Transcripts For BLOOMBERG Bloomberg Technology 20170626

That is according to the ap setting a current and former administration official. Global news. 24 hours a day. Powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. This is bloomberg technology. Minister meets with President Trump for the first time. We will bring you their press conference from the white house live. Lets break down the future of the relationship between Silicon Valley and new delhi. Plus apple steal some of alphabets thunder with an autonomous fleet announcement. Pples new deal with hertz google could set a new world record when it comes to search. How much the u. S. Tech giant could be on the hook for . But first to our lead. U. S. Supreme court has given President Trump a partial victory on his travel ban. The u. S. Supreme court will allow a limited version to go into effect. Tech ceos around the country were vocal in fighting the executive order calling it unconstitutional. In a Statement Released by the white house, President Trump said, todays ruling allows me to use an important tool for protecting our nations homeland. This is fairly surprising, isnt it . Why did the court ruled this way . At this fromoking another angle. The argument made earlier was from a First Amendment claim, a religious violation. The executive order was discriminatory. That Supreme Court is looking at this from a standing perspective. The people who do not have any standing in the United States, have the right in the United States. Emily they did more than just agree to hear the case, they restored part of the travel ban, right . People from six muslim majority countries, if you do not have a relationship with anybody in the United States, if you do not have a job in the United States, if you are not admitted into a university in the United States, then you are banned. Everyone else can enter from these six countries. Emily what does this mean for immigrants . A job in Silicon Valley. If you have an invitation to a university anywhere in the United States, you can come to work. If you know somebody or are seeking a visa or refugee status, you are not banned. Toyou do not have any link the United States right now, it will be hard to get that be set. Emily what we know about how this is impacting traffic that airport . Thats what a lot of immigrant Rights Groups are wary of. The next few days will be important how this plays out. Was chaos at the airports when the first version went through. Will airports be banning people from entering the country. Or will they have strict guidelines they have to stick by. We dont know the answer yet. Emily what is next . Will we see clarity on u. S. Immigration policy . There will be a lot of litigation before we see the policy. In the meantime, you will have a turn of immigrants Rights Groups suing over this issue of bona fide relationship, whether you have a relationship with somebody in the u. S. Are not. That will be decided by local courts. Emily we will continue to follow. Thank you to our legal reporter from bloomberg news. A joint statement from resident drop and the Prime Minister of india. They are meeting in the oval office and are expected to discuss expanding ties on writing terrorism. A short time ago, President Trump had this to say. President trump it is a great honor to have the Prime Minister of india. He has been such a great Prime Minister. Speaking with them and reading about you, you have it you have done a great job economically. He has done very well in many other ways. However, President Trump was not the first meeting for the Prime Minister during his visit. On sunday he met with some of the biggest u. S. Tech names, including tim cook, jeff bezos, and a google head. For more insight on these meetings we are joined by the assistant director for the asian policy society institute. What is at stake for this meeting between President Trump and Prime Minister modi today . This is essentially a first date. His fifth visit the United States in three years in office. He has invested a lot of Political Capital and time in moving india closer than the United States. On the u. S. Side, President Trump need some good news. He wants this to be a relationship that works well. On both sides there are win win issues. There are real differences. They have to manage those productively. Emily some of the tech ceos tweeted with their meeting, jeff bezos said, perfect meeting with Prime Minister modi. Excited to keep investing and growing. Tim cook said, great to see you again. Inspired to keep growing. What is at stake for these Business Leaders . Seconda is the fastestgrowing major economy in the world. Demonetization it went down a slight bit, but it still grew at 6 this past year. It will be one of the major economies, it is a huge market, 1. 3 billion people. Current trade between the u. S. And india lies in the billions. Many experts believe that it could go to 500 billion. Apple, as one example, has almost 500 stores in the world. It does not have a single store in india. India is a major market. It has a growing till class that will be spending a lot of money. It, they we understand expressed concerns about the Regulatory Environment in india. We know Prime Minister modi has consolidated our power. He is positioned well for reelection. What is the hope that regulation will relax in india . The problem is the expectation of change and the speed at which change will occur. Referring were reform reform has happened other Prime Minister modi. Budget session of goods and services that task. That will have a positive impact on the economy. There will continue to be a delicate dance meaning companies will continue to push. Now that Prime Minister modi has an space going into 2019, maybe he will be willing to invest more Political Capital in speeding up this reform. And geto back to india them to get to work on these issues. Couple of the issues we expect that President Trump and mightminister modi disagree on our intellectual