>> I AM TAYLOR RIGGS SAN
FRANCISCO.
THIS IS "BLOOMBERG TECHNOLOGY."
COMING UP, CLICK BATES.
WE HAVE COMPLETE ANALYSIS OF
SEARCH ENGINE EARNINGS INCLUDING
COMMENTS FROM THE CFO.
PLUS, JEDI MIND TRICK.
AMAZON HAS A
RECORD , BUT SOME
WORKERS ARE NOT CELEBRATING.
TO INFINITY AND BEYOND.
RICHARD BRANSON'S VIRGIN
GALACTIC COULD BE THE FIRST
SPACE TOURISM BUSINESS TO GO
PUBLIC. WE WILL ANALYZE DEMAND.
THE FIRST, TOP STORIES.
ALPHABET EARNINGS.
THE REPORT WAS IMPACTED BY HEAVY
INVESTMENT IN GOOGLE'S CLOUD
COMPUTING BUSINESS.
GOOGLE HAS BEEN BUILDING DATA
CENTERS AND HIRING SALES PEOPLE
FOR ITS CLOUD UNIT
THAT RUNS
SERVICES OVER THE INTERNET.
JOINING ME
, OUR CORRESPONDENT
FROM BLOOMBERG INTELLIGENCE.
CLOUD IS ALL THE RAGE, POTENTIAL
FOR FUTURE GROWTH.
WHAT DID YOU MAKE OF IT?
>> LIKE YOU SAID, THEY ARE
SPENDING.
THEY ARE SHOWING RESULTS.
WHAT WE ARE SEEING FOR THE NEXT
YEAR, THEY WILL TAKE THE
CENTER
FOCUS AND YOU WILL GET SUCCESS
HERE AND THEY HAVE THE CAPACITY
TO COMPETE.
YOU WILL SEE THIS BEING A BIGGER
DEAL FOR GOOGLE BUT AT A COST.
TAYLOR: WHAT IS YOUR TAKE ON
KEEPING UP IN THE CLOUD BUSINESS
?
>> IT WILL TAKE CONTINUED
INVESTMENT AS WE JUST SAID, BUT
THERE IS A HUGE POTENTIAL FOR
PAYOFF.
TAYLOR: I WANT TO TALK ABOUT THE
STATEMENT -- IT LOOKS LIKE
TOPLINE REVENUE IN THE BOTTOM
LINE REVENUES -- IS THIS A
REVENUE PROBLEM OR AN EXPENSE
PROBLEM?
>> IT'S NOT HER REVENUE PROBLEM.
-- IS NOT
A REVENUE PROBLEM.
WE SEE SEARCH BECOMING MORE AND
MORE VALUABLE ON MOBILE.
THIS IS OFFSETTING THE 18%.
THE WALL, THE VOLUME OF ADS
YOU'RE SEEING.
I THINK THE BUSINESS WILL KEEP
HUMMING, BUT THE CLOUD
BUSINESSES WHERE THIS COULD BE A
BIGGER DEAL FOR THEM NEXT YEAR.
AT SCALE, THEY ARE A VERY
PROFITABLE BUSINESS.
GOOGLE HAS THE SCALE.
IF THEY CAN COME OUT AND SHOW
THE EXPOSURE -- LOOK, THIS IS
HOW FAST WE ARE GROWING, IT
COULD SPUR THE COMPANY.
TAYLOR:
I JUST GOT OFF THE PHONE
WITH THE CFO WHO SAID IT WAS THE
MESSY QUARTER.
BUT THERE ARE CHANGES IN
ACCOUNTING AND MARK TO MARKET.
SOME OF THOSE LOSSES ARE ON THE
INCOME STATEMENT.
INCOME STATEMENT.
SHE WOULD NOT SPECIFY THAT UBER
AND SLOT FOR THE COMPANIES.
IS THERE A REAL IMPACT TO THE
VENTURE CAPITAL ARM OF THE
COMPANY'S THAT LEAD TO THE
BOTTOM-LINE RELATIVE TO WHERE
YOU THINK THEY SHOULD THE?
-- SHOULD BE?
>> I THINK THAT'S POSSIBLE.
MY BIGGEST TAKE AWAY FOR GOOGLE,
WE DO FOCUS ON THE AD SIDE AND
THE EXPECTATIONS FOR THEIR AT
REVENUES AND ALTHOUGH CPC'S
ARE
DECLINING A BIT, THE INDIVIDUAL
CLICKS ARE WAY UP.
I THINK IT'S A REALLY GOOD SIGN
FOR THE BOTTOM LINE.
TAYLOR: LAST WEEK WE SAT HERE
AND SAID THE SAME THING ABOUT
AMAZON.
BUT THAT AD BUSINESS IS SO
STRONG. HOW MATURE ARE THEIR AD
BUSINESSES?
>> MOBILE SEARCH STILL HAS ROOM
TO GROW.
AS THE RESULTS SHOW, IT'S A VERY
VALUABLE FRANCHISE FOR THE
COMPANY. SO WE EXPECT
THAT MOMENT TO CONTINUE THEIR.
GOOGLE WILL SHOW MORE RESULTS ON
THAT FRONT.
YOU'LL SEE THIS DYNAMIC PLAYING
OUT WHICH REALLY PLAYS WELL FOR
BOTH COMPANIES.
THERE'S ENOUGH ROOM FOR THE
THREE OF THEM TO ENJOY GOOD
GROWTH, BUT DISCLOSURE FOR BOTH
COMPANIES ON AMAZON AND
POTENTIALLY GOOGLE COULD MAKE
THE DIFFERENCE.
TAYLOR: YOU HAD A GOOD NOTE ON
THIS THAT AD REVENUE ACCELERATED
INTO 2018, HAVE A LITTLE SLOW
DOWN IN 2019.
DID THIS ORDER GIVE YOU ENOUGH?
ARE THERE STILL POCKETS OF
WORRIES, LET'S SAY?
