Apple brings home hundreds of billions of dollars in overseas cash to the u. S. We have the stories. Now to our lead. Amazon has narrowed the field 2, its second proposed headquarters in the u. S. 20 cities made the cut. The project is expected to cost 5 billion and create 50,000 jobs. We caught up with our reporter a ceo. Zon along with i wound read too much into the three areas around washington, d. C. , because amazon ,s likely targeting labor pools and those very often cross geographic lines. Even though that could simply be amazon focusing on that general area, but it has to negotiate groupsfferent political because of geographic boundaries. Has been your intel digging into the tech hubs in the country. What did you find . We looked at a lot of our data, which we have on almost half a billion people in terms of their skills and capabilities. What you find is that a lot of the bigger cities like new york and los angeles tend to have the most candidates to pull from him about when you look at the list, you have proximity to universities. Proximate toing carnegie mellon. Still looking for if youre looking for Technology Fact if youre looking for technology la talent, that would be a factor. Selina what is the process to narrow it down . What will happen in the next 10, 20, 30 years. Where do people want to live . They will factor in public transportation, cost of living. I think it breaks down to talent. Can they find enough talent in that location . The people want to live there do people want to live there . Whatt kurt selina characteristics do you think amazon is looking for . I think the main thing a size of labor pool and the type of talent. Amazon churns through people. Typically people have three years or so at amazon. If youre talking about 50,000 employees, you have to take into account attrition for that. Toina what will it take attract people to the city they choose and where are they going to come from . Will they be Silicon Valley transplant, organically grown . This is why education and the University System are so important. Livingey look at cost of and their hometown, they love to say they would love to stay if there were enough jobs. Move has their own hometown does not have enough economic opportunities. People move because their hometown does not have enough economic opportunities. They will be able to keep the talent there versus watching the talent leave and go to other places. One other factor is amazons focus on a diverse workforce. If you think about where they might be greater pools of diverse candidates, that might be a factor. Selina amazon has received huge tax breaks to build its delivery and Warehouse Systems across the country. What benefits do expect them to get for this new headquarters . Thef you think about warehouse jobs, those are generally lower skilled and lower paying. It is going to be easier for justifyans trying to even better deals. This is huge. 50,000 jobs, total compensation including benefits and the 100,000 range. These are a big economic impact. Whatever you saw for the warehouse is, you can expect to see that and more so for the headquarters operation, which is trained professionals earning good salaries and buying homes in a good economic homes and a good economic ripple effect. Completelyzon has transformed seattle, brought great economic wealth as well as strains on the infrastructure. What do you think this means for the chosen city . Is huge. K it not only do you have the commitment amazon has made them a 50,000 jobs, but it is the followup effect. Amazon will base their headquarters there. You will bring other companies, other innovation. They may be more appealing now to live there, go to school there. It is huge. This is why have seen so many mayors go to Great Lengths to try to attract amazon. Was a ceo and spencer. Facebook had a lot of thing on capitol hill this past wednesday, but our next guest inks it still has much more to come clean about. If you like bloomberg news, check us out on the radio. This is bloomberg. Selina a story we are watching. R will be game limiting uber will begin limiting the time u. K. Drivers can spend on the road. It will require drivers to take a six hour break if they worked for 10 consecutive hours. To enforce this compliance, workers will be prevented from logging into the app during rest key. During rest periods. Wall street had been expecting a drop, but the companys guidance is worse than what analysts were anticipating. Representatives from facebook, youtube, and twitter were on capitol hill this week, but this time to testify about how they are fighting online extremism. They appeared along with a former fbi agent before the Senate Commerce committee, and they were pressed again on a lot of the same topics that came up during last years hearings on russian interference in the u. S. President ial election, but perhaps the most dire warning came from a senator from montana. This is a really important issue. All of the questions that were asked before, but our democracy is at risk. We have got to figure out how to get this done and get it done right and get it done quickly. We may not have a democracy to have you guys up to hear you are. Facebookn response, touted the media giants efforts. 