Transcripts For BLOOMBERG Bloomberg Technology 20170719

Left eye. A tatement released by spokeswoman describes the 80yearold as being in good spirits. Lobal news 24 hours a day, powered by more than 2,700 journalists and analysts and more than 120 countries. Paren tinch en and this is bloomberg. Emily chang. This is bloomberg technology. Coming up, tension in the nations capitol as formal talks reset the trade relationship between beijing and washington to a rocky start. Hy the worlds biggest two economies cancelled their Closing Press conferences. About the sun certainly political environment. He will unveil the latest efforts to scale. Some of the top c. E. O. s and emerging minds in tech hold aspen. In our roster of interviews from the annual Fortune Brainstorm conference in colorado. First to our lead. Chinese and u. S. Government officials are meeting in talks, but for trade the gathering between the worlds two biggest economies start in the e morning and the closing news krchtion was cancelled. Secretary. Commerce criticized china over the trade imbalance. Accounts for nearly 0 of the u. S. Goods trade deficit. If they were just a natural forces, f free market we could understand it, but its not. Time to rebalance ur trade and investment relationship in a more fair, reciprocal manner. Emily bloombergs International Economics and policy correspondent michael us from the Treasury Department in washington. So tell us what happened, how this . E day end like michael we dont know exactly how the day ended. Are over byhe talks the Treasury Department isnt saying anything for right now. As you mentioned, the news onferences were cancelled shortly after the meetings began. We dont know to take that as a progress or a lack of progress because there were the tense comments at the opening ceremony, but no indication that the talks would fail and we do elieve they lasted until the middle of the afternoon. The u. S. Would like to see the trade deficit with china come down. Theyre focused on much of the old economy. See steel like to capacity and the china would like to see u. S. More ompanies sell them stuff that the u. S. Government prevents that. So they are trying to negotiate deal. S part of a tech a big part of these talks, but we dont know where they yet . With them emily mike, i imagine the relationship with china is an dance. Bly elaborate i wonder what your take is on the significance of the commerce such a bold ing statement. Michael well, he may be playing to the Political Base. To office p came promising to slap big tariffs on china and to do away with the trading practices that was costing u. S. Jobs, but he hasnt done that. Slapped tariffs on nobody so far and he certainly backed off his rhetoric with china. Instead theyre talking. The Political Base needs a message that they are going to negotiations ese and that may be what its all about, the chinas certainly know is. T the u. S. Goal emily so we certainly cant understate the importance of the trade relationship between the u. S. And china. What are next steps . Michael well, the goal here nd we may still get an announcement to this effect was to continue these negotiations of a year. Urse met in mayor ump maralago, they set up an action plan and some deals reached, previously negotiated y american beef and chinas chicken parts. Those sorts of things Going Forward and they would like to talks and continue the and do some deal by dealmaking. We dont know if they have that. Ed we didnt expect any deal signing today. Some hope we would get sort of announcement of where they go next. The goal is to keep it going. Bloombergs Michael Mckee in washington. Mike, thanks so much for that update. All eyes in Silicon Valley are watching the latest in washington. Survey monkey, the provided is truly global available in 190 survey s, 3 million responses worldwide a day. The Company Recently overhauled a User Experience adding bevy of new services in an effort to lure more paying its platform. To joining me to discuss is their c. E. O. On t to have you back here the show. So as we mentioned, a lot of uncertainty in washington and the economic environment. What kind of impact do you think this is actually having on tech . Tech has a meaningful role as you look at the Tech Companies oday in the stock market and the amount of financing the Tech Companies get. The businesses are becoming bigger and more relevant. With the travel ban the that hittis posed, pretty hard as we look at our ability to recruit talent from world. The our products are touching people all over the world including mentioned. Key as we it is super important that we have a advice, adhere to our alues and stand up to the people that we protect, our Employee Base and customers. An interesting perspective. Does that make you any or more ess interested in all of these going on . Were most interested in how do we grow our business. E very much believe in profitable sustainable revenue growth. What happened this week, we aunched our whole new survey monkey platform. We see that as an opportunity to take the voices of the consumers nd the employees that you care about and turn that into actionable data. As you know, emily, were all data. Ing in a sea of it plays out on social media. People talking about our products and our businesses. Executives who can ask the question why and then use that data to take the ctions they need to make their businesses better and the thats where we have been playing for a long time. Launched something called the people power data curiosity. Around explain this. Its the currency