perty, the visa program which is specifically important to tech companies. What we know in terms of what can actually move forward on this issue . On the visa issue, we are not looking at something happening right away. All the order really did was ask for a review over worker visa programs. We dont really know where that will end up. What india is hoping to convey is, please dont implement any sort of unilateral drastic measure. They know that congress will have a huge role to play in this. They want whatever solution comes out to focus on the abuse of the system and not any kind of unilateral change that really lowers the number of workers that come into the u. S. There will be a lot of lobbying happening in the tech sector as well as the indian government. Thank you. Asia society assistant director. Thank you for joining us. President trump is currently meeting with Prime Minister modi in washington. When that meeting is over, both of them will give a joint statement in the rose garden. We will bring you the statements live when they begin. Looking at a live shot of the rose garden there. Seekingeme court is President Trumps views on the apple patent fight. Samsung including slide to unlock. Samsung is asking the high court to the consider two separate decisions. Ruling,t year in an 83 an Appeals Court reinstated the entire verdict. Coming up, shares of car as newes are jumping play into theals future of autonomous partnerships. We are live on twitter. 5 00 p. M. In new york. 2 00 p. M. In san francisco. This is bloomberg. Emily shares of the rental car company avis jumped 21 after reaching a deal with alphabets self driving car unit waymo. They will manage way most feet of 600 cars in phoenix. Hours after the announcement, we learned that apple is working with hertz test that driving technology with a small fleet of lexus suvs. It went up 18 . So what is this fledgling field and can we expect more partnerships to come about . Now, reporters covering Number Technology and apple for us. What exactly is happening here . The 600oenix, autonomous fans that waymo has after theyus vans, are done, avis will be responsible. Emily and with apple . With apple, they have highly paid engineers. The last thing they want to be doing is have been doing mechanics on the cars. Emily how big a deal on these partnerships . What is interesting is if you look at the important financials, the big risk of people owning huge fleets of cars, values fall. If you dont own the cars and someone else owns them, that sort of depreciation can help keep your net margin very high. Alphabet still owns these cars, but it hints that a broader agreement with a section of avis might be keeping people in. Emily whether we know on the google side . Point ofaviss view is interesting because they have cars that get millions of miles every year. Waymo needs that type of data. They could work quite well. Anyway that avis is involved in that technological transaction, that is good for avis. Emily i we expected to see any more partnerships in this area . What do we see when it comes to the other player . Tothere is a deal last year acquire a Fleet Management company. The other element is a lot of tier one automotive buyers, theyre trying to build up their aftermarket business. Replacement business, and all these need, grady components gritty nitty components will be replaced frequently. I think they will do the tests First Six Months or more. They will see how the public reacts to that. I dont think they will go lights for for at least 34 months. We spoke about apples car ambitions, do we know anything more now about what direction they are going in . If you look at the scope, apple, six. Cars, it is a huge difference. Google has 600 cars or will soon have 600 cars on the road. Emily thank you so much. Remember, we are waiting for President Trump and Prime Minister modi to speak in washington. Youre looking at a live shot of the rose garden. There are about to give a joint statement. We will have it to you live. This is bloomberg. Is setalphabets google to face an antitrust fine for promoting its Search Service over smaller rivals. This is according to people that are familiar with the probe which has been up over the last few days. It is expected to exceed the 1. 2 billion fine place on intel in the past. What is the latest so far as we know . This asuld be getting soon as tomorrow. There has been a dramatic speed up in the pace of this negotiation. It has lasted seven years. It seems like the finish line has been brought forward in that many people have not been told about the eu timetable, which is usually done as a measure of courtesy. This is a record antitrust file that could be coming googles way. It is bigger than the intel record. He also could be if there are any changes to the Business Model of google. That could be more painful. There is quite a lot of cash on its balance sheet. It makes 90 billion in revenue a year. So 1. 2 billion will not be significant. Competitiont you commission will be looking at it. Inis perhaps a quieter time the news if that is possible. Emily a big decision coming very soon. The investigation into alphabet does not end there, what else is going on . There are three investigations going on from the European Commission into alphabet at the moment. Number one has been the shopping that is being investigated, the bring pictures and services to the top of your search and high smaller competitors and search engines. It is not just that investigation, there is also an investigation into android software. There are claims that they force manufacturers to add googles own search and web browsers when you have an android powered phone. The third is the ad space online service. Google has made responses to this current chopping investigation saying theyre working constructively with the European Commission. They strongly believe that innovations in Online Shopping is good. The Eu Commission is not afraid of big numbers and the punishment when