Countries say they trust who and more. People had more confidence in President Trump in 13 countries. Global news 24 hours a day. Powered by more than 2,700 journalists and analysts in more than 120 countries. Im alisa parenti, and this is bloomberg. Emily this is bloomberg technology. Remainingtrumps Advisory Council members moved to disband it. We will break down the chinese internet giants secondquarter results. My interview with former south Bank President covering everything from southbanks Investment Strategy to his thoughts on bloomberg and self driving cars. To our lead. President trump said he is disbanding to do is two advisory groups. This is after multiple ceos that ton after trump failed to condemn white supremacists. He said rather than putting pressure on the business people, i am ending both. The turnaround from the suite you posted yesterday with haakon which wrote, for every ceo who dropped out i have many to take their place. For the latest developments on this ongoing story, we have marty shanker. Also is cory johnson. The ceos came to the conclusion they wanted to step down and then trump says this. What is your reaction to how this unfolded . Marty it was a very bizarre scene where you had ceos trying to jump ship after the ship had failed. We have broken the news that the Advisory Council had been disbanning. Tweet trump tweeted his you showed and then ceos continue to resign from a council that was disbanned. Was a poort it ability to associate themselves with these councils. Emily what the questions about why some of the ceos took so long to come to this decision. Earlier about this. Take a listen. Fearere are some ceos who the president s retaliation against their company if they resign. A numberhy i advised of ceos who ask me not to join President Trumps counsels because i told them i think things will happen with good probability that will make you want to resign. They did ultimately decide to disban. Got a statement that thing a debate has become a distraction of our well intentions and desires to a policy discussions on how to improve the lives of americans. Disbandingnd we are the for him. What does it mean for President Trumpseputation reputation . Will there be retaliation against these Business Leaders . Marty i doubt that very much. Toald trump still professes have a probusiness agenda, tax reform, infrastructure. That is an agenda businessmen support. Even if they do not have the symbolic connection with the white house of these councils, if he is able to come up with a andplan that benefits them, infrastructure plan that will boost the economy, you can bet businesspeople will support it standing by mr. Trump or through lobbying efforts and direct influence on congress. They are not disappearing, they are going away for a while. Emily it has been interesting to see how various content companies have managed the content that has flooded onto their platforms. Template to twitter, his goto platform. Twitter has been censoring hateful conflict related to this issue. Some of the tweets from david duke were censored. What kind of a response are we expecting from this . To deal is interesting with these new Media Companies wrestle with these issues and find out how to be a platform that opens speech everyone gets shut down the reach. Down hate speech. Thatne made a comment there is not more racism, there are more congress there are more cameras. It is not these things were not happening before, they are getting more attention than before. Twitter wrestles with that internally with how much to allow some speech to happen, even distasteful speech. Emily marty, you mentioned yesterday tweets from david duke and if we hear more from the president to have to denounce that. We havent heard any more from the president in terms of the comments he made. What are you expecting to happen next . Marty we were on watch to see whether or not there were the any highlevel defections from the white house. At the hours go by, it looks increasingly likely that despite the unsettling nature of the press conference and concerns over some of the highest members and white cabinet house staff, it looks like everybody will stick in there again. There have been multiple occasions where we thought it was a turning point and we turned, but there is no difference in the staff or the people serving this president. I do not think i think he will stay quiet for a while, but that will be just for a wild. , earlier today he tweeted about amazon saying it is doing damage to taxpaying retailers. States are being hurt and many jobs are being lost. What does he mean, and is he right . Cory he is wrong. Well, there is a dramatic shift happening where consumers are deciding they would rather shop online. It is undeniable that a lot of retailers are having problems with that because of ecommerce in general. It is also evidence that President Trump, when the runs a toughst about whether reported his finances in taxpaying or lack thereof, or a tech tough editorial, President Trump response by slamming amazon in particular. The fact is that amazon pays a ton of money in taxes. The result time when amazon did everything they could to avoid taxes. They set up Distribution Centers in lowtech environment, but they decided, after pressure from state in california in startular, to not only paying local sales tax but to push their distribution out closer to people. They are employing a lot more people than ever before. Amazon is paying a lot of taxes. Last they paid over 40 of the operating profit in taxes. They paid a lot of money in taxes. Emily could the president sentiment impact the impending on whole fields deal amazonwhole food deal . Amazonhey think the acquisition and whole foods will not pay one not face a push back. Brush thee amazon bond market this week and raise money to pay for