with niccolo de masi next. This is bloomberg. Emily andy rubin is back and betting on a new smart phone. Earlier this week, the creator of android unveiled a new product from his new company, calling it the essential phone, and it will have some serious competition since the market has been dominated by apple and samsung for so many years. He says his company and products have the it factor and that appeals to the masses. Joining us is niccolo de masi. I need a little more than the it factor. What makes you think you can take on apple and samsung in a market where growth is slowing . Premium materials, craftsmanship, and passion is what we are bringing back to this space. Emily you dont think apple has that . I think there has been a little bit of incrementalism in the last few years. I think theres been a little bit of boredom setting in. Your grandparents have the same devices as your grandkids. We have a very distinctive device, obviously. Its got the first ceramic titanium and closer here we have the biggest screen and the titanium ceramic enclosure. We have the biggest screen. What i think will happen with our device is its going to evolve with you. Its going to allow you to make your phone meaningfully more powerful overtime over time. We will focus on only what is significant innovation and only significant accessories. This device, for example, we are selling for 49. 99. It will not only democratize 360 video access, but it is something you can affordably bring with you at all times and capture any important moment, whether it is a sporting event, musical event, your kids first steps. Emily lets start with the hardware. What are some custom components of the phone . Enclosurets materials. We are the only premium product using premium materials. We are not marking up our Building Materials by a factor of three. We think we need to be a pro Consumer Brand that offers are materials and our phone and all our devices at a great value proposition. Our full display is the first rounded screen. We have a camera notched through the middle of it. You can think about what we are doing in the long term of this device by looking at the back. We are using a fingerprint sensor on the back. We have an internal camera that has a black and white fusion color system. Our next device will actually swallow all the edges up. We are almost double beve lless at the moment because of the titanium. Frankly, its distinctive. We are bringing back the cool factor. Emily what sort of koffler software customizations are there on top of the androidbased . Base . Andys operating system has been around for a while. City 5 of the market. We think we know how to take better advantage of it 85 of the market. We think we know how to take better advantage of it. Emily will thirdparty accessory makers be able to make things for the connector on the back . Niccolo we are big on open ecosystems. There will be Developer Network around that. We will have no free loaded free minimum fre load loaded apps. We will turn the back into the real stand word standard. Emily the home operating system you are also putting out the idea is to be connected for the home. The connected home has yet to take off. When will it . What do we need to get there . Niccolo andy and i believe that the home is at about the stage of derailment the phone was in of developing the phone was in 2004. We are intent on building out that horizontal play. In developed nations, its going to take the better part of a decade for us to go from single, just digital appliances is what people have in the home. We are try to build the first device to help you choreograph your home, automate, connect it all together, and were doing that without being another walled garden. Emily you think android is just fine. Will you ever build your own phone os . Niccolo in the short run, we think there is a lot we can do to add premium hardware to a great operating system. We feel no one has ever done full justice to the android operating system with the hardware. We are a hardware business when it comes to the phone with things like our 360 camera. We are a Software Hardware. On the phone Software Hardware full stack on the phone. Emily apple is working on a full speaker to take on amazon alexa and google home. Niccolo we are like the phone market in 2004 and 2005 when we were just watching the service of capabilities. There will be a lot of change. We are passionate on believing that in the long run Consumers Want stuff to work. We dont think the winning model is going to be, you have to use all my stuff for it to play well together. We want to provide a horizontal layer that enables you to pick whatever you want for your speakers, your stereo system, your tv, your lights, your front door locks, your baby monitor. Its a much longer tail than a mobile device market. A lot of sentimental value still to come. Emily thanks for stopping by and breaking it all down. Niccolo de masi, essential resident and coo. Great to have you back. Coming up, box is standing out in the crowded cloud space and generating cash. We will hear from Ceo Aaron Levie about the companys latest Earnings Report and what they plan to tackle next. This is bloomberg. Emily it was a banner quarter for box. Positive Earnings Results helped push the stock to a 52week i. High. Investors were particularly pleased the company maintained its goal of being cash flow positive, a big challenge for a tech firm looking to grow. Box Ceo Aaron Levie about the results and the companys partnerships