Transcripts For BLOOMBERG Bloomberg Technology 20170119 : co

He is planning to visit the cia on saturday the day after he is sworn in as president. Global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. Im haidi lun in sydney. Up next is Bloomberg Technology. Caroline im caroline hyde. This is Bloomberg Technology. , thelue out with earnings stock dropped over 19 quarters. We will break down the earnings scorecard. Plus we will hear from a Silicon Valley veteran. Ceo joinsard member us with his outlook on the industry as donald trump takes office. Alibaba goes for gold. How it scored the biggest sponsorship deal in olympic history. But first, to hourly. Shares of ibm lower on the back of the companys fourthquarter earnings. The bloomberg terminal is showing how the trading afterhours is off by more than two percentage points. The Company Announced corley earnings that beat analyst estimates and the fullyear outlook for 2017 was better than forecast. Things like computer hardware and Software Systems have been steadily eroding and investors are waiting for those declines to be offset by growth to newer businesses like Cloud Computing and Artificial Intelligence. Lets bring in our guest, along withon skype cory johnson, right here in the studio. Go through these numbers for us. What a stretch of losses. Ory 20 quarters is hard to do 0. 2 arters ago they had a rise in revenues. This is an incredibly shrinking company. Buybacks,he share they been able to reduce the number of shares but Quarterly Sales are a much more important thing to Pay Attention to. The master plan was to shrink be and moreto profitable sectors like Artificial Intelligence and software. It resulted in not just shrinking revenues but shrinking profits. This is a much smaller business, not just in terms of sales, but in terms of profit. The earningspershare number is important. The gap in the income number is what is important here. A little better on a year on year basis but after so many quarters of shrinkage, its hard to look at. Caroline are there any Silver Linings amidst the clouds for ibm . Im always amazed is a 30 of them watcher at some perspectives on ibm. They differ so often. My perspective is, we see a large portion of the i. T. Market, all of us see cloud market, social, robotics, and becoming year part of every consumer market. ,bm is turning its battleship slowly, yes, which is boring, i suppose. It now has 41 of its revenue squarely in that highgrowth part of the market. Thats the future of industry and consumers. Live years ago it was about 10 15 . I see it as a company that is making a lot of progress. Yes, like most companies they are trying to keep shareholders happy. They are doing a good job of engineering around earnings, but behind that, they are making a lot of investments in terms of acquisitions, new hires of people. , like microsoft, has been going through a major transition to a totally new model and positioning itself for growth. I see good results in those numbers. And growthhnologies in that part of 13 , which is right on the market. Cory i hear that anecdotally from businesses that are using ibm to solve some problems than they are finding valuable solutions there. A glass half empty guy. This has become a has, considerable expense. Look at how much money to have spent on acquisitions. This is quarterly. 5. 4 billion. 2. 6 billion dollars. These are billions and billions of dollars being spent to get this company pointed in a different direction. Look at the numbers again. You have these huge expenditures of aliens and billions of dollars year after year to try to get the minute better position. As the revenues are shrinking and the prophets are shrinking, cash is flying out the door to make these acquisitions and to do share buybacks and it puts them in a precarious situation. Caroline how long do investors need to give ibm therefore . Not until the second half of 2019 do analyst see revenue picking up again. I think it is likely to be before that. When they get to 45 50 of revenue coming from strategic initiatives, the Revenue Growth will be positive. Farnt really see that as out, but to me, the more important question, again, people are looking at the longterm future of ibm. I run out loud research. Ibm is number three in the cloud market. The cloud is the foundation of the entire i. T. Industry. Caroline how do they get to number one . Look at how much money amazon and google and microsoft are spending, it is an expensive business, but it is an investment and leadership position. Cloud revenues by about 60 . Amazon grew theres at the end of Third Quarter by 55 . So amazons bigger in the cloud, but i would say ibms growth, they are definitely in that pack of leadership in the most strategic part of the future of the i. T. Industry. How ourt it more as customers investing in strategic vendor partners . Who are they going to pick . Its not a long list, and ibm is on that list. Cory being number three in technology is almost as bad as being number two in technology. Number technology goes, one can be five or 10 times bigger than number two and number three. Who is number three in search engines, or you name it . Its a tough spot to bn in, and ibm certainly knows that. Frank when it comes to technology, ibm is number one in the a. I. Part of it. They are in the game. To me, a company with that long a history, to be in the game and on the rise, that is a good story. Caroline we love a debate on this program. Frank gens, thank you so much for your time. Than 2 higherre in thursday trading on two stories. First, the u. S. Department officially closed its investigation into tesla accidents last year, one in which the driver was killed while using the autopilot function. They found no indication of a safety problem with the feature. , Morgan Stanley upgraded the shares of tesla and raised its price target. Ceo elon musks new role as Strategic