Transcripts For BLOOMBERG Bloomberg West 20160701

25hour sitin to demand votes on gun bills are said to believe the measure amounts to an n. R. A. Written proposal. From bloomberg in new york, im crumpton. Bloomberg west is next. Im corey in for emily chang. This is bloomberg west. Coming up, well look at brexit and a technology edition. Oracle slammed with a major one. This could cost the Company Breaking a promise made to hewlettpackard. Well explain. And no longer just for billionaires, were going to take a look at the founders, reaching for inn ti infiniti and beyond. The brexit vote left the world reeling. To recapby is oliver the highlights of a crazy, crazy week in trading. Indeed it was, corey. You. A little bit wild today, especially given that we had such a big move really the entire week. Im going to jump right in. This is a great function on bloomberg, just to kind of capture whats been going on. The grr returns. Firstlevel s p bloomberg. On this is basically going to show you everything that moved this week. Isst thing that pops out telecoms, staples. Investigators continue to go to that they perceive as being sort of maybe not safe you a bettergiving return when treasuries continue to dive and yields get lower. To dive intoinue these places that basically are supposed to have lower vol volatility. But the other thing to take away, green across the board. All sectors up. Thisan see the returns week. Then im going to jump into probably one of the bigger the bankinghe week, sector. This is basically showing you the kind of volatility thats days. Ed over five this is the graph, starting from monday. Every day up to friday, where can see generally they ended green on the week, where they were up. Because interesting, these are really the focal points for trying to assess whats going to happen from happen whats going to in terms of the banking sector, whether or not theres political turmoil bleeds over into financial turmoil. We had a date where basically results of the stress test that kind of threw banks for a lop as well loop well. A solid rebound in that group, ending up on the week. Be the story of the week, the volatility index. See this hugeu move down this past week. 40 ive move down, more than decline in the volatility index, following a huge jump going into brexit. Is the realization maybe brexit is not going to be as bad for stocks as people thought. Of it is people were using this to hedge, and you had to get out of that. Had this big move down. Very interesting to see how that volatility perspective is playing out in markets. Was a crazy week. But there you have it. Oliver, great stuff. It. Eciate all right. Aantime, employees are in for big change. We learned that shares will be stock. D with new hey. I havent done t. V. With you before. Whats the deal here . So, theres all these new companies called other bets within alphabet, the former google. Driverless car and all this stuff . The contact lenses. Glucose. That. Like they want these new businesses a lot like startups. But theres been something equity, which is the incentive portion. They need to get peoples stock in those businesses rather than holding company. In what way is that missing . Right now, if youre at the contact lens group, if they do really, really well, youve been with alphabet stock. That really goes up and down, does. Ing on how google but isnt that like working at any company, you might do the in your sector, but Overall Results of the company are how you get paid . Yeah. Has alphabet has become so large, so many different businesses in there. Like they needed to take this next step where theyre trying to make these divisions. For a true venture fund, what happened is the employees their own side bets in on the things theyre working on. Like theyreems sort of saying, hey, youre going to be rewarded just in what youre working on. There any thought of that . Are they doing anything like that as well . Not that i know of. More the case that especially some of these goingives that maybe are to might go to another startup. Hey,hey want to say, instead of that, stay, run one of these other companies and you stock in that. If you do really well, you can become rich just like a startup. Its a very interesting way to reward employees, because there are companies, if you work in sales, you get a bonus on the project youre working on. Issuing equity, its essentially a tracking stock, because theyre not actually ownership. Alphabet has to create this new kind of sixmonth thing. They say, were doing a new stock. Come and sell it back to us. And how will they determine the valuations . Theyre going to do it with an outside service. Whenre going to evaluate, a startup is issuing stock an outsideey get accountant to come up with a it. Market value of so all the ownership will, of owned by the alphabet shareholders, but to havet, theyre going a tracking notion of what the value would have been, had it independent . And if you leave one of these other companies or alphabet completely, you cant take that with you. You have to sell it back to alphabet. Will everyones vest in the way . Im not sure. I wasnt able to find out about the vesting. But one of my sources say they vest a bit like a regular stock award company, like 25 a year. Finally, is there any notion like how many about . Es are we talking so i know for sure that they it. Doing they probably only have hundreds point,oyees at this verily. But if all of them did it, it thousands and thousands. This is interesting. Oracle, big story. A jury in san jose, california, ordered oracle to pay that much for