>> I THINK AD PRICING IMPROVING
IN GENERAL WOULD CONTINUE
BECAUSE THEY ARE MARKET SHARE
LEADERS AND THIS IS A MATURE
BUSINESS, BUT THIS IS ENOUGH
ROOM ON THE MOBILE SIDE
TO KEEP
THIS MOVING AT A HEALTHY CLIP.
>> I ASKED SPECIFICALLY ABOUT
YOU TO.
THERE'S ARGUABLY OUTSIDE THE
CLOUD, IT COULD BE A BIG FUTURE
GROWTH AREA AND SHE REITERATED
THAT SAYING WE ARE EXCITED ABOUT
THE UPSIDE POTENTIAL.
ARE YOU GETTING ENOUGH OFF AND
OUTLOOK GOING INTO THE NEXT FEW
QUARTERS TO BE CONFIDENT THAT
COULD BE A DRIVER.
>> I DO THINK THAT YOUTUBE WILL
BE A DRIVER.
ADVERTISERS ARE VERY KEEN TO
SPEND ON VIDEO PLACEMENTS.
YOUTUBE IS THE NUMBER ONE PLACE
TO DO THAT.
>> BUT THERE IS BEEN CONTROVERSY
A LOT OF TIMES BY YOU TO.
THERE'S A BROADER CONCERN ABOUT
DATA PRIVACY AND MISINFORMATION.
WHAT'S THE DOWNSIDE RISK? >> THE
DOWNSIDE RISK IS MORE ON THE
PROFITABILITY SIDE.
THE MOMENTUM AND ADVERTISING
WILL CONTINUE TO BE STRONG.
BUT BECAUSE OF THE SHARED
INFRASTRUCTURE,
IF YOU LOOK AT
THE COST PROFILE INDIVIDUALLY,
SIR WOULD BE'S -- SEARCH WOULD
BE SIGNIFICANTLY MORE
PROFITABLE.
I THINK WE WILL KEEP ON THE
TOPLINE BUT AS FAR AS DISCLOSURE
IS CONCERNS, WE DO NOT THINK THE
NUMBERS WOULD BE DISCLOSED
ANYTIME SOON.
CLOUD IS A REAL POTENTIAL.
TAYLOR:
NICOLE, FINALLY, WE KNOW
THAT GOOGLE IS ENMESHED, AS ALL
BID -- BIG TECH IS, WITH CHINA.
THEY ARE LOOKING FOR GROWTH, NOT
COMMENTING ON THE TRADE FIGHTS
OR OPERATIONS IN CHINA.
WHAT DO YOU MAKE OF ANYTHING
HEADWIND AS FAR AS IT COMES TO
THE MACRO ENVIRONMENTS IN CHINA
AND THE TRADE FIGHTS?
NICOLE: GOOGLE'S BIGGEST
HEADWINDS HAVE TO DO WITH
CURRENCY FLUCTUATIONS.
AS FAR AS CHINA THEY ARE NOT
SUIT WERE INVESTED.
ANY ISSUES WITH CHINA MAY AFFECT
THEM MUCH LESS THAN IN THE U.S.
LIKE MANUFACTURING.
TAYLOR: THANK YOU BOTH FOR
JOINING. NOW INVESTOR
-- THE FAKE MEAT
MAKER BEAT ANALYST EXPECTATIONS
COMING IN AT $92 MILLION ON NET
REVENUE AND RAISED THEIR
OUTLOOK.
DISTRIBUTION CHANNELS ARE ALSO
KEY TO GROW. BEYOND MEET
AT'S FIRST EARNINGS
AFTER GOING PUBLIC.
IF YOU LIKE BLOOMBERG NEWS,
CHECK US OUT ON THE RADIO.
YOU CAN LISTEN ON THE BLOOMBERG
APP, BLOOMBERG.COM AND IN THE
U.S. ON SIRIUS XM.
THIS IS BLOOMBERG.
TAYLOR: MICROSOFT SHARES ROSE TO
A RECORD ON MONDAY AFTER A MAJOR
BIT THREE SECURING
A MILESTONE.
THE CONTRACT UNTHINKABLE FOR
MICROSOFT EVEN A YEAR AGO WILL
LIKELY COME AND IT COST, LEGAL
AND INTERNAL.
GOOGLE IS LEARNING THAT THERE IS
-- BLOOMBERG IS LEARNING THAT
THERE WILL BE A CHALLENGE
,
CITING PRESIDENT DONALD TRUMP'S
INTERFERENCE IN THE BED PROJECT.
AMAZON HAD WIDELY BEEN
CONSIDERED THE FRONT RUNNER.
TO DISCUSS, WE'RE JOINED BY
BLOOMBERG'S NAOMI NICK'S WAS
BEEN COVERING THIS AND DANA
BASH, WHO COVERS
MICROSOFT.
HOW DID MICROSOFT DO THIS?
>>
WE ARE ALL TRYING TO FIGURE
OUT TO WHAT EXTENT IT WAS THE
INVOLVEMENT OF PRESIDENT DONALD
TRUMP AND TO WHAT EXTENT IT WAS
MICROSOFT'S OWN BID.
THE LAST COUPLE YEARS, MICROSOFT
HAS BEEN IMPROVING ITS CLOUD
OFFERINGS.
THEY BUILT DATA CENTERS THAT
WERE APPROPRIATE AND OVERALL,
THEY HAVE BEEN EXPANDING
GLOBALLY.
THEY ALSO HAVE A LONG HISTORY OF
GOVERNMENT CONTRACTS.
MICROSOFT WORKED WITH THE
FEDERAL GOVERNMENT FOR A LONG
TIME.
THEY GENERALLY BEEN SUCCESSFUL.
TAYLOR:
NOW ME, FROM THE
PENTAGON, THE D.C. ANGLE, WAS
THE ADVANTAGE OF AMAZON OVER
MICROSOFT?
>> AMAZON'S BEEN A LONGTIME
CONTRACTOR WITH THE DOD.