Advisor to president elect donald trump. Uber has agreed to pay 20 million to settle an ftc lawsuit over driver compensation. The suit alleged the company made false and misleading claims that cost drivers millions of dollars. In a gmail statement, uber said its made many improvements over the last year. Up, more moments from the World Economic forum in davos. Michael dell talks about his outlook for trade and jobs under the trump administration. This is bloomberg. Caroline twitter has released thats on the level of diversity among its employees. Saying 30 of those in womenship positions were and 9 were made up of underrepresented minorities, still quite low. Scrutiny toacing increase diversity within its workforce. All this week our colleagues in davos have been bringing in top rate interviews from the World Economic forum, including the dell ceo, michael dell. What we see is a new administration that is talking about growth and talking about infrastructure spending, tax reform, and things like repatriation, things that are pro growth, so we like that. Do have a lot of profits overseas . About half our business is outside the United States. Certainly there are profits in those businesses. We invest 4. 5 billion a year in r d, most of that in the United States, but we will certainly understand what the new rules are and figure out how we continue to grow our business. A better way of phrasing the , if theyis to ask you were to change the tax policy on repatriating these overseas profits, if it were a demented miss amount, or if there were a holloway holiday entirely, how much would you bring back to the u. S. From overseas . Michael dell i think you will see Companies Like ours across all industries bring capital back onto the Balance Sheet of the United States, which is likely to be a good thing, and we are very supportive of that. What donald trump has said about trade, what would have the greatest impact on your business . Again, dell tofrom other things, rewriting the rules of nafta, all of these things. 96 of the worlds population does not live in the United States, so those are all potential customers to us. We deftly want to have access to those markets. We dont know what the rules are going to be, so we will have to wait and see. But generally a pro growth administration is going to be quite positive. Ceos ive spoken to here say they believe there is a real sibility and probability not probability but possibility of a trade war with trying. To what degree does that concern you . Michael dell i think any kind of trade war would be mutual destruction. There may be some resetting of the relationship in whatever form that takes, but that interdependence of economies with respect to supply chain and other aspects is quite high. The u. S. Has had no industrial policy with respect to the feedstock for our industry. While we have some plants in the without the key ingredients, the semiconductors and displays and batteries, which takes a long time and a lot of capital to build those theres a lot to do here. It sounds like youre giving it some thought. Is mentioned manufacturing something in addition to trade, another thing that the incoming president feels very strongly about. You do some manufacturing in the United States. How many people do employ, and could you bring more jobs back to america . Michael dell building a final Assembly Plant in the United States is actually quite easy, but thats not really the point. The point is that without the feedstock industries, the components, it would be uncompetitive. And so we need to have a thoughtful approach to those feedstock industries. Its also true that if you go in modern manufacturing plants, whether its in the United States or anywhere in the world, there are not as many people in those factories because of automation and productivity, which all of our customers are also applying across their businesses. Caroline that was dell chairman and ceo michael dell. Goldman sachs Ceo Lloyd Blankfein also discussed automation and its impact on the global economy. Industry and our every other industry, in the short term, Technology Costs jobs. Value is created across the board. If you have taxis circling idly and then you come up with a method of making it more efficient so they are never idle, they are showing up places always carrying a passenger, so you need fewer circulating, that means there will be fewer circulating there will be fewer jobs. The value of the company that creates that opportunity, that efficiency is coming out of labor and is going over to capital. The investors in the company that make that system are enjoying the benefit of Value Creation thats coming out of having to pay lower cost and fewer jobs. Thats only in the first brush. Servicesthink of new and new things to do in those create more jobs in the future. Caroline coming up, its the biggest deal in olympic history. Alibaba joins the ranks of cocacola and samsung, but at a steep price. This is bloomberg. Atoline the latest selfie has skyrocketed. Its been a hot commodity since 2008 with 6 billion photos created a month. Now it has about 400 already million users outside of china. Rank to 68 on wednesday. Its a one touch shot for putting the finishing touches to your photos. Sticking with china and the olympic games, they just got a new lead sponsor. Alibaba will become one of the top Olympic Partners in 2028. The idea is to help it gain exposure to a global audience and promote its Cloud Computing business am a but it did not come at a cheap rice. The sponsorship is said to be worth 800 million. , whatng this great story did they get for 800 million . It is a steep price and it is unprecedented. Its the biggest one the International Olympic committee has ever been a part of, but its worth more than the monetary price alibaba is going to be paying for it. It puts them in the same tear that they brands like cocacola and