Transcripts For BLOOMBERG Bloomberg Technology 20170602

2600ed by more than journalists and analysts in more than 120 countries. From washington, i am Alisa Parenti. This is bloomberg. Bloomberg technology is next. Emily i am emily chang and this is Bloomberg Technology. The jobs report offers a mixed picture of the labor market. How dangerous is the shortage of skilled workers . Game inis upping its its retail rivalry with amazon. We had to arkansas where thousands of shareholders have gathered at the annual meeting. We take a look at the week that was andy major tech backlash facing the white house after President Trump withdraws from the press climate agreement. The u. S. Jobs report added 130,000 jobs in may. The labor market getting mixed signals. The on implement rate declining to a 16year low contrasted with hiring and wage growth that fell behind economists consensus. The data could indicate increasing challenges to find and hire skilled workers in the United States. Spoke to bloomberg from the white house and touted the results. Since inauguration day, the u6 rate is down 1 . We brought back close to 200,000 people that were dissatisfied or underemployed in the u. S. Workforce. That to us is a really amazing trend. There are some very there is some very good news in this labor report. Emily here to break it down, we are joined by cory johnson and Jake Schwartz c. E. O. General assembly, a firm that works to train and place people in skilled jobs. Jake, what is your reaction to the report overall . On the one hand, it is as good as it gets. On the other, mixed signs. I think mixed signs is right. It points to a duality we are seeing in this economy. On one hand as we can see, the Unemployment Rate is at an impressive love. And yet, we are not adding jobs as fast as people thought we were going to. Stat that isher not in their which is that we have an incredible number of outstanding jobs in the market going unfilled. You hear constantly from employers about the trouble and expense they are facing in order to fill their skilled jobs. What it seems to be is that there is this incredible tension between the overall job economy and the skilled job economy. What is more compelling about this is over the next 10 years, we are going to see more jobs, every job, frontline workers for managers are going to have jobs that look a lot more like tech jobs, whether it is about dealing with big sets of data, writing lines of code, or engaging in ai machine learning. Spending a lot of our time working with large companies, major members of the fortune 500, talking to them a lot about new ways of investing in their existing employees as well as finding innovative ways to disrupt their traditional recruiting and staffing models of solving skills gaps and working and instead working to train and source the right talent for the coming shift. Emily obviously, technology is changing the job market dramatically. At the same time, you have tuxedo is saying they will add thousands of jobs. How does it balance out . Thisthere is cory in and limit report, it was interesting. Saw zeroter systems growth of jobs in the most recent month. The place where the economy will add jobs can only be in manufacturing and maybe some and retail. The jobs tend to be jobs people keep. There has not been a lot of job hopping as in the past. That is one of the reasons todays report had zero growth in computer jobs. Emily which jobs are the hardest to fill . We are hearing a ton of challenges from our employer partners. One of the biggest and most explosive is data science and analytics. Thanks to our friends at burning glass, we have seen the statistics that say data jobs have essentially tripled over the last three years. More importantly, there are estimates that in the next five years we are going to end up 1. 5 a 1. 5 million million person deficit of managers and analysts who are trained and able to deal with the large datasets that most companies are planning to rely on as part of their competitive advantages. Data is a big one. Toiously, anything related web development, mobile development, software engineering. And then there is also other interesting niche areas. You are seeing a lot of stories about companies reducing the ratio of engineers to designers on product teams. That is going to lead to increasing demand for designers. Digital marketing has gone through an incredible shift from being a primarily qualitative exercise to being extensively quantitative. That is going to involve huge pressure to find people with this quantitative skill sets which comes around to data. Emily how does what is going on in the u. S. Compared to what is happening globally . Lyft the employment picture here has been very strong for a long time. Workforceieking its even though they are putting out press releases about hiring. It is getting harder to find jobs. One of the adjusting stories we had last week said even people with arrest and conviction records, 70 million americans, as many have been arrested and been to prison as have been to college. Emily President Trump is tempting job creation. Have we seen jobs created . Does it appear we will see jobs created . That is a hard thing to talk about because we have seen actual job growth and a decrease in the Unemployment Rate over the last eight years. Really coming out of the Great Recession in 2008 and 2009. It is may now. He came in office in january. Typically the things the administration has power to do, there is typically a longer lag to get the economy really responding to anything the executive branch can