bailing out of a chip deal with hewlettpackard. They decided that oracle to support antract software for hewlettpackards oncepromising chip. 9 billions a lawsuit against google. We bring in matt from to help us d. C. Understand this. So this was this platform that oracle,ewlettpackard, all thought at one point was going to be big. Hurd wass when merc mark running hewlettpackard. Thats exactly right. Pushedlly mark hurd was out for nonbusiness reasons. It was picked up by oracle. And shortly thereafter, after there was a settlement, involving trade secret disputes, oracle eventually decided to back out of providing Software Support for the products. That gave rise to the current lawsuit. Essentially, at the time hewlettpackard said that thise, when they resolved prior dispute, had agreed to continue providing Software Companies hadthe agreed to continue moving forward as they had whenhood was was when hurd was at the helm of h. P. Happen. Nt jury trials can go any way sometimes. It sounds like a lot of h. P. s wasments was that this personal, that this wasnt about oracle making a business oracle making a punitive decision. But it was about mark hurd trying to stick it to his former employer. Thats exactly right. Thats the best story. This was a fiveweek jury trial. A slog, for anybody who is, you know, sitting through that details, ofnical arguments back and forth. Lawyers on both sides, experts, were there, testifying as to what happened and what emails mean. Ultimately, at the end of the think the story that this was a little bit of a vengeance former employer won the day. Its something thats easy to grasp on to, makes sense, and i resonated with the jury that thats the case. Well, Larry Ellison was actually there at closing arguments. Clearly this was a serious thing them. This is a huge case. Has had a number of setbacks. Its Legal Department has been getting hammered with a number of different lawsuits. The 3 billion verdict is way beyond, i think, what was projected to be the likely certainly a worst Case Scenario that came to fruition. It will get knocked down on appeal, most likely. Courts are going to take a look at this and maybe scale back the award or potentially question the underlying enforceable. Its i think its certainly a huge oracles cash closings over the last year. Thehe oracle the size of verdict makes it less likely theyll settle, because the itber is just so big, wouldnt be in oracles interest appeal. L and appeal and thats exactly right. At this point, its more costeffective to pay your lawyers. A 50 50 chance of getting the Appeals Court to reverse it or at least bring closer to something that could potentially settle the case. Looking forcle is realistically something in the low millions, maybe they would, in know, consider something the 100 million range. Youve got a 3 billion verdict out there. Just too farre apart, so its going to be knocked around in the courts. Oracle said, look, we stopped developing on it. H. P. Stopping developing on it themselves. Intel stopped developing on it. H. P. Emailed us a statement that said oracles decision to was aoftware support, clear breach of contract, caused serious damage to h. P. And our customers. Of course, oracle said they never believed they had a contract to continue to support software. Do notnt on to say we believe so today. Pushedquestion is, who the first domino, so to speak . Was this a sinking ship and first to jump off or did they actually cause the hull . In the h. P. Has one view, oracle view. Plays out, atthat least over the next half year or so. Could potentially take another years. Of at least the lawyers are going to get paid. Im so happy about that. Likes when lawyers get paid. Coming up, could apple be diving in with title . Diving and title, talks are in the works for acquisition, at least according to one report. The does this mean for music streaming industry . Well figure it out, next. Turning now to the music streaming the war. Apple ofccusing blocking it. Quote, spotify, was seeking preferential treatment. Comes after the dispute. Los angeles,om vicki newman. The crossborder world is the name of her company. Consulted a lot of project. Vicki, when you look at this industry, is the Business Model sort of to imagine that people will own two or three if theyre big music fans because they want access to the latest drake and access to the kanye videos, so theyve got to be on . Ng for title and so well, i think that there is definitely a movement afoot to to drivesive to try customers to one service or another. I dont know how effective that i think theres a proposition to all the consumers and the music fans for one streaming service and you get access to everything in the world. Sure whether or not people would have an appetite to to two or three services. But exclusives are definitely emerging as one way of differentiation. Yeah. Its a compelling one too. Thebiggest artists in world, rihanna, beyonce, drake. Just the these are most popular artists in the world. Well, they are. That, you know, i ofually am really in support artists doing things for innovatively. Lost the magicve of the limited release and the scarcity. When artists do Something Special and it resonates with their fans, thats really at the heart of what is going to help Digital Music to flourish. But i think for fans who may join one service, if their Favorite Music is held out of not really serving your fans very well. Yeah. This. Ally curious about ive been watching the Music Industry for as long as i can remember. Like all of a sudden youve got the distributor here, sort of