Space, more than any other american, male or female. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. I am Alisa Parenti and this is bloomberg. Caroline i am caroline hyde. This is bloomberg technology. August,p, another another lackluster jobs report for the seventh time in a row. What does it reveal about the state of the u. S. Economy and the future of jobs in tech . We will get the big picture from top recruiters. The Dara Khosrowshahi regime officially begins tuesday. Is the board behind the new direction and the new man behind the wheel . After two bloomberg scopes on apples most significant launch to date, the beginning of a new era for whole foods and uber finally naming Travis Kalanicks successor. We will run through the biggest stories in tech. First, breaking news. Now for atistering least 100 million for an initial public offering. The Company Discloses revenue of 200 million and intent to list on the nasdaq. We will have more details as we get them. It has been reported they could seek a valuation of as much as 1 billion. Lets get to the latest jobs report out of the United States. Growth slowed in august with a lower than projected 156,000 jobs with the Unemployment Rate picking up to 4. 4 . The data was lest positive with momentum slowing in a few sectors at a time when the u. S. Labor force is under closer scrutiny because of President Trumps America First hiring agenda. Joining us to discuss is risen blumberg, rishon ahead of a recruitment firm. Great to have you on. Talk to us about these numbers. We are seeing sluggishness for august. What did you see in your area, technology . Technology remains strong. I i haveverall, the thing taking away from the report is the Unemployment Rate is still very low, which is great. The thing behind the numbers is more concerning. Wages are stagnant. We see the wage rate at 2. 5 , still above inflation but below where the Housing Market is at. I think our employees are losing a little bit in wages stagnation. Caroline productivity seems not to be going fast anywhere. Talkingingly, you are of an imminent and massive job loss crisis due to automation and ai. Are we already seeing this in the numbers . Is Wage Inflation not going anywhere because of the threat of a robot taking your job . I think you are right. That is baked into the numbers, the fact that rate is so low. And also, the Participation Rate is only 62. 9 , equivalent to all salvador and ukraine. What we are seeing in the market is there are not as many people in the labor market in general. Some of that has to do with automation for sure. We have launched a website to focus on the best and brightest minds and lawmakers on addressing this issue of impending automation job loss we could see globally that will be massive. I dont to scream that the sky is falling because this is not today and tomorrow. But this is happening already and will increase over the next 5, 10, 20 years. Caroline Oxford University said half of u. S. Jobs could be automated in the next few decades. When you say massive, what numbers are you talking about . Those kinds of numbers. Those are huge, unprecedented numbers. Close to 50 of the workforce being eliminated, as in no more jobs for them. What happens . What do we do to keep people out of poverty . More importantly, maybe not more importantly, but equally important, what do people do with all of their time . We are trying to focus attention on this looming, huge issue globally. Caroline your launching this petition, a new website to raise awareness. What do you expect to be talked about in terms of the policy arena . In terms of helping people that will find themselves out of a job . What do you want to be on the table . That is the milliondollar question, billiondollar question. What are the options . There are a few things being talked about. There is universal basic income, which is effectively a base income everybody would earn to keep them out of poverty. Those are some of the negative aspects of job loss due to automation. Some of the positive aspects of the fact Consumer Prices will be incredibly low because of the efficiencies we will see in the economy. If we can find a way to keep people at a base level of learning, quality of life as far as cost of goods will be reduced significantly due to the efficiencies. The next question is, what will we have people doing when they are not working . Caroline what about the Companies Role in all of this . At the beginning of the year, there was talk by bill gates about taxing the robots. Should Companies Help those likely to be asked axed . Large problem with a public and private solution. Governments will have to play a massive role. Companies and charities will have to step into the role to fill any gaps. I do think there is a responsibility companies will bear by increasing efficiency and decreasing human labor. There is going to have to be some sort of contribution and a system that is different from what we are used to over the last 150 years. Caroline a fascinating call to arms you are making. Talk to us about the here and now about what skills are being demanded of you by the