7500 now have more than people who are working to review terror content and other potential violations. Who are180 people focused specifically on countering terrorism. Facebooks efforts against all my next Reason Online extremism arent the only things the company is having to defend lately. The very nature of the company is being questioned. They have unleashed pandoras box. They have 5 million advertisers cycling through the Network Every single day. There is no way to check how the to eachers get matched individual user. There is billions of channel on the new tv and there is no way to be accountable to all of that complexity. The have unleashed this civilization scale mind control machine. People use facebook. That is more than the followers of christianity. These products have daily influence over that many people. It is massive. What do you think of the changes facebook recently announced . It is a step in the right direction. Mark zuckerberg titled his post is we are embracing time well spent as the future of the direction of the company. Came from myself and my colleague. It is great they are embracing the concept, but the challenge is it goes against the advertisingbased Business Model. You cant ask somebody whos entire stock price is codependent on telling wall street that we have this many units of people day. It is simple multiplication. If they are going to say we are going to cut down on how much time people spend, they can do a tiny bit, but not that much. Are they willing to example willing to examine the Business Model . Emily you called facebook a living, breathing crime scene for what happened in the election. What deeming . What do you mean . No one actually has access to what happened in the election. Only facebook has that data. Can we trust facebook with telling us the truth . If you look back at what they yearsaid since literally a ago when Mark Zuckerberg said its a crazy idea that fake news had any impact on the election and then continuing to withhold and delay and differ the release of information. Ads, it was 100,000 in then a lot of researchers did lots of background research, finding that the Russia Campaign people,ed 150 million and facebook did not admit that until the day of november until the day of the november 1 hearing. Not earned our trust. In that way, its a living, breathing, crime scene. Youyou first starting first started drawing attention to this when you were at google. What were you raising alarm bells about and what was the response . I what i said in 2013 was, was a product manager feeling frustrated. I didnt think we were taking our responsibility seriously. I made a presentation that said never before in history have 50 engineers 20 to 30 years old living in San Francisco influenced what one billion people are thinking and doing with their time and their and we have enabled this channel that is exploiting peoples cognitive biases. We are exporting peoples psychology. We at google and other Large Technology companies have a moral responsibility in addressing this problem. The presentation with viral. It spread to 20,000 people. It became the number one mean in the internal culture tracking system. I ended up working on this topic ever since 2013. This was way before fake news and the election and everything else. It was an awareness that these Technology Companies have a larger influence on culture, elections, Childrens Development and M Development that almost any other actor. How did larry respond . Across the company, there is a real seriousness and taking to heart the message. Google is really an ethical country ethical company. Advertisingbased Business Model means all of these attentionbased companies, youtube, snapchat, twitter, facebook them are all in the business of capturing peoples attention. Is how do we get billions of hours . Emily did he share your views or sympathize with them . I dont sit i dont recall specifically. The conversation mike to get avoided, because it is a comparable to look at. The conversation gets avoided, because it is uncomfortable to look at. People want to know, how much time are people spending on the web versus in an app . As soon as you measure it, they try to maximize how much time they are spending. What do we actually care about . Should these products be designed for addiction, which is what they are designed for now . It has Health Consequences for children. Emily what are those confidences . What are those consequences . There isnt a lot of research on how tech impacts children. There is a great article that got a lot of traction. Of thes about many cultural and social impacts on how addiction to smartphones have changed our relationship, changed childrens relationship and childrens dynamics. People are more isolated, more depressed. Snapchat puts the number of days in a row that you sent a message as a kid to all of your friends. The number is a manipulative design technique to keep kids on the hook, to keep the ball getting tossed backandforth everyday. If they dont, they lose the number. Kids start defining the currency of their friendship based on whether they are sending this empty message backandforth. Snapchat, that is the number one way for teenagers in the United States to communicate. You have teenagers out there feeling empty messages back and forth. Is this designed to help us or addict us . Emily you mentioned the article in the atlantic. There really was no stand taken. It is fairly neutral. In part, i think, because we dont have a lot of the answers. Think what we can know is the motivations. If you look at what are thousands of engineers at facebook go to work to do everyday . How can we strengthen the Public Square . No. Thousands of people go to work to drive up one number, which is how much our people engaging with an increasing the time they spend on these services. I want to live in a world where the Tech Industry is actually about helping humanity. There is a lot of ways they can do that. We started this nonprofit that is about changing and realigning technology with human values and what technology is supposed to be for. Why would we not have it that way . Emily have you heard from facebook, mark, cheryl, or google . Have had lots of conversations. These people in the industry are my friends. Admitis a reluctance to the extent and scope of the problem and that the Business Model is the problem. There is a lot of good intentions, but until we get clear that the Business Model of advertising is fundamentally misaligned with democracy, if the Business Model, i have to capture your attention, that means it is better for me to give you things to agree with what you are thinking than show you things that you disagree. The subscription model for facebook eliminates these conflicts . It changes who the customer is. What about the people who cant afford the subscription . They will say, do you want to introduce inequality in the system to where only some people can afford to pay . The advertising Business Model has indebted us into we have to ask, how much do those actually cost us . How much does it cost us in terms of extra data plan usage . Is a free Business Model really free when you add up the costs . Download isstuff we probably adds. If you cut that out, we would save a lot of money as consumers. We have to figure out, what are we willing to pay for . Selina that was tristan harris. Cryptocurrency crutch. 