THE DOD USES AMAZON PRODUCTS
CURRENTLY IN ITS OFFICE SUITE.
THERE WAS SOME SYNERGY IN TERMS
OF MICROSOFT ABILITY --
MICROSOFT' DISABILITY TO SAY,
HEY, WE KNOW HOW THE GOVERNMENT
WORKS. AND WE HAVE THE TECHNICAL
CAPABILITIES TO MEET THE DEMAND
YOU'RE LOOKING FOR.
TAYLOR: NAOMI, YOU BRING UP AN
INTERESTING POINT.
IS IT HEALTHY TO HAVE
COMPETITION, AMAZON WITH THE
CIA, MICROSOFT WITH THE DOD, OR
IS IT BETTER TO HAVE SYNERGY
WITH THE SAME COMPANY ECHO
WHAT'S THE PERSPECTIVE FROM
D.C.?
NAOMI: SECURITY OFFICIALS HAVE
BEEN QUITE DIVIDED.
IT HAS BEEN QUITE CONTROVERSIAL.
PEOPLE IN INDUSTRY OF SAID, WITH
THINK THE DOD ANOTHER
PUBLIC-SECTOR AGENCIES SHOULD BE
NOT PUTTING ALL OF THEIR EGGS IN
ONE BASKET AND THEY SHOULD BE
USING MULTIPLE CLOUD PROVIDERS
IN THE DOD HAS TRIED TO ALLAY
CONCERNS, ONLY RELYING ON THE
JEDI FOR THEIR CLOUD SERVICES
AND SAYING WE HAVE SMALLER
CONTRACTS THAT COULD GO TO OTHER
COMPANIES AND THEN YOU HAVE
OTHERS WITHIN THE DOD YOU SAY
IT'S REALLY COMPLICATED.
TAYLOR: WHAT DOES AN AMAZON
CHALLENGE LOOK LIKE?
>>
THE GAO HAS 100 DAYS TO
RESPOND TO IT.
THEY COULD ALSO FILE A LAWSUIT.
WILL THAT BE SUCCESSFUL?
OR THERE COULD BE A POSSIBILITY
LIKE KNOW ME MENTIONED THAT THEY
WILL -- NAOMI MENTIONED THAT
THEY WILL -- GENERALLY
CORPORATE
CUSTOMERS HAVE ONE CLOUD THAT
THEY RELY ON.
THEY ARE INCREASINGLY MOVING
AWAY FROM JUST THE ONE.
THERE ARE PEOPLE IN CONGRESS WHO
WOULD PREFER TO SEE MORE THAN
ONE HERE AS WELL. TAYLOR:
NAOMI, TO BE FAIR, THE
GOVERNMENT ACCOUNTABILITY
OFFICE, I BELIEVE, CAME OUT AND
SAID THIS DEAL AND THE APPROVAL
PROCESS WITHDRAWAL THE
APPROPRIATE CONTROLS.
IF AMAZON MORE TO CHALLENGE,
THEY ARE CONFIDENT THEY RAISED
THE BAR HIGH ENOUGH.
BUT WHAT ELSE ARE THEY SAYING
ABOUT WHAT THE CHALLENGE COULD
LOOK LIKE AND IF ALL THE
CONTROLS WERE MET ECHO -- MET?
NAOMI: THE GAO PREVIOUSLY RULED
ON A PROTEST FROM ORACLE AND
ORACLE ALLEDGE THERE WERE
CONFLICTS OF INTEREST THAT GIVE
AMAZON THE EDGE.
THE GAO HAS NOT SAID ANYTHING
ABOUT ANY CLAIMS AMAZON MIGHT
MAKE IN REGARD TO THE FAIRNESS
OF THE JEDI CLOUD CONTRACT.
WITHIN THE DOD, THERE HAS BEEN
AN INSPECTOR GENERAL LOOKING
INTO THE CONTRACT AND THEY
RECENTLY CAME OUT WITH A
STATEMENT THAT SAID, HEY, WE
HAVE NOT SEEN ANYTHING THUS FAR,
BUT WE ARE AWAITING THE FINAL
RESULTS. TAYLOR:
NOT ONLY WAS MICROSOFT FACING
THE PRESSURE, BUT INTERNAL
PRESSURE? WHAT ARE THE EMPLOYEES
INTERNALLY PROTESTING?
DINA: AN EMPLOYEE GROUP POSTED
AND ANONYMOUS LETTER -- AN
ANONYMOUS LETTER ASKING THE
COMPANY NOT TO BID.
THAT SAME THE CONTRACT.
THEY ARE UPSET THAT MICROSOFT IS
JUST BETTING ABETTING.
THEY THINK THIS AMOUNTS TO
MICROSOFT HELPING THE GOVERNMENT
IMPROVE THE LETHALITY OF ITS
WEAPONS SYSTEMS AND THEY DON'T
WANT TO BE PART OF THAT.
WHETHER THEY WILL TAKE IT
FURTHER THAN TWEETS, WHETHER
THERE IS ANYTHING INTERNALLY, A
WALKOUT, SOMETHING LIKE THIS, SO
FAR THE COMPANY AS RESPONDED
SAYING, LOOK, WE BELIEVE
WE SHOULD BE SUPPORTING AND
SUPPLYING THE U.S. GOVERNMENT
AND U.S. MILITARY.
THE COMPANY SAYS THEY RESPECT
THAT SOME EMPLOYEES MAY FEEL
DIFFERENTLY AND TOLD THE
EMPLOYEES THAT THEY SHOULD SEEK
TO WORK ON OTHER PROJECTS, BUT
WE'RE TALKING ABOUT MICROSOFT'S
WEAKEST CLOUD SYSTEM.
THE PENTAGON HAS ANOTHER
CONTRACT FOR WHICH THE MICROSOFT
OFFICE CLOUD WILL BE CONSIDERED.
IT IS BECOMING HARDER AND HARDER
FOR MICROSOFT TO FIND JOBS THAT
ARE NOT TIED INTO THESE
CONTRACTS.
