The next half hour i made a whiny political scandal and the Approval Rating and she has been the hues of peddling influence and a loving of business ally into business analytes. Business failures well address it. Global news 24 hours a day powered by 120 countries. His is bloomberg. E have afternoon training a quarter of 1 as well. Bloomberg. You are watching bloomberg technology. Its get a check on bloomberg first were news. Donald trump met with david betray us. His name has been floated as an alternative terse for the position on the wake up ask about mittcern romney. He spoke briefly with reporters and the decision by the next president is very much in the air. Lost us other on the about mitt role and show the variety of challenges and the opportunities as well so it was a good conversation. Trump in michigan by fewer than 11,000 votes. Nearly three weeks after the election and the percentage point margin was the closest president ial race in michigan and more than 75 years. And thousands of cubans lined up near havana to mark the start of the week Long Services paying homage to former president fidel castro. The white house says president obama and Vice President joe biden will not attend the funeral. Powered by journalists in more than 100 countries, i am courtney collins. This is bloomberg. Emily i am emily chang, and this is bloomberg technology. Cyber monday. Threatening the oneday shopping sprees 10year reign, and donald trump refuses to quit tweeting, and female coders. Even though there is unprecedented growth, there is still not enough to fill jobs, and sounding the alarm under president elect trump, but first, to our lead. Cyber monday, Online Shopping up, but the idea of a oneday Online Shopping extravaganza is fading, because more u. S. Consumers are choosing to skip the doorbusters and shop anywhere they want, but this was the first day of retail history with more than 1 billion in revenue, a 33 jump from the year before. That has led some to say that this was the moment when shopping on a smart phone officially went mainstream. Our bloomberg contributing editor and a director of research, john. John, i will start with you. John, do you think cyber monday and black friday are already things of the past, and if so, why . John no. There is still value. I run the Internet Research group, and you see amazon has been pretty focused on they are calling it like the fiveday period of kind of black friday through cyber monday, and they get a lot of traffic, and obviously a lot of sales. Last cyber monday, they sold over 53 million items. They are running black friday promotions for 33 days at amazon, december 22, so i kind of agree that, yes, to a degree, it will be way more spread out over time. Emily david, i love my shopping. We know that more americans actually shopped over the weekend but, in fact, spent less. What do you think the implications of that are, and do you think it is that sales are just so steep now . David i think it is funny that black friday lasts 33 days. Black friday, you cannot fight the tide. Convenience, pricing, selection, free delivery. Online is just a machine that is Getting Better and better oiled. There are those coming up with interesting, creative ways, new kinds of products and services. There is not really a good way that the offline brick and mortar world can fight back longterm. I do not think that means that goes away, but we are seeing a fundamental shift towards online and convenient. Whether the overall sales are going to be affected by that, i think people will spend more when it is easier, so longterm, i think it is good for the economy. Emily amazon is growing at a simply unprecedented rate. How did amazon versus walmart do, in particular, with black friday cyber monday . John they are expecting much better growth of this year versus last year. 18 fulfillment centers. Overall, they are adding 28 this year, versus 14 last year, and they announced on the thirdquarter call that they are increasing their footprint by 30 yearoveryear. We actually estimate that revenue will accelerate. There ecommerce revenue, and we have got a lot of proprietary data, and we have noticed with verticals, with consumables and groceries, accelerating purchaser growth. They are growing in huge verticals that are not core, like media and electronics. Emilyly come on out to with this kind of growth, where are the chinks in the armor . The content is amazing, and as john was saying earlier, building a moat around prime to keep people from leaving it, and forgive me for quoting you, john, but churn is amazingly low on amazon prime. To me, they are profitable in the u. S. , apparently, but they are spending so much money to expand globally at amazon, you wonder at what point will they have to sort of slow down the growth and really make an ongoing, profitable business . This is a company that loves to grow and does it as well as any company we have ever seen. Emily john, we had another piece out today about amazon taking a harder view on bad reviews and fake products. John we did something with my retail colleagues, and we were sitting there for hours, listening to the focus groups, and there was some concern about fake products, not only from thirdparty sellers. Like david said, and like we have written about in the last years, they are on a march to gain share and be the biggest retailer in the world, so they will get this cleaned up, and they need to. Even in the focus group, some of the key reasons they rely on amazon is customer reviews, because you cannot try the clothing on and things like that. It is important. Because, ultimately, it is all a trust factor with their customers, and they need their customers to trust them, though i am sure they will