do. Cory donald trump has inherited a tough act to follow the job numbers Obama Administration put up. It will be hard to add to those numbers. Manufacturing will be most likely to have input. Emily we saw sitting 100 people lose their jobs. Are those jobs moving to ecommerce or going away . Cory the retail environment has been a disaster the last few months because amazon is sucking up a lot of things that were happening at the retail level. Shopping malls are having a rough time. Fill in the blank and you will see bad results from all the major retailers. Emily cory johnson, editor at large. Jake schwartz in new york, thanks for joining us. A story we are watching. Spotify has rushed to assure investors place to go public are still on track. Speaking of swedish radio, the cofounder said the company does not need any money in an ipo is not on the agenda. Spotify says he is not a spokesperson for the company and a public listing remains an option. The company has raised more than 1. 5 million billion in the private market. Coming up, we had to fayetteville, arkansas, where thousands of walmart shareholders have gathered at the annual meeting. We will look at how the retailer is stacking up against amazon. Bloomberg technology is Live Streaming on twitter. Check us out weekdays at 5 00 in new york and 2 00 in san francisco. This is bloomberg. Watching,tock we are broadcom sword the most in more than a year after delivering an optimistic Sales Outlook did the rapid expansion has made its earning an indicator of demand its chips perform key function in connecting phones and directing traffic across the internet. Walmart is sharing the spotlight with amazon at its annual Shareholder Meeting. The worlds biggest retailer is charting a course of action to take on amazon by becoming more like the ecommerce rival. I think twoday Free Shipping on millions of items is a compelling customer offer. I dont think you should have to pay for shipping. With a membership fee. [laughter] emily this comes just one day after walmart announced a program that sends store employees to deliver items at the end of their shifts. Emma chandra was at the Shareholder Meeting and spoke to my colleagues earlier. Amazon is the big competitor now for walmart as it has ramped up its ecommerce offerings. They announced a new program yesterday which is going to try and have store employees deliver the final mile for online deliveries. They have lowered the threshold for free delivery on online orders down to 35. Amazon matched that, which is unusual for them to do. This has been happening over the last year. A very different situation from the Shareholders Meeting last year. They paid 3. 3 billion for jet. Com. The founder came with it. He now runs the walmart ecommerce and has been spearheading this move to improve ecommerce for walmart and take on amazon. The brick and mortar experience is being tweaked, isnt it . The brick and mortar store growth has been more measured. What are they doing to improve the experience of going into the brickandmortar stores . That is really interesting. I was speaking to an investor yesterday that said the walmart experience is not all about amazon. It does not need amazon to fail for walmart to succeed. More important for walmarts other retailers are doing badly, so they want to see walmart is making the most of its brickandmortar stores. They have 4700 in the u. S. , over one million employees. And they have been focusing on better training for employees, cleaning up stores, making sure they have higherquality and more diversified products. Isy have also been focusing a great way to get people into the stores. That is 50 of sales. They feel they can leverage the stores and online as they have introduced click and collect that seems to be popular among families. Amazon does have time on walmart because it has been delivering for a long time. Maybe walmart can have the edge when it comes to groceries. I want to ask about the minimum wage in certain areas. What is the company saying about wage growth now . As you may remember, last for they made a commitment wages for all employees in all stores. Taken in aen seen as positive manner by investors. We have not heard anything else today about what they do to improve that. The jobs report shows further labor market tightening. For a big employer like walmart, that is something they will be thinking about. Emily that was bloombergs image chandra reporting earlier emma chandra reporting earlier. Tesla has been a standout this year, eclipsing general market motors in market cap. Should investors be betting on the future of tesla compared to the current state of g. M. . He spoke earlier about shorting tesla stock which he thinks is in a bubble. You have a guy who has done all kinds of fancy innovation and is thinking about how society should be 50 years from now or 100 years from now but has yet to take any money and turn it into a profitable business. I dont have any optimism that will change. You may be right. We will find out about tesla. They seem to be a lot of investors willing to give him more money to do science experience or whatever he is doing. How much commitment do you have to do when you go short on Something Like tesla . That can get painful. Tesla is one of many things we have in our bubble basket of stocks we think are mispriced by huge amounts. They are sized in a way that gives us the ability to wait a fair amount of time to be proven right or wrong. I think eventually the mood of the market will change. Eventually the company will be called into account to