this whole foods deal. Because i would like the Trump Administration will be able to squash that. Emily when a question. And the president announced a rally in phoenix. What you anticipate their . There . I anticipate him being in an environment where he feels safe and comfortable. Arizona is a place for immigration is a great concern and interest. I expect him to double down on his views on the wall and immigration and to get comfortable with his base. Shanker and cory johnson. Moving to earnings. Ciscos transition into a company that is less dependent on hardware is hurting its overall growth. Predicted another revenue decline. Sales may decline as much as 3 . Check us on bloomberg tv on thursday morning 9 00 a. M. New york time. Up, record profit in the last quarter. We will bring you the details next. This is bloomberg. Up, record profit in the when of the largest tech firms in china reported monster growth. The results were boosted by its messaging app which has more than 960 million users. Sales from online games jumped over the. Perio. D tencent is the secondbest performer. I want to bring in Stephen Engle from hong kong. Good morning to you. What would you pull out in terms of the highlights from this report . Numbers,ok at those 963 million. Social mediaother platform, it is more than one billion users. They are monetizing that user and to drive mobile gaming making an ecosystem for that. Foraw mobile gaming revenue the first time surpassing the cap from the desktop gaming. That has always been their bank, mobile gaming. Tencent up about 71 of revenue. Honor of king has a lot of revenue. 51 of users are female, so they cap into that client. It is a really interesting story. Everybody here is talking about how can accompany this large you mentioned this is the most hobbit most heavily weighted stock in hong kong. How can a company that is growing so large still post incredible numbers. Numb numbers . The fastest in seven years. It is rolling out in europe this year, how would you describe its input outside of china . Stephen it is still pretty much a chinese leader. They do want to roll it out to other markets. They say the United States is a potential market. Hotbedchina is the real and also other parts of asia, south korea, for mobile or Online Gaming. The United States might be a little harder, but they will try for it. Emily we have another big tech player reporting earnings later this week. Alibaba. What are you looking for . Stephen they dominate ecommerce, whereas tencent is the big mobile and Online Gaming leader. Alibaba dominates more than 90 of ecommerce in china. What i will be looking for is revenue from other businesses and international expansion. Cloud computing and other areas, when are they going to get traction there . But is another juggernaut, i want to see what they will be doing overseas and in other areas that have been a bit of a drag. From hongphen engle kong. Thank you so much for stopping by. Withg up, our conversation the former southBank President. Us for a wideranging exclusive interview on southbank Investment Strategy. What he ans to do next. This is bloomberg. Emily the former southBank President who was once the air of the southbank empire joins us on a special edition of bloomberg studio 1. 0. Others. Tionships with asked about his Humble Beginnings growing up in india and how he was invited to work for google. Were making around 2 billion in revenue at that time. I would say the International Operations and scalings were early. The United States was doing well. Europe and across tim and i used to compete on how we could make the different regions. Emily google has since become alph what is the biggest risk to googles Business Model now . Abet. Nikesh we underestimated the risks to build and advertising juggernaut. Facebook has built one. I dont think there is a third. I dont think there is a third platform out there which has the scale to be able to build what google and facebook have built. I think we will see more and more concentration at google and facebook in the advertising space. I think that will not go away soon. Emily would you say it is a duopoly, and is that ok . Nikesh yes, for now. There are other players relevance of the advertising space online and offline, whether it will be snapchat or twitter or interest in the future. Maybe some traditional players that are doing a phenomenal job of transitioning from offline to online. There are many players in the space. For the perceivable future, will google and facebook be the largest players . Yes. Emily do think there were ever will be a Third Company that takes a third of that high . Nikesh i think it will be hard but i think there will be a collection of companies that amongst themselves might demand as much advertising shares as facebook and google but there will be one for now. Who investedrson in facebook and google orlene wrote oped today saying, i am terrified by the damage being done by these internet monopolies. Facebook and google produce shortterm happiness with serious negative consequences in the longterm. The fault lies with advertising Business Models that maximize sttention at all co leading to brain hacking. How you explain that . Dream is to try to get them to let their brand. I dont think that is different whether you are doing online or offline advertising. The consumers are smart enough that if they get bombarded by it might overwhelm theyrimary purpose of what would therefore. Whether it is a newspaper, online website, or video. They walk away. Emily he rent google european operations for five years. They just got a 2. 