be fine. Emily and, john, what are the trends you are expecting with amazon and other retailers, deals, etc. . John amazon, the issued a press release days ago. On their own electronic devices, 15 to 30 . Emily now to a story we are watching, passengers treated to a free ride all data encrypted. The hackers demanded roughly 70,000 worth of bitcoin, and the hacker has threatened to release stolen information if the agency failed to fix its vulnerabilities and pay the ransom. And holiday shopping. We saw a spike in Online Shopping, but the amount the customers shelled out actually dropped. Consumers spent about 10 less over the weekend versus a year ago. Wayfair is the Largest Online retailer for furnishings, and the ceo, niraj shah, talked about whether it is more important to focus on the margins or to keep customers coming back. 10 less on average so your ago. Do we run a little thinner, there sure but the margins are quite good while that is a great weekend for review business. Ishow good of a barometer wayfarer and what is a telling you about how americans are spending . Timesine, it is five better than that so because we had been running 30 times the growth rate of the total industry, and is hard for us to read the consumer. We were a little nervous based on the other things we were hearing from other retailers, and they may be shifting more online. What are your thoughts on president elect donald trump and mckenna trade and arrangements he is making . Brand, at wayfair, we do not really take any critical stances because we service everyone, but whether there are import duties, there have been many. The vast amount of decor is imported into the united states, and it is not just us but all of our competitors that are importing it, as well. We try to source as much in america that we can, made in america, but i think it ends up being great for america that we pursue it will be fine for wayfair, we can best fit our customer. Anchor saying that now is the time to pause between now and the inauguration to see if there is a new plan or tax cuts . Niraj we have been growing. Last year, we did over 2 billion. This year, we will likely do over 3 billion. Things our customer will benefit from, these are things on the logistics side and the merchandise side, we are seeing gains. Investing now. Reporter congratulations, and i know you are hiring a lot for the holidays. Would immigration or some other change in policy or a rollback of some of the Affordable Care policies, would that impact your business . Niraj there is no doubt that there are some policies that would affect our business, but we are very progressive. We were offering things well before the Affordable Care act, so we do not wait for the legislation in order to take care of our folks. Know you were hauling a lot for the holidays that would immigration clampdown or some other kind changes policies or the rollback of some of the Affordable Care act policies with that impact your business . We try to be very progressive. We are also learning the Employee Base mobile or the employee care act so it only are legislation to take your room folks to think a lot of what may change will not affect us at all. When you look at the opportunity to expand internationally, i know that his role, what is the greatest opportunity . And canada the u. S. And the other market is europe and we are specifically in the u. S. And germany and these of the largest markets in the world. Half. Ver the reporter niraj, i know you are happy to speak to the people, and i was communicating with a researcher earlier today who said he still does not believe this Business Model because it is not profitable and that at some point, you will have to raise cash. If you look at the interest in wayfair, it has been lower, but it has risen. What do you say to shortsellers right now . At some point, you will have to raise capital because waivers lower than it has been but risen over the last year. The when we focus on the business our view is to look at the Long Term Care we were profitable for years, and that is one reason why my cofounder and i own so much. Most of the shortsellers have not done much, and these are folks who wanted to short google and it became public and to short netflix when it became public. The fact that there is sort of a debate about whether or not wayfair is going to be successful, that will be true anytime you have a disruptive business. Think about the debate around amazon years ago. You are welcome to short our stock, but we are going to build a great business, and we think there will be a day when does shortsellers think it is time to buy our stock. Reporter do you need to raise money in the next three to six months . Niraj we do not need to raise money. I think that is something that the shortsellers say to create traction. Emily that is the wayfair ceo and cofounder, niraj shah. Coming up, the most recent donald trump tweet storm and his using the platform. This is bloomberg. Emily president elect trump continues to use twitter to communicate with the electorate, and he made the unproven claim that Hillary Clinton won the popular vote based on voter fraud. He said he would have won if you deduct the millions of people who voted illegally. He also talked about shutting ties with cuba. He said that the cuban people he would terminate the deal. As trump makes the transition to president , it looks like he will not turn over his twitter account to staff. Here is what he had to say. Mr. Trump yesterday, i think, one hundred thousand people, and i am not saying i love it, but it does get the word out. There is nothing you should be ashamed of. Emily so just how should the most powerful person in the world make use of the platform . Jennifer