samsung are part of. This is important for alibaba to build credibility and to be a Global Online commerce, to be the cloud provider for a really big event on a global stage. So clearly this fits into their Global Expansion strategy. How does it help individual businesses . Jack ma has said over and over they wont have the revenue to come from abroad. Ofy need to combat a lot their credibility issues. Theyve been hit really hard by the counterfeit problem. Trust to Global Consumers that this is a company like cocacola and samsung and mcdonalds that you can trust and give your money to, buy tickets and merchandise from. Its still too early to say what the revenue impact will be, but we can assume they will get some type of percentage cut from the merchandise and down the line it could lead to deeper integration , probably also getting money from the Cloud Services and all the attic commerce from brands that potentially will want to join the platform as a result of this global partnership. Areline the olympics competitive, is it competitive to get these deals with the olympics . The cmo said it is quite competitive and there are a number of contenders that want to work with the ioc. We dont know who the other players were, but i spoke with an analyst who said you can assume their other bigger players like amazon and microsoft. If we look at the three big players, the advantage to alibaba is they also have a Commerce Platform and an local message, but lets not forget the potential political pressures, the will be in22 games beijing and its good for the ioc to have a partner in the home country and be able to promote it throughout asia. Caroline so do we think the fact that its a chinese company, does that play into a political way that jack ma has been trying to talk to donald trump and keep the dialogue open with the rest of the world . At think it is a good sign. Its unrelated to the donald trumpjack ma debate. This has apparently been in the works for a while. Our sources told us that the talks began last year at davos and came full circle this year. It is a great way for alibaba to keep their name in the global sphere and is jack ma said yesterday at davos, he will do anything in his power to prevent global trade war from happening. Caroline thank you very much indeed. Another story we are watching, amazon and apple have scrapped their Exclusivity Deal that required apples eye to store to sell audiobooks only from amazons audible unit. Federal court said it has closed its probe into the deal. Coming up, he has one of the in siliconsive cvs valley. We talk about the companys acquisition and the outlook under the trump administration. This is bloomberg. Lets begin with a check of your first word news. The white house says president obamas final call to a foreign leader was to german chancellor angela merkel. Steadyscribed her as a us and most reliable International Party hes had as president. British Prime Minister theresa may look to convince Business Leaders today that the u. K. Remains committed to free trade and globalization. She told an audience davos that davos that the brexit vote was not an attempt to still corporations. Has riventoll in mali to 77 has risen to 77. In tehran, local media is reporting that at least 35 are dead after a highrise building engulfed in flames collapsed. It was once the tallest building in the city. Spend 2. 7 billion to fight pollution this year. The money will be used to clean energywith on the outskirts of the city. Able phaseout 200,000 high pollution vehicles. Global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. Lun, this is bloomberg. Its just past 9 30 friday morning here in sydney. Things shaping up here in asia . Flat at theretty moment, new zealand has been upping running for about 90 minutes. Kind of a flat end to the week. Nikkei futures are mixed and a sx teachers pointing down a little. Its been a fairly lackluster week. One stock weve been watching is santos, 15 Million Barrels of Oil Equivalent output in the Fourth Quarter. Record annual sales of 84. 1 Million Barrels of Oil Equivalent, 2015 guidance between 50 got Million Dollars and 60 million. Proposal toed to a from 2015. Aim 19 people were killed in the disaster, brazils worst. The big one to watch out for, china gdp for the fourth or expected to come in at 6. 7 . Also waiting on Industrial Production and retail sales out of china. More from Bloomberg Technology, next. Caroline this is Bloomberg Technology. Ibm shares lower in extended trading after posting its 19th straight quarter of declining sales. The concerning metric of the Companies Overall health. There were some macro challenges in the quarter in certain countries like brazil, the u. K. , and germany, as well as the impact of a stronger dollar. Caroline he went on to say the company is on track to reach 40 billion in strategic sales by 2018. Appwhile, word processing p, how will the Bloomberg Technology<\/a>. Caroline im caroline hyde. This is Bloomberg Technology<\/a>. , thelue out with earnings stock dropped over 19 quarters. We will break down the earnings scorecard. Plus we will hear from a Silicon Valley<\/a> veteran. Ceo joinsard member us with his outlook on the industry as donald trump takes office. Alibaba goes for gold. How it scored the biggest sponsorship deal in olympic history. But first, to hourly. Shares of ibm lower on the back of the companys fourthquarter earnings. The bloomberg terminal is showing how the trading afterhours is off by more than two percentage points. The Company Announced<\/a> corley earnings that beat analyst estimates and the fullyear outlook for 2017 was better than forecast. Things like computer hardware and Software Systems<\/a> have been steadily eroding and investors are waiting for those declines to be offset by growth to newer businesses like Cloud Computing<\/a> and Artificial Intelligence<\/a>. Lets bring in our guest, along withon skype cory johnson, right here in the studio. Go through these numbers for us. What a stretch of losses. Ory 20 quarters is hard to do 0. 