demonstrate profitability. I dont know when that will happen. The portfolio is positioned properly relative to the risk and reward. Emily that was david einhorn, cofounder and president of Greenlight Capital speaking with david westin earlier. Tmobile is setting the stage for a possible merger with sprint. Tmobile executives have been meeting with investors to talk about the billions of savings if the deal happens. Discussions are still at an early stage. Coming up, we will bring you new data on techs diversity problem and how it is exposing a proposed solution to boost women in tech. A reminder of our interactive tv function. You can find it at tv on the bloomberg. You can send our producers a message, play along with the charts on air. This is for bloomberg subscribers only. Check it out at tv. This is bloomberg. Released its first staff diversity report revealing more women and minorities than rival uber which presented its demographics in march. 18 of its tech workers are women. 11 of lyft workers belong to a group other than white or asian. The inclusion reports come as lyft has tried to distinguish itself as more coming that is larger foe which has been plagued by allegations of Sexual Harassment and gender determination. When it comes to boosting women in tech, people often point to the lack of women in Venture Capital believing an increase would pump up funding in companies founded by women. A new bloomberg Analysis Shows evidence that debunks the withhesis finding firms fundedces backed women companies at approximately the same rate. What were the findings . The findings were even though everyone thinks more women vcs would back more Women Founded Companies, that is not necessarily true. Overwhelmingly, that was not the case. How did you choose the firms, find the data . A big project. What i did is i went t an gathered data on the Women Founded Companies that have raised the most money and also i looked at the companies that have the left Venture Companies that have had the most unicorn exits in the last five years. That became my universe of top companies. That means any newer firm was not included in this study. When i had that information, i saw how many women partners were at each of those firms and what their companies they backed were and were any of those companies founded by women. I took a very extensive view. If they had someone who was a cofounder who was not there at day one or a woman c. E. O. , i would count that if they could make a good case. Emily one of the interesting parts of your story was the comments made by female entrepreneurs and female vc s. Talk about what some female entrepreneurs had to say about women vcs. I spoke to a bunch of Women Entrepreneurs who whole private Networking Events and coffee meetings for founders but when it comes to getting investments from women vcs that is very different. You can network all you want but that is different from getting a check. Based on when they went to pitch, often women vcs were very tough on them. They could not say if they were tougher on men because you only see your own pitch, but they vcs, theyred to male asked a lot more questions and wanted more data. One Woman Entrepreneur told me she got to the point where she dreaded going to pitch women vc s which is sad. Emily what about what women investors had to say . Some seem to have concerns if they do find women, they will be perceived as having a bias towards women. Some said that. When told me she was worried about being lumped together she only backs the Woman Entrepreneur because she is a woman and really screwed up so they will write off the entire genderbased on one case, which makes it a little easier to back men if you are a woman. She realized she was subconsciously thinking that, and of course wanted to stop thinking that. Emily this leads me to the next question. Is the answer to get more women in vcs so they are not so isolated . I still think we need more women in vcs for sure because eventually that will not be the result anymore. Also, younger women vcs dont necessarily feel this way. They have not had to blaze the trail in the same way so they might not be carrying all the career baggage some of the older women vcs are. One from sequoia told me i think the woman is a competitive being a woman is a competitive advantage. Bulk of because the consumer decisions are made by women, she has an advantage in understanding the female consumer many of her male colleagues will never have. Emily are there any other studies on this subject . Absolutely. There is one study that did a very wide look at every vc firm and found that if you look at the overall universe, that women vcs were more likely but that took every rinkydink firm into account. Emily we will have to leave it there. Sarah mcbride, vc reporter, great read. Check it out at bloomberg. Com. Alisa i am Alisa Parenti in washington and you are watching Bloomberg Technology. Lets start with a check of your first word news. The white house is reviewing whether to invoke executive privilege to prevent james comey from testifying before the Senate Intelligence committee next thursday. The panel is investigating his may 9 firing and russian meddling in the 2016 president ial election. With less than a week until britains general election, Prime Minister theresa may faced tough questions from voters about her conservative governments cuts to welfare and health spending. She was also accused by opponents of failing to stand up to the u. S. Over its withdrawal from the paris climate accord. May has refused to take part in tv debates saying