looks of google, ebay, the tech giants you serve in what people might look into to protect themselves from the mass unemployment you envisage. One area i think will continue to be robust is going to be tech because we currently have fewer tech specialists then there are tech needs domestically and abroad. As long as you are focused on Stem Education and retraining for technology positions, i think we will see that market continue to be strong longterm. Right now, we are finding it is much like the economy right now. Tech needs are very robust because there is a supply and demand imbalance in that sector. Caroline always great to get your opinion. Great to have you joining us. The white house has announced President Trump will make a decision about the deferred action for Childhood Arrivals Program next week. The Program Allows people who entered the United States illegally as children to apply for renewable work permits that shield them from deportation. The news comes as Business Leaders signed an open letter defending the program. It is a story we will discuss later this hour. Stay tuned. Coming up, last week, vanguard and t. Rowe price reduced the valuation on uber. Greenl hear from mitchell next. Bloomberg technology is Live Streaming on twitter. Check us out weekdays at 5 00 in new york, 2 00 in San Francisco, 10 00 p. M. In london. This is bloomberg. Caroline also that is alphabet is forming a new Holding Company called 26. It will legally separate google from other units. 26 holdings will reorganize alphabet is a corporate parent and complete the separation from google. As we have been reporting this week, uber has a new leader. Dara khosrowshahi is now charged with cleaning up uber after the resignation of Travis Kalanick. How are uber investors feeling about the board selection . We spoke with michel green, an early investor in the startup. Take a listen. Im sure he will be involved. The build a 35 billion juggernaut growing superfast. Im sure he will be involved in some capacity. What our relations like and kalanick . Dge than invested much later benchmark. I wish i had invested when they did. Im sure given time we and lots of other shareholders will not want that will want that to settle down. Im sure given time, it will. How soon are we going to get the ipo . Ara came out and said 18 to 36 months. We have been under the impression it was 2019 or 2020 ipo. We are in no rush for them to go public. We were an investor in Alibaba Group in 2009 and 2010. They were a private company for 15 years almost before they went public. We are in no rush. It is nice to see dara put a timeline on it. I think that will calm a lot of investor nerves. This week has all been about the challenges he faces, comparing his challenges at expedia to what he will face at uber. What is his number one and to challenge . What will be most difficult to address . He has a lot of experience. I dont think it is appreciated as much how similar the global ridesharing business in the Global Travel business is. The first thing he has got to do is build a robust team. We have heard from numerous executive he is a great leader. I think the list is long of people who would love to work with him on this rocket ship. He said he thinks this is the opportunity of a lifetime. I think he needs to build a leadership team, which he will. It will take time. Two, he needs to figure out his international strategy. Does he do more deals in other areas of the world like he did like they did in china or russia . Three, i think they need to figure out the longterm strategies. Do they go out alone at it alone, partner with others . I have no idea. Those are things he will be focused on. It is important to realize how similar the global ridesharing business is versus the travel business. If you are expedia competing in ,urope against booking. Com think about it. Priceline may be lowering prices one day in brussels, raising them in prague, keeping them flat in paris, and spiking them or lowering them dramatically in barcelona when the weather is bad. The same thing happens in ridesharing. I think there are a lot of similarities between the Business Models. How concerned are you about valuations right now, apart from leadership . Holding. Other fund are you concerned perhaps uber is not as valuable as it was . That is completely irrelevant. It makes good headlines. We would be aggressive buyers at prices people have talked about today. An example. A couple of big ritual funds mark their values down, but i think it was blackrock that marked it up. 53 a share from 40. Our view is fundamental. What can this generate in three to five years on an earnings multiple to 30 times looking out three plus years . We think it can be conservatively a 150 billion company. Great companies have tails. It is possible it is a 200 billion company. Theses not surprise us prices are in the news. You have bought fantastic Companies Like spotify. These are investments in your portfolio. Eye. Bviously have a good i am wondering what gives you such confidence uber will be profitable so soon. It is still reporting losses in the hundreds of millions of