2 arters ago they had a rise in revenues. This is an incredibly shrinking company. Buybacks,he share they been able to reduce the number of shares but Quarterly Sales<\/a> are a much more important thing to Pay Attention<\/a> to. The master plan was to shrink be and moreto profitable sectors like Artificial Intelligence<\/a> and software. It resulted in not just shrinking revenues but shrinking profits. This is a much smaller business, not just in terms of sales, but in terms of profit. The earningspershare number is important. The gap in the income number is what is important here. A little better on a year on year basis but after so many quarters of shrinkage, its hard to look at. Caroline are there any Silver Linings<\/a> amidst the clouds for ibm . Im always amazed is a 30 of them watcher at some perspectives on ibm. They differ so often. My perspective is, we see a large portion of the i. T. Market, all of us see cloud market, social, robotics, and becoming year part of every consumer market. ,bm is turning its battleship slowly, yes, which is boring, i suppose. It now has 41 of its revenue squarely in that highgrowth part of the market. Thats the future of industry and consumers. Live years ago it was about 10 15 . I see it as a company that is making a lot of progress. Yes, like most companies they are trying to keep shareholders happy. They are doing a good job of engineering around earnings, but behind that, they are making a lot of investments in terms of acquisitions, new hires of people. , like microsoft, has been going through a major transition to a totally new model and positioning itself for growth. I see good results in those numbers. And growthhnologies in that part of 13 , which is right on the market. Cory i hear that anecdotally from businesses that are using ibm to solve some problems than they are finding valuable solutions there. A glass half empty guy. This has become a has, considerable expense. Look at how much money to have spent on acquisitions. This is quarterly. 5. 4 billion. 2. 6 billion dollars. These are billions and billions of dollars being spent to get this company pointed in a different direction. Look at the numbers again. You have these huge expenditures of aliens and billions of dollars year after year to try to get the minute better position. As the revenues are shrinking and the prophets are shrinking, cash is flying out the door to make these acquisitions and to do share buybacks and it puts them in a precarious situation. Caroline how long do investors need to give ibm therefore . Not until the second half of 2019 do analyst see revenue picking up again. I think it is likely to be before that. When they get to 45 50 of revenue coming from strategic initiatives, the Revenue Growth<\/a> will be positive. Farnt really see that as out, but to me, the more important question, again, people are looking at the longterm future of ibm. I run out loud research. Ibm is number three in the cloud market. The cloud is the foundation of the entire i. T. Industry. Caroline how do they get to number one . Look at how much money amazon and google and microsoft are spending, it is an expensive business, but it is an investment and leadership position. Cloud revenues by about 60 . Amazon grew theres at the end of Third Quarter<\/a> by 55 . So amazons bigger in the cloud, but i would say ibms growth, they are definitely in that pack of leadership in the most strategic part of the future of the i. T. Industry. How ourt it more as customers investing in strategic vendor partners . Who are they going to pick . Its not a long list, and ibm is on that list. Cory being number three in technology is almost as bad as being number two in technology. Number technology goes, one can be five or 10 times bigger than number two and number three. Who is number three in search engines, or you name it . Its a tough spot to bn in, and ibm certainly knows that. Frank when it comes to technology, ibm is number one in the a. I. Part of it. They are in the game. To me, a company with that long a history, to be in the game and on the rise, that is a good story. Caroline we love a debate on this program. Frank gens, thank you so much for your time. Than 2 higherre in thursday trading on two stories. First, the u. S. Department officially closed its investigation into tesla accidents last year, one in which the driver was killed while using the autopilot function. They found no indication of a safety problem with the feature. , Morgan Stanley<\/a> upgraded the shares of tesla and raised its price target. Ceo elon musks new role as Strategic Advisor<\/a> to president elect donald trump. Uber has agreed to pay 20 million to settle an ftc lawsuit over driver compensation. The suit alleged the company made false and misleading claims that cost drivers millions of dollars. In a gmail statement, uber said its made many improvements over the last year. Up, more moments from the World Economic<\/a> forum in davos. Michael dell talks about his outlook for trade and jobs under the trump administration. This is bloomberg. Caroline twitter has released thats on the level of diversity among its employees. Saying 30 of those in womenship positions were and 9 were made up of underrepresented minorities, still quite low. Scrutiny toacing increase diversity within its workforce. All this week our colleagues in davos have been bringing in top rate interviews from the World Economic<\/a> forum, including the dell ceo, michael dell. What we see is a new administration that is talking about growth and talking about infrastructure spending, tax reform, and things like repatriation, things that are pro growth, so we like that. Do have a lot of profits overseas . About half our business is outside the United States<\/a>. Certainly there are profits in those businesses. We invest 4. 