it comes to these bills. Somethingting fair fairly sizable here . I think so. They look at not only the years , andhas been going on for feel that perhaps competitors have been hard done. The investigation has been going on for seven years. But also the revenue stream. Out of that makes 90 billion per year. You have to make it substantial if it is going to hurt in any sort of way. It pales in significance compared to the apple tax fine that we saw back in august. That was 13 billion euros. She is not afraid of leveling the sort of sizes. Think about the facebook fines we saw a few months ago showing that they perhaps misled the investigation of the merger. That was only 110 million euros. Saying, are you attacking u. S. Tech here . Why do give such big punishments . Sake of it is the protection. We have a number of google cases, three by now. In europe you have to move and be successful and grow to be big. If you start to misuse your dominant position to prevent others from having the same type of success, then we get concerned. That is the example of the google cases. We think google is misusing its own position to promote itself and stay where they are and not allow others to compete with them in a fair way. That is when we were speaking to the European Competition commissioner. Nots also notable that is just u. S. Tech they get to, german tech makers got a big fine last year. Hyde in london for us. We will stay posted is that comes out. From april continues cyberattacks at the u. K. Parliament. 90 lawmakers were compromised in what was called a sustained a determined hack. A council be suspended until they change their passwords and put in a multifactor identification process. U. K. Government officials were being sold on a russian hacker four. President trumps meeting with the indian Prime Minister. When that meeting is over, they will give alive News Conference in the rose garden. We will bring it to you live. This is bloomberg. Youre watching bloomberg technology. Lets start with a check of your first word news. Union with forged a a Democratic Union party to get past her agenda. It includes 1 billion in new funds for northern island, expected to draw the ire from other regions. Fivelso assured that with years continued residence, they would be granted settlement status. Decision pending court that could ban him and corruption accusation. A new poll shows the brazil president has voter intentions. Documentjects a u. N. Expected to act as a guide for the summit this weekend. Continue on how security will be overseen if cypresses reunified. Colombias president is thinking First Responders for helping avoid what could be a debtor deadlier tragedy after they rush to a scene to help tourist after their vessel capsized. These people are dead and several others are still missing. Global news. 24 hours a day. Powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. P. M. Onst after 5 30 monday. 7 30 p. M. In sydney. Good morning. Inis looking pretty quiet australia. Asx features up by just a single point. Take a look at rio tinto today. Straight toll get the white house where President Trump and Prime Minister modi our life. Lets listen in. Pres. Trump Prime Minister modi, thank you for being here with us today. Welcomegreat honor to the leader of the Worlds Largest democracy. Ive always had a deep admiration for your country and for its people. And a profound appreciation for your rich culture, heritage, and traditions. This summer india will celebrate the 70th anniversary of its ofependence, and on behalf the United States, i want to congratulate the indian people on this magnificent milestone in the life of your very incredible nation. During my campaign i pledged that if elected, india would have a true friend in the white house. That is now exactly what you have, a true friend. A friendship between the United States and india is built on shared values, including our shared commitment to democracy. Not many people know it, but both american and the indian constitutions begin with the same three very beautiful words, we the people. The Prime Minister and i both understand the crucial importance of those words which helped form the foundation of cooperation between our two countries. Relations between countries are strongest when they are devoted to the interests of the people we serve. After our meeting today, i will say that the relationship between india and the United States has never been stronger, has never been better. To theoud to announce media, to the american people, and to the indian people, that aree minister modi and i World Leaders in social media. , giving thevers citizens of our countrys opportunity to hear directly from their elected officials. And for us to hear rackley from them. My guess is it has worked very well in both cases. I have thrilled to salute you, Prime Minister modi, and the indian people for all that you are a common rushing together. Your accomplishments have been fast vast. India has the Fastest Growing economy in the world. I hope we will be catching you soon, we are working on it. In just two weeks, you will begin to implement the largest tax overhaul in your countrys history, we are doing that also by the way. Creating great new opportunities for your citizens. You have a big asian for improving infrastructure. You are fighting government corruption, which is always a grave threat to democracy. Together, our countries can help chart an optimistic path into the future, one that unleashes the power of new technology, new infrastructure, and the enthusiasm and excitement a very hardworking and very dynamic people. I look forward to working with you, mr. Prime minister, to create jobs in our countries. To grow our economies and create a great relationship that is fair and reciprocal. It is important that barriers be removed to the export of u. S. Goods into your markets, and that we reduce our trade deficit with your country. I was pleased to learn about an ofian airlines recent order 100 new