bordering on being an actual like music publisher or even a label. Yeah. Well, i think one of the trends is whats seeing happening with netflix and amazon and, you know, original content creation. And that helps all these companies differentiate. A big difference between what netflix and amazon are doing in terms of because they dont have a Value Proposition to the end consumer that they have everything under the sun. But its my understanding, though, that like apple, for its big cashsing pile to front the money to drake to record an album, to try to cement the relationship. Labellike thing to do. Well, it is. It is a very labellike thing to do. Theres been speculation for the last 10 years of, you know, buy the apple just entire Music Industry . Couldnt they just buy every or alphabet . Gle the truth of the matter is, yep, they could. But is that their core business . How can they enter into that intowhen it starts to get things like Artist Development . Tough business but they just brought in jimmy and some of the big ones that there. So theyre perfectly poised to start doing that. Jimmy has developed a few artists as well. I wonder, when you look at this, that i made point last night, which is when this news was crossing, that, you era for are in a Golden Television and film production, hulu, hbo,amazon, juli showtime, stars, all of the traditional makers of content. Ae we starting to look at similar thing where the artists are going to start to get flushed with cash . Complaints from the artists, saying theyre not getting enough from these streaming services. Right. Theres a couple of different problems that are crossing in the streaming services. One is getting the money flow. And that is, you know, getting from anies that consumer to go all the way through the industry value chain, back to the artist. That is really problematic right now. Lot of Great Companies trying to solve that problem. The other is just the economics isstreaming in general and there enough money in that to float the entire industry . 2015 was a really significant in the fact that there was growth and there was tremendous 44 to 68 million, year over year, from 2014 to streamingaid subscribers. Thats tremendous growth. But is that enough . Is that enough to support all of the midtier and toplevel artists . So i think a lot of the Big Tech Companies that are that have music inside of their platform, you know, theyre starting to of engagingme directly with artists, going into the studio, doing costume work that custom work that can be used in media and other kinds of leverage. Thats a really valuable income stream for any of those artists. Im hoping at least it leads to lots more good music. Thank you very much. Appreciate it. Thank you. Right. Up next, health care. Could this really replace medicine . Is trying to prove Digital Health care, both good and bad. This week, bloomberg is presented a focus on farm. Globaleep in the business. Stories and analysis from across platforms. Today we take a look at Digital Health care. It claims to increase patient access. These ideas have yet to revolutionize the health industry. But could they . Joining us now, a company that helps startups. I love this. Thats right. So do you find that some of these Health Tech Startups cant prove the results, or do you actually sometimes disprove their claims . Of course. There are hundreds of thousands apps. Ital health and so a lot of them are making claims that cant be the real world. Our job is to step in, design and run clinical studies to show care world that some of these things do work and should be prescribed and used i system. Th Care Clinical studies in pharma, establishedg practices. Clinical studies in Digital Health or even in alternative much . , not so brandnew thing. Typically these clinical studies they tend to be millions and millions to run. It takes several years. Coordination involved. Were trying to revolutionize the way that we do clinical trials, that we can do them better, faster, cheaper, but just as accurately as theyre doing with the largerscale ones. When i think of Health Claims like fitbit or some of the wellness apps, things that i do monitor my blood, stuff like that, the claims are areshy, because the results squishy, like youll feel better . Prove those sorts of claims . I love fitbit, dont get me wrong. Do too. Obviously all these things are useful in the course of everyday life. Them should be used to determine different ways to treat diseases, however, until out. Re proven so, you know, all these things have a place in the system. We kind of look at these things and say, okay, theres a constellation of stuff that works. Find the right constellation for each person. Say, why do you for whom do you provide the service . Bills people who pay our are people who make these things. So Digital Health providers, Digital Health products and Service Creators themselves. Sometimes that includes pharma companies. Other times it includes payers who want to understand what deployefore they something. Other times, its providers who are increasingly taking a risk their populations and neat to understand how to need to manage themow to better. I feel like we need, for these alternative ideas to move we need proof of them. And i think exposing fakes will make all the difference in the world. Thank you. All right. Very cool stuff. Coverage of pharma. Bloomberg. Com pharma. Coming up, the e. U. s update to has onesignature law on company taking a bet europe. Next. You guys be good. Ill see you later [ bark ] [ bark ] bye. See ya pal. Ever wonder what your pets do when you