dollars even as bookings are up. Lets not forget two other companies have spent lanes of dollars building their businesses, tesla and netflix. These companies are burning tons of money. And lets not forget goober is growing much faster than them. I am very confident ubers business will be nicely profitable and sustainable. Caroline that was Founding Partner mitchell green. We will follow a developing story. Roku filing for ipo. Can the move help the company breakout in the crowded streaming market . We will discuss next. Reminder of our interactive function on tv. You can send our producers a message. This is for bloomberg subscribers only. Check it out at tv. This is bloomberg. Caroline bitcoins big year got bigger today. It hit 4800 for the first time ever. Its time has jumped more than 350 since it began. It is not the only cryptocurrency reaching a record high. The total value of the cryptocurrency market is now over 175 billion. Back to our developing story. Roku is filing for ipo with initial registration of at least 100 million. Forils are just coming in one of the pioneers in streaming media. Wherego to Los Angeles Lucas shaw reports we could see a valuation of as much as 1 billion. What are you thinking for this particular company . Roku has held up fairly well in a market where it is competing with three of the Biggest Tech Companies in the world, apple, amazon, and google. Roku came out of netflix once upon a time. This was a box they were developing to deliver their service. But netflix is all about focus so they spun this out. It has been one of the earliest and continues to grow. There was a report this week it is still the largest settop box in the market. Caroline what is fascinating is the timing. We are getting numbers in terms of revenue, 200 million in the last six months. It is still posting a loss. We have seen how the markets digested previous ipos. Do you think it is interesting timing . Roku is theenge for longterm business. It is a great utility. It offers all of these different services. They made a point in their filing of comparing themselves to a comcast or directv or paytv divider provider. Unlike those companies where you pay a monthly fee and they work out the deals with cbs and so on, they are not there are they lot of major payers are working with. How they will be a company that generates a ton of revenue and is profitable is a little unclear to me. In terms of the timing, i feel like roku has been out there is a company that could get bald, sold, go public for a while. Having the styling on a friday before a Holiday Weekend is unusual. We will wait and see. Caroline we will indeed. I want to get your expertise on streaming in general. We had some stellar numbers coming out of the european juggernaut which owns Universal Music Group. It looks as though music streaming is starting to be a cash cow. Spotify and apple music have revived an industry many left for dead a year or two ago. We have had the recorded music post numbers that had not happened since the c. D. Boom. There was an enthusiastic report from Goldman Sachs this week that projected the industry would grow to be 30 billion something with 800 billion people paying for music. That may be a bit much. Most people i spoke with feel that was excessive enthusiasm. They are still in the early stages of recovery. But all signs are pointing in the right direction. You have seen Warner Music Group post solid numbers. Spotify just registered incredible growth in consumers and revenue. Caroline quite amazing, that growth story posted by Goldman Sachs. And the focus on emerging markets in particular. It is not just the streaming but also the ipo story. There is talk of Universal Music Group ipoing in the u. S. I believe our colleagues in europe reported on this. There has been a lot of discussion about what will , whetherth universal they will file for ipo in the u. S. , whether they sell off a piece of it, whether they sell the whole thing because the value of universal is going up. They are sitting on a valuable asset. The c. E. O. Is trying to figure out the best way to maximize it. Caroline there is more streaming news. Tencent entertainment is getting new funding ahead of a potential ipo for their music streaming business. China is one of the best semiuntold stories in the music business. The amount of money generated for music sales in china has more than doubled in the past four years. It is now more than 200 million. With all things streaming and media, established players like spotify an apple music have a hard time. Spotify is not in china. Apple music is there, but the big player is tencent that has deals with all the major labels. They are all incredibly enthusiastic as to where the industry is headed, much as the video streaming market in china has taken off as Movie Box Office sales have taken off in china. Music seems to be the next one ripe for growth. Tencent season opportunity to get money for it. Shaw, thank you very much for joining us. Coming up, what is the appetite for apples new iphone . The company know if consumers will be willing to pay up for a 3d camera . We discuss