covers donald trump for Bloomberg Politics and joins us on the phone from trump tower, where she has been stinking up potential cabinet people, and david is here. Jennifer, i will start with you. It certainly makes you wonder, what comes next . Jennifer yes, you know, i think what we are seeing right now is that the president elect has not really been very much, but he has not been totally hidden from the American Public because he has been on twitter, voicing views that are clearly coming from him. It doesnt sound like staff neither one of those tweets you read, they do not sound like they had much involvement from staff. About Hillary Clinton having a 2 million vote lead is only because of what he says is voter fraud by undocumented immigrants, and that just fits entirely to his persona of needing always to be the winner what comes next . And to defend himself, but without the pushback from a reporter who could have said, wait, you are saying that there is voter fraud in massive numbers . How is that the case . What evidence do you have . So he put it out there on twitter, and many internationally get up, and they may say in their headlines that it is false and that there is no proof, but it is still out there. Like you said in an interview, there are people who are just getting their information from his twitter feed, so they believe that is correct. Emily a top election official in california responded to the tweets about voter fraud, calling those allegations absurd and also saying that those reckless tweets are unbecoming of a president. David, what could the impact of the most powerful person in the world be, being so direct and unpredictable, when he is actually in office . David well, first of all, i think the idea, in theory, of the president tweeting to the public could be a good thing, like the fireside talks, but as jennifer points out, if he is buying fake news stories and repeating their assertions as if it is fact and not putting himself in a position where he can be challenged or corrected, that is disturbing and unprecedented, as so many things emily a top election official with donald trump are. I think it is important to separate the use by twitter by trump and the way twitter is being used. We have had leaders who do not understand technology, and yet, here is a leader who at least does. Emily others said that twitter should have kicked donald trump off because some of his tweets could have been called hateful or offensive, and that is exactly what twitter has been trying to crack down on. Is there any concern in the circle of people close to trump about what happens when he is in the oval office . Jennifer yes, i think this is one of the challenges of the people around the resident elect. Some of them are very much of the let trump be trump, and there are others who want him to be a more cautious politician, and that once he becomes president , more so than president elect, everything he says in Public Domain will be parsed carefully by the voters, by foreign allies and foes and that that could be a risky thing if it is totally unfiltered. Emily jennifer epstein, staking out trump tower, and david, you are sticking with me. Next, girls who code. Seeing is believing, and thats why were opening more Xfinity Stores closer to you. Visit us today and learn how to get the most out of all your services, like xfinity x1. Well put the power in your hands, so you can see how x1 is changing the way you experience tv with features like voice remote, making it easier and more fun than ever. Theres more in store than you imagine. Visit an xfinity store today and see for yourself. Xfinity, the future of awesome. Speed always wins. Especially in my business. With slow internet from the phone company, you cant keep up. Youre stuck, watching spinning wheels and progress bars until someone else scoops your story. Switch to comcast business. With highspeed internet up to 10 gigabits per second. You wouldnt pick a slow race car. Then why settle for slow internet . Comcast business. Built for speed. Built for business. Australias competition regulators as it will refuse applications from four banks collectively with apple over axis of over the platform. To act as a cartel india shooters and signed to a specific and dan. T crossing bloomberg addressing the nations lives which was announced over one hour ago. This gimmick comes amid the political scandal with the Approval Ratings at rockbottom percent. Allowing a longtime friend access to government and to eight ons said friday she is apologizing for this camera. You can see the live pictures addressing south korea over the scandal. The south korean president has not beenegy enough to address public anger. How she got into this mess. Allegations swirling around relationship with her friend who the allegations had opened fluence through their relationship. She was allowed to interfere into Government Affairs and one of the eight passed on confidential information. She was arrested on suspicion of fraud over the allegations that to pressure south korean corporations that she runs. It has been expanded to look at her and her eight and executives and relationships with biggest corporate name. Were looking at samsung and other. Questions in relation to this investigation and the of the merger. Too, the donations foundations allegedly controlled by them. We are hearing from the president who has been saying 18 years the public has been pressed. She is in the middle of the fiveyear term until february 2018. She has dealt with personal interest in and says she will address the scandal. Whatre getting the gist of is dealing with the nation. April rating just 4 as of last week. Relationship with her0 among t. Over one month, demanding procedures