TAYLOR: THANK YOU FOR JOINING.
MUSIC TO
YEARS.
SPOTIFY'S DEBUT ON PROFITS.
WE HAVE THE STORY NEXT.
AND BLOOMBERG TECHNOLOGY IS LIVE
STREAMING ON TWITTER.
BE SURE TO FOLLOW OUR GLOBAL
BREAKING NEWS NETWORK ON TICTOC
ON TWITTER. THIS IS BLOOMBERG.
TAYLOR: APPLE HAS
ANNOUNCED
NOISE CANCELLATION AIR PODS.
THEY WILL BE RELEASED OCTOBER
30.
EACH EARBUD WELL -- WILL SHIP
WITH THREE DIFFERENT SIZES OF
YOUR TIPS LIKE AN FROM TWO
DIFFERENT EAR SHAPES.
THEY COST 200 $49.
-- 240 NINE DOLLARS.
AND GOOGLE HAS REPORTEDLY MADE A
TAKEOVER OFFER FOR THE MAKER OF
WEARABLE AND WIRELESS FITNESS
DEVICES.
THERE'S NO CERTAINTY A DEAL WILL
HAPPEN.
NEITHER GOOGLE NOR FITBIT IS
COMMENTING.
AND IN NORTHERN CALIFORNIA,
WILDFIRES ARE PLEASING OUT OF
CONTROL.
ALMOST 200,000 PEOPLE HAVE
BEEN FORCED TO LEAVE THEIR HOME
SPIRIT OF THE SAME TIME, PG&E IS
SLOWLY RESTORING POWER AFTER THE
BIGGEST DELIVER IT BLACKOUT
EVER.
TWO .7 MILLION PEOPLE HAVE HAD
THEIR ELECTRICITY SHUT OFF.
THE BLACKOUT HAS BEEN AIMED AT
KEEPING POWER LIGHTS FROM
STARTING MORE FIRES.
IN SHARES OF AT&T ARE RISING.
THE COMPANY WON PRAISE
FROM THE
ACTIVIST INVESTOR ELLIOTT
MANAGEMENT FOR ITS NEW
THREE-YOUR PLAN.
THE TELECOM PROMISE TO DO MUCH
OF WHAT ELLIOTT HAD PRESSED FOR.
AND THEN SPOTIFY SHARES MOVING
TOWARD THE IPO IN APRIL.
THE COMPANY BEAT ESTIMATES ON
SUBSCRIBER GROWTH THIS QUARTER.
SPOTIFY HAS 113 PREMIUM
SUBSCRIBERS.
THEY ARE KEEPING RIVALS APPLE
AND AMAZON IN CHECK.
JOINING ME AIR, I WANT TO TALK
ABOUT APPLE EARNINGS.
WHAT DID WE LEARN?
>> INTENDS FOCUS ON THE CLOUD --
INTENSE FOCUS ON THE CLOUD.
THIS IS BEEN AN OBSESSION .
GOOGLE HAS SEEN 20% REVENUE
INCREASE.
AND THIS IS BEEN ABOUT THE CROP
-- ABOUT THE CLOUD.
THAT BUSINESS REALLY
SIGNIFICANTLY INCREASED.
THEY HAVE BEEN BROADENING THE
CUSTOMER BASE AND WHAT'S
INTERESTING, IF YOU LOOK AT THE
BREAKDOWN, THAT LITTLE BAR
REFERS TO OTHER, WHICH INCLUDES
CLOUD, INCLUDES HARDWARE.
THEY ARE LOOKING TO THE FUTURE
WHEN IT COMES TO REVENUE.
TAYLOR: ALL THINGS OUT OF THAT
AND GOOGLE.
THAT WAS AS LOLO -- ED LOLO --
ED LUDLOW.
WE WILL HEAR FROM RICHARD
TAYLOR: THIS
IS BLOOMBERG TECHNOLOGY.
LET'S FOCUS BACK ON THE THING.
ALPHABET SHARES FELL IN LATE
TRADING AFTER REPORTING
THIRD-QUARTER EARNINGS.
RESULT LARGELY IMPACTED BY THE
HEAVY INVESTMENT IN GOOGLED'S
CLOUD COMPUTING BUSINESS WHICH
IS TRYING TO CATCH UP WITH
RIVALS LIKE AMAZON AND
MICROSOFT.
LATER THIS WEEK, WE GET NUMBERS
FROM APPLE AND FACEBOOK.
THEY REPORT QUARTERLY EARNINGS
ON WEDNESDAY.
JOINING ME TO DISCUSS IT ALL IS
ED LUDLOW.
WALK ME THROUGHOUT OF THAT AND
GOOGLE.
ED: CLOUD IS THE FUTURE AND THEY
ARE MAKING THAT CLEAR.
BACK IN Q2, SUNDAR
SAID WE
EXPECT THIS TO BE AN $8 BILLION
ANNUAL BUSINESS THAT CAN COMPETE
WITH AMAZON'S AWS AND MICROSOFT.
$8 BILLION IS ABOUT A QUARTER OF
WHAT A W'S -- EIGHT OF U.S.
MAKES FOR AMAZON BUT THERE IS
STILL GROWTH POTENTIAL.
THEY ARE MOVING AWAY FROM THIS
CORE ADVERTISING BUSINESS.
TODAY, THAT HAS BEEN AN
INCREDIBLE ENGINE FOR GROWTH.
20% GROWTH ON REVENUE.
TAYLOR: A CHART WE ARE SHOWING
TO THE AUDIENCE REALLY
HIGHLIGHTING THE STRENGTHS THAT
IS THE REVENUE RELATIVE TO
EVERYTHING ELSE.
THEY ARE SO DEPENDENT ON AD
REVENUE. ED: THEY HAVE BEEN.
QUARTERS OF 20% PLUS ANNUAL
GROWTH, THAT MAY BE SLOWING DOWN
A BIT.