7 billion fine. A threat are these european regulatory issues . Nikesh i dont think they are a serious threat. Google is a phenomenally egrative Company Innovative company. I dont think any of these is a longterm threat. If some conversations allow them future, ibase for the think google is already innovating in so many different areas. It is more than a Technology Company that is just innovating. Emily when it comes to , apple, amazon microsoft, what do you think is the biggest threat to google . Nikesh i dont think about threats to google since i dont work there anymore. I think these three platforms have tremendous power of distribution. When they introduce new services or new ideas, they can deploy that to one billion or 2 billion people around the world. There has never been a platform which allows you to touch 2 billion people in a reasonably frictionless fashion. Emily do you google can catch up to amazon in the cloud . An interestings notion we seem to perpetrate. You want to talk about winners and losers. We seem to think when there is a winner, there has got to be a loser. I think it is fine for local companies to exist and a space and do really well. Were are so early in the journey of the cloud that in 10 years, you will see that all the early leads will normalize to some degree. You can look back and the thousands of companies that have not been initiated the tradition of the cloud. They will it there at some point in time. I think we are still early that it wont matter. Emily all these companies are making a big bet on original content. Is that smart . Lets put too much of a dent in markets . That thisam not sure huge move by Large Companies to go into original content is going to result in a whole lot. A lot of money gets spent in content. If youre willing to make it you areke what if willing to make a bet, you might get somewhere in disrupting the contents players. This will emerge with one or two large players, and i think you should not underestimate the platforms. Are facebook, amazon, apple, and google. As long as they can figure out a mechanism that they can use your platform to distribute content and allow the creators and providers to make a fair share in the process. I dont know how much they need to get. Emily we will have much more with our conversation with the former self Bank President , including his outlook on self driving cars in the future of automation. I would like to bring our new interactive tv function. You can find it at tv on the bloomberg. If you miss an interview, you can go back to it and second hour produces a message. This is for bloomberg subscribers only. This is bloomberg. Got you outnumbered. The dinosaurs extinction. Dont listen to them. Not appropriate. Now im mashing these potatoes with my stick of butter. Why dont you sit over here. Find your awesome with the Xfinity Stream app. Included with xfinity tv. More to stream to every screen. Mark i am Mark Crumpton in new york. Youre watching bloomberg technology, Antonio Guterres and tensions on the korean insula are at their highest level in decades. Good tatters the terrorists sought to remind people of the suffering caused by the korean war. Civilian death rate higher than world war ii, the Korean Peninsula was left in ruins and many nations experienced heavy losses. The lessonseed of history, not repeat the mistakes. Vice president pence made a request during a meeting today in santiago with jillian resident to lay in and is asking for brazil to do the same. President trump is not interested in a few tweakings of nafta. Talks to revise nafta began in washington. It is just after 5 30 p. M. Here in new york. Paul allen has a look at the markets. Futures. 2 seeing higher with a surgeon based middle rices, likely to see miners performing well. There is a raft of earnings out from tell of medications from Telecommunications Provider and miner. At 5. 6 d to hold steady for the month of july, but as i say, these are unpredictable numbers here it well watch to see if this trend toward fulltime employment over parttime employment does continue. Nikkei futures looking weaker likely to rise about 1. 7 billion u. S. Dollars, otherwise exports likely to outstrip the current rise in imports. In hong kong, carefully watching cathay pacific. The airline reported a firsthalf net loss of 262 million after the l. In 20s their worst loss years. They have no plans, however, to introduce a Budget Service to turn things around. They are going to focus on improving services and improving the overall experience for customers. We will check out that stock when it opens. I am paul allen in sydney. More on tech adding more on bloomberg technology, next. I am here with the cash aurora. Nikesh arora. In part two of our exclusive conversation i asked about who drivingng in the self car race and houston they will hit the road. Camph i am in the that believes it will be a long time before we see a large proliferation, thel tooling retooling we need to get to scale is far away. We havent thought about the ownership model and the societal problems it will cause and how do you park these cars . Where you put them . We will see people do close in short order, but largescale deployment and having an impact on the rental business or ride hailing as this is further away than we think weir. Emily should all of these companies be working on self driving cars . I dont think the ridesharing companys should be worried about making self driving cars at this point. Emily why not . Nikesh we havent quite figured out where the industry is going to stabilize. There are logistics in the way they move cars from one place to another, managing supply and demand. They are early in evolution. I think if they focus on Operational Excellence in their berent business, they may better off appeared there are lots of Companies Working on self driving cars. I think a Partnership Approach might be better than trying to do it themselves. Have spend a you lot of time they give up the ride hailing business your when you were at softbank you put a massive debt on