and st. Lucie colluded with grades. This is the third time for allowing them to interview with Government Affairs but she did acknowledge she consulted with jeff on documents but columbia is not helping her game anymore is worth as we go on. Addressing the nation and saying she will allow parliament to decide the remainder of her term. Inis not quite a resignation a longerterm context but we are details. Ut the this going further than the policies she has given given it is not appease the anger. We have had hundreds of thousands of organizers taking to the streets chanting slogans and expressing their discontent and anger over this entire affair. Factions moving against there. It would be the backing of two in adobe the assembly. Undred 80 days after any appeasement would trigger a president ial election. Give us background about watch she is not popular. There was a disaster where many people died,. Many nations around the world. Time details. N her but she was unable to move away from. Questions about where she was several hours. Her office says was giving orders and inquiries about what was going on. Because shoes on appearing in the public at the time, people have questions, perhaps she was recently else. All kinds of rumors surfaced about what she was doing. Critics are saying maybe she was asleep, maybe she was undergoing treatment. Some. S undergoing given the international sadness and rumors and rate in lightng of this current process. The south korean president speaking and the takeaways she allowed element to decide on term and asked them to decide on the power, transition and the power it will take. Essentially, south korea resident will resign according to a plan set by parliament. We will see how it is reacted to. It is extraordinary, really a race in the games that we have the president and dress. We are going to designer eight. That wase big fight trending in negative territory. It is fairly flat on the overall cost. The upper judiciary is the moment. It is what will occur. Seeing the one and costly effect doing a little bit of move. You are singing bonds rising in korea. The yields falling by four basis points. Compared to the other bonds of the region are you receiving bonds rising. Interesting sign in terms of what indexes are feeling in terms of the future of their country. We havent singing korean they wereox medicare oversold that you are seeing the likelihood of them killing with more certainty with regard to the presidency in korea that there could be more trajectory and we alsotourism had retail Sales Numbers coming through. Samsung electronics also in front plan to boost sure valley of the earlier goals. Still seeing Good Movement in china. The nikkei is being impacted by marianne. Heidi thank you. To recap, the south korean prison was directing the nation and sent to resign. Again, apologizing. Want to come. This is bloomberg. Emily turning to samsung, still reeling after the note 7 battery crisis that will cost the company over 6 billion. The company has seen two raids on its offices as part of a scandal involving the president. Our managing editor joining us from tokyo. Peter, i will start with you. New headlines from samsung about what it is planning, reviewing the possibility of creating a Holding Company, planning to raise the 2016 dividend. Talk to us about the highlight. The headlines are just crossing the wire right now. The big news out of this is that samsung has decided is going to return more cash to shareholders, specifically through dividends and share buybacks. It has set in the past it wants to return 30 50 of its Free Cash Flow to shareholders. The amount of cash it has on hand has increased so they will go to the top end of the range. Is it their dividends are buybacks. It will begin by increasing the dividend for 2017 by 36 . It will move from a twice a year dividend to a four times a year dividend. In addition, by next year they will nominate an independent director with Global Experience to their board and they will look at structural changes including a split into a Holding Company and an operating company. Emily david, you believe that samsung governance structure is archaic and cannot survive in this day and age. David thank you for characterizing my views. I am amazed that samsung has done as well as it has, a secretive, family control company thats caught up with all the relatively questionable governance issues that korean business in general suffers from, and they are now hit by the double whammy of having a disastrous Product Development that will lose them at least 6 billion this year, plus the environment in korea where the relationship between government and business is highly suspect because of this extreme Corruption Scandal that is happening with the president and involves samsung among other companies. I think they have to go a lot further than what the new news suggests they might be. One outside director is not enough. As elliott has proposed, they need to go public in the u. S. To have the transparency that comes with the kind of companies they are competing with, which is google and apple in Companies Like that. That is why the main reasons they had this big problem with the note seven. It was an inexcusable corporate problem to have. Emily peter, would you agree with that, and now that were two months from the recall, do we have a better idea of how big an impact the recall will have on samsung over the holidays and in the longterm future . Peter certainly the note 7 crisis is a big blow to the company and its reputation and it hurts them in the holidays where it felt like they had an opportunity to compete with apple. We talk with samsung shareholders before the news came out, and they were speaking out