IN THE FIRST QUARTER, THERE WAS
A MISS ON REVENUE THAT HAD
CONCERN ABOUT THE FUTURE OF THE
ADVERTISING BUSINESS.
NOW IN THE THIRD QUARTER, THERE
IS SO MUCH TALK ABOUT THE CLOUD,
HOW MUCH THEY ARE INVESTING.
THEY PUT A LOT OF MONEY INTO
THIS BUSINESS UNIT.
THEY ARE HIRING LIKE CRAZY.
FOR THEM, THEY FEEL LIKE THEY
CAN BE COMPETITIVE AGAINST
AMAZON AND MICROSOFT.
THERE ARE OTHER AREAS AS WELL.
THE PIXEL 3, THIS CHEAPER
HANDSET, COMPARED TO THE REST OF
THE MARKET.
TAYLOR: ON BLOOMBERG TECHNOLOGY,
WE LIKE TO PUSH IT FORWARD.
WEDNESDAY, APPLE AND ALL EYES ON
HOW THE FIRST EARLY NUMBERS FROM
THE IPHONE 11 SALES ARE GOING.
ED: THIS QUARTER WILL INCLUDE
THE FIRST SHIPMENTS.
THE ESTIMATE IS AROUND 42
MILLION UNITS, A DECREASE FROM
THE SAME QUARTER LAST YEAR.
THIS IS THE QUARTER BEFORE
HOLIDAY SEASON.
FISCAL FOURTH-QUARTER FOR APPLE,
BUT THE COURSE OF THE HOLIDAY
SEASON.
APPLE'S RELIANCE ON THE IPHONE
AND HANDSETS, MOVING AWAY FROM
THAT TOWARDS THE SERVICES
BUSINESS.
THERE HAS BEEN 10 CALLS ON THE
STOCK THIS MONTH ALONE.
PART OF THAT IS OPTIMISM ABOUT
TRAFFIC THROUGH APPLE'S U.S.
STORES.
THERE COULD BE A SURPRISE EVEN
THOUGH THE ESTIMATES ARE LOW.
DEFINITELY KEEP AN EYE ON
SERVICES.
THEY BUNGLED AND APPLE TV PLUS
WITH THE PURCHASE OF A HANDSET.
IT IS ABOUT AS MUCH GETTING
EXISTING USERS TO GET MORE
PRODUCTS AND SERVICES THAN IT IS
ABOUT GETTING HANDSETS TO NEW
CUSTOMERS.
THAT IS WHERE WE WILL BE
LOOKING.
TAYLOR: ED WILL BE FOLLOWING ALL
OF THOSE EARNINGS FOR US.
CAN'T THANK YOU ENOUGH.
BILLIONAIRE RICHARD BRANSON'S
VIRGIN GALACTIC HOLDINGS BECAME
THE FIRST PUBLICLY TRADED SPACE
TOURISM IS THIS ON MONDAY.
THE LISTING WAS CARRIED OUT
THROUGH A MERGER WITH A SHELL
INVESTMENT COMPANY THAT WAS
ALREADY TRADING.
VIRGIN GALACTIC HAS BEEN RUNNING
FOR THE 15 YEARS WITHOUT YET
ACHIEVING A FIRST
COMMERCIAL LOSS.
YET, RICHARD BRANSON NCO GEORGE
WHITESIDES SHARED THEIR
ENTHUSIASM OF THE PUBLIC TRADING
DEBUT ON BLOOMBERG NEWS EARLIER
MONDAY.
GEORGE: WE HAVE BEEN FLIGHT
TESTING THESE VEHICLES FOR NOW
NEARLY 10 YEARS.
WE BELIEVE WE HAVE AN
ARCHITECTURE THAT IS EXTREMELY
RELIABLE AND ALSO HAS ASPECT
THAT ARE VERY SUITED TO THE
CUSTOMER EXPERIENCE.
FOR EXAMPLE, TAKING OFF FROM A
RUNWAY, LANDING ON A RUNWAY.
THOSE ARE THINGS THAT WILL HAVE
A SMOOTH START AND ENDING TO THE
CUSTOMER EXPERIENCE.
ON ROCKET MOTORS, THE SIMPLEST,
THUS SAFEST ROCKET MOTOR FOR OUR
CLASS OF ROCKETRY.
FOR ALL THESE REASONS, WE FEEL
GOOD ABOUT THE SYSTEMS.
>> THE RICHARD: THE ROCKET CAN
TURN OFF IN A SECOND'S NOTICE
WHICH IS KEY TO THE SAFETY.
>> COMING BACK TO THE ISSUE -- I
UNDERSTAND WHY CELESTIAL TRAVEL
GETS ALL THE BUZZ, BUT SURELY,
THERE ARE GOOD COMMERCIAL
APPLICATIONS ON EARTH.
HOW MUCH WILL THE COMPANY BE
FOCUSED ON THAT, LIKE HYPERSONIC
TRAVEL BETWEEN CITIES?
GEORGE: THE EXCITING THING IS
THE COMMERCIAL STAKE IS A
MASSIVE BUSINESS NOW.
OVER $375 BILLION ANNUALLY, NOW
GROWING TO AN EXPECTED TOTAL OF
$1.5 TRILLION.
THIS IS REALLY THE FIRST TIME
PEOPLE CAN INVEST IN A PEER PLAY
COMMERCIAL FLIGHT COMPANY.
WE WILL BE FOCUSING ON BUILDING
OUT THIS TERRIFIC HIGH-MARGIN
BUSINESS WITH HUMAN SPACE LIKE
OFFERING FROM NORTH AMERICA AND
MEXICO.
WE CAN HAVE EVEN BIGGER MARKETS,
WHICH IS A $200 BILLION PER
YEAR.
WE HAVE A VERY EXCITING NEAR
TERM FUTURE.
>> RICHARD, YOU HAVE BEEN IN
THIS RACE FOR A LONG TIME,
OBVIOUSLY COMPETING AGAINST BIG
NAMES.
JEFF AND ELON MUSK AMONG THEM.
