Harassment claims. First, to our lead, our exclusive interview with tim cook from the Apple Worldwide developers conference. The company set the stage for the hardware and software that will hit the stage in the next couple of months. This year, they introduced a Major Overhaul of the apple watch operating system among other products. The big answer is there product to combat the amazon eccho and google home. We tried to build something that is a breakthrough speaker first. Music is in our dna dating back to itunes and ipod. We wanted something that sounded unbelievable. I think when people listen to it, they will be shocked about the quality of the sound. Of course, it does a variety of other things that are important as well. Emily you are very focused on how this could reimagine music in the home. Is there a lot of other things you can do for it like call for a car or order groceries . There are a lot of things you can do with it. There are a lot of things that siri knows how to do from the phone. So, we will start with a patch of those as you saw in the keynote. Emily lets talk about ecommerce. They are very important to these products. Can you tell us about some of apple aspirations in detail . What i would read into it is that apple is a company concerned about music and wants to deliver a great audio experience in the home. We felt like we reinvented it in the portable player arena, and we feel we can reinvented in the home as well. We know people want a speaker to now do more than that. And, obviously, we want a speaker to do more than that. So, you are combining what has been thought to be too distinctly Different Things from that to be two distinct a Different Things from that. I think people are going to be kind of blown away with the experience. Emily how long have you been working on this . Multiple years. The Underlying Technology in here is something to behold. To get the experience that we wanted at the quality that we wanted apple products, in general, take a number of years to do. Emily you have people out there saying finally. What took so long . For us, it is never about being first to anything. If you think back, we did not have the first mp3 player or smartphone or tablet. There was a tablet shipping a decade before, but very few people used it. Arguably, we ship the first modern smartphone, mp3 player, or tablet. For us, it is not about being first, it is about being the best. We want to give the user an experience that delights them every time. We do not let that impatience result in shipping something that is just not great. Emily it is the 10th anniversary of the iphone, and you have unveiled the new operating system. What is next . I can tell you that ios 11 is unbelievable. There are incredible things in it from peertopeer payments and more. I am incredibly excited about a. R. You saw the demos done today. I think this is profound, and i think we today, as we get this developed and into the hands of developers, we are going to have the largest a. R. Platform in the world. I think we have launched it in a large way to large numbers of people. Im incredibly excited to see what developers will come up with in our a. R. Kit. Emily more of our exclusive interview with tim cook coming up. If you like bloomberg news, check us out on the radio. You can listen to us on the Bloomberg Radio app and in the americas on sirius xm. This is bloomberg. Emily california is the home to tech giants that bring Home Millions in tax revenue and jobs to the state. We spoke with John Mckenzie in beijing. The competitive game is getting more intense. America cannot rest on its laurels. They spend more time try to reduce taxes on the rich instead of generating more investment in both the private and Public Sector. That is kind of where i think washington is going right now. Emily now back to our exclusive interview with apple ceo tim cook. We moved on to politics. He urged the president not to pull out of the paris climate accords, but President Trump decided differently. Tim cook disagrees with him, saying that the Global Warming crisis requires worldwide cooperation. I think he did listen to me before making his decision, but i think he decided wrong. I think it is not in the best interest of the United States what he decided. The way that i look at this thing do you interact with politicians or do you not . On that, my view is, first and foremost, things are about can you help your country . If you can help your country and do that by interacting, then you do it. That country eclipses. Emily what do you think of President Trumps relationship with the Business Community . I would differentiate leading a council and advising in a way that you think can help our country. I think the first one is a judgment call that people make. I did not join a council. It was not a decision i had to make, but i understand both sides of that. I think if it is helping america, that is a requirement as a ceo. You definitely do that. If i get the chance to pitch the Paris Agreement again, then i will do it again, because i think it is very important that we engage to fight, to fight Climate Change on a global basis. This is something that you cannot solve country by country, it requires a global action. Emissions created by one country affect another. It is something we feel very strongly about, and it is something where i want to do everything we can do to show how important it was to stay in the agreements. Unfortunately, he decided something different. Emily why didnt you join a council . Two reasons, one is that my primary job is being the ceo of the company. I spent a bulk of my waking hours doing that, and i do so willingly because i love the company and the people in it. So, traveling back east is not something i look forward to doing except for when i need to. Secondly, i do not find these councils and committees to be generally productive. It was not about not wanting to advise on something