next. This is bloomberg. Mark i am Mark Crumpton in new york. You are watching bloomberg technology. President trump on friday signed a proclamation establishing sunday as a day of prayer for those dealing with the aftermath of hurricane harvey. The president returns to texas saturday and is also expected to stop in louisiana. House Speaker Paul Ryan is urging the president to fix, not and, the deferred. Action for childhood arrivals. The announcement is expected next week. The democratic congressman says ending the program is the wrong move. It has not been a drain. It has not cost the United States anything in terms of government costs. On the contrary, it has been a plus in terms of the Economic Vitality of this nation. Mark german chancellor Angela Merkel enter centerleft opponent square off sunday in the only tv debate of the german election campaign. He hopes the debate increases his chances with just over three weeks to go. The polls have merkels party ahead by at least 12 points. The Associated Press reports smoke was seen coming from the russian consulate in San Francisco on friday. The Trump Administration recently ordered the closing of the consulate and other russianaffiliated offices in washington and new york. It is retaliation for the kremlins demand last month that the u. S. Substantially reduce the size of its diplomatic staff in russia. Enyas incumbent president says hes ready to campaign again and told reporters it is time to get back to work. He spoke and nairobi after the court ratified nullified last months election and call for a new vote in 60 days. A respected. I i respect it. I disagree with it. Kenyans made their choice. And six people have decided they will go against the will of the people. Mark Security Forces in columbia killed one of the most wanted drug fugitives, the alleged second in charge of a ruthless criminal network that rose from this banded paramilitary groups to become the nations largest Drug Trafficking organization. Roberto vargas was killed in an operation conducted by an elite Commando Unit near his base in northern colombia. Had a 160,000 bounty. At a news conference, the general said of vargas this was one of our most sought targets. We have been on his trail a long time. Global news 24 hours a day. I am Mark Crumpton. This is bloomberg. Caroline this is bloomberg technology. I am caroline hyde. After conducting a c. E. O. Search most of the summer, uber tapped Dara Khosrowshahi to take the helm at the worlds biggest startup. The board put on a show of unity while he discussed ipo plans. Is it all smooth sailing . This topic with brad stone and Eric Newcomer as we recap the week in tech. Eric calledon what in his newsletter today a show of unity with Travis Kalanick. He talked about 18 to 36 months. It is basically give us time and breathing room. I think he did a good job attempting to close the book on this turbulent chapter in ubers history talking about transparency and the values that have gotten them this far. Tor has a lot of baggage resolve including two Justice Department investigations. So far, i think dara is off to a good start. Caroline eric, you are the man on this story blowbyblow. Wek to us about the unity saw displayed but also the infighting that continues, particularly at the board level. We had the astonishing level letter written earlier in the week. How is that being digested by benchmark capital . Boardy were all at ubers meeting wednesday almost figuratively handinhand with Dara Khosrowshahi, the new c. E. O. He acknowledged to employees some of the links of time for the search. He joked this is the best board. How can i not say that . They picked me. It was a positive message evil when it came to travis, recognizing the company to where it is today. Like you said, benchmark is still suing travis. That case has moved to arbitration. The conflict between two of uber s Board Members is ongoing. That issue is still alive. The substance behind the fight, how bad was the company under Travis Kalanick and what this the company need to do to move on . That is the debate still being had among employees and Board Members. Caroline any update on the executives we might see added to the uber . The priorities for the new c. E. O. Has got to be to get the executives. Uber needs a c. F. O. They lost more than 600 million in the last quarter. C. O. O. , aire a Strategic Partner to look at all the places in the world where uber is hemorrhaging money and up against wellfunded, indigenous competitors and figure out where to pull back and invest. This is one of travis actually weaknesses, reported control and did not hire he hoarded control and did not hire aggressively. Dara has to address that. Caroline plenty on the plate of the new c. E. O. , plenty to get excited about before september 12. Ype inbout the h San Francisco ahead of the 10th anniversary and the new phone. There are such High Expectations for apples new, premium phone and the two other versions, just to see what is coming. We have apple tv, the watch, there are a lot of categories. Given this is the 10 Year Anniversary of the iphone, there are huge