Transcripts For BLOOMBERG Bloomberg Technology 20170531

Than 120 countries. From washington im alisa , parenti. This is bloomberg. Bloomberg technology is next. Emily im emily chang. This is Bloomberg Technology. It is decision time on climate change. Will the u. S. Backed out of the landmark paris accord back out of the landmark paris accord . War hits home with apple set to roll out smart speakers. Cupertino is rolling playing catchup. Cyborgs arrive at Morgan Stanley to back up its 16,000 Financial Advisors, but are they an upgrade over the roboadvisors . We will discuss. The Paris Climate Accord could be in trouble. It was just teed of years ago nearly 200 nations, including the u. S. Just two years ago nearly 200 nations, including the United States, agreed to reduce fossil fuel emissions. President obama this is the moment we finally determined we would save our planet. The fact that our nation shares a sense of urgency about this growinge and a realization that it is within our power to do something about it. Emily now, President Trump is considering whether to keep the u. S. In the landmark paris accord, but could be leaning towards the next it towards an exit. Will be he tweeted, i announcing my decision on the paris accords in a couple of days. Make America Great again. Musk stated he will depart the president s council if the u. S. Pulls out of the climate deal. Joining us now, bloombergs chris martin, who covers renewable energy, and amy grace. Amy, i will start with you. What are the real implications if the u. S. Pulls out . Amy the paris accord will go on with or without the u. S. In it. I think some of the implications for the u. S. Are actually not that much. Targets, ifssions you think about the u. S. Emissions in terms of bringing it down into the power sector emissions, is about 40 of emissions. Transport emissions are another 40 . Than the rest of the economy makes up 20 . The power sector emissions will meet the paris target without the Paris Agreement without the clean power plan, which is the legislation to get the u. S. There. On the transport side, its a slightly different story. Pulling out of the Paris Agreement wont do anything to the transport targets, but on the table now our changes to the now are changes to the fuel emissions standards. A relaxation of those standards means the u. S. Could mean that u. S. Misses the transport portion of those targets, which ultimately means the u. S. Would miss their paris targets. Emily if the u. S. Pulls out, how likely is it that other countries follow suit . Chris so far, it looks unlikely. We are most concerned about india and china at this point, and they both pledged their allegiance to the paris accord. We havent seen anyone pull out of the accord. To this point, the u. S. Has not either. Its not clear yet whether anyone will. Emily why would, hypothetically, the u. S. Want to pull out and be in the same boat as other nations that are not participating, including syria and nicaragua . Chris for the trump administration, its a promise he made during his campaign to increase demand for coal. I dont think thats going to come out of this. In fact, are reporting today showed that shares of Coal Companies actually went down on the news today. Its not clear who would benefit. Amy there is a long list of yuan convention the u. S. Has not signed, including u. N. Conventions that the u. S. Has. Ot signed this would not be the first. Emily what do you think of elon musks tweet that he will drop off of trumps Advisory Council if this happens . This is a man who founded a major electric vehicle company, solarcity in the mix as well. Chris it sends a signal of frustration with the administration that there is a need to be part of this Global Climate pact. If you pull out, then its a signal that we are not serious about climate change, and that would be unfortunate. Emily amy, what would it mean for the fight against climate change, realistically . Some have said that this could be catastrophic, but is that a gross exaggeration . Will take thet wind out of the sails of the paris accord. The paris accord will go on, but it essentially reduces the incentive to continue ratcheting up. It probably delays it by about five years. The broader implications are the fund. Ons of the climate raise 100tended to billion a year to give to developing countries. They dont know where that money is going to come from. They have raised about 10 billion, 3 billion from the u. S. Whether or not they drop out of the paris accord is probably unlikely paris accord, it is probably unlikely that the 2 billion will be forthcoming from this administration. Emily if this happens, chris, what do we know about how the u. S. Would actually unwind its support . Would this be a gradual thing . Would it be abrupt . Chris it would take a few years for them to actually unwind this. You would see a gradual progression. That could change with the next administration, too. This is an executive order rather than an approved treaty. It wouldnt take much for the next president to get back in. Amy