WHAT IS THE FIRST MOVER
ADVANTAGE HERE?
RICHARD: I THINK WE HAVE THE
ADVANTAGE OF HAVING ALREADY PUT
THESE INTO SPACE.
WE HAVE MADE FIVE NEW
ASTRONAUTS.
THERE HAVE NOT BEEN ANY OTHERS
MADE ON U.S. SOIL SINCE 2009.
WE HAVE A TESTED AND TRIED
SYSTEM THAT IS PERFORMING WELL.
WE ARE BUILDING, USING THE MONEY
WE RAISED TODAY, WE CAN BUILD A
LOT MORE SPACESHIPS AND OTHER
SHIPS, A LOT MORE ROCKETS.
WE CAN BUILD THE NUMBERS OF
PEOPLE ABLE TO GO INTO SPACE.
>> WHAT DOES A TYPICAL CUSTOMER
LOOK LIKE?
GEORGE: WE HAVE A WIDE RANGE.
THERE ARE SOME FOLKS THAT ARE
REALLY INSPIRED BY THE APOLLO
PROGRAM OR SPACE IN GENERAL.
A LOT OF PEOPLE WANT TO DO THE
NEXT BIG ADVENTURE.
THERE ARE SOME PEOPLE INTERESTED
IN THE PROSPECTIVE CHANGE THEY
WILL GET INTO SPACE.
SOME PEOPLE JUST LIKE THE VIRGIN
BRAND AND RICHARD.
WE WELCOME THEM ALL.
PEOPLE DO IT FOR DIFFERENT KINDS
OF REASONS.
WE THINK THERE IS A TREMENDOUSLY
BIG MARKET.
YOU GO TO TALK TO PEOPLE, THREE
QUARTERS, EIGHT OUT OF 10 PEOPLE
ACTUALLY WANT TO GO TO SPACE IF
THEY CAN AFFORD IT.
>> TALK TO ME ABOUT THAT --
GEORGE: FOR SURE, THE PRICE
POINT INITIALLY IS A FAIR AMOUNT
OF MONEY.
THE ONLY OTHER WAY TO GO TO
SPACE RIGHT NOW IS TO BUY A
TICKET WITH THE RUSSIANS AND
THEY ARE CHARGING ABOUT $85
MILLION.
IT IS A DRAMATIC PRICE DECREASE.
LONG-TERM, OUR HOPE IS TO GO
DOWN. NEAR TERM, THE PRICE WILL
PROBABLY GO UP A BIT BECAUSE IT
IS ACTUALLY UNDERPRICED.
OUR VISION IS TO BRING THE COST
DOWN SOME MORE AND MORE PEOPLE
CAN EXPERIENCE THE WONDER AND
JOY OF HUMAN SPACEFLIGHT.
>> RICHARD, LAST QUESTION.
YOU HAVE BEEN AT THIS GAME FOR A
WHILE.
SOMETHING THAT IS GOING ON IN
THE HOME COUNTRY, BREXIT IS
DRAGGING ON AND ON.
WHAT DO YOU THINK IS GOING TO
HAPPEN FIRST?
GOING INTO SPACE OR THE U.K.
SUCCESSFULLY LEAVING THE
EUROPEAN UNION?
RICHARD: I VERY MUCH HOPE WE
WILL HAVE TOURISTS IN SPACE,
MANY, MANY, MANY YEARS BEFORE WE
EVEN CONSIDER LEAVING THE
EUROPEAN UNION.
MY THOUGHTS HAVE BEEN
WELL-PUBLICIZED.
I THINK IT IS THE SADDEST THING
THAT WILL HAPPEN TO BRITAIN AND
EUROPE.
I'M HOPING ANOTHER REFERENDUM
WILL BE ALLOWED BECAUSE ALL THE
POLLS SHOW PEOPLE HAVE REALIZED
THEY WERE MISLED AND THEY WILL
VOTE OVERWHELMINGLY TO STAY AS
PART OF THE EUROPEAN UNION.
TAYLOR: THAT WAS VIRGIN GROUP
FOUNDER RICHARD BRANSON AND
VIRGIN GALACTIC CEO GEORGE
WHITESIDES SPEAKING TO ED
HAMMOND. YES, BRANSON WAS
THE SPACE SYSTEM.
WE ARE CHECKING IN ON ENVOY
USING TESTS TO TRANSFORM COMPANY
OFFICES.
NOW THEY WANT TO BE IN ON THE
SMART OFFICE REVOLUTION.
THAT'S NEXT. THIS IS BLOOMBERG.
♪
TAYLOR: NOW TO OUR WORK SHIFTING
SERIES WHERE WE LOOK AT HOW
TECHNOLOGY IS CHANGING THE
NATURE OF WORKFORCES ACROSS THE
GLOBE.
OUR NEXT GUEST BEGAN HIS CAREER
AT GOOGLE AT THE RIPE OLD AGE OF
18.
HE THEN WENT TO TWITTER BEFORE
DECIDING TO START HIS OWN
COMPANY TO TRY TO TRANSFORM
OFFICE SPACES.
SAN FRANCISCO'S BASED ENVOY IS
DOING THAT BY USING OFFICE
CHECK-IN SYSTEMS IN 13,000
LOBBIES ACROSS 70 DIFFERENT
COUNTRIES.
YOU CAN FIND ITS USE COMPANIES
LIKE AMERICAN EXPRESS, YELP,
SPOTIFY, NIKE AND MORE.
FOR MORE, LET'S HEAD TO DETROIT
WHERE ENVOY CEO LARRY IS
STANDING BY. GREAT TO HAVE YOU.
GIVE ME MORE OF AN UPDATE OF
WHAT YOUR COMPANY IS DOING.
LARRY: THANKS SO MUCH.
YEAH, WE ARE TRYING TO MAKE
WORKPLACES WORK BETTER.
THAT I TON
ERE A TON OF DIFFERENT
MONDAY AND THINGS PEOPLE PUT UP
WITH.