with amazon, google, and facebook, and how important they are to the company. Aaron we have to make sure we are plugged into the different applications our customers are using. If you are using facebook for the enterprise, we want to make sure the content can be served up securely within that environment. If youre using ibms workflow technology, we want to plug into that software very seamlessly as well. If you are using slack for communication on teams, we want to make sure box can be the Backend System for that content. Getspplication that created or used in the enterprise, we want to ensure that we have a deep integration to power the content management and underlying Data Management within that app for our customers. Partnering is fundamental to our strategy. You have seen some pretty expensive partnerships expansive partnerships. Emily how does being cash flow positive impact the business . Aaron this is one of the biggest concerns or questions wall street had when we were going public. We were growing very quickly but burning a lot of cash. The big question was what was business going to look like at scale and was there going to be a convergence point. We told the market that q4 of fy 17, january that we just came through, we would be cash flow positive in that quarter, and we did achieve that. That was what we guided wall street to. For the full year, for fiscal year 2018, the year we are in right now, we also guided that we will be fullyear cash flow positive on a fullyear basis. We dont have to raise outside capital anymore. Over 200 million in the bank. Thats really positive. As we are growing still pretty rapidly with 30 growth on the top line, we are generating a very healthy core Business Model and we have very strong and healthy economics at the foundation of the business, which obviously is incredibly important to just running our company, but equally important to wall streets understanding of what we are building. Emily you have been critical of President Trump. When he was a candidate last summer, you signed a letter saying he would be a disaster for innovation. Box shares are up 30 . Has trump been a disaster for innovation that you expected him to be . i would separate our Business Performance from some of the policies that have been enacted. As it relates to Tech Innovation and the innovation economy, we really havent got much of a clear message from this new administration about what they believe are going to be the defining factors over the next decade and coming decades to really truly driving a high innovation economy. That would range from things like high skilled immigration, stem education, digital policy issues, like encryption reform, patent reform. You have a lot of issues where there it is still really unknown what the administrations viewpoint is on these major issues that are going to be not just fundamental to the tech sector and Silicon Valley, but the broader economy as more and more of our economy moves into the digital age. , veryk it is still very early. Unfortunately, we havent seen some of the policies we would like to see that would drive Innovation Forward in a much longerterm picture, as opposed to just the past 100 or 140 days or so. Emily what about Climate Change . What are the biggest threats to the Tech Industry with regard to trumps stands on the paris accord . Aaron we have a real risk in things like Climate Change and Immigration Reform and the travel ban. When you look at things like internet policy, where we have historically been a leader around the world in setting the tone and sending a message around the world about what we are going to stand for, what our philosophies are as a country. Emily aaron levie, ceo of box. Coming up, blue apron is the latest tech startup to file for an ipo, but is the timing right . In an increasingly crowded food tech space. A reminder of our new interactive tv function at tv the bloomberg. You can watch us live, send out produces a message, send our producers a message. Check it out. This is bloomberg. Alisa im Alisa Parenti in washington, and you are watching Bloomberg Technology. Philippines police say an attack at the resort world hotel and casino in manila was carried out by a lone gunman with no apparent links to terrorism here that is according to the ap, which also says officials doubt an alleged claim of responsibility by Islamic State group. It is not clear if anyone was killed in the attack. The red cross says about 25 people are wounded. By president mike pence says President Donald Trump is choosing to put american jobs and American Consumers first with his announcement that the u. S. Will withdraw from the paris accord. Abandoning the pact was one of trumps Principal Campaign pledges. Texasbased Energy Transfer partners announced today the line carrying north dakota oil through south dakota and iowa to illinois has started shipping for customers. Four native american tribes in the dakotas are still fighting back pipeline in court. The Trump Administration added fresh sanctions for individuals and companies with links to north korea in its weapons program. President kim jongun continues to find u. S. Resolutions fight u. S. Resolutions with regular nuclear tests. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im Alisa Parenti. This is bloomberg. It is just after 5 30 p. M. Thursday here in washington, already 730 friday morning 7 30 friday morning in sydney. We are joined by bloombergs paul allen. We had some records across the board. Paul thats right. It may be a positive day on the asx as well. We are waiting on some data out of australia. Aha new home sales are expected to show a decline of 1. 