it essentially takes the for them tof 2020 pull out, but the impact is immediate. Emily is it simple or compensated . Complicated . Chris its complicated. I dont think we will see any answer over the next few days, even if trump decides to pull out. The reaction is going to be muted because people need to figure out how long its going to take for changes to be made. I think its going to take years. Emily amy, what does it mean for shifts in alliances . Obviously, if china and india remain, how does this affect our relationship with other countries . Amy i dont think he will have a big impact on our relationships with other countries i dont think it will have a big impact on our relationships with other countries. The reality is the u. S. Is a pretty big part of all international negotiations, so they are going to have a seat at the table regardless of what they decide in the paris accord. Caroline amy grace of Bloomberg New energy finance, chris martin, our Bloomberg News reporter. We will continue to follow this and await President Trumps decision. Hewlettpackard enterprises released its Second Quarter results after the bell. The Company Reported sales in the period totaling 9. 9 billion, but that includes the Enterprise Services business, which has been discontinued. The company gave a profit forecast that fell short of estimates for the Current Quarter as the Company Struggles to shift to the competitive field of cloudbased services. A story we are watching, the massive legal spat between toshiba and Western Digital over the sale of a memory chip business is getting even more compensated. Toshiba sent a letter to Western Digital saying it is moving assets from the joint venture back to the Parent Company after previously transferring them to a subsidiary in preparation for the sale. It became clear the operations may fall into the hands of competitors. Coming up, after the firing. We are taking a look at alphabets waymo and where it stands in the crowded driverless car race. A reminder about our new interactive tv function. On thet at tv bloomberg. You can watch us live. You can send our producers a message. You can ask me a question. You can play along with the charts we show you on air. This is for bloomberg subscribers only. This is bloomberg. Emily former Hedge Fund Manager phil falcone was barred by the sec in 2012. Now he is back and putting his money to work. He sits down with bloombergs and loop betty liu discusses how private equity stacks up against the hedge fund world. Phil when looking at some of the different investments ive had over the years, the most success ive had is buying things that have taken a long ore and you can incubate help nurture and grow and fix and twist and turn. That is tough to do in the hedge fund model. You can do it in a private equity model, but its still a little bit different. I think this structure gives us the flexibility that we need and really gives us the opportunity to hopefully never have to sell any of these companies that we control. Emily to the firing of Anthony Levin dow ski anthony levondowski from uber. How will this case impact the future of alphabet and ubers self driving car efforts . Will it spark a talent war for other star engineers . We are joined by brad stone, an author of a book about the founding of uber and airbnb. Is this a turning point . Brad the lawsuit shows they are willing to leverage or exploit their intellectual property. Google was first in the driverless car arena. Thatgoogles emergence, was the turning point for waymo. Get moved waymo to an operational it moved waymo from academic to operational. They know they have to be not just for the data, but for their own engineers, who want to see cars on the road. They have to be out there. Google spun off waymo as its own independent division and put the former ceo of hyundai in charge of it. The Competitive Pressure was the turning point. Emily if they somehow managed to cripple or stalled google ubers self driving efforts, is there a benefit to waymo . Said Mark Andreessen almost comically that there were too many players out there. Hurting uber a little bit hurts a primary rival, but it does not change the fundamental dynamics, which is that waymo has a head start. As his many years from happening. We will see how it plays out. This is many years from happening. We will see how it plays out. Emily who gets the best engineers may in fact determined who ends up on top. Brad if anything, this is hurting the big players. There are folks who used to run the self driving car division at google striking out on their own. Levandowki showed there was ireat profit levandosk showed that there was great profit in leaving and starting out on his own. They are losing people. They said they had shrunk the costa of cost of the key mapping component in Driverless Cars by 90 . They keep moving the Technology Board forward. Emily what about partnerships . Is waymo seeing any momentum . Brad they have the Fiat Chrysler partnership. Beyond that, there was a rumored deal with honda. It has not come to