she prefers to answer questions directly from voters. Environmental Protection Agency administrator says the u. S. Does not owe any apologies for officially withdrawing from the 2015 landmark accord to lower Greenhouse Gas emissions. He explained the president s decision to exit the agreement at a White House Briefing today. Exiting paris does not mean disengagement. In fact, the president said yesterday paris represents a bad deal for this country. That does not mean we will not continue to export innovation and technology to the rest of the world and demonstrate how we do it better here. I think it is a very Important Message to send. He indicated he will either reenter paris or engage in discussion around a new deal with a commitment to putting america first. Say whether orot not President Trump believes Climate Change is real or a threat to the United States. U. S. Nuclear agency says iran has shut down its heavy water producing plant in keeping with the landmark nuclear deal. According to the associated press, the International Atomic agencys latest inspection showed the water stockpiles to just below the maximum limit. Are trying toice determine the identity of a man they say launched a deadly thursday the resort only to flee to an Adjoining Hotel and reportedly commit suicide. Police say he was armed with an Assault Rifle and set a casino fire that killed at least 36 people. Islamic state claimed responsibility for the attack but philippine Officials Say it was a robbery gone wrong. Germany has passed new measures to identify and report immigrants who may be dangerous or not deserving of asylum. Germanys Migration Agency can evaluate and share cellphone data of migrants who arrive without proper documents. The changes follow decembers deadly Christmas Market attack in berlin. News 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. I am Alisa Parenti. This is bloomberg. Emily this is Bloomberg Technology i am emily chang. We now know donald trump is pulling the u. S. Out of the landmark paris climate deal. Reaction has been swift with many leaders to crying decrying the exit from elon musk to tim cook expressing disappointment. Joining us now to discuss this and other tech stories, tom giles and eric newcomer. Tom, the Tech Community and other Business Leaders quick to express disappointment. We even have bob iger departing the president ial council. What does it mean if these people will not sit at the table with President Trump . It did not go over well in Silicon Valley at all. The idea is engagement gives us enables us to sway policy. Enables us to be part of the conversation. What has it gotten for them so far . I realize it is early days, but he has been active in terms of dismantling protections and regulations Silicon Valley favored. Elon musk and bob iger say we are done. Youmuch does engagement by in d. C. . I think the answer is not a lot. Emily President Trumps answer is how much does staying matter at all. Listen to what the president had to say about his decision. President trump the reality is withdrawing is in americas economic interest and wont matter much to the climate. The United States under the Trump Administration will continue to be the cleanest and most environmentally friendly country on earth. Emily eric, you were at the conference this week. A lot of tech heavyweights. This was the talk of the conference. Hillary clinton was there speaking. What did people have to say . It was an amazingly political conference. Hillary clinton was the headliner. Amala harris spoke overall, a lot of people wondering trying to understand the disconnect from the rest of america culturally and politically. I think people were scratching their heads and trying to figure out how they could step up and do something, a lot of questions about fake news, how much social media platforms had to figure out how to get the truth to the american people. Marc andreessen said that was a condescending idea. People still trying to figure it out was the main takeaway. Emily there have been a lot of concerns about the relationship between Silicon Valley and washington because they have been outspoken about the election of trump and then you saw them go to the table after getting elected. And now another divide. I wonder what it means for the future of the bridge between washington and the bay area. I think that bridge is going to is starting to be dismantled a little bit. Look at the statements from tim cook and other leaders over the course of the week. They echo what we are hearing from germany, france, other parts of the world, which is we can no longer feel we have this alliance with the federal government in the United States. Macron talks about the federal government versus the americans. We are with the americans. Tim cook and other Business Leaders are going to increasingly see themselves as needing to set the tone, be the leaders on issues like environment, but immigration, where they feel a disconnect from the seat d. C. Emily more kluber news this week as every week. Of the head of the selfdriving car project. What is the latest we know . Testify inted him to their defense. They would not be able to use his fifth amendment privilege to protect them in their civil case against waymo. He was not willing to cooperate and produce everything they needed, so they fired him. Another potential risk for uber because they are at odds with somebody that has a lot of information about what they have been doing. Emily other uber, the c. F. O. Has left. The head of finance. He was never officially the c. F. O. Emily they did not have a c. F. O. They are looking for a c. F. O. Emily he is gone. You got new numbers about ubers third quarter. They lost 700 million, down from 990 million last quarter. That is a good improvement, lower losses than last year in the quarter. I think people should look at the nongap revenue. Billion in q41. 