leave home . [ laughing ] aw you cutie pie. Aw. Aw. Aw. Aw. [ barking ] [ washing machine running ] partys on know what your pets are up to with xfinity home. Xfinity. The future of awesome. See the secret life of pets, in theaters july 8th. Youre watching bloomberg west. Lets begin with a check of your news. Word likely republican president ial nominee donald trump was the western speaker at the conservative summit in denver, colorado. He discussed what the u. S. Would like like if he wins in november. Were gonna appoint supreme justices who youre going to be very happy with. [cheering] such a big thing. Willhese are justices that uphold the constitution of the United States and fully uphold it. As for potential Vice President ial candidates, indiana governor mike pence is expected meet with mr. Trump over the holiday week. The Associated Press says trump considering Newt Gingrich and chris christie. Theres an air war going on in the u. S. President ial campaign. Right now its onesided. Over a 12day period in june, clinton spent roughly 500,000 a day on television commercials. Donald trump didnt run a single ad. A vaccineobama says for the zika virus could be ifeloped in short Order Congress acts to pass a zikaprevention bill. Stalled in has been congress for weeks. The president says the effort is wellfunded, he is fairly confident the virus can be theped before it spreads to continental u. S. He says lawmakers shouldnt take their summer recess before passing the bill. Ricos governor says he plans to sign an 8. 8 billion spending bill for the fiscal starting today. This comes after the island said will miss payments on a record amount of debt. Garcia padilla says the doesnt have enough money to continue essential bond investorsy in full. On thursday, president obama signed legislation that sealed from bondholder lawsuits. The Foreign Ministers of russia friday and agreed to restore their antiterror cooperation and military contact. Ties were cut when a turkish yet at the border. Ne the nations decided to mend ties once turkey apologized. The Justice Minister on friday bee the case why he should the next prime minister. Im in the leadership contest and one reason alone. I want this country i love, and given me so much, to embrace this opportunity for change with optimism and with conviction. Tiger woods wont play in the british open in scotland. Hes still recovering from back surgery. Woods also pulled out of the oakmont earlier this month. He hasnt played competitively place intied for 10th august. Im in for emily chang. Forget brexit. Business across europe just got easy. The new electronic signature go into effect. Docusign is ready for this, bolstering its investment, spending 100 million. We are joined right now. You. , good to see thanks for having me. I really appreciate it. Its a big deal, seems like for no one more than you guys. In the context of brexit, this the purpose ofs a european union, it seems to me. What were the rules yesterday . Yes. So yesterday every e. U. Member different regulations, different type of requirements in terms of electronic signature. Has happened is they have standardized and simplified laws, in every european unifiedtate, its one platform. So my hats off to the officials in brussels. And its probably pretty rare. Brussels ou, but but i think it will really drive the acceleration of the Digital Transformation in europe. Accelerate electronic comergcommerce for europe with e of the world. It was said that the most important issue facing government is digitation. It seems like europe is sort of getting on board the same way that india is really ahead on this. They really are. Theres probably not a fortune 1,000 c. E. O. Where the Digital Transformation is at the on of their strategic initiative. Its either one, two or three. Is really what driving docusigns business. What has ended up is weve step in theirrst Digital Transformation. Really for three reasons. Paper out. Et the and you have to do that before you get into artificial big data,ce, analytics. The second thing is that its a transformation. And the beauty is that docusign quick access. The c. E. O. Spoke at our conference. Beauty about docusign is those quick wins, order to steer the ship, it has to be moving. And we were able to get that. The third big reason is the Value Proposition, which is so quantifiable in terms of Impact Companies bottom line as well as reducing the risk. Know whoaperwork, you has actually done the dl. Accountability, moving something forward. Exactly. Are there Certain Industries or certain types of businesses that were just hard, because europe was a pain in the butt easier for you now . I think the regulated industries, so banking. Heavily, which is regulated. Insurance as well. Were blessed with great standardizedt have on docusign in europe. Bark clays. , the big ones. Think, 20 of, i revenues presently are in european union. I think it will go up to the range. Its our fastestgrowing business. But you think this change is accelerate that growth . Yes. Theres no question about i, because now no question about it, because now every company can pick the best solution. Announced our invest for europe initiative. Its the biggest, boldest ever at docusign. It encompassed three global acquisitions. Centers are up and frankfurt, amsterdam, paris. What country electronic signature, qualified that greats docusign user experience. Then we also announced that our solution runs on the hybrid cloud and private cloud. So c. E. O. Search. But nos have been close cigar yet. That, and latest on where do you guys get with that . Thats an important thing. I made this decision about a ago. We never put a timetable. We call it our built to last plan. Sion the press calls it the number search in software the world. Were making great progress towards that. Time frame . Sayell, you know, we always three to nine months. Ha ha its like the fed raising rate. To nine months away. Last question. Funding, you guys are one of those companies that andbeen able to sit there be private and be stand alone. Do you think the ipo is going to outcome or is there going to be an acquisition, to partner . H a bigger we havent set a date for the ipo. Weve been able to invest about 1. 