american planes, one of the largest orders of its kind, which will support thousands and thousands of american jobs. We are also looking forward to exporting more American Energy to india as your economy grows, including major longterm contracts to purchase american which are right now being negotiated and we will sign them. Trying to get the price up a little bit. To further our economic partnership, i am excited to report that the Prime Minister has invited my daughter of vodka to lead the u. S. Doubt my nka to lead the delegation to india this fall, and i believe she has been she hasfinally confirmed. Both of our nations have been struck by the evils of terrorism. We are both determined to destroy terrorist organizations and the radical ideology that drives them. Radical islamic terrorism. Our militaries are working every to enhance cooperation between our military forces. Next month, they will join together with the Japanese Navy to take part in the longest largest Maritime Exercise ever conducted in the vast indian ocean. I also think the indian people for their contributions in afghanistan and for joining us in applying new sanctions against the north korean regime. The north korean regime is causing tremendous problems and is something that has to be dealt with, and probably dealt with rapidly. Working together, i truly believe our two countries can set on the temple for many other nations. Great strides in defeating common threats and make Great Strides in unleashing amazing prosperity and growth. Prime minister modi, thank you for joining me today. Andfor visiting our country our wonderful white house and oval office. Our very productive conversation this afternoon. To itsforward continuation tonight at dinner. The future of our partnership has never looked brighter. States wille united always be tied together in friendship and respect. Prime minister modi, thank you very much. [applause] president , first lady, Vice President , 80s and gentlemen, ladies and gentlemen of the media. From the opening to the end of trumpss, president welcome was filled with friendliness. There was a warm welcome to the white house from the president and the first lady. I would like to thank the both of you from the bottom of my heart. Giveld also like to special thanks to you President Trump for having spent as much time with me, for having spoken kind words about me and my , and i would like to tell you that i am eager to welcome your daughter to india for the summit. To again trump, i want thank you for the time you have spent with me. I want to give you special thanks for that. My visit and our talks today will mark a very important of thein the history collaboration and cooperation between our two nations. Talks between President Trump and myself today have been extremely important from all points of view. Reasons, because they were based on mutual trust, of similarities they revealed in our values, priorities, concerns, and interests. Focused on the highest levels of achievement and our cooperation and mutual support and partnership. Because our two countries are global engines of growth. Economic growth and joint progress of both countries in both societies is the Main Objective for both the president and myself and will remain so. For bothriority President Trump and myself is to protect our societies from global challenges like terrorism. Aim ause our strengthening of india and the usa, two great democracies in the world. A Robust Strategic Partnership is such that it touches upon almost all areas of human endeavor. In our conversation today, President Trump and i have discussed all dimensions of u. S. india relations. Most nations are committed to a bilateral architecture, but we take our Strategic Partnership to new heights. , increaseuntries jobuctivity, growth, creation, and breakthrough technologies. Theseagement in all of are and will remain strong drivers of our cooperation. We consider usa as our primary partner for Indias Economic transformation in all of our flagship programs and schemes. Im sure that convergence between my vision for a new india and President Trumps vision for making America Great again will add a new dimension to our cooperation. Clear about the fact lie in aas interests strong, prosperous, and successful America Great in the same way, indias development and its growing role at the International Level are in the usas interests. One of our common priorities will be the development of investment links. , technology,d innovation, and knowledge economy sectors, the expansion and deepening of cooperation is also among our priorities. Further take steps to transform our successful digital partnership. We are not just partners by partners inre also dealing with current and future challenges that we may be faced with. Today, during our meeting, we discussed the serious challenges of terrorism, pastries and terrorism, extremism, and radicalization. We have agreed to enhance our cooperation in fighting against these scorches. Fighting terrorism and doing sanction safe havens will be a important part of our cooperation. With respect to our common concern on terrorism, we will enhance sharing of intelligence and exchanges of information to deepen and expand our policy coordination. We also focused on regional issues. Instability due to terrorism in afghanistan is one of our common concerns. Both india and america have played an Important Role in rebuilding afghanistan and ensuring its security. Our objectivetain of peace and stability in afghanistan, we will maintain close cooperation and communication with the u. S. To enhance coordination between our two nations. In the pacific region, in order to maintain peace, stability, and prosperity in the region, this is also another objective of our cooperation. The increasing possibilities for enhancing cooperation in order to protect our Strategic Interests and determine the dimensions of our partnership, we will continue to work with the usa in this region with regards