WE ARE TRYING TO RETHINK ALL OF
THIS.
WE STARTED IN A VERY SIMPLE
VISITOR SIGN IN PRODUCT THAT
PEOPLE SAW EVERYWHERE.
THEY WERE EXCITED ABOUT IT.
AND THEY BROUGHT IT TO THEIR OWN
COMPANY.
THAT IS HOW WE GOT TO 13,000
COMPANIES USING IT TODAY.
PRETTY EXCITED ABOUT THIS AND
NOW WE ARE TAKING ON THE REST OF
THE OFFICE.
LOTS OF DIFFERENT PRODUCTS, LOTS
OF DIFFERENT AREAS.
TAYLOR: I WANT TO TALK ABOUT THE
DIFFERENT OFFICE.
WE KNOW YOU HAVE NAILED THE
CHECK-IN PROCESS.
WHAT ARE YOU DOING TO MAKE THE
OFFICE A SMART WORKPLACE?
LARRY: THINK ABOUT THIS.
IN YOUR HOME, THE KIND OF HAD
THIS OLD THERMOSTAT THAT GOT
TRANSFORMED INTO SOMETHING
BEAUTIFUL, MUCH LIKE THE NEST
THERMOSTAT.
IT JUST KEPT ON GOING.
IT GOT CONNECTED.
IT WOULD MEASURE WHEN YOU ARE
HOME, WHEN YOU ARE NOT.
ALL THE DIFFERENT THINGS THAT
WOULD MAKE YOUR HOME A REALLY
GREAT PLACE IS NOW
INTERCONNECTED.
WE WANT TO DO THAT WITH THE
OFFICE.
WE WANT PEOPLE TO COME INTO THE
OFFICE.
A VISITOR COMES IN, THEY SIGN
IN, THEY GO INTO THE MEETING
ROOM. IT WELCOMES THEM.
MAYBE IF YOU ARE IN THE MEETING
ROOM, YOU CAN EXTEND THAT TIME
AS WELL.
THE FUTURE IS A PLACE WHERE YOU
ARE NOT WORRIED ABOUT THE
DAY-TO-DAY, MUNDANE STUFF AND
THAT IS WHAT WE ARE WORKING ON.
TAYLOR: WITH ALL OF THIS COMES
HEIGHTENED SCRUTINY OVER DATA.
WHAT ARE YOU DOING TO KEEP DATA
SAFE?
LARRY: LET'S THINK ABOUT WHERE
SIGN IN WAS BEFORE THIS.
PEOPLE WOULD GO INTO SOMEBODY'S
OFFICE AND THERE IS LITERALLY A
LOGBOOK THAT WOULD BE ON THAT
FRONT DESK.
YOU CAN JESSE EVERYBODY BEFORE
YOU.
OUR COMPANY, WHAT YOU LITERALLY
DO IS TRYING TO BRING PEOPLE
AWAY FROM THAT.
WE ARE TRYING TO MAKE IT BETTER
SO NOW IT IS ON AN IPAD.
YOU WOULD SIGN IN.
IT IS ONE PERSON AT A TIME.
THAT WAY YOU DON'T SEE EVERYBODY
ELSE'S INFORMATION SUCH AS
DRIVER LICENSE INFO.
YOU BEING IN A FACILITY, YOU
HAVE ACCESS TO ALL OF YOUR
FACILITIES AROUND THE WORLD.
IF YOU HAVE 100 OFFICES, YOU CAN
SEE SIGN IN INFORMATION FROM 100
DIFFERENT OFFICES YOUR COMPANY
WOULD OWN.
A VERY GOOD WAY TO PROVIDE POWER
FOR BIGGER ENTERPRISES.
THAT IS JUST THE ONE PRODUCT.
WHEN YOU THINK ABOUT EVERYTHING
TOGETHER, THAT ADDED CONVENIENCE
AND POWER BRINGS A LOT OF THINGS
YOU COULD DO.
TAYLOR: A FEW WEEKS AGO, I
INTERVIEWED A GENTLEMAN AND HE
HAD AND ALL REMOTE WORKFORCE.
HOW MUCH OF A HEADWIND IS THAT
TO YOUR BUSINESS AS WE
INCREASINGLY MOVE TO MOVE MORE
REMOTE? LARRY: GREAT QUESTION.
GENERALLY, PEOPLE WILL WANT TO
SEE AND WORK WITH OTHER PEOPLE.
WE HAVE WORKPLACES BECAUSE IS
THAT A LOT -- IT IS A LOT EASIER
TO COLLABORATE.
NOT EVERY JOB AND NOT ALL THE
TIME, THAT IS TRUE.
EVEN NOW, DATA
SHOWING 3% OR 4%
OF PEOPLE WORK FROM HOME.
SO, IT IS STILL A PRETTY SMALL
PERCENT.
I DON'T SEE THAT CHANGE ANYTIME
SOON BECAUSE INHERENTLY, PEOPLE
WANT TO BE WITH PEOPLE.
WE ARE GOING TO MAKE THAT AREA
EVEN BETTER FOR THEM.
TAYLOR: LARRY GADEA, CEO OF
ENVOY. THANK YOU.
STILL AHEAD, FACEBOOK FALLOUT.
EMPLOYEES OF THE SOCIAL NETWORK
ARE NOT HAPPY ABOUT FACEBOOK'S
DECISION TO LET POLITICIANS LIE
ON THE SOCIAL NETWORK.
THAT'S NEXT.
TAYLOR: THE PRICE OF BITCOIN
FLIRTED WITH THE 10,000 MARK
OVER THE WEEKEND.
IT MIGHT HAVE CHINA TO THANK FOR
THAT.
THIS COMES AFTER THE CHINESE
PRESIDENT CALLED TO KEEP CHINA
"VERY FOREFRONT OF BLOCKCHAIN
TECHNOLOGY" LAST WEEK.
A SENIOR FINANCIAL OFFICIAL
CALLED FOR "SPECIAL ATTENTION TO
BE PAID TO BLOCKCHAIN."