5 billion in the category and also the platform. Biggestis as one of the opportunities in the world in is a of every Company Potential customer, every department is a potential astomer, every person is potential user. And our sole competition is paper. Grab. S a land so weve been headsdown focused on that. To haveo allowed us strategic, powerful technology microsoft,ike google, visa. Invest in the docusign network. The c. E. O. Of docusign. Im glad for that. We appreciate your time. And one vital source of funding European Investment fund. They pool billions in financing from private banks to back startups. 2. 5e 20112015, they put billion into it. Venture7 of all the funds raised in Great Britain in that period. Lets get this report from london. Following last weeks vote leave thee u. K. To european union, a lot of Venture Capitalists are worried theyre one of their major investors. A lot of these firms would never got off the ground without eif. Ty check from this was a fund created by the european government because private Venture Capital just has never taken off to the same degree it has in the United States. So they decided to create this fund to act as catalyst for ventures throughout europe. The fund has about 9 billion euros currently. A big backer of the venture sector in the u. K. In particular. They since 2001 1, have provided funding thats gone to 144 different funds. That represents 37 of the total amount that the sector has raised during that time period. Now the fear is that that money is going to go away. Immediately after the vote last eif put out a statement saying it noted the result of the vote with regret future relationship with the u. K. Would be subject to negotiation. And a lot of the venture i talked to, they were guardedly optimistic that this funding will continue. Often invest throughout europe, so they feel its a eif tocation for the provide the funding to them. Withs with so much else this brexit vote, thats a lot of uncertainty. London. Bergs jeremy in well, the stock were watching, its worst day in six months. Shares dropped as the chip maker in sales. 25 decline investors can see another loss quarter. Ming coming up, spacex, virgin galactic. Were going to talk to francois next. Dont forget to tune in this week. Well bring in the best entire week. Om the best of bloomberg west, this weekend. And now to the space race. The new space race. Over the past few years, weve an influx of aerospace firms. Up with the director of nasas Research Center and how nasa is benefiting from the increased competition. We dont have all the best ideas. Of the opportunity, the ideas developed, were things that are aerospacede of the industry to help do our as well. Francois is the founder of the star burst accelerator. Asked him for his thoughts on space race 2. 0. Right. Re its been a very booming, the last three, four years. And this year has been extremely busy. Innovations. Of course, related to purely space, following facebook. A couple of startups. Thenow yesterday at nasa, rocket lab was pitching in front a Large Corporation. Whether its observations or telecommunications. We are really expending. We see more and more startups. But is there a Technological Advancement that has just happened . Ive been asking this question for month. I cant get my head around this. Thatst to be something just happened that makes this more possible than it was . What happened is the success couple of startups, just demonstrating that the business is valid. Just ignites all the other startups. Which ones have been successful . Again, planet labs. They demonstrated that they auld be either possible, or greater valuations, which make wantand more entrepreneurs to break in and more and more money is going to flow in that area. That thee i suspect big ones, especially spacex, losing tons and tons of money. 5,000 employees with, what, 100 million in revenue probably for launch . That doesnt get you there. But if its the same model on know, internet startups, they are all losing a lot of money. Linkedin is using a lot of money. Lose money a lot of times. Are the people who used to go a government or agency, are they now looking at startups, and is that changing of whatre of sort happens to these people . A lot of them would stay in academia. World starting businesses. So, yes, to be an entrepreneur you need different skills. But what weve seen in recent years is all these big talents, engineers, either from ucla, u. C. F. , are not going to the Large Corporation anymore, but more wanting to be ored by the new startups even these emerging successful players. Where do you find the best talent . Yes. We have a couple of spots around globe. In the u. S. , you will find them mostly around stanford, a lot also in l. A. Thats why we set up base there. Thats for the u. S. A huge pool of talents in europe. Is munich, paris, london or even in ireland. Is there one signal event that sort of signals pardon launch of but