4 to 1. 5 billion in q1, a slower quarter so some seasonality. But 100 million in growth in their nongap revenue. I think the levandowski news was the biggest news of uber of the week. A big setback for uber ands driverless ambitions. He was a big part of why they spent 700 million on auto. He is gone. Some of the people loyal to him are walking out the door. Waymo has a chance to come ropes onack from the driverless ambitions a long way now. Emily amazon crossing 1000 a share this week. It did not stay there. Everybody loves amazon now, a lot of people. Emily amazon is the Company Everybody loves to love right now. They are looking at ecommerce. They are dominating ecommerce. They are killing the Retail Industry and theres still a long way to go. Not just in terms of them selling you stuff but how they get it to you. Drones, their holy just it effort. There is a lot their whole logistics effort. Cloud commuting, and they seem to be running away with it. Microsoft, google, oracle wants to get into the act and give amazon a run for their money. They are so far ahead. We have not even talked about hardware, the echo, and the entertainment business they are investing lots of money in. Hastings fromeed netflix and all he could talk about was amazon is a potential threat. I think the number of opportunities for amazon to grow into new lines of business is at expand isbusiness and so big. Emily he said it is a 10like 10legged stool. Tom giles and eric newcomer, thanks so much. It looks like uber has another competitor, the Autonomous Trucking Company and Autonomous Car company waymo. It announced it will begin testing self driving trucks. The announcement comes a year after uber purchased auto and kicked off its own self driving semi venture but waymo is not as far along. The company confirmed it was only testing one vehicle at the moment and still manually driving it on a public road to collect data. Uber delivered its first shipment in a selfdriving freight vehicle last august. Coming up, bitcoin has been on a wild ride surging more than 100 in the last two months. We will get into the basics behind the cryptocurrency next. This weekend, we will bring you our best interviews from the including the co discussing how the new phone can break through the crowded smartphone market. Stay tuned this saturday for the best of Bloomberg Technology. This is bloomberg. Emily now toy a story grabbing a lot of attention in the investing world. After taking a tumble this week, bitcoin is back thing bouncing back up 6 . It has risen more than 100 in the last two months. This volatility has critics saying the cryptocurrency is showing signs of a bubble. Will the bubble be pop or is it on its we to becoming mainstream . X weight way to becoming mainstream . Coinbase is in talks with potential investors on a new funding round valuing the company at more than 6 billion. You guys dont just deal in bitcoin. Talk to me about how the currencies stack up. Bitcoin is the most wellknown example of an open or public blockchain. It gets a lot of attention and has a 40 billion market cap. His there areon hundreds of these digital options. Each one has a unique value proposition. Anyoneus is on helping be able to access and interact with these blockchains. Emily earlier, he said he thinks the market cap of one will surpass the market cap of bitcoin soon. Do you agree . Etherium has a time of interest with protocol they cannot do a bitcoin. That is bringing a lot of interest and utility to the network. I think it is a possibility. If or when that happened, i dont know. Emily if theyre of has gone from zero to 10 billion. It is the fastestgrowing startup ever. Would you agree with that assessment . Wrecks there is some element of truth. What makes these open blockchains so powerful is they are open protocol. Backbone ofke the the internet. It introduces so many unique Business Models beyond one application of a technology or business rid i think it will reduce we are not aware of. Emily how do you educate yourself on this . How do you decide whether this is a worthwhile investment . Our goal is to be the easiest platform to interact with these open blockchains. We use something called the mom test. Can my mom figure out how to buy a little bit of bitcoin on our platform . We are bringing things to the public so they can take a little money and buy and interact with the new platform. Emily when do you think the new cryptocurrencies will be mainstream . What will be the main uses when regular people get their hands on it . We are seeing everything on the affair him ehthereum network. Instead of paying one company to store and manage your data, there is a network of people networkextra capacity and those willing to pay for it. I think we will see them become successful with the average user does not know they are using it. When im using the internet, i just know if i point my browser to a website i am there consuming data. I think we will see the same thing happening with these networks that help facilitate value transfer. Emily i have heard of Companies Using ethereum to fundraise. We are seeing initial point offerings. Cloudre really just funding. They are allowing them to take the protocol and sell it to that want to help use it and facilitate