in business today. Power the it to curious. You need to be serving the customers, employees, and shareholders you care about. Really what our platform does, we have added all of the new and functionality and solutions to help the executives turn those voices into actionable data. Have seen it play out in politics and businesses that different voices depending where you are, what gender you are, income and youre at. Evel if you care, if you are asking the questions if youre curious, hose are the people that are executing, growing and turning fortune 500 companies from tartups in a quicker time frame from ever. Youre caring the companies that arent asking the questions, hat arent listening and being responsive to the market and theyre failing faster than ever. Emily survey monkey doesnt go public, especially because of the profitability factor. At the same time were seeing snap and blue apron and the new tech i. P. O. S struggling in the public markets. That give you any pause in terms of if or when to bring market . Onkey to thats a good question. We have a profile that is to go public. We have an institutional shareholder base. A steward of our employee capital, so we do need o deliver a return to our shareholders. We have been operating like a Public Company with debt holders and adhering to quarter Conference Calls with our debt holders. To go public ning if and when the markets are ready for you. The ok different than companies that had sustainable losses. Im really happy with the way our income statement looks. Emily so you guys did a really diversitysurvey about in tech for the Fortune Brainstorm conference which i just returned from. Findings was a major difference in the perception of the problems tech and women in tech. Women, 66 believe there is still a problem. 38 of men do. Are we living in two different realities . Applaud your efforts and those of jessica and rachel from the new york times, Katie Bennett from the new york times, the women who are to the and speaking issues. We are living in two different worlds and the voices that matter are the women who feel affected. So i think it is high time that we take a broader view of whats executives company like me and others have a real responsibility to make sure that the kindtting in place of policies to not only provide a diverse and inclusive orkforce, but also to provide for a comforting and belonging workforce once people get there. Emily now, we had a very one ted discussion and at point, a gentleman in the audience stood up, longtime tech said at the beginning that he knew it was going to be a controversial point. He suggested that perhaps women to support each other more. Open table stood up and she was very emotional response. His to say in in Silicon Valley today, here is a sisterhood of women who are supporting each other, telling each other about board opportunities, giving each other business ideas. There is a sisterhood. Have talked for hours, so many differing opinions and viewpoints about the state of the problem, what is. Problem even you guys actually broke down a lot of the numbers. What was the most interesting found . That you well, i think you highlighted it. Its exacerbated in technical when you look at the percentage of women in leadership roles, the percentage directors board of and its not just women. We have employee Resource Groups africanamericans, latinos, at survey ommunity monkey. We think the groups that are leadership, nted in it has a real impact, not only on the products you create and eliver, but how you market them. Executives need to be working harder on recruiting, on the on the policies, training and mentorship. 16 ecently provided men weeks in addition to women with parental leave. Its making sure that women have the support system at home and necessarily the ones who are deemed to be the one who has to plan for that early childhood. Emily you have added some new folks to your board. Ituits bradams and smith. What do they bring to the table . Tons. Brad smith is one of the best c. E. O. S in america by all quantitative d accounts. He helped them migrate to the and to mobile and made intuit one of the best places to work. Serena williams, were thrilled for her to be on our team. She is dominating her industry for the past 20 years, arguably the best female thlete, the best athlete of alltime in our view. Not only that, she is an incredible marketer. Media look at her social following, the businesses she has launched, any commerce and has on ly the voice she key activist issues that are important to our employees and pay mers around gender gaps. Well thrilled to have somebody who is a competitor and winner empathy. She is a real lightning bolt for our team. Mily thanks so much for that data, it meant a lot. Thanks so much for joining us. Take care. We are watching tmobile shares that are popping in extended afraiding. Here was a secondquarter revenue of over 10 billion and a strong increase in new subscriber growth. The Company Raised its profit outlook for 2017, a move that suggests the promotions and cutting tactics arent hurting the bolt line. Up, out with earnings and its ep profit decline amid legal skull of with apple. We will dive into the numbers. This is bloomberg. Emily quality come reporting thirdquarter earnings with opped estimates and profit inline with consensus. However, the chipmaker forecasts in eep decline fourthquarter profit that underscored its depend den dense on apple. Paying lipsinged fees this corner. Shares dropped in extended trading. London to break t all down, bloombergs caroline. This is about lawsuits and legal struggles. Talk to us about the numbers and they look like given what is going on with apple. All eyes on the legal with apple and its manufacturers and regulatory isputes that spain from the e. U. To the u. S. And asia as well. This hit not only the third its er, but also fourthquarter forecasts. Looking at these numbers, they eem to have shocked the market somewhat. Analysts havent found how much it will cost in the Third Quarter. Did ue would fall, and it 111 . 