nikesh we have had long conversations about ride hailing and we were very impressed by the uber model, but at that point in time we thought softbank would be better served by investing in some of the other players. Early in india and south east asia, we also partnered with alibaba. Consequently since i have left softbank, have doubled down on many of those bets. When you can find an industry where you feel that somebody has developed a product or service from which there is no going stay. So it is here to its like when things go for my nice to have to a musthave, you realize this is a winning scenario. You understand this is going to get more popular overtime. I think it is clear in china is the only player. I think you can see where they keep executing well, this is a huge opportunity for them. It also plays into the needs of the country where you dont want to have car ownership, you want more green cars, it is much easier to play with Companies Like didi. Uber has pulled out of russia, do you see them making the same decisions in southeast asia, brazil are going back to the same conversation. I believe it is possible for two players to coexist in the market and coexist happily, but i think it requires the markets to rationalize and stabilize. There are multiple players that coexist that are competing every day, but some actually make large amounts of money. I think this is a large market. Im sure they can, can they go it alone . They probably could. Emily do you see that with uber and lyft in the u. S. . Nikesh as of now it is. Emily does it continue . Nikesh hard to tell, but it will continue for some time. There are so many different conversations and moves going on in the market that it is hard to call where it will settle down and stabilize. Emily Travis Kalanick leaving uber, right call . Nikesh i think for now, yes. I think somebody had to take responsibility for all we have read about in the past year to think leaders are expected to step up and take responsibility for all of the good and all of the bad. Some serioushave cultural issues, issues in their operations and summary had to take responsibility. I think whether travis took it or the board encouraged him to, is the right decision. Emily can the culture be changed . Can accomplish what it needs to without a founder of the home . Helm . The nikesh i think the credit goes to the early team at uber, their ability to take on a whole bunch of things against all odds and build a great product for the consumer. Should they have done things differently . Yes. Some of those things need to be fixed. So they have a different culture based on what we have read, yes. Clearly a leadership change is needed and that is being talked about. I think it will be a challenge because in every situation we capitalnd us the risk changes when you take a founder out of the equation. The good news is uber has multiple founders. They can provide the backbone for the Risk Appetite while a new leader works ahead with the cultural issues and tries to make uber the company as good as uber the product. Emily your name has been floated for the job, are you up to the job . Thath i think it is clear the company is looking for an existing ceo. Emily are you up for the job . Nikesh i am not had any conversations. Emily what is your advice to whoever ends up in the job . Nikesh the person that ends up issuesrole has cultural to fix and has a lot of operational things to do, at the end of the day if you dont have Operational Excellence you have cultural problems as well. I think they have to work on the leadership issues within the company and the board. I think they have a fractious aboard and also a Management Team which needs a cohesive leadership approach. In a few moments we have more of our conversation with nikesh arora. He was talking about uber there. According to people familiar with the matter, the investors include softbank, general atlantic, that the deal between twoattle board members. Takenwe detail the steps by apple to complete with the likes of netflix and amazon. This is bloomberg. Bloomberge now from 1. 0 in my conversation with nikesh arora. In part three i asked him about their left softbank and bold Investment Strategy. Nikesh he wants to do bigger, bolder things. He is an amazing optimist. Has a 300 yearhe vision, or a 50 year vision. He doesnt do things in three months, six month, ninemonth thought processes. He is working with partners to give him access to huge amount. F capital emily you were the heir apparent, you were supposed to succeed him, what happened . Nikesh when we got together we had in amazing two years and we saw eyetoeye on many things. Was goingrned 60 he to take a backseat and be more chairman like and find a ceo to perpetrate his legacy and the legacy of softbank. After a year of us being together he said i think you would make a great successor. Turningme closer to him 60, sometime this month, he realized he wasnt done. As evident from the last year he seems to have renewed energy and he definitely wants to see this information revolution through with all of the investing he is doing. Emily so there were some shareholders that plaintiff out you, said you had a conflict of interest, said you were overpaid, did a play a role in you leaving . Did you get to the bottom of who was behind not . Nikesh no we never got to the bottom of it. The board established an independent committee, they found no issues. There were none, there was nothing to look at. Was veryoshi son supportive, he tried to explain to people in the country that people frome Silicon Valley you have to pay them what they would make in Silicon Valley. From the outside i know you are supportive of the risk taking, but can he really take these risks . Nikesh i think he has the capital. He knows some of them will work well and some will fail