the development. Emily speaking of fundraising, what can you tell us about coinbases fundraising now . I cannot talk much about it. It is common for companies our size to receive occasional inbounds. That is what we have. Emily how would you describe investor enthusiasm around coinbase and the cryptocurrency space . I would use the larger definition of investor and look at Institutional Investors as well. That is where we are seeing growth. Most of the Trading Volume is not coming from retail traders. It is coming from institutions, hedge funds that look at this new asset class and say this is a market i want to trade. They are coming to us to do it. Emily if you could put a bet on one of the three cryptocurrencies, which would you choose . I think the common Investment Advice is you should never invest more than you are willing to lose or invest in something you dont understand. We are trying to make all of these technologies simple. I think the best Investment Strategy is a diversified portfolio of assets. Emily do you think they will all survive or there will be one winter . We are in early innings. We are starting to see a glimpse of this could be a powerful new technology. But every new website succeeded. It will be the same for digital assets. Those with a strong use case and good team will be successful. Emily thanks so much for joining us. It is one of the most important even a beer for the Biggest Company on the planet. We will bring you a preview of the Apple Developers conference next. This is bloomberg. Emily snap spectacles are making their way to europe. Glassesl start selling at the pump up vending machines and online. The device will cost 129 pounds in the u. K. The worldwide Developers Conference kicks off this week next week giving apple a chance to reveal what it has been up to. While anticipation has been growing over the new iphone set to come out this fall, the tech giant has been branching out into other industries to diversify its lineup. Here with a preview, mark gurman. You know all the secrets. What is going to happen on monday . This is apples biggest event of the year. It happens every june. This is the first time in san jose. Usually they have it in san francisco. They will talk a lot about the next 18 months. We have the new iphone coming out in the fall. This will set the stage for software and services that will run on it. We will see improvements to the ipad. Productivity and Business Users will like the changes. We will see new macs. Ri might see the si speaker that just hit production. Emily what will it look like . How much will it cost . While i want to buy it over echo or google hum . Apple wants to differentiate itself by selling something that can plug into its ecosystem. I think it is cool being able to talk to it. I use an iphone and ipad and mac. Those devices do not play nice together. If i want the speaker technology, i have to go to amazon and see other services. Slowly, i start ditching my iphone and ipad for this new google or amazon ecosystem. Apple needs to put a stop to this. That is one of the main reasons they have to do the speaker. Emily one of the main reasons to use amazon echo is to order paper towels. Will we be able to do that . There will be integration with the developer community. They will probably have an app store or framework so people can fill out application and programs you can control with your voice. Last year, they opened siri to developers on a small scale. I would not be surprised to see that go to a new level where you can do more with your voice, especially geared toward the speaker rather than the phone. Emily will we hear anything about apples efforts in ai . We reported on the ai chip which will be a big part of their ai efforts going forward. I think we will see more developer integration for ai. Emily what about ar . That is interesting. Apple is building glasses we reported on. That is a few years away. It would make sense to come out with a our software and frameworks for developers. It will be interesting to watch to see if they do that next week. Emily what about cars . What that is one of our favorite topics. We will not see an apple car drive on the stage. But they have been working on self driving technology. It could be interesting if they tease next week and i would say that is unlikely. Emily this month, the 10th anniversary of the iphone. We will see the new operating system. What clues what we get about the new phone coming out in the fall . They will not show the hardware part. It is the 10th anniversary and they might highlight that at the event. Ago, is whens steve jobs said the fund would go on sale. They might talk about it because the iphone is so court to wwc at this point. What we will see in the new ios . Improvements to maps and apple amusement music. There is a lot to look forward to if you are an iphone user. Emily thanks for keeping us informed. We will be there on monday. Bloomberg television and radio will have full coverage of the worldwide Developers Conference kicking off on monday. Tune in for reaction and analysis. Bloomberg technology is Live Streaming on twitter. Check us out weekdays 5 00 in new york and 2 00 in san francisco. That is all for now. This is bloomberg. Announcer from our studios in new york city, this is charlie rose. Trumpe president announced today the u. S. Would withdraw from the paris climate accord. President trump in order to fulfill my solemn duty to protect america and its citizens, the United States will paris climatethe accord. So we are getting out. But we will start to negotiate