5 billion a year in r d, most of that in the United States<\/a>, but we will certainly understand what the new rules are and figure out how we continue to grow our business. A better way of phrasing the , if theyis to ask you were to change the tax policy on repatriating these overseas profits, if it were a demented miss amount, or if there were a holloway holiday entirely, how much would you bring back to the u. S. From overseas . Michael dell i think you will see Companies Like<\/a> ours across all industries bring capital back onto the Balance Sheet<\/a> of the United States<\/a>, which is likely to be a good thing, and we are very supportive of that. What donald trump has said about trade, what would have the greatest impact on your business . Again, dell tofrom other things, rewriting the rules of nafta, all of these things. 96 of the worlds population does not live in the United States<\/a>, so those are all potential customers to us. We deftly want to have access to those markets. We dont know what the rules are going to be, so we will have to wait and see. But generally a pro growth administration is going to be quite positive. Ceos ive spoken to here say they believe there is a real sibility and probability not probability but possibility of a trade war with trying. To what degree does that concern you . Michael dell i think any kind of trade war would be mutual destruction. There may be some resetting of the relationship in whatever form that takes, but that interdependence of economies with respect to supply chain and other aspects is quite high. The u. S. Has had no industrial policy with respect to the feedstock for our industry. While we have some plants in the without the key ingredients, the semiconductors and displays and batteries, which takes a long time and a lot of capital to build those theres a lot to do here. It sounds like youre giving it some thought. Is mentioned manufacturing something in addition to trade, another thing that the incoming president feels very strongly about. You do some manufacturing in the United States<\/a>. How many people do employ, and could you bring more jobs back to america . Michael dell building a final Assembly Plant<\/a> in the United States<\/a> is actually quite easy, but thats not really the point. The point is that without the feedstock industries, the components, it would be uncompetitive. And so we need to have a thoughtful approach to those feedstock industries. Its also true that if you go in modern manufacturing plants, whether its in the United States<\/a> or anywhere in the world, there are not as many people in those factories because of automation and productivity, which all of our customers are also applying across their businesses. Caroline that was dell chairman and ceo michael dell. Goldman sachs Ceo Lloyd Blankfein<\/a> also discussed automation and its impact on the global economy. Industry and our every other industry, in the short term, Technology Costs<\/a> jobs. Value is created across the board. If you have taxis circling idly and then you come up with a method of making it more efficient so they are never idle, they are showing up places always carrying a passenger, so you need fewer circulating, that means there will be fewer circulating there will be fewer jobs. The value of the company that creates that opportunity, that efficiency is coming out of labor and is going over to capital. The investors in the company that make that system are enjoying the benefit of Value Creation<\/a> thats coming out of having to pay lower cost and fewer jobs. Thats only in the first brush. Servicesthink of new and new things to do in those create more jobs in the future. Caroline coming up, its the biggest deal in olympic history. Alibaba joins the ranks of cocacola and samsung, but at a steep price. This is bloomberg. Atoline the latest selfie has skyrocketed. Its been a hot commodity since 2008 with 6 billion photos created a month. Now it has about 400 already million users outside of china. Rank to 68 on wednesday. Its a one touch shot for putting the finishing touches to your photos. Sticking with china and the olympic games, they just got a new lead sponsor. Alibaba will become one of the top Olympic Partners<\/a> in 2028. The idea is to help it gain exposure to a global audience and promote its Cloud Computing<\/a> business am a but it did not come at a cheap rice. The sponsorship is said to be worth 800 million. , whatng this great story did they get for 800 million . It is a steep price and it is unprecedented. Its the biggest one the International Olympic<\/a> committee has ever been a part of, but its worth more than the monetary price alibaba is going to be paying for it. It puts them in the same tear that they brands like cocacola and samsung are part of. This is important for alibaba to build credibility and to be a Global Online<\/a> commerce, to be the cloud provider for a really big event on a global stage. So clearly this fits into their Global Expansion<\/a> strategy. How does it help individual businesses . Jack ma has said over and over they wont have the revenue to come from abroad. Ofy need to combat a lot their credibility issues. Theyve been hit really hard by the counterfeit problem. Trust to Global Consumers<\/a> that this is a company like cocacola and samsung and mcdonalds that you can trust and give your money to, buy tickets and merchandise from. Its still too early to say what the revenue impact will be, but we can assume they will get some type of percentage cut from the merchandise and down the line it could lead to deeper integration , probably also getting money from the Cloud Services<\/a> and all the attic commerce from brands that potentially will want to join the platform as a result of this global partnership. Areline the olympics competitive, is it competitive to get these deals