where i thought we could help or that we had a point of view that should be heard. I cannot imagine a situation where i would not do the latter, because i think it is in americas best interest to do that. I am first and foremost an american. Emily we then moved on to cybersecurity. U. K. Authorities put more pressure on Tech Companies to prevent their products from being used by violent extremists. Apple has taken a stance on user privately in the past in their standoff against the fbi over the shooting in san bernardino, california. We spoke exclusively with tim cook about what the company is doing to combat Terror Threat while balancing privacy insecurity. These terrorist attacks, first of all, our hearts go out to everyone affected by them. They are horrendous. For us, we have been pretty much in the u. K. For the whole length of time for our company, and it feels like they are a neighbor. We have thousands of employees there. So, our heart goes out. What do we do as far as helping with this . One thing we have done since the beginning of the app store is that we curate the app store. We do not want hate speech on there or these recruiting tools on there. We have been very careful since the beginning about these things being on there. We may make some mistakes, but i do not know of anything getting through in that perspective. We are very vigilant on what happens from that point of view. Also, we have been quite parading with the u. K. Government in not only Law Enforcement matters, but on some of the attacks, and i cannot speak on detail in detail on that, but in cases where we have information and they have gone through the lawful process we do not just give it, but we do it very promptly. I would hope that they would say we have been cooperating well. I think it is some valuable information. I think there is in this understanding about encryption does not mean there is no information. Likely, metadata exists. When you are putting together a profile, metadata is very important. Emily is apple working to make encryption stronger . The reality is that these attacks on people and government these affect your safety and security. It is not just privacy. It is not privacy versus security. It is privacy and security versus security. We are always working to try and stay one step ahead of these hackers who, frankly speaking, have gone from the guy in the basement, a hobbyist, to a sophisticated enterprise. It takes all that we can do to do it, and we do not think our users should have to think through all this stuff. It is not practical for people thomas so we tried to stand up for users and stay one step not practical for people to think about all of this, so we tried to stay one step ahead of these hackers for them. Emily coming up, a surprising change at block. This is bloomberg. Emily now to a bloomberg scoop. The fallout of ubers sexualharassment claims has led to the termination of employees. This investigation is being led by a former u. S. Attorney. These are a variety of discrimination charges. Of those, 20 or more have been fired. Her are more firings that could be there are more firings that could occur. Uber itself has to be very careful about facing further lawsuits from employees if they speak out against them. We have seen a lot of executives leave. Some of them have left statements, but we are still watching. Emily what about the investigation of the former u. S. Attorney generals handling . It is being very tightly held. We expect sometime next week to find out some public version of what they found. Importantly, what he is recommending. There is the fact element where we will find out more about these incidents, that we will also find out holders recommendation on what the company should do. Emily could more firings occurred . It is not being rolled out. I think a lot of people expect top executives to be held accountable explicitly. It will be interesting to see what happens with the holder report. Emily in the meantime, there have been other executives who have left. Yes, the head of finance left. The head of growth left, and there was resignations on a result of the sexualharassment allegations. Emily in the meantime, there have been two, key hires. Both are women. Tell us about them. There is the chief brand manager, and there is going to be the head of strategy. Shes going to come in as the Harvard Business school guru who will come in and give them advice on how the company can turn the corner. Emily the invest conference kicked off in new york. Scarlet fu asked him about one of his big shorts, tesla, and what would stop him from shorting it. I think it would have to be the Company Actually making money from its products. There was also solar city that he bought into, and that worked out better than tesla. This is a company that burns a lot of cash. They have not finished its gigafactory. The batteries are made by panasonic. The model 3 has been losing money for them. They hope to make money by selling a 35,000 car which we think will be a lot more than that. You have the executive partner list, and the only one i have seen longer i think is valiant. People are leaving left, right, and center. They are not waiting around to see the companys future. We will see. The production of the car is supposed to happen in july. I noted with some interest as i got here the opening remarks from mr. Musk. He seems to be trying to position the company is something more than just a car company, but they are a car company. In addition, he is going to have to raise a lot of money. If he is going to be doing 500,000 model 3s and 100,000 of the model s and xs, then he is going to be something on the order of 30 some billion dollar in revenue, and hes going to need about another 10 billion in capital. So, tesla fans should brace themselves as they will likely get a chance to buy more stock in the coming months. Is it something in their story that the model 3 does not live up