1 . This is after we had 1. 1 decline in house prices in sydney and melbourne on thursday. Investors in sydney property will be slugged with a new tax. Iron or price was also down, heading towards Iron Ore Price was also down. Bhp saw huge demand for steel in the future as chinas belt and road projects begin to ramp up. We have data out of japan today as well. Monetary base and Consumer Confidence numbers, and nikkei futures pointing up. Some other data to watch out for, south korea, First Quarter gdp is expected to remain steady at 0. 9 , 2. 7 on the year. More from Bloomberg Technology next. Emily this is Bloomberg Technology. Im emily chang. President trump has decided to pull the u. S. Out of the paris climate accord. The move has huge implications across the globe and throughout several industries, and ceos are already speaking out. Googles ceo just responded, disappointed with todays decision. Google will keep working hard for a cleaner, more prosperous future for all. Ges ceo tweeted earlier on Bloomberg Television, we heard from richard branson. Here is his reaction. Richard i have been to the antarctic and the arctic. I live on an island. The effects are just beginning. It in slightly her tides, slightly less quite a lot less ice in the arctic. Its just a start. And thats whats so sad. Trump says we are only going to reduce it by a tinier bid if we all do this together. Thats not the case. If we move quickly and determinedly, we can protect our grandchildren from the effects of Climate Change and we can have a wonderful environment that we live in, a clean environment, where people are not going to get ill from pollution. We can have fuel we are not in danger of it suddenly spiking at 150 per barrel. It will forever be under 30 per barrel. Solar is less than . 10 per kilowatt. It is four times cheaper than oil was only two or three years ago, and the price is coming down and down and down. Its just income principal that in comprehensible inc omprehensible. Its just too sad for words. Its interesting we have this nationalist movement, not just in the u. S. , but in the u. K. As well. The entire Brexit Campaign also seems to be focused very much on sort of looking inwardly. I wonder, your notions of brexit right here how does brexit affect both climate and your business interests there . Richard look, i think i personally believe that what happened with brexit, what happened with trump the reaction against both will be so strong. We are beginning to see it in france. I think we will see it in germany. That the world will come back to a much more sensible, normal way of thinking again. And a thinking where nations will Work Together again in everybodys interest. This whole thing about, lets just fight for our country, nobody elses country, our people, nobody elses people, its horrible. We ought to be united. We ought to be a united world that works together and fights for all our interests. Emily that was Virgin Group Founder richard branson, speaking with our editor at large cory johnson. A story we reported earlier. Blue apron has filed for an ipo. It will be listed on the New York Stock Exchange under the ticker aprn. Each month, blue apron delivers about 8 million meal kits, complete with recipes and raw ingredients. The company has been signing up subscribers at an impressive clip. Our Bloomberg Ipo reporter alex barinka joins us from new york. Techonomy ceo David Kirkpatrick is also with us from l. A. What exactly do we know . Alex we know now they are moving forward. Theyding to our sources, delayed this ipo process as they tried to prenup their finances. We know the Company Posted a net loss of about 55 million last year on revenue of about 795 million. Revenue did double in 2016 from 2015. You can see now that they have some growth to preach to investors as they are down this ipo process. What i think is interesting, digging into this, you do start to see how they position itself. For a company in the food delivery industry, thats going to be increasingly important. Its a very competitive industry. Weve already seen castle teased by the wayside. Seen casualties by the wayside. They have a powerful brand connection. They have superior product at compelling values. They are constantly innovating on their product. What that actually means for a company that sends delivers kits of food for their customers, i think we need a bit more clarity on, but we are getting to see behind the scenes on some of the financials of one of these food delivery companies. Emily david, whats your take on the food delivery industry . Its clear there are going to be losers. Will there be winners . Will there be many . David i wouldnt would echo some of what alex was saying. Their growth is 10 times over two years. In 2014. On in 2016, they had something close to 800 million. Thats amazing. I was reading the prospectus. They are talking about themselves as a lifestyle brand. If you look at this not as the food delivery business, but as the creation of a new lifestyle brand around crucial human activities, that might be the way to think of this company. It might suggest if they can actually fulfill that vision, they would have a potentially promising future. But they are going to go up against amazon. Lets just name that one. Thats the company i would worry about most for them. Any kind ofdo with delivery, including