28 . Es would fall, it did we are looking at a profit that could slump as much as 41 . Revenue that at could fall as much as 13 . This has come as a surprise to market. The analysts hadnt got their heads wrapped around this amount. Dependence on apple which is refusing to pay the licensing fees with the and another customer which they dont name which is also in a contract dispute. Hearing resting, were from the c. E. O. In this statement really trying to say, hold they say the high ground with regard to the dispute with apple. They believe they can win the cases. Check out my chart. It looks as though they dont think that from an analyst and perspective. Shares on the bloomberg, if you in, look how much underperforming we have seen on the chart upon the bloomberg. We have lost about 13 of the year. Capitalization this it is the worst performing major out in terms of chips there in the u. S. 30 . Hile, look at apple up emily stand by, were getting in some new headlines about the Budget Office saying the healthcare bill appealing the Affordable Act will reduce billion by 473 2026. Well bring you somebody from washington. Wanted to get you those numbers right away. Cualcomm, back to facing stiff competition as all chipmakers. Making a bid to buy n. X. P. That bring to the table in terms of diversifying the portfolio . They said in a statement that they hope this deal will be closed by the end year. Is fiscal there are some concerns around that deal as well. While the e. U. In particular, regulatory authorities here have been saying they want more information, in fact, they have fine them ifing to they dont get that information anytime soon. Activist also some investors, elliott management, for example, saying we want more more than 47 billion, please. All of this could be a little bit of a misstep. The company sound pretty bullish on the fact they get it diversify ble to crucial at a time when the likes key ple and samsung, two customers are actually making chips themselves. Chipmakers, king of another chipmakering, a bellwether in the industry on pond, they makee chip equipment, how did they do . They did well. Did well. The shares rose in the market today and they did well because look, we are g, seeing revenue expecting to by 25 by quarter, this year. Theyre really managing to push forward with particular deals. Remember, these guys are selling big equipment, equipment the costsf a bus, emily, that about 100 Million Euros if oure going for some of the most expensive equipment they make. They are selling to the likes of biggest one of the players, and at the moment they are managing to beat, so the 32 , revenue up 21 and also i. N. G. Analysts guiding way theyre into the Third Quarter and theyre guiding for the full year. Is does look like strength board, thats what the c. E. O. Tells us. London Caroline Hyde in for us. Caroline, thank you so much. Were continuing to follow these of the s out congressional Budget Office. Alking about just how much repealing obama care would cost, the house bill would impact reduce the deficit, deficit by 473 billion by 2026. Reaction from washington next. This is bloomberg. Emily a stock we are watching, shares of i. B. M. Tumbling 4 in trading hitting a threemonth low making it the worst performer on president secondquarter revenue missed estimates, failed his Technology Services and Platform Services fell by just over 5 . Breaking news out of washington, the congressional Budget Office estimating tement the obama care repeal the ciliation act saving health bill would reduce 2020cits by 473 billion by and the number of uninsured ould rise to 32 Million People by 2026. Joining us from washington. We know . Telaw, what do kevin this is an estimate of the straight repeal, the delayed straight repeal bill that at this Point Senate Republicans voting on next week. Everything is very in flux after meeting with the white house. Some talk of reviving the bill that mcconnell was orking on before that would have resulted in an additional 22 million uninsured. This was a version of bill that both chambers and vetoed by president obama in would appeal the individual mandate, a bunch of the obama care taxes. Regulations in place. If it is passed and then they manage to produce a replacement bill within two years when the thing actually in, then you would see additional 32 Million People uninsured. Double d supremums within a decade and you would ave potentially 3 4 of the country without any options in the individual markets according o this estimate from the c. B. O. Emily so, kevin, there are a lot of moving parts here. Are the next steps . Kevin right now were expecting a number of the on sort of oldouts moving forward with the debate to meet with white house officials at capitol hill including potentially the Vice President , but definitely the health and human tom price cretary, and a few other officials, theyre going to be up there for a meeting to try to figure out the path forward is. Senators said that President Trump made clear in a lunch eeting today with republican senators that he wants to see