expectations. You are referencing the comencement to the media, see apple and learn about the new devices we have in store. Could i add to that . It just feels like every year we treat this event as the super bowl of tech. Releases like samsung their phones with a lot of the same features with a lot less fanfare. Yes, it is september 12 and it is at apples new campus in the 10th anniversary of the iphone. This is an important phone but it does have a minority market share. I think sometimes we get overheated with the hype around apples products which are in effect press conferences. Caroline who would have thought it . We have to throw it out to some of the other competitors as they build up their events. I want to take it to another key company you have written a book on as well. It is amazon. They were all over the press this week. Finally, they have their grips on whole foods. They are slashing prices. Avocados are coming straight down. They did the first task. All eyes were on whole foods. They cut prices on visible items. In the public perception, they attacked headon the idea whole foods was exorbitantly expensive. It still is when you compare the products to supermarkets like walmart and kroger. All the hard work remains. This is amazons largest acquisition ever. It has not been a particularly good acquirer. We have to see how what prime membership looks like. Can they do things at the point of sale, into this technologies that make check out at whole food less arduous . Can they put whole foods in the amazon supply chain . We think of amazon as a leader in the grocery category, i cannot say this enough. Walmart is way ahead. It is much easier. Those are different customer sets. With amazon has its work cut out for it. My conversation earlier with brad stone and Eric Newcomer. Hundreds of Business Leaders across the United States are urging President Trump to keep the dreamers program. This prevents the deportation of young people brought to the country illegally. Those who signed a letter saying dreamers are vital to the future of their companies in the country. Trump will make his final decision on tuesday. I want to bring in tom giles in San Francisco. Remind us why tech leaders such as tim cook and jeff bezos with speak so passionately would speak so passionately about this. There are a lot of reasons why it is important issue to the technology industry. A lot of the guest Tech Companies are run by immigrants or the children of immigrants, so this hits home in a personal way. A lot of these companies employ lots of immigrants. Microsoft said it estimates about 27 of its staff are affected by the Doctor Program daca program. A couple of reasons right off the top. In terms of the Business Case for this, they talk about the fact if this is done away with, this could cost the gdp of the country 460 billion. This would be 26 billion in benefitscare and tax collected from these people. People who come to this country as young children, grow up, become part of the educational program, become part of the workforce, they buy homes and cars, they start businesses. That is the argument of these Business Leaders trying to get the Trump Administration to back down. Caroline 350 of them signing, quite amazing. There is another ability to strike back at donald trump. It seems the voices are growing to show opposition. Is this something you are feeling fervently in San Francisco . Definitely. You saw more and more people. Intel was one of the earliest immune in the most recent wave to jump off one of the councils. Both were disbanded. America isrporate losing patience with donald trump or his policies in particular. They are more willing to be vocal about it. The question is, do they have less leverage given they are not on the councils . They do not have that proverbial seat at the table you keep hearing about. Caroline trump to respond tuesday, we understand. That is right. This is an administration that has gone backandforth about where he stands on the dreamers. Early on, there was criticism during the campaign. Stancethere was a softer. More recently, there is speculation it may be done away with. Executives from microsoft have made a direct appeal to the white house. We are burning the phone lines to find out who else is doing what to keep this from happening. And if it does happen, what happens then . Can you imagine cameras in the Engineering Department of microsoft or google as these people are being hauled off, if it comes to that . I am projecting a very possible scenario. Could you imagine what that looks like for google and for the Trump Administration . Caroline tom giles, great to get your opinion. Apple is shaking up its leadership for siri. The software had will oversee department. Moreis taking on responsibility with the Video Content Team that may form the basis of a new streaming service for the iphone maker. Apple is facing increased composition competition. Coming up, panasonic unveils its first Smart Speaker. Why the Electronics Maker decided to link up with google for its latest device. That is next. This is bloomberg. Caroline the maker of a 400 juicero,to