10,000. Alls below all episodes of Bloomberg Technology are Live Streaming on twitter. Check us out. This is bloomberg. Bitcoin continued its tumble at the start of the year, falling below 10,000 this week after hitting a record high a month ago. The selloff brings more trauma could digital coin market that has lost more than 300 billion in value and just four days. That pushfter a rally to bitcoin higher by 1400 last year. Aily chang caught up with partner at Blockchain Capital to discuss. Differents a couple ways to frame this. It is up 1000 over the past year. When we talk about a correction, all we have done is gone back to the alltime highs we set six weeks ago. It hasnt been much of a correction yet. What do to take a look at our chart. I want you to take a look at our chart, which shows our perspective on bitcoin. You see the runup. You also see the fall. Where do you think this is going . Is this reality . There is two different sides to the story. There is the bitcoin side. If we think about what is going on in the market, it makes sense in the context of there was a lot of activity leading up to the launch of these derivatives and futures products that to the institutionalization of bitcoin. Some of those speculators that piled in beforehand exited their positions, driving price lower. Some people were expecting these institutions to enter the market. Movingity, institutions years, not weeks or days. I still think that story will materialize, but it might take a couple months. Emily do you think we are in a bitcoin bubble or a bitcoin bubble is popping right now . I dont think we are in a bitcoin bubble over the next three years. If price goes lower, we will call it a bubble. It higher and we see three years from now, we would say it isnt much of a bubble. Emily how is this impacting the landscape . What is coming across your desk . Is it changing your level of enthusiasm . We are a venture firm. It is not affecting us a lot. We can be patient. We had taken money off the table and we are holding dry powder. , we canarket goes down buy back into the positions we like and cheaper prices. We will do that when the time is right. Emily what kind of positions do you like right now . I like bitcoin. It is the most resilient of the cryptocurrencies out there. It doesnt rotate all the way back. A lot of it stays trapped in the ecosystem. While most investors consider it to be far out in the risk spectrum, within the crypto community, this is viewed as the safe haven. Emily what about the smaller assets . What is the next big going . Of the assets could have a lot farther to go down. How do we explain those kind of valuations and price moves . Emily you cant. I think we can. Investing has been romanticized a lot over the last couple decades. As another that is an opportunity not a lot of investors have had access to. I ceos have created an opportunity for Retail Investors to participate. How do they react . They were like kids in a canister. A lot of those people are learning the hard lesson that with first aid investing, failure rates are high. Emily are you waking up every morning, checking the price . Volatile . It is. We are watching it. We are not so emotionally tied to it, because we are longterm investors. Emily this is a big move in a matter of weeks. Emily this is a big move in a matter of weeks. It is. A lot of people rushed in over the past three months, because they thought there was easy money in this market, free money. They underestimated the risk involved. This is a healthy reminder about the level of risk involved in these markets. Selina that was spencer bogart. Coming up, apple plans to bring back millions. The details on the repatriated cash, up next. Plus, a new report describes hazardous working conditions at an apple supplier in china. This is bloomberg. 1 welcome back to the best of Bloomberg Technology selina welcome back to the best of Bloomberg Technology. Apple will return hundreds of billions of dollars in overseas cash to the u. S. In a statement, because the company said it will pay repatriation tax. Apple plans on investing in tens of billions. It will give its employees a 2500 dollars bonus after the new tax law. Emily chang caught up with alex webb. A new campus will be for support. They already have one in austin. How many jobs might that create . It would create 3000 jobs. That is good news from a political perspective, but given they have 84,000 already, it is a big bum. That is over five years. Emily what else does this mean . If you look at the numbers, the big number they want everybody to talk about is they will spend 350 billion dollars in the u. S. Over the next five years. They were going to spend that much already. Is 30 billion spent in the u. S. They still have a huge pile of cash, and that is what shareholders will be excited about in terms of buybacks and dividends. Emily what happens to the rest of that cash that remains overseas . Buybacks, shareholder returns, m a, and repayment of debt. They have over 100 billion in debt. I think the expectation is a lot of this money goes to shareholders. Emily what is the m a strategy . Make moves inhem music streaming. We think they are leaning towards making more acquisitions. If so, what kind . I did a p