the this emerging industry . Yes. Last year, there was a report amount of money invested in space startups was equal to the last 15 years of visa money in the same type of startups. Its a very capitalintense creating an app or social media network. Definitely. Different. I have a couple of developers, in their home, can develop what and thenk would work put that online in a couple of days. A dog in a garage is not going to get it done . Yes and no. Now startups, drones, the size of the 737, that are developing in their garage, and getting their first financing, because they want to usingt the cargo industry drones. So, yes, you still see these startups growing out of their garage. Its not on the same scale and type of products. French fort he is san jose. Francois. F from staying in space, on july 4, well, we are all barbecuing and watching fireworks. Nasas spacecraft will be arriving at its final destination, jupiter. In trip has been five years the making. It will hopefully bring us some of the most detailed photographs of the planet that weve ever seen. Three. Two. One. Ignition and liftoff nasa launched juneau on august 5, 2011. July 4, 2016, it will become the first spacecraft to peer clouds of jupiters massive surface. Farthestready made the solarpowered trip in the history of space exploration. Jupiters orbit receives only 4 of the amount of sunlight we here on earth. Thats the equivalent of about household light bulbs. Once it nears jupiters surface, due to radiation degradation. On needless to say, not many have endureds anything near the punishment that juneau will over the course of its mission. But after five years, it will reach its destination. Deep into jupiters atmosphere, track its cloud motions and map both the gravity fields, juneau will not only provide neverbeforeseen images but unprecedented insight into the formation of our solar system. Well, as bloombergs max reporting, that incredible story. Tune in tuesday as kenny, the martin project manager, joins us to talk about that jupiter landing expected on monday. The future of pharma may not require sun or soil. Got the c. E. O. Next. This is bloomberg. Well, the garden state is going vertical with aeroponic farming. Aeroponic. Yes. A commercial farming company. 75,000square foot farm in new jersey. It will be the largest indoor the world. The company has raised more than 70 million to expand globally. Now so close to new jersey. Mindblowings a concept. How do you explain this to people who have no idea what you do . We grow without sun and soil aerofarms. So plants dont need soil. Nutrients. They dont need sun. They need spectrum of light. Warehouse. And its level upon level of growing. So in a warehouse, a modern warehouse thats 36 feet high, we have 12 levels of growing with these grow towers that are approximately 80 feet long. In the farm were building, there are going to be 35 of these. Its going to produce what . The it will have the capacity to produce just under two Million Pounds on analyzed basis. We grow leafy greens, watercress. 250 different varieties. We want to bring back some of varieties where most people could just name one to like five, 10 different varieties. 250 theres some great culinary tastes and flavors that people should experience. Of watercressnds are there . Weve grown probably around five. Morem sure theres much than that. Watercress, if your audience doesnt know, is actually the most nutritionally dense food. Thats why i asked. And, you know, this notion of farm to table, imparted about lowering pollution, use of oil, trucking stuff from wonderful farms to wonderful stores, this pretty crazy, though, to grow this stuff in newark, new jersey. Yeah. The environmental side, which is a lot of our inspiration as side the sotoal societal side, we grow using 95 less water. Fungicides, ands, approximately 50 less fertilizers. Productivity is about 75 times higher than a field farmer. Out thes us to spread cost of rent amongst a much larger product base, revenue really reduce our cost. As well as bringing in harvest,n and seeding, and packaging. So we sell to supermarkets at the same price that they buy from field farmers in the category of organics, which is 20 premium. A and supermarkets are your principal customer . Yes. Finally, you know, do you imagine this expanding . Is there a certain kind of you need, a place where youre going to do this . Couldlook at where we grow near Food Distribution centers. We want to be in cities. Go in places where the economics are a little cheaper. Cost in newark, where the of real estate is a little cheaper. But theres also a social side alleviating a food desert in newark and also creating a lot of jobs to the use of newark, which could it. Beyond building farms in cities all over the world, so people have access to fresh food, where theres a lot of waste in the excitingange, whats for us is our ability to influence the crop biology in a optimize yield nutritionalexture, density. Were talking about data science influences their production. David, aerofarm industry. Be sure to tune in next week announcer from our studios in new york city, this is charlie rose. Tom friedman is here. He is a threetime Pulitzer Prize winner and a columnist of the new york times. He is known for tackling big ideas and wideranging subjects from Foreign Policy to globalization to the role of technology. Recently, he turned his focus to the 2016 president ial election. The british vote leave the european union, and the applications of emerging technologies. For all those reasons, i am pleased to have tom friedman back at this table