them vote on a repeal and replace bill if at all possible, he would settle for a oneyed repeal bill like the of the c. B. O. Just stored. Emily what does this mean for the level ofmp and confidence, of course, what happened last week, we know was to the trump agenda. Kevin at this point we dont really know we dont really is going to happen next week. What we do know is that right republicans dont appear to have the votes to get anything week. To the floor next if that vote were held right now, we think it would fail. Get blocked and at that point, you no he, we would have to see what they decide to do. Some point, they might take the vote, have it fail and move on to something else. Epublican have a lot of interest moving on to the tax debate and they dont necessarily want to get held up weeks and xes for weeks and weeks of additional time. T the same time theyre facing incredible pressure to still deliver on their seven years of obama care. Repeal emily Kevin Whitelaw in washington for us. So much for that update. Well bring you any headlines as we have them. Coming up, making a big bet on vertical farming investing of millions of dollars. We will hear from the c. E. O. Next. This is bloomberg. So new touch screens. And biometrics. In 574 branches. All done by. Yesterday. Banks arent just undergoing a face lift. Theyre undergoing a transformation. A data fueled, security driven shift in applications and customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Hello, mr. Deets. Every Branch Running like headquarters. Thats how you outmaneuver. Im Alisa Parenti in washington and you are watching cboomberg technology. The has released scores for the senate straight Obamacare Repeal bill. The nonpartisan offices the number of uninsured will increase to 27 million by 2020 and 32 million by 2026. It also says the bill will reduce deficits by 473 billion by 2026. The russian lawyer at the center of controversy over the meeting with trump jr. Is offering to testify in the senate. She said she is ready to clarify the situation. The trump meeting at trump tower was reportedly set up to provide incriminating information on hillary clinton. Appealspm theresa may to ministers to stop plotting against her and each other. Labor leader Jeremy Corbyn is looking to exploit the divide. Corbyn says he sees a cabinet ccurring and back let bickering and backlighting. The head of the French Military has quit in a dispute over defense spending. President macron shot back at a reception saying i am your. Ief the turkish Prime Minister replaced or swapped 11 top ministers. Is the onlyster highlevel official to keep his job. Global list for hours a day powered by 2700 journalists and 120 countries. Im Alisa Parenti. This is bloomberg. After 5 30 p. M. Eastern here in washington, 7 30 a. M. Thursday morning in sydney. We are joined by paul allen for a look at the markets. All three benchmarks here reached new record highs by close. Paul we are expecting to see a positive session across asia is well. Wraps upolicy meeting today and were not expecting any change there. The june trade balance. Positive. Ooking very numbersk at production and santos in woodside. She has been pushing ever closer to that . 80 u. S. Rising to 5. 6 percent, but those are always very unpredictable. Bloomberg technology, more next. Emily back to one of our top stories, qualcomms ongoing legal battle over licensing fees. Latest, they are hitting back at qualcomm saying the chipmaker is asking for accepted payments. If successful, the counterclaims could cost billions of dollars in refunded fees and damages. Qualcomm has offered new Patent Infringement suits against apple. But this time, in germany. Tech litigation with bloomberg intelligence. Debating their case. What does this mean . Case continues to expand and reflects the licensing behindion and kind of closed doors, parallel these legal disputes arent going well. Both sides continue to add by throwing additional legal claims, filing new lawsuits. A pretty strict court for enforcing patents. Leverage. Gain some cannot happen . It can that happen . The first is that the proceedings are very fast, eight to 12 months. They are typically 2. 5 years. The second is german courts automatically issue an injunction if somebody wins a patent case. When you win an injunction issues, they import from germany. Emily the ceo of qualcomm says they are hoping they will settle. They are seemingly contradictory but they actually all meshed together. I think they want to reach a deal. Qualcomm has said as early as today on the Earnings Call that they look forward to continuing a supply relationship with apple. These are businesses that work together. They want to reach a deal and clear this overhang. It is a fundamental dispute over licensing practices, how royalties are calculated, the chips that going to apple and the handset devices. Emily in the meantime, they are suing manufacturers. What is going on . The interesting thing is that the iphone is made by a series of companies that pay qualcomm directly. They entered in the bad deal. The qualcomm royalties, qualcomm sued them. That is a dispute between apple and qualcomm. It looks like it will potentially be consolidated litigation between apple and all common. Iphone makers are on the side but not necessarily directly involved. Emily how do you expect this to play out . I think it will resolve by direct licensing agreement. They will need to negotiate some type of deal. Royalty rates are going down. At the same time, apple is asking for a lot in its legal case. Qualcomm will likely