with the olympics . The cmo said it is quite competitive and there are a number of contenders that want to work with the ioc. We dont know who the other players were, but i spoke with an analyst who said you can assume their other bigger players like amazon and microsoft. If we look at the three big players, the advantage to alibaba is they also have a Commerce Platform<\/a> and an local message, but lets not forget the potential political pressures, the will be in22 games beijing and its good for the ioc to have a partner in the home country and be able to promote it throughout asia. Caroline so do we think the fact that its a chinese company, does that play into a political way that jack ma has been trying to talk to donald trump and keep the dialogue open with the rest of the world . At think it is a good sign. Its unrelated to the donald trumpjack ma debate. This has apparently been in the works for a while. Our sources told us that the talks began last year at davos and came full circle this year. It is a great way for alibaba to keep their name in the global sphere and is jack ma said yesterday at davos, he will do anything in his power to prevent global trade war from happening. Caroline thank you very much indeed. Another story we are watching, amazon and apple have scrapped their Exclusivity Deal<\/a> that required apples eye to store to sell audiobooks only from amazons audible unit. Federal court said it has closed its probe into the deal. Coming up, he has one of the in siliconsive cvs valley. We talk about the companys acquisition and the outlook under the trump administration. This is bloomberg. Lets begin with a check of your first word news. The white house says president obamas final call to a foreign leader was to german chancellor angela merkel. Steadyscribed her as a us and most reliable International Party<\/a> hes had as president. British Prime Minister<\/a> theresa may look to convince Business Leaders<\/a> today that the u. K. Remains committed to free trade and globalization. She told an audience davos that davos that the brexit vote was not an attempt to still corporations. Has riventoll in mali to 77 has risen to 77. In tehran, local media is reporting that at least 35 are dead after a highrise building engulfed in flames collapsed. It was once the tallest building in the city. Spend 2. 7 billion to fight pollution this year. The money will be used to clean energywith on the outskirts of the city. Able phaseout 200,000 high pollution vehicles. Global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. Lun, this is bloomberg. Its just past 9 30 friday morning here in sydney. Things shaping up here in asia . Flat at theretty moment, new zealand has been upping running for about 90 minutes. Kind of a flat end to the week. Nikkei futures are mixed and a sx teachers pointing down a little. Its been a fairly lackluster week. One stock weve been watching is santos, 15 Million Barrels<\/a> of Oil Equivalent<\/a> output in the Fourth Quarter<\/a>. Record annual sales of 84. 1 Million Barrels<\/a> of Oil Equivalent<\/a>, 2015 guidance between 50 got Million Dollars<\/a> and 60 million. Proposal toed to a from 2015. Aim 19 people were killed in the disaster, brazils worst. The big one to watch out for, china gdp for the fourth or expected to come in at 6. 7 . Also waiting on Industrial Production<\/a> and retail sales out of china. More from Bloomberg Technology<\/a>, next. Caroline this is Bloomberg Technology<\/a>. Ibm shares lower in extended trading after posting its 19th straight quarter of declining sales. The concerning metric of the Companies Overall<\/a> health. There were some macro challenges in the quarter in certain countries like brazil, the u. K. , and germany, as well as the impact of a stronger dollar. Caroline he went on to say the company is on track to reach 40 billion in strategic sales by 2018. Appwhile, word processing p, how will the Company August<\/a> on Product Design<\/a> take it to the next level . Discuss it is the ceo of quip . He also sits on the board of twitter. Thanks for joining me today. Tell us what the three musketeers will bring. Bret taylor i worked with all three of these designers at facebook. They design products you have probably used. One of the trends i have always been interested in that really resonated with me, its the influence of Consumer Software<\/a> on enterprise software. It is near and dear to our hearts at salesforce. We looked at how its impacting the Consumer World<\/a> with alexa and siri. Our mission is similar. We want to take the Productivity Software<\/a> and enable companies to move from email and file attachments that weve been living in for the past decades. I love the idea of ringing in people with a Consumer Product<\/a> assignment talent he to see how we can improve our work life. Caroline it such a hot competitive space. The ucs competition and friendly fire and helping push your vision . Who do you really admire . Bret taylor those are great examples. They have a similar mission, can we be productive without email . You probably do not email your spouse anymore, you text. Everyone under the age of 25 probably has four or five messaging apps on their phone. I believe theres a better way of doing things and i really think we are on a Mission Together<\/a> to prove to the world that this is a mainstream trend. We are going to move on from email in the Traditional Office<\/a> to something better. Showk at us is trying to businesses through results that there is a better way of being productive. Do companies such as yours have to be bought up by bigger players that can ease startupsabout new coming in . Bret taylor i dont know if you were here when dream force happened. People are not buying a product, they are entering a partnership. The iphone was invented less than a decade ago. Ai is transforming technology now. Intimidating because every year there