fruition yet. There was the deal the announced with lyft. Mark fields, who left a top job leftur ford this week, in part because he wasnt able to come to terms with google on a driverless car deal. Its quite unusual for any of these Tech Companies to do broad deals with other companies. They have partnerships with advertisers, but in terms of sharing the data and the prophets, it gets really messy and the profit, it gets really messy. This,t sure waymo, before has shown much progress. Emily Morgan Stanley came out with a report that said, if spun off, the waymo business could be a 70 billion business. Is there any indication alphabet would do that . Brad they said by 2030. Where will you and i be . Thats a long way away. Phil pratt from toyota said, we are nowhere near level five autonomy in Driverless Cars. We dont really know how this is going to roll out. I think that projection from Morgan Stanley was optimistic, assumed a lot of things. Day . Waymo be valuable one it will if they can deploy Driverless Cars safely on the road. The key word is safely. Emily thanks so much for joining us. Another earnings update. Box reports its first Quarter Results after the bell today, coming in above expectations. It is up 30 yearoveryear. Box touted that it has now become Free Cash Flow positive, a signal that the company may be en route to being a profitable rival like dropbox. We will discuss the Earnings Results with box Ceo Aaron Levie here on Bloomberg Television tomorrow. Coming up, apple is gearing up to take on amazon apple echo and google home. We will bring you all the details next. This is bloomberg. Labs has ended and 11month product drought an 11month product drought. Its the first redesigned camera since they this newest camera has some tech upgrades. It shoots higher resolution video that allows users to more deeply zoom into footage without losing as much clarity as the current footage version. The camera lens will automatically fan pan to follow a person as they walk around the room. Apple is said to be on the verge of introducing a siricontrolled smart speaker. The device would rival amazon echo and google home. Its just another drumbeat as apple prepares for its Worldwide Developers conference next week. Joining me, alex webb. What do we know . Alex we know this is in production. A Taiwanese Company has started making these things. Theres a good chance it will be unveiled next week, ready to be introduced to the market, to actually be put on sale later in the year. Given that amazon has just introduced their latest alexa with a screen, the alexa show, we are hearing the apple product will not have a screen. It is solely a speaker. Emily there are some interesting details you guys have found in terms of what might set this apart when it comes to the sound and its ability to understand whats going on in a room. Tell me about that. Alex thats the differentiator it seems apple is hoping to make. Amazon and google have these wellestablished products. Apple clearly seems to think that having a better quality speaker will give them an edge. There are things like surroundsound, which is beamed out from the device, and an ability to follow the shape of a room and therefore adjust the acoustic performance accordingly. Emily the surroundsound might be louder and chris crisper. It might also determine how loud the speaker needs to be, essentially. Alex it can adapt to the acoustics. This hints towards an effort from apple to make it a premium product. If you look at the pricing of the amazon alexa, they do not make much profit on that. They do it as a loss leader to get people buying amazon products or products through amazon. Com. That is not the apical the apple business model. They are trying to do more in services and software. The pricing will be interesting to see. Caroline this will connect emily this will connect with other apple devices and potentially progress apples strategy within the home in general, right . Kit, apple has home which is the way you control Smart Devices like your lighting, blinds. If i wanted to control the lighting at my home remotely, i have to have a hub in my home. I cant do it from here. That could be an apple tv or ipad. Its likely to be this speaker. The other side, if you have an amazon alexa or a google home, you are listening to either spotify, amazon prime music, or google play. These kinds of Product Services are ones apple is really pushing, trying to build a more dependable revenue stream. That helps preserve that. Emily apple was not the first to market with a tablet. It wasnt the first to market with a smart phone. Steve jobs made a point of that. Historically, apple had often been the best to market with some of these products. Are we expecting this to be an example of that . Alex its very hard to judge at this stage. Its particularly important to see what the pricing is going to be. It could be 100 more expensive. We dont know. Expensive, 100 more they are probably not making a 40 margin on the product. They are expected to make more money down the line with their services. If it is more expensive, then they have to be doing something to convince whoever it might be to buy their product and not the significant we cheaper ones from google or amazon. The google one is 129. Theres a big difference. Emily the connected home sounds great. It still really hasnt hit the mainstream. Its still pretty hard to connect your home. Whats it going to take for that to be an easier process . Alex if you look at a lot of the products that are out there, people are seeing this as an opportunity to get big profit margins. Costs light from phillips Something Like 25. 