sarah, is closing shop. Salesd it will suspend and search for a buyer for the company. The decision to shut down comes four months after a Bloomberg News report showed the companys juice packets could be squeezed i hand and did not require the machine. The machine previously sold for 700 before they cut the price tag. Firstnic has launched its Smart Speaker with Google Assistant built in. I started by asking why they decided to link up with google on the speaker. In terms of sound and audio, Google Assistant is in our eyes theplatform which opens largest number of audio platform content. We think this is the best platform for audio. As a company, we are open to different platforms depending on the target user and technology. For audio, we think google assist is the best. Caroline what about the competition . Many could buy the google home speaker itself. Why do you think they will go to word and a sonic for the actual hardware . Toward panasonic for the actual hardware . We are strong in terms of Audio Technology quality. For this speaker, we asked our design thisrs to speaker having in mind the best sound quality as well as the without anynterface manual action. It can be very useful for many customers. Caroline how important do you think this product will be toward revenue . Be forortant will b it revenue for panasonic in general . We have a wide range of projects in our portfolio. This product is a new direction for the future. I think we can address a wide range of customers from young adults or even blind customers which cannot sometimes control the equipment. Voiceontrol or command or voice recognition, this is an interesting new field to offer new services. Caroline talking about new fields, you have been pushing into Battery Technology significantly, particularly bringing. Into the home that into the home. How important is this becoming to your overall Business Model as well . The storage Battery Technology is one of our core categories. There is huge reductionn emission and pollution controlling global warming. The response to those challenges is moving toward electrification of society. One Interesting Development is consumption where at home you produce energy, and then you store your energy on two batteries on two batteries and reuse this energy during the evening or the nighttime. It brings a lot of benefit in consumptiont for but also avoiding pollution. Caroline talk to us about europe. You partnered on a factory in reno, in america. Will we see some sort of get a factory giga factory being built in your territory . Being main investment forecast in the u. S. , china, and japan. In u. S. , with tesla. In china, with other partners. Discussing with Car Manufacturers for future development in europe. I cannot disclose any outcome knowing it will not be a shortterm issue. Caroline that was panasonic laurent abadie. Coming up, we look at a company that may have just passed a valuation of 1 billion. That is next. This is bloomberg. Caroline hong kong officially has its first unicorn. The merger is like a blend between uber and uhaul. Alibabarging with the backed freight business. Earlier about what makes this company so valuable. We have a lot of pieces in china. We have a lot of synergy. It would reach more than one million drivers in china to share our customer database and they share their base with us so we can share one Gigantic Network in china. That is where we have a lot of synergy. Did the company raise new funds on this merger . We are working on that now and very excited because you really see a company that has Southeast Asia grow really fast. Have you gotten any kind of funding from vcs . How much are they putting in . How much has the Company Raised in total . Up from a company supported by alibaba is a major shareholder. Gogovan raised several founds rounds of funding. Amount, of the total they raised over 300 million in 2015. For us, a little less than 15 million before. Fill us in on a few basics about the two companies. You are similar in what you do. How did you get involved in this start up . Much ofa sense of how china, how much of the business you have. How i got involved in the jobt up, i could not get a after graduating from berkeley. I moved to hong kong. It ended up successful in hong kong and then we expanded in Southeast Asia. In china, we grow gradually over time. By last year, we were working with 58 on collaboration. We found there is an opportunity to work much closer and share a huge database instead of building our own. Are enjoying the sharing economy and efficiency. That is how we got to where we are today. C. E. O. Andhe gogovan cofounder. That is it for bloomberg technology. Have a great weekend freight 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. Announcer from our studios in new york city, this is charlie rose. Charlie welcome to the program. It is the end of summer and as we prepare for the next season , we bring you some of the they were conversations on charlie rose. Tonight, and evening at the playwright,the director, and actors. And then a look at the musicals with the star and writer. The contemporary audience is