spectacularly. I think he knows he will do well and his track record speaks for itself. Emily they are behind a , whatle merge with sprint does that mean for consumers . Need moreing providers where people are shutting down more and more bandwidth and charging for everything that they do . Maybe not. That is a question for the regulators. Whether the regulators allow it happen or whether masa and telecom can get to a deal is open for you to speculate as much as i can. Emily you lead the way for softbank to invest in india, including in the snap deal. Some of those deals are in trouble, were the bets wrong or would they be doing better if you were there . Nikesh i think it is fair to say that the euphoria and the indian tech space was driven iv bye success we saw driven the huge success we saw. We said if china can be so successful, maybe we should concentrate on india as well, because it could be the next market to explode and a good way. I think valuations got run up in the spaces you have seen success in china, not so much in the ride hailing space, because masa was early. I think the part which people jeff bezostor in was decided he did not want the same fate in india that he had in jeff decides to come in and invest billions of dollars into a market, now you have one very well funded player who has Technology Expertise to execute the space, i think as you can see has generated the resources to do so and snap wasnt able to in the process. Ended up witheal a similar backer that wanted to give billions of dollars to go do it, i dont think it is clear right now who is going to win in the ecommerce space and india. I think as we have all learned, you have to be cautious betting against jeff bezos. New scandalsare coming out of washington every day, should that Impact Investments . Nikesh we have always had uncertainty in the market which could change peoples outlook in the shortterm and that causes times of overinvestment and times of underinvestment. Many people have not made money in times of overinvestment because everybody wants to invest in them. But it has been established again when money is scarce and there are a lot of ways to invest, you will make a lot of money. Right now if you find great opportunities i would not worry about the uncertainty. Although, i dont think the uncertainty is affecting the of my conversation with the cash of aurora there. Coming up, apple is said to be thrown down the gauntlet when it comes to programming. But with other tech giants investing, will it be too little too late . This is bloomberg. Emily apple is out to make a splash in hollywood, they plan to spend 1 billion in programming over the next year. They are creating a new labased team and hiring new executives. The move comes after apple intensifies efforts to complete to compete with amazon and netflix. Joining us is alex webb. What do we know about their plan . Alex very little. We know they have an office in l. A. And from apple music they have been doing small things in television programming. We saw car pulled karaoke, planet of the apps. Now it is no longer part of apple music. They have a big wedge of cash to spend on original conten. Emily we did ask about that and he said right now we feel good about where apple music is, very good, subscriptions continue to move along and i do think video will be a contributor over time. Alex revenue is gradually being lost from itunes your i dont know when the last time is you bought a film on itunes. Emily i try my best not to. Alex there you go. A subscription includes people to their iphones, their ipads. You will be able to watch them on pcs, but probably not on an Android Phone or roko. Emily are they going to play in the house of cards, game of thrones arena . Ago we few months werent quite sure what the ambitions were, but they sort of said were going to see what happens with the early shows we have done and from there take steps to see what is possible. The people they hired, two top executives from sony behind. Eaking bad i cant name everything they have worked on, but breaking bad is their most prominent product. When we spoke to jimmy i been back in april, they were aiming to have 10 original shows by the end of the year. Thosew three or four of are very substantial projects. Context, one thing and the 1 billion theyre going to compares to 4. 5 billion that amazon will spend or the 6 billion net with netflix will spend. Emily we have been looking at some video, planet of the apps. We know it didnt get the best reception. How much success have they had . Alex there have been hiccups here it it is very hard to know what it is doing in terms of viewership. This has been geared toward dragging people toward apple music. They havent necessarily have these experts in the tv industry, and production, procuring the right projects, and thats what they have done now. Some of the sources i spoke to, credit to the the wall street journal they were saying they were hiring aggressively and trying to expand substantially. Emily we will be watching. You will be watching, alex webb. And that does it for this edition of bloomberg technology. On thursday we will cover all things alibaba. We are Live Streaming on twitter. Check us out. That is all for now. This is bloomberg. Track your pack. Set a curfew, or two. Make dinnertime device free. [ music stops ] [ music plays again ] a smarter way to wifi is awesome. Introducing xfinity xfi. Amazing speed, coverage and control. Change the way you wifi. Xfinity. The future of awesome. Announcer from our studios in new york city, this is charlie rose. Charlie President Trump faces increased criticism for his failure to condemn neonazis and white supremacist groups in the an incident in charlottesville, virginia. Pres. Trump we continue to , violenceis bigotry on many sides. Charlie on monday the president