49 for the one which is many different colors. The classic led light is significantly cheaper than that. They are sensing a big opportunity to make big margins. Until it becomes as affordable as any other kind of light they could apply to any number of categories. That is what needs to be crossed in order to make Widespread Adoption a reality. Emily we will see if this is unveiled at wwdc next week. Alex webb, thanks so much for that update. Annualup, mary meekers internet Trends Report has dropped. We will dive into what has become the state of the union for the tech industry. If you like Bloomberg News, check us out on the radio. Listen on the Bloomberg Radio app, bloomberg. Com, and in the u. S. On serious xsirius xm. This is bloomberg. Alisa im alisa parenti, and you are watching Bloomberg Technology. Cnn reports former fbi director james comey plans to testify publicly in the senate as early as next week. Cnn also reports that comey has spoken privately with special Counsel Robert Mueller to work out the parameters for his testimony to ensure there are no legal entanglements because of his testimony. President trump fired comey this month as the fbi was investigating russian influence in the president ial election. Top executives warned of business backlash should President Trump withdraw from the u. S. Withdraw the u. S. From the paris accord. Teslas elon musk, apples tim all appealed to the president to stay in the climate agreement. Some 25 companies, including microsoft and intel, have signed a letter requesting access to clean technology. The letter will run as a fullpage ad in the the New York Times and the wall street journal in the New York Times and the wall street journal. The u. K. Admonished Prime Minister may. Corbin had said he would not take part without her corbyn said he would not take part without her. He was joined at the debate by representatives of the u. K. s smaller parties. Sri lanka has a death growing death toll growing from mudslides and floods. Global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. Im alisa parenti. This is bloomberg. Its just after 5 30 p. M. Wednesday here in washington, 7 30 thursday morning now in sydney. We are joined by bloombergs paul allen with a look at the markets. Good morning. Paul good morning. Asx futures looking rather tepid, off about eight points right now. Ride for a rough Australian Retailers over the past few months. Asx has been underperforming globally. Within that stock, the Retail Sector has been underperforming. We are expecting an increase in retail sales of 0. 3 of april in april. We have had two months of contraction. Elsewhere, nikkei futures are pointing modestly up. We are waiting on First Quarter Capital Spending out of japan. Out of china, the official pmi on wednesday. It remains positive. The private survey of pmi is excited to show manufacturing contracting to 50. 1 from 50. 3. A couple data points to watch out on south korea. Trade numbers and Consumer Prices for me. May. More from Bloomberg Technology next. Caroline this is emily this is Bloomberg Technology. Im emily chang. Mary meeker just released her widely followed internet Trends Report. It covers everything from the cloud and internet advertising to wearables and music subscriptions. A major takeaways from this years report, the rise of online ads. With Global Internet advertising expected the past tv within six months. Google and facebook are reaping the benefits. Their combined share amounting to a whopping 85 and rising. Joining us now, paul sweeney. First of all, online surpassing tv in six months do you buy it . Paul s. absolutely, i do. Weve seen the trajectory over the last 10 to 12 years. Digital ad spending has been growing 15 to 20 15 of 20 per year. The lines are just about to cross this year. If you look at the forecast over the next several years, continued upward trend in internet ad spending. Doubledigit growth versus television in the low single digits. Emily what does it mean for everyone else if facebook and google are getting the lions share of the pie . An advertiseram or the ad agency representing big advertisers, im worried. The market is a duopoly between facebook and google. I only have two platforms to allocate my ad dollars. Thats not a good structure. Dollars,cremental ad google and facebook are taking just about everything. Its really a challenge for some of the smaller platforms. Think twitter, snapchat. Having 200 million, 300 million, 400 million users on your