is a new technology trend. They view salesforce as a partner to help them strategize. , we are part of the ecosystem that a lot of companies are starting to depend on. People look to salesforce as the leader, and thats helped open the door. There are companies talking to us now that wouldve not talked to us before. We are little premature to say consolidation is happening. We are still in the innovation stage. I dont know if there is one clear winner yet, but im excited to participate in defining what that looks like. Caroline lets talk about unity and variety. The bandrt of bringing back together, as one of our producers said. What do you think about your old life at facebook . Facebook has come up against a wall of criticism surrounding fake news. Are the algorithms to blame . Could the algorithms be better . This is a nuanced problem. I look at things like fate news abuse. You cannot just slap on an algorithm and salt human problems. Fake news is obvious, and then there is really biased news, and where is the line drawn . It is not a black and white line. Indicative of the influence of the special platforms on our lives. If you look at the American Election<\/a> that does happen, it was really defined by twitter and facebook. The companies are just grappling with what that means. , nation can we apply to make sure people are better informed . And how do you adopt the social element of that . It is a social network, there are humans involved. There needs to be accommodation technological changes. Is going to be really complicated because a lot of these things are great areas. It is easy to hold a black and white examples and trivialize what is a very complex problem. We have the administration coming in on friday with the inauguration. Are you Glass Half Full<\/a> or half empty about the new administration . Just trying we are to remain optimistic and focus on the things that are shared, as our policies and priorities of the government. Theres a huge number of federal agencies that want to move off their Legacy Solutions<\/a> to the cloud. That was happening during the during the Obama Administration<\/a> and will happen during trumps. We want to help contribute to making our government more efficient. Caroline its fascinating, the way in which the president elect social media to communicate with the world. Are you optimistic are pessimistic about twitter as a business at the moment . Board,ylor im on the so i am really loyal to it. I really believe, the company has gone through welldocumented struggles in the past. You see the influence its had on culture and our society with the past election. It demonstrates the potential energy that the company has. I think the company is really focused, and being in the place to be uptodate, to see whats going on right now. Twitter is unique in that respect and it is an important tool in our society. Caroline you talk about that focus, and we saw jack dorsey hes tackling abuse, editing, as well as driving conversation. Can he do that while he still has two jobs . Cant speak to the internal management of the company, but what i appreciate about what weve talked about as a company, is focusing on what we do great and what twitter is great at, which is being in the know, being part of the conversation. I think that focus will follow through with a great user experience, which means the business will follow. Caroline youve hired a company because you thought talent was there. Franciscoent in san for companies such as yourself and twitter . Can they get back the level of talent or do they have to start buying other companies again . An engineer oren designer is choosing where to work, there are a few factors, money and stock options, but theres also a mission. How do i derive satisfaction and what i do every day . Salesforce and twitter are very mission trip in companies. I think that is why those types of companies are able to track such high quality employees. Attract such high quality employees. Twitter will be able to endure some hardship and still retain great talent is their mission and product are so important. Caroline its been great having you here. , bretyou for your time taylor, ceo of quip. U. S. Companies and Government Agencies<\/a> suffered a Record Number<\/a> of data breaches in 2016. 1000 attacks,over 40 more than in 2015 and comes despite more aggressive Cyber Security<\/a> spending. Approach 19o billion in 2018. Coming up, we will dig into productivity apps. A ceo joins us next. This is bloomberg. Caroline netflix hitting an alltime high during thursdays trading, rising most since december 6. The company capped his first year as an Online Tv Service<\/a> by setting up a Record Number<\/a> of it customers. It added more than 7 million subscribers in the Fourth Quarter<\/a> and more than 5 million of those were outside the u. S. The newly minted unicorn Video Company<\/a> startup is gaining users. 67 , according to a new report on the identity Cloud Management<\/a> company. Joining us is the ceo, todd mckinnon. In the news . Todd mckinnon the last time slack along with zoom continues to do very well. Another Surprising Growth<\/a> story umbrella,was cisco which is helping customers be more secure in deploying these applications. Caroline some of the old kids on the block are catching up with the new kids. Todd mckinnon there is a lot of growth across the board. Were seeing these new Solutions Like<\/a> skype replacing traditional. Ollaboration tools like yammer the usage of yammer has steadily declined over the last three years and being replaced by more modern alternative. Caroline is microsoft suppressing yammer purposely . Todd mckinnon the number one app is office 365. Microsoft is going to the world and basically saying move your email to the cloud. That is having very interesting thects, not only leading to success of office 365, but the data shows the companies that use office 365 