food, amazon is the company to worry about. Thats what any company in this industry will be focusing on, including them. Emily im getting hungry watching this video. Talk to us about momentum in the tech ipo market in general. Snap went out earlier this year. This is another sign that the door is open. Whats next . Alex the door is opening. Weve had about 6 billion worth of tech ipos this year, compared to last years just over 3 billion. Its already doubled and we are only in june. The momentum is definitely there. The markets seem to be behaving. Caoml calm is always good for the market. Companies like this are moving. The blue apron people will be looking at its close competitor, which has hired banks for an ipo as well. They just took money from unilever. When it comes to blue apron and the toughest competitor, whether its beating them to the market or not, its going to be sunbasket and, as david said, amazon. All signs are to the green for ipos in general. This will be our first Consumer Tech listing since snap went public earlier this year. Emily alex barinka, thanks so much for joining us. Techonomy ceo David Kirkpatrick, you are sticking with me. Shares of blackberry jumped in thursday trading, reaching their highest price in more than two years. This after Citroen Research said the company was likely a target for a buyout at a high premium. The report added blackberry Security Software for the Automotive Industry could be a good game changer in self driving car technology. Twou has brought heavyweights to its side in the race to develop autonomous driverless technology. Has finally found an executive to run its china operations. It has appointed a Vice President in charge of its business in the asian nation. The job will be to help airbnb craft what could be crack what could be its toughest market yet. It has spent years and a lot of money preparing to expand into veina, a country where laws ha humbled tech giants like uber and google. The company has about 30 employees and 75,000 listings in china and said last year that it plans to increase staff in the country to 300 in two years. He will report to airbnbs ceo directly. Speaking of the china market, one of the countrys largest internet providers just made a major move to help bring their autonomous driving aspirations to fruition. Baidu has partnered with two german Auto Industry heavyweights to work on automated driving, connected cars, and mobility services. Againstance pits baidu other leading internet companies, putting alphabet, and established automakers like ford and gm. Joining me is adam coates. Still with us from l. A. , my guest host, techonomy ceo David Kirkpatrick. As the tech develops, as these other giants move forward with their plans, what does baidu have on anyone else . Adam baidu is the ai leader in china. It is an Incredible Technology brand and it has Incredible Technology talent. When it comes to things like self driving cars, this is going to be powered by things like the recentlypollo, baidus open sourced software for self driving cars. Thats one of the points where we are excited to collaborate with top suppliers like bosch and continental to further develop the technology. Emily do you see by do you see baidu as a leader in self driving cars in china or globally . Adam i think definitely globally. We have the technical capabilities to do this. Especially with these sorts of partnerships, i think also the ability to work well with others, to get these technologies into actual products. Emily how do you see a guy being integrated across by duke products across baidu see ai being integrated across baidu products . Adam im excited about Smart Devices, for example. They look very different on the surface, but a lot of the ai techniques to develop we develop, that we are experts in, are still amenable to that, things like speech recognition and texttospeech that make it possible for you to talk to any device in your home or car these are all part of this ecosystem, and baidu will be a major player in all of that. Emily every day, there are new developing since self driving cars. There are new setbacks as well. Which company do you think is best positioned to lead here . David i would say its a tough thing to say youre going to be the leader in self driving car technology, because there are a lot of competitors trying to do that. Ultimately, with all due respect, i think google is the company i would bet on the most through its waymo subsidiary. Its interesting to think about baidus opportunity as the worlds secondlargest Search Engine after google. In developing ai, one of the key factors is the quantity of data you have two test your software against. Search engines have a fundamental advantage, which is one reason observers believe google is ahead on ai of the other american companies, but baidu has a lot of intrinsic advantages for developing ai, which could then be defined applied to other technologies. Every automaker and a lot of even out of left Field Companies are really targeting this market, because its going to be huge. Then again, china may be where its going to take off first for all kinds of reasons, so thats another advantage by do baidu has. Emily how would you respond . David i think response isk the absolutely correct. I think it underestimates how hard it is to create a leading edge ai team. Baidu has all the technology and the talent to do this. Part of whats important to me in the Silicon Valley ai lab is how do we share that with the rest of the world