platform these days just is not enough when you take a look at google and facebook, each of facebooks platforms is at or above one billion users. Message nstagram, its just a tremendous reach vehicle. What we are seeing is these big platforms like google and facebook are really starting to target television advertisers, because thats where the money is. Emily Something Else that meeker called out is that the measurement of the impact of online ad is still very much lacking, also the placement of ads is sometimes rather suspect. They might pop up next to offensive content. What do you make of some of these potential headwinds . Paul s. these are significant risks, and they are highlighted not only by advertisers, but the ad agencies that represent them. Measurement and context and placement are the two big issues that these Internet Companies really have to figure out. That being said, the dollars are still going to digital. We are going to have a big data point coming out of the Television Industry in the next couple of weeks when they sell about 75 to 80 of their inventory in whats called the upfront market. Billion dollars, 19 billion, 20 billion will be allocated to television. The top line advertising revenue growth, 20 plus. You have to compare those two markets. You can see where advertisers are going, despite some of their concerns. Emily on a slightly different topic, she called out amazon and talked about how its changing the face of retail, which we know. She specifically pointed to amazon baby wipes, amazon batteries, products that amazon is branding itself and selling to consumers. What impact is that having on the retail landscape . Paul s. its having a big impact. When you get to private branded products, it just shows you the strength of amazon in the retail marketplace. Not only have they disrupted the entire bricks and mortar retail, but they are starting to think about how they position themselves within the retail whent in certain verticals you think about amazon, jeff bezos has shown over the last 20 years that he will make any investment that he thinks will grow his business longterm, because he believes, obviously, that retail sales going to online will grow from todays average of about 7 to 8 to well over 10 . He needs to be part of that and be the lead player there. Weve seen this company make Tremendous Investments across their businesses because they believe in the longterm story. Paul sweeney, thanks so much for weighing in. The 16,000 Financial Advisors at Morgan Stanley are about to get some cyborg help. The new Machine Learning algorithms will take over various tasks to help out employees. The bank is selling the rollout to wealthy clients as a more comprehensive upgrade compared to roboadvisors. For more, we are joined by hugh son in new york. How is this different than what already exists when it comes to ai helping human traders . Hugh what already exists is robo. A simple Asset Allocation algorithm. Maybe it has tax law harvesting built into it, but a fairly straightforward platform for people who have less than 1 million in assets to invest. Whats emerging as the cyborg ,odel is man with machine Financial Advisors equipped with algorithmic assistance, which will hopefully make them smarter to do when you think of a cyborg, you think of somebody who is faster and stronger and can do things better. The hope is this will keep the human advisors better equipped to handle the very wealthy clients that they have and keep them happy and sort of keep the robots at bay. Emily we were speaking with the former head of google china, a big investor now in china, who says that ai can now do some of these tasks better than any private banker can do, which reminds him now to fire his private banker. So, to what extent are these new technologies going to replace humans in the future . Hugh thats a question i asked every executive i talked to for this story. You have to think about what is a computer do better than a person and what does a person do better than a computer. If im a very wealthy person, i have 5 million at Morgan Stanley. Something in my life happens. God for bid, a parent dies god forbid, a parent dies or they have to go into longterm care. I dont want to Stephen Hawking voice to call me and try to empathize with me. I would hang up immediately. The war wealthy you are, the more hightouch you want to be the more wealthy you are, thre more hightouch you want to be. You need to have algorithmic assistance to tell you when is the right moment for me to engage with this person. Morgan stanley is rolling out some Machine Learning capabilities that will actually ingest all the interactions that they have, that the advisor has with their client, to try to get smarter and know what that client really wants. Emily how does risk factor in here . Is it preventing banks from adopting ai more quickly . Hugh ai is obviously huge. Financialecifically, firms have been really late to adopt a lot of the technology. I was talking to somebody earlier today and they were like, this sounds like something