use a constellation of cloud apps around that. Using that bestofbreed is very prevalent. As much as ifnot you had google suite in set of microsoft cloud. Shows ifnnon the data you use google as your email core, youre more likely to use a broader array of cloud applications. There are some things included with office 365 that some Companies Use<\/a> as a default. Googlepanies that use are more bestofbreed. They are used to the innovation google delivers and they want to have the best tools around that, to complement that and make it more innovative and productive for their users. Caroline it seems to be a burgeoning area, the enterprise area of technology. Are you seeing with the likes of cisco, perhaps the older players are playing catchup, or will they be buying up some of these smaller, individual startups . Todd mckinnon everyone realizes the transitions happening in the cloud and how they can transform their organizations in digital companies, how they can build their websites and reach users. It is a tremendous opportunity for every organization to transform themselves into a digital company, reaching new users and grow their market share. They realize Cloud Technology<\/a> is at the core of it. Because it is a huge transition, all of the vendors, whether its new or traditional vendors, they are in the game and being aggressive about trying to provide value to customers. We think it is great, because we think there is room for everyone. People like to use a lot of different services. The days of one salesperson selling you everything you need to run your company are over. Companies and users have choices to use the best solution to drive their organization forward. Caroline and that is where you , concern about all these different vendors and personal applications. This is where you bring security around it. Exactly. Nnon we build the identity cloud. You need a cloud for your identity data. Keep track of all the people that access your technology, whether users, employees, customers. Securelysure you are connecting all those people to the technology. Inause of that, we can see aggregate the trends of who is adopting what in what is taking off in what is waning and how companies can be successful from these technologies. Caroline talking about a lot of unicorns, your Investor Base<\/a> is phenomenal. Are they pushing for an exit . Do you want to ipo or sell your business . Todd mckinnon whatever we need to do to grow the business and make customer successful, that is what they have been behind forever. These firms are not new kids on the block. They have seen that if the customer if their companies focus on the customer and make them successful, the returns will be there longterm. Youll have to come back. Thank you very much indeed, todd mckinnon, great to have you on the show. Mnuchin faced heated questions from senators. What he had to say about tech giant apple, next. Lets check in on ibm, shares still trading lower in the afterhours. The cfo said the company salt macro challenges in the you cake and brazil but growth elsewhere. This is bloomberg. China grew double digits in the Fourth Quarter<\/a>. The strength was in the banking sector. Caroline ahead of the president ial inauguration, a number of cabinet hearings took lace on capitol hill. Donald trump it to lead the Treasury Department<\/a> was in the hot seat. He faced sharp questioning on future tax reforms. He singled out apple. Next the fact that we have Companies Like<\/a> apple that have hundreds of billions of dollars offshore because of the differential in tax rates and they are being penalized to bring back money. One of the things i think we all agree on, and ive talked to the president elect, and he believes we can bring trillions of dollars back on shore so that that money is invested in american businesses and creating jobs. Caroline another confirmation hearing on thursday, donalds pick for a department of energy, former Texas Governor<\/a> rick perry. Back in 2011 he wanted to eliminate the agency. At the time, he could only named two of them. The department of energy was the third. Is toconfirmed, my desire leave this agency and a thoughtful manner, surrounding myself with the expertise on the Core Functions<\/a> of the department. Overst statements, made five years ago about abolishing the department of energy do not reflect my current thinking. In fact, after being briefed on so many of the vital functions of the department of energy, i regret recommending its elimination. Caroline and a quick programming note, with all due respect continues its special coverage on bloomberg television. They will look at the key issues facing the Incoming Trump<\/a> administration. Due to nan. In. Mberg do tune it all begins at 10 00 him eastern and 3 00 p. M. In london. That doesnt for this edition of Bloomberg Technology<\/a>. Due to special coverage of the inauguration friday, Bloomberg Technology<\/a> will be an hour later. We will speak with the managing director and founder of gre ycroft. Check us out on twitter. Thats all for now. This is bloomberg. Announcer from our studios in new york city, this is charlie rose. Charlie paul ryan is here, elected speaker of the house earlier, winning support of all that one house republican, representing wisconsins first district. The New York Times<\/a> described him as the steward of conservative policymaking. Gop lawmakers have an ambitious agenda as they work toward a unified republican government. Their focus is on reversing Obama Administration<\/a> policies, starting with dismantling and replacing obamacare. Other items","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia904707.us.archive.org\/25\/items\/BLOOMBERG_20170119_050000_Bloomberg_Technology\/BLOOMBERG_20170119_050000_Bloomberg_Technology.thumbs\/BLOOMBERG_20170119_050000_Bloomberg_Technology_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240627T12:35:10+00:00"}