publicly for some of the changes that elliott was proposing. They agree that Corporate Governance at samsung has not been very strong. There are interwoven holdings of the company and they need more outside directors. One investor was saying he thinks there is a direct connection between corporate governments and the poor performance with the note seven fiasco and getting drawn into the political scandal within south korea also. They want more independent voices on the board and want to open at the company and push for some of these changes. They will be happy with the move to return more cash to shareholders that they would like to see more independent voices on the board. Emily peter, thanks so much. We are talking about strike. They just raised more money, and its cofounders have become irelands youngest billionaires. Joining us is tom metcalf. Tell us about the Ownership Structure they have. The founder and owner holes 29 , which for a unicorn is pretty impressive. With that they both have 14 , a 9 billion dollar company, so they had a pretty good thanksgiving weekend. Emily how does this compare to snapchat and uber . They are raising billions of dollars. Emily is it because they have so much control over the company . All the investors are clamoring to get in. They will take less than lucian. Uber has about 23 and airbnb has 42 , pretty incredible given they praised 1. 5 billion. Emily and what do they intend the money from the latest round of funding to be used for . They are expanding internationally but also building new products. You never know what the funding environment will be like and they have a pretty good deal right now. Take the money while it is out there. Emily thanks for stopping by. I want to thank David Kirkpatrick for sticking with me throughout the show. David, thanks for being here. Tomorrow we will speak to the stripe cfo, an exclusive interview right here on bloomberg television. Also tomorrow, the nasdaq ceo, 6 00 a. M. In new york, 3 00 a. M. In san francisco, on bloomberg surveillance. China is looking to compete with the u. S. And russia in the race to space. We dive into their private space ambitions, next. This is bloomberg. Emily japans obsession with keeping water and maintaining its tech prowess has reached a new level. Panasonic is revealing its new megaphone that can issue commands in chinese, english, and korean. Please form a single line. Emily the device is basically a smartphone paired with a handheld loudspeaker. The company is betting that police and other seeking to control crowds will be eager to buy it. Panasonic is aiming to link it to the cloud in translation service. China is spending billions on its space program, building a rival to the u. S. And russia. Entrepreneurs are investing in the space race. Tom mackenzie has more on the story from shenzhen. Take a listen. Here in a desert closer to kabul in beijing, china space ambitions are taking flight. The one time capsule is called traveler 2, connected to a giant helium balloon. Its designed to climb into space, 20 kilometers above sea level. The Company Behind the project has lofty ambitions. He wants to commercialize mans near space travel by 2020. First they have to test the light system and the lifesupport system. Youve probably heard about the monkeys and dog sent into space. The traveler will be transporting this little guy. The chairman is hailed as chinas elon musk. He wants to make space travel accessible to as many people as possible. He hopes to keep tickets below 100,000 per person. Our goal is to make people go to near space. You can go by rocket or some other technology. Its a crazy process, but we want to develop it so its like taking a space elevator. The ambitions dovetailed with chinas rush to compete with nearby nations. The company aims to build and operate its first space station by 2022. It wants to send an astronaut to the moon by 2025 and land and unmanned vehicle on mars. They sent to astronauts into orbit for chinas Longest Mission yet. Though a private company, it is backed by state money. The final front tier is still dangerous, and a long way off. Half an hour after launching just 12 kilometers above the earth, the systems failed and the mission was aborted. The fate of its crew is sadly unknown. Emily for more on chinas space race, visit bloomberg. Com and check out the full feature story with graphics. Bmw just announce its to spend money on startups to cash in on the changing landscape of the auto industry. The luxury vehicle maker will invest as much as 500 Million Euros over 10 years. The fund started in 2011 and will add Self Driving Technology and expand its reach from the u. S. To europe and asia. Another story we are watching in germany, more than 900,000 customers were kicked off line following a cyber attack that targeted internet routers on by deutsche telekom, according to a government statement out late on monday. It impacted a number of cities including early in, munich, and hamburg. The company is not ruling out the possibility that its routers were tampered with, but said there was no indication that Customer Data was stolen. That does it for this edition of bloomberg technology. Tomorrow, we will talk about the latest in the solar industry. Remember all episodes of bloomberg take our Live Streaming on twitter. That is all for now. This is bloomberg. Anna oil slides. 47 aretreats below barrel. We are live in vienna. From the euphoria fades. Italy concerns rise. Trump euphoria fades. Italy concerns arise. South korean President Park embroiled in az and. She says she will let congress decide her future. He is seeking assurances that eu citizens living in london will not have to leave
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