to the hype . In terms of your thesis becoming validated, would it be more of a sort of investor strike where conditions change in a market downturn . Is the model 3 is not popular, then it is going to hurt. That is the one everyone is waiting for. It is supposed to be for the modern day, middle income person who does not want to or cannot afford the model s or x. At the end of the day, he has to make a car for the masses that is successful. That is what we are going to watch. Emily crypto currencies get a new milestone that would have been unfathomable decades ago. When currency is now up tenfold in a year. Getting that 12 digit threshold is largely due to bitcoin which is the largest digital currency. One company that is involved in this change is backed by vcs like steve ventures. We spoke with the ceo about what he sees as the driving force behind crypto currencies. I think we are seeing Strong Demand across a couple of key markets. We are also seeing levels of macro instability across the world which is driving a lot of growth. I think it would be a mistake on focusing too much on that instead of the huge innovation in the space across a variety of assets. When you say a huge surge of innovation, we going to see some instability . We have seen some plenty of volatility when looking at the prices, is that going to stay . I think it is here to stay, because the price is going to move a lot. Bitcoin is pretty established, and it does trade at a fairly low volatility. The other assets like some of the icos you are seeing from the newer assets, i think those are going to remain very volatile until they mature and build market depth. Can you talk about the trend of icos . Many of these companies are launching their own crypto currencies. What is the trend there that you are seeing at block chain in particular . Advocate is important to think of these as tokens rather than initial coins. They represent some sort of value to these products. I think we are seeing both Tech Companies new Tech Companies but also established companies doing this. You see it across the tech space with both new and established products, and i think that is very interesting. Emily still ahead, another exclusive interview. This time with meg whitman, why she is looking at profit are just to improve in the fourth quarter. A reminder, all episodes of Bloomberg Technology are streaming on twitter. This is bloomberg. Emily welcome back to the best of Bloomberg Technology. I am emily chang. The annual hpe discover conference took place this week, the Company Outline how it will continue to grow and stay competitive in the age of cloud computing. Meg whitman joined us for exclusive interview from the discover conference in las vegas. Meg i think there are two very important messages, first is we believe the world is going to be hybrid. Our objective is to make hybrid i. T. Simple. What to do i mean by that . Applications will be in the cloud and each customer has to find the right mix for them. A lot of customers are rethinking do they want to put as many applications in the cloud as they originally thought because for reasons of price and control, it may be better to keep it on prem. Another big opportunity for customers is the edge, when you think about campus, grant, factory floors. The edge, everything other than your data center, is exploding in terms of the need to collect data, compute it, and store it. Emily there have been questions about margins, why is the environment so difficult now . Meg our margin in enterprise group, which is a major part of the company, was down a little bit in q2. The reason is we had stranded costs from our divestitures, we had done some acquisitions that will initially dilutive, significant commodity cost increases. We anticipate that margin will go back up to historic levels by q4. If we continue to grow our highmargin products, Growth Products like aruba, all flash storage arrays, our new server that is the most secure in the world, you will see nice Financial Performance from us as we finish the year. Emily what is the strategy to get costs down to help with the margin issue . Meg we have to we have a much smaller, much more focused company. I am probably the only ceo in america that enjoys running a Smaller Company rather than a Bigger Company because its so much simpler. We have an overhead cost structure that we have to get down to be in line with the new company we run. We have to reengineer to make things simple. That is going to lead us i think to be able to take up more cost and be even more cost competitive in a very competitive market. Volume servers, very competitive business. We need to have a more costeffective structure there. Emily on that note, when we spoke last year, you said that dell was making a big mistake merging with emc. That said, hpe stock and growth has been under pressure. Has any of that led you to consider if smaller is really smarter . Meg we are proud of our Financial Performance and Stock Performance since the split with hp inc. To hewlettpackard enterprise. If you think of the stock price of the company as a whole, which reached the low of 11. 62, if you add up hp inc. , hewlettpackard, our share of dxe, and our share of the Software Company, that is close between 48 and 50 a share. We have created a lot of shareholder value. Our stock has done really well since we had split off from hp inc. Almost 18 months ago. Emily when it comes to m a, can dell play hardball better because they are private . Meg there are some advantages to being private, but actually because their debt is publicly traded, we have a window into dells financials much in the same way as a financials public company. They dont get the scrutiny we do. We really like our hand. We have no debt on the company, in fact, we have 6 billion in net cash. We have gotten more strategic, more focused. We are smaller, and we are nimbler. We have dry powder to make acquisitions, invest