to security related challenges. Our growing defensive Security Cooperation is extremely important. We have spoken at length on the subject. Strengthening of indias defense capabilities with the help of the usa is something we truly appreciate. To enhanceo decided maritime Security Cooperation between the two nations. I have also spoken about strengthening bilateral Defense Technology and our trade partnerships which we believe will be mutually beneficial for us. Internationalsed issues and common Strategic Interests. In this context, we are extremely grateful for the continued support of the United States for indias membership. We totally appreciate the support. Is also in the interest of both our nations. You fort trump, i thank your feelings of friendship toward india and myself. I deeply appreciate your strong commitment to the enhancement of her bilateral relations. Im sure that under your mutuallyp our beneficial Strategic Partnership will gain new strength, new positivity, and will reach new heights. That your vast and successful experience in the Business World will lend an aggressive and bold agenda to our relation. In this journey of india america relations, i would like to thank you for providing great leadership. That in this joint journey of our two nations, i will remain driven, determines, and a decisive partner. Today and, my visit the extensive talks i have had with you have been very successful, very fruitful. Before leaving, i would like to invite you to india along with hope that youd i will give me the opportunity to welcome you and host you in india. Again, i would like to thank you for the warm welcome extended by you and the first lady to myself and my delegation. Thank you. [applause] pres. Trump thank you very everybody. I appreciate it. Thank you. Emily President Trump and indian Prime Minister modi wrapping up a press conference in that rose garden. Not taking any questions today. I want to bring in our senior White House Correspondent and our washington bureau. They talked about the strength of the relationship between the u. S. And india. President trump pointed out that they were the World Leaders on social media. Prime minister modi has 31 million followers, President Trump has 32. 8 nine followers. Not a listen reporter there are a few big things here. The top line is that india wants to buy Defense Technology and President Trump wants to sell u. S. Defense technology. That is a big area of commonality. Also fighting terrorism, they have likeminded concerns there. And we just learned that ivanka trump has been invited to lead a u. S. Delegation to india. Couple of areas that were not resolved yet. You do not hear President Trump or the Prime Minister talk about the issue of h1b visa immigration. Trade imbalances also a big deal for President Trump. He wants asian nations to adjust policy so there is less of an in balance. India is one of the countries for which the u. S. Is running a trade deficit. Prime minister modi has consolidated power in india. He is well poised for reelection in 2019. What is at stake in terms of President Trump and the opportunity to take advantage of this relationship with india . Reporter it is the Worlds Largest democracy and fastestgrowing economy. It is projected that somewhere north of 7 in the year ahead. It is a tremendous business opportunity. Also, it is potentially this is something president obama talked about before President Trump, it can help the u. S. Temper the influence of china and other nations in the region. In terms of a number of partnerships, economic or therery partnerships, were talks about joint exercises or military exercises, intelligence sharing it is too big of a country to overlook. In the technology world, it is not just economy, but in terms of technology and the whole technology economy. You cant overlook india. Trump alsoident mentioned the two countries would because caught operating on north korea, what did you make of that . A couple ofey were pivot points for this. The new south korean president is going to be visiting President Trump later this week. This is President Trump trying to show both china and south korea, as well as north korea, that the u. S. Is looking to build alliances, whether in terms of sanctions or other approaches, to north korea and that they will not just sit by and wait for south korea to get on the same page as the u. S. Emily there were questions shouted about the health care declined torump answer. He did tweak that he was taking a victory lap for the Supreme Court travel ban. What is happening with that . The white house will take any victory they can get in terms of the travel ban. The application of this will be something to watch in the days to come. That is a bright spot on the white house today. The healthcare bill is a little bit more complicated. Answerrd that question ask as the president and Prime Minister will walk away from the microphone, whether the bill has heart . How the white house gets its arms around the cbo score in the future of the bill now before senators could be important politically answered and strategically. Emily margaret, our senior White House Correspondent. Thank you. President trump and the indian Prime Minister modi wrapping up a press conference in the garden. That does it for this edition of bloomberg technology. Tomorrow we will talk to one of the top venture capitalists in Silicon Valley. I cannot wait to speak with her. Bloomberg technology is Live Streaming on twitter. At 5 00 out weekdays p. M. In new york, 2 00 p. M. In san francisco. Thats all for now. This is bloomberg. Inouncer from our Studios New York city, this is charlie rose. Evening. Charlie is away. Ofthursday after a month closeddoor negotiations, the Senate Leadership release their version of repeal and replace. Mitch mcconnell is pushing for a vote next week. The bill is running into trouble. Four republican senators announced their application opposition to the bill. Joining me from washington is