they should have done years ago, and they were probably right. Its in the onset. We will cai come out more in capital markets. Investment we will see ai come out more in capital markets. You will be interacting with ai as a retail customer. Its going to happen a lot more as years go by. Its going to be something that probably replaces some of the humans you have been dealing with. Emily all right. Our Bloomberg News finance reporter hugh son. Thanks so much for that report. Could new airport scanners end the latest debate about taking laptops on flights . We will take a look at the company that says it has all the answers. This is bloomberg. Emily jetblue is about to launch a first of its kind boarding Program Involving face recognition. Passengers wont need boarding passes. They will get their image taken at the gate. This will be tested on flights from boston and aruba. We continue to await a final decision on whether an american ban on laptops in american cabins will be expanded to include flights from europe. Kelly saidary john the proposed expansion was, quote, still on the table. In march, the u. S. Barred Electronic Devices larger than a mobile phone from airline cabins on flights down from america flights bound to america from 10 middle eastern and african airports. One company says they may have a solution. They have developed a new scanning machine that has passed initial u. S. Government testing. Joining us now from washington, joseph paresi. Howjoseph, first of all, are your scanning machines better than the technology that is already deployed . Joseph colon let me explain. Joseph its very similar to medical technology. If you get an xray, that will give you a certain amount of information. But when you have a cat scan, you are looking at the body from all different angles, in three dimensions. Youre analyzing much more detailed data and able to use that information with algorithms that can analyze the material content and then determine whether an item inside the bag is a threat. Emily how can your Technology Better determine if a laptop has a problem . Joseph well, because we have the resolution to look for the types of explosives that st tsa is interested in finding, we are kind of breaking the bag, slicing and dicing is the way i like to put it. If you think about breaking the back into little cubes, which are volumes, and measuring the density and the material characteristics of each one of those cubes, then putting together all of the common ones into an object, the ones that are touching, then you know something about the material characteristics and whether it matches that of an explosive. Based on you know whether the size of it, you know whether its large enough to be whetherd of concern, its large enough to cause an explosion on an aircraft. Its quite advanced from simple xray machines, which are showing you just two different angles and one projected image. Very difficult for any officer to find an explosive material in an object inside a bag like that. Emily as i understand it, you believe that banning laptops will just encourage terrorists to work on other ways to threaten our safety and security. But if laptops are any question, shouldnt we be as cautious as possible . Joseph one wouldnt disagree with that. Are goingat when you to do whats being contemplated by secretary kelly right now, to ban the laptops, you are also going to put a major inconvenience on a number of people and their ability to do business. So, is there technology that could help keep those laptops in the aircraft and do that in a manner that you provide the same level of safety, if not better . Being able to analyze it is better than assuming that, if i have a laptop, it is safe because ive taken it away from the passenger. What stops the terrorists from putting explosives inside the laptop and now you are just putting it into another section of the aircraft where it still can explode, still can cause a fire, and still be a threat to the flight . Emily where is the United States when it comes to certifying your technology . Joseph the United States and europe have a certification standard. We have passed both of those standards for certification. In the United States, they go one step further, really involved, into lets make sure its ready for Operational Deployment in an airport before we put it into an airport. Thats called a qualification process, where they validate over 500 different items to make sure that your system meets all the different criterias, safety, power, data collection, operator interface, tools the operator would use to look through the bag, and so forth. We are in that process right now and hope to be done sometime this summer. We are, in parallel, going into Logan Airport on june 14. We are not just standing still. Tsa is moving forward while they are finishing their operational evaluation. They are putting it into airports to examine it in a live operation. Emily quickly, there is momentum behind nextgeneration screening lanes, computerized conveyor belts. How would your systems work with