see some kind of reduction. And at the same time, this will resolve hopefully soon. The end of the year is always popular. There is a bit more clarity in the legal claims. Emily thanks for breaking it down. Lent 100 14nd Million Investment in a startup that specializes in developing software having technology for robots. The start of is based the startup is based in san diego. Different types of commercial and consumer robots. The chairman and ceo said that it is developing truly groundbreaking technology. The only investment announcement, theyre also making a 200 million bet on indoor farms. It is leading the latest investment. We spoke in an exclusive interview from softbank about softbank in the future of farming. What were looking to do is build out a global farm network. We are launching the global farm solve for be able to getting people the best food thats available. And to do that all over the planet, make it available everywhere, for everyone, and everyones budget. Solvethat is the process we are looking to kick off with this investment. Emily that is a pretty big goal, you want a vertical farm outside of every metropolitan city around the globe. What is your plan to scale and get their . This is something many indoor farms have tried to do but have not exceeded succeeded in. What we have worked for years to do, to get to the point where we can fit this into everyones budget. Theres they have accomplished it, they can scale. We have maxed out the ability to meet demand on the planet. Supply for apping number of years. We are growing plenty of calories on this planet but not necessarily enough nutrients. Why is plenty able to get those prices down so low . We see to produce coming out of these farms is very expensive. Walmart has been so successful because they work to fit things and everyones budget. And we have been doing the same. Knowt food to People Matter where they choose to get their food. If they choose to get their food at whole foods or walmart, we get great food to everyone. So now amazon ceo jeff results, his capital fund has invested in plenty. What do you make of the acquisition of full foods by amazon . And how does that play into this . If you look at all companies, every team of people around the world that is working to sell Fresh Produce and fresh food through online distribution channels, it is very difficult to do. One of the things that makes it extreme we difficult to do is people they spend thousands of miles on tracks. That if wet know is will throw away the strawberries tomorrow or a week from now. Will we enjoy them like the ones will we year ago, or find them pretty bland and unenjoyable like the ones we got last week . We dont know what going to happen when we can actually see if it is someone we dont know. So people are not inclined, really, to spend their dollars on something that has a high risk of being thrown away in the next couple days. Anyone, amazon included, needs credibility in Fresh Produce because Fresh Produce is what drives people to the Grocery Store. What is plenty path Distribution Plan for the rest of this year what is plentys distributional plan for the rest of this year . Yes. Mply, as manyto get food to people around the planet as possible. Some of the leading retailers in the world, we have been talking getnd working with them to our amazing produce in their stores. Emily plenty ceo matt barner. Out of washington, thousands of Automated Vehicles have been approved to hit the road while federal regulators approved safety standards. A house panel unanimously legislation, the first step for setting the rules for the self driving industry. The energy and Commerce Committee could vote on the bill as soon as next week. Coming up, the highs and lows in cryptocurrencies weaving into what is driving the volatility. We will talk to peter smith. This is bloomberg. Emily cryptocurrencies are keeping investors on their toes. A major shift in bitcoin over the last few weeks. Last month, the Digital Currency exchange saw the value plunge from 317 to nearly zero. I caught up with peter smith at the Fortune Brainstorm tech conference in aspen, colorado. I started by asking about the crash, and when cryptocurrencies will stabilize. This is because cornbased to improperly had improperly implemented out the rhythms. H what you do it has had outages and performance issues. It is not limited to that one situation. Our platform has not gone down. Willnk in general, what happen is, we see more and more scaling and more established players come to the system. It will transfer market pressure on the people to perform at a high level. Liquid is the cryptocurrencies market . It is incredibly liquid. And i think on the exchange side, its a pretty big balance, too. Do you think the market cap will surpass bitcoin in short order . It depends on the definition of short. Emily i believe he said by the end of the year. It is unlikely. Emily why . They couldnt hold that level. They got to a pretty big position and it pulled way back. That if he or he them could, in the longterm, surpass bitcoins market cap. Could, in the longterm, surpass bitcoins market cap. When you are taking a lot of risk, theres a lot of upside on that risk. I think bitcoin is pretty stable. Its a pretty safe place. In the Digital Currency ecosystem. Emily we have seen a lot of initial coin offerings. Do we need so many cryptocurrencies . Ipos and tokens will be a huge market sunday. The market today is mostly scams. There are a lot of securities laws being violated by the ico. Emily in which cases . I believe that to the professionals. On a Consumer Protection front, what the industry is doing for consumers, it is something to keep a close eye on . Emily any you are excited about . Etherium. Im excited about what folks are doing at the Academic Research institutions. College, at imperial cornell is doing great work. As far as the tokens themselves, careful not am very to take a personal view on those. 