and make this revolution happen. Emily the talent wars are fierce in self driving car technology. Weve seen this big showdown between google and uber when it comes to anthony levandowwski. How would you describe the competition for talent behind the scenes . Adam its definitely really high. The fantastic time to be in the field. Because ai is affecting so many different industries, its going to be more than any one person. Its going to take thousands of people to really make this happen. Im pretty grateful that baidu has attracted a lot of that talent already. Emily how do you see some of these other products being integrated into the selfdriving platform . Adam once you are into automated driving, i think things like voice and having a natural experience is fantastic. I think increasingly all of these Smart Devices are not just from being in our homes, but also in the automobiles and other places that we spend a lot of our time and that convenience and naturalness is going to be critical to the future of how we interact with technology. Emily adam coates, director of baidus Silicon Valley ai lab. David kirkpatrick, techonomy ceo, my guest host for the hour. Thank you so much for joining us. David thanks for having me. Emily coming up, the videogame industrys rapid growth. Now worth over 100 billion with china accounting for almost 1 4 of Global Market share. Quick programming note, we will have full coverage this friday of the u. S. Jobs report on Bloomberg Television and radio. Bill gross will be giving instant reaction with the americag daybreak team. Emily in another move to compete with amazon, walmart is testing a Delivery Service using its own workers. Employees can earn extra pay to deliver goods at the end of their work shift. The workers have to use their own car to deliver packages assigned near their homes. The test is being run at three locations in arkansas, new jersey, and aimed to better compete with the Delivery Services of amazon. China just topped the u. S. As the Gaming Capital of the world in terms of market size. Revenue from Computer Games exceeded 100 billion globally in a single year for the very first time. That number, 600 million 600 million gamers in china generated 24. 1head of the u. S. s billion. Earlier, we spoke about the gaming report. Are we close to having a single videogame with one billion users . I think thats something really exciting to think about, but i think we are pretty far from getting there right now. What we can say is that the games today are becoming much more enduring than we thought they would be. I think previously we thought these mobile games would be a flash in the pan and would severe disappear. They are becoming quite Old Companies and lasting brands. Clash ofds, clans are standing the test of time. What about in terms of the Chinese Market . Are they spending significantly more per user in the world . Most people would think that china is a place where you have lots of users and not a lot of spend, but its a little bit of the reverse at the moment. The trend has been incredible. Over the last three years, the amount the chinese are spending online has increased by 10 times. They have jumped up the table. Today, a chinese gamer is spending 30 more than a u. S. Gamer. The transition has been pretty incredible. One of the big surprises for me, i think, was how loyal chinese gamers are to the chinese headquartered Companies Making the games. Something like 93 of gamers in china are playing games spending on games developed by chinese companies. Is that figure accurate . How does that compare to what you expected . Thats right. The Chinese Market in terms of games is the most localized in the world, even more so than other very local markets such as japan or korea. If you look at other content categories, whether it is the Film Industry or the music industry, what weve seen is that there is Strong Demand in china for Great International content. Film franchises such as the furious or trqan transformers have had enormous success in china. Opean Game Companies ofse have all had a lot success in china. Some of the numbers we found were that european Game Companies had been able to increase their revenue in china ninefold in just the space of two years. We are now seeing those Companies Already generating hundreds of millions of dollars in that market. Share of the market, they are barely scratching the surface. What we take away from that is there is an anonymous opportunity here an enormous opportunity here. What we stand on the verge of is a period whereby you will see much closer collaboration and partnership between chinese Games Companies on the one hand and those from other regions, whether from europe or elsewhere. Blizzard are two examples of that. That does it for this edition of Bloomberg Technology. All episodes Live Streaming on twitter. Check us out at 5 p. M. In new york. Thats all for now. This is bloomberg. From oour studios in new york city, this is charlie rose. Charlie we begin this evening with the Trump Administrations climate policy. President trump is widely expected to withdraw from the paris climate agreement, according to many. The president tweeted thursday morning he would be announcing his decision over the next few days. The white house will weigh whether to initiate a formal exit from the United Nations treaty. Backing out would be a major step in unraveling president obamas signature climate achievement. A u. S. Withdrawal also risks u. S. Exit from the United Nations t