that new technology . Joseph these systems, what you call smart lanes or automatic security lanes, are more of a Human Factors improvement, where youre providing a way for multiple passengers to come up at the same time, grab a tray, with their stuff onto the tray, rent it through the system run it through the system. After it has been scanned, it detected something has been found or it sends it back to the passenger. There is a 30 improvement in throughput because you are organizing the way that people put things. Emily all right. Joseph we are integrated with almost all of those vendors, but it has nothing to do with security. Security is done within the scanner that is examining it for the explicit material. Emily ok. Integrated defense and Security Solutions ceo joseph paresi. Fascinating stuff. Coming up, qa waze sets its sights on l. A. We take the service out for a test drive next. This is bloomberg. Aze is expanding its carpooling app across california. The company has been testing the service in San Francisco and in israel and plans to launch in brazil. Ridesharing platform operates more like a traditional carpool, where the drivers and passengers have similar or injures oranges have simi lar origins and destinations. Caroline hyde took a drive wih took a drive. Caroline hello. What a nice ride. Thank you. Caroline happy carpooling, eh . How many people are using this already . Tens of tens of thousands of people have registered already. There are millions of people who have downloaded qa waze. All they need to do is opt in to carpool. On the rider side, tens of thousands have opted d ownloaded the rider app. Caroline what is the need of it . Is it work or play . We are trying to connect commuters who either dont have a lot of options or are tired of driving or have limited parking at their workplace. We are connecting commuters who are going in the same direction and who have similar origins, similar destinations, their neighbors, their friends, their colleagues, and simply taking cars off the road. Caroline and what about the money exchanging hands here . How much are you getting reimbursed for taking me . How much am i paying you . Its a notforprofit, share the expense carpool. These are not for profit drives like ridesharing. Up toriver, you would get . 54 per mile, which is the federal limit on gas and expenses for driving, and the rider will pay no more than that as well. It willmile ride, probably be around a five Dollar Exchange between rider and driver. Waze is facilitating that. You give us your credit card number. As a driver, you give us your bank account information. We do the transaction behind the scenes. Caroline why else is waze doing this . There is a financial component in the future. Today we are not taking any commissions on matches. At some point when we reach higher density and our quality of services where we want it to be, we could take a small commission off of every match as well. Caroline and the data you are getting out of it, where is that of interest . Definitely, data is important to waze. The more people who are using it, the better it gets for everyone. With Something Like carpool, where we can tell where your homes and your work is and your regular commute patterns, that helps us with routing for everyone. That helps us tell cities we work with here are your origin places of density, your destination places of density. 250ork with, i think, different cities around the world to help them solve their traffic problems. Caroline how does it play into the greater scheme of alphabet as well . At this point, we are not working directly with any other entities on carpool with enough about. Within alphabet. Its very much a waze project. Caroline how is the Competitive Landscape . Its really early days. Theres a few startups working on carpooling. Lyft and uber have exterminated with true carpooling models, but they havent really stuck. Caroline where do you see percentages going . Do you have a viewpoint on where the company can really be . I think we all see a future where, you know, theres a lot fewer cars on the road and, potentially, they are driving themselves. I think all of us will be getting into self driving cars someday. I think that today, if we can convince doubledigit percentages in major cities to carpool, then it will have a measurable impact on congestion. Emily that was the head of the carpool business at waze and bloomberg is Caroline Hyde bloombergs Caroline Hyde. On thursday, we will speak with the director of baidus Silicon Valley ai lab. All episodes are Live Streaming on twitter. Check us out on weekdays. Thats all for now. This is bloomberg. Announcer from our studios in new york city, this is charlie rose. Charlie we begin this evening with a look events surrounding the trump administration. Angela merkel this express at the u. S. As an ally. This, after trumps refusal to recommit to the parents the paris climate deal. Trump criticized germany via trade surplus. He blamed fake news for critical news about his administration. The Washington Post reported,