4 what is the biggest emily what is the biggest obstacle for cryptocurrencies hitting the masses . When sites go down, it makes everybody look less than professional. The key thing is invest ahead of time so that when we go to these growth periods, we dont have the infrastructure come crashing down on us. Emily you think it is possible to build a sustainable infrastructure . For sure. Emily when does it hit the mainstream . I think it already has there is a long way to go to make it more useful. How do we make it fundamentally useful . I think emily i can use bitcoin and play at the Grocery Store . In japan, i think most Grocery Stores except bitcoin. Accept bitcoin. Its a recent development. Light, people are expecting something to happen in a year. It is probably more like 10 years. It will take a lot longer than people think. Chain block chain cofounder and ceo peter smith. The network that bright you madman and breaking bad, how he is competing with the likes of amc is and amazon how competing with the likes of netflix and amazon. This is bloomberg. Emily amazon wants you to keep spending. So much so, it it launched a new feature inspired by the lexus instagram and the use of shop a bull photos. Amazon users are able to post stories, ideas, and images of popular products. The goal is to have inspiration translate to purchases with the quick click of a button. It is only available on the companys mobile app. It is a network that brings you the walking dead and better call saul. Madmen premiered years ago. The amcwn with president at the brainstorm tech conference in aspen, colorado. I asked how the company competes with streaming Services Like netflix and amazon. We compete for talent. It is at the core of our business. It is, without question, where we try to pay the most attention. Frankly, the greatest talent is a finite supply and we all go for it. When they came to us with breaking bad, and here we are with better call saul. Kirkmans, those of the people that fuel our success. Emily can you spend as much as they can on a new show or pilot . We want to spend the right amount. We dont necessarily have to spend as much as them, but the walking dead is in the right place. Madmen was transformational. Emily what is the programming budget . We dont release programming budgets. Emily netflix has billions. Moore isnt necessarily better. We talk a lot about doing fewer serve the underserved passionate audience. A show like preacher, the we broughtis it here and nurture it together. It has a lot more to do with their talent. Emily when it comes to cord cutting, how do you convince tv operators to take on a smaller network . A lot of it is understanding the unique passionate core audience. What amc networks have globally done, were not 25 channels saying to carry us, we are five businesses with target audiences. The Sundance Film Festival was born out of Robert Redfords vision. That is a unique audience. The answer is, provide value. Emily what you see as the future of skinny bundles and how it changes the industry . To the consumer, skinny bundle doesnt mean a lot at all. We want to make sure the fan has what we want when we want it. It is another way to distribute where they are going to be. What is great about transitioning the business, we are great at disrupting from the inside out. Not based on skinny bundles or competitors, but a stump the desire to serve the fan and know the fan better. Emily would you ever go direct to consumer . We Just Launched a commercial free version of amc that is an option for people within the ecosystem. We can offer more choices. We know our fan better than ever before. Just give me an opportunity to do what i want. We have been on apple and electronic sellthrough for years the day after commercial free. And now we have that. Emily how is it going so far . Great. The soft launch has been a momentum creator in those things together i feel very good about. Emily how do you find your next big hit . How do you figure out what is going to strike at the heart of what people want to watch . Is not my quote, but nobody knows anything. If everybody knew, they would just make hits. To take the odds and put them in your favor, that on talent and give them a place to take creative risks and nurture those risks. Weve had as good a track record as anyone and i think we will continue to do so. Emily my conversation with amc president charlie collier. Oft does it for this edition bloomberg technology. We will continue our coverage of tech earnings with microsoft and paypal on cap. On tap. Check us out on bloomberg tech tv. That is all for now. This is bloomberg. From our studios in new york city, this is charlie rose. Charlie we begin this evening with health care. President trumps ambition to repeal and replace the Affordable Care act was dealt a significant blow last night. ,n a surprising turn of events mike lee of utah and jerry moran of kansas came out against the bill. Their defection left gop leaders at least two votes short of those needed to begin debating the bill. Senate Majority Leader Mitch Mcconnell conceded that his partys efforts would need to take a new direction. Senator mcconnell we will have