TO DISCUSS THAT AND HELP US KICK
OFF SAN FRANCISCO BLOCKCHAIN
WEEK, THE CTO OF A BLOCKCHAIN
ACCELERATOR AND ECOSYSTEM.
YOU ARE IN THE ACCELERATOR, IN
THE MIDST OF IT.
WHAT I LOVE IS YOU TALK ABOUT
HOW THE CRYPTO WORLD RIGHT NOW,
THE FUNDRAISING ENVIRONMENT IS
BROKEN. WHY?
GUEST: WE THINK A LOT OF
PROJECTS WERE ABLE TO RAISE
MONEY VERY EASILY AND THE
INCENTIVES WERE NOT CORRECT FOR
THEM TO DELIVER ON THOSE.
LIKE, PROJECTS NEEDED SOMETHING
BEYOND JUST INVESTMENT.
THEY NEEDED EXTRA HELP FROM
THEIR INVESTORS AND SUPPORT TO
ACTUALLY PUSH THEM TO DELIVER A
PRODUCT.
TAYLOR: ANOTHER THING THAT WAS
REALLY INTERESTING, YOU SAID ANY
START UP COULD SUCCEED IF IT IS
GIVEN THE RIGHT TOOLS.
A BACKER THAT CAN SEE THE
PROJECT THROUGH.
HOW MUCH OF THAT SHOULD IT BE?
NOT EVERY STARTUP SHOULD BE
ACCESSIBLE.
WHY DO YOU THINK A BACKER COULD
COME IN AND SEE A COMPANY
THROUGH, THAT THAT ALONE WOULD
HELP IT BE SUCCESSFUL?
GALEN: WE THINK OF A STARTUP HAS
A REALLY STRONG IDEA BUT IS
MISSING A FEW OF THE THINGS TO
GET INTO THE NEXT PHASE, GET THE
PRODUCT TO MARKET OR GET IT
BUILT, THAT IS SOMEWHERE WHERE
IN INVESTOR OR TEAM CAN HELP
THEM OUT AND PUSH THEM TO THAT
PHASE.
TAYLOR: IN THE INTRODUCTION, WE
TALKED ABOUT HOW VOLATILE
BITCOIN HAS BEEN.
AS YOU TAKE A LOOK ACROSS THE
CRYPTO LANDSCAPE, DOES THAT
VOLATILITY HELP OR HURT?
GALEN: SO, IN TERMS -- FOR
PROJECTS THAT HAVE RAISED MONEY
AND USED BITCOIN, VOLATILITY
DOES HURT IT.
THOUGH AS THE MARKET HAS TAKEN A
DIP, IT HAS ALSO HELPED WEAN OUT
PROJECTS THAT MAYBE THERE WAS
NOT ENOUGH OF SOMETHING TO THEM.
TAYLOR: I WANT TO GET YOUR TAKE
ON WHAT ZUCKERBERG HAS SAID
ABOUT CHINA WITH REGARD TO HIS
LIBRA CRYPTOCURRENCY.
TAKE A LISTEN.
WE HAVE A SOUNDBITE.
MARK: AS SOON AS WE PUT OUT THIS
WHITE PAPER ON LIBRA, WHAT WE
SAW WAS IN CHINA ESPECIALLY, THE
IMMEDIATELY KICKED OFF THIS
PUBLIC-PRIVATE PARTNERSHIP WITH
SOME OF THEIR BIGGEST COMPANIES
IN ORDER TO RACE TO BUILD A
SYSTEM LIKE THIS QUICKLY.
THAT THEY COULD USE AS PART OF
THEIR BELT AND ROAD INITIATIVE,
THEIR FOREIGN AND ECONOMIC
POLICY TO GROW INFLUENCE
THROUGHOUT ASIA AND AFRICA AND
OTHER AREAS.
TAYLOR: HE IS REALLY
HIGHLIGHTING THAT IF WE DON'T
ACT, CHINA WILL.
IS THAT A REAL THREAT?
GALEN: ABSOLUTELY.
I THINK THE U.S. HAS FAILED TO
SUPPLY SENSIBLE REGULATION FOR
PROJECTS IN THIS SPACE TO BUILD
ON. IF YOU COMPARE THAT TO OTHER
JURISDICTIONS, PROJECTS
COLLABORATE WITH LEGISLATORS TO
CREATE LAWS.
HERE, THEY END UP LOOKING OVER
THEIR SHOULDER TRYING TO FIGURE
OUT WHAT THE LAWS ARE AND IF
THEY WILL BE SUBJECT TO THEM IN
THE FUTURE.
TAYLOR: WHAT DOES SMART
REGULATION AROUND
CRYPTOCURRENCIES LOOK LIKE?
GALEN: EXACTLY SOMETHING LIKE A
REGULATORY SANDBOX OR OPEN
DISCUSSION ABOUT WHAT RULES
SHOULD BE AND WHAT SHOULD BE
ENFORCED.
CURRENTLY IN THE U.S., IT IS NOT
THAT. TAYLOR: VERY INTERESTING.
THANK YOU FOR JOINING.
NOW, FACEBOOK EMPLOYEES ARE
SPEAKING OUT OVER THE COMPANY'S
POLITICAL POLICY.
A LETTER FROM EMPLOYEES TO MARK
ZUCKERBERG OBTAINED BY THE NEW
YORK TIMES READS "MISINFORMATION
AFFECTS US ALL.
OUR CURRENT POLICIES OF
BACK-CHECKING PEOPLE AND
POLITICAL OFFICE OR RUNNING FOR
OFFICE ARE A THREAT TO WHAT
FACEBOOK STANDS FOR.
WE OBJECT TO THIS POLICY AS IT
STANDS.
IT DOES NOT PROTECT VOICES, BUT
INSTEAD ALLOWS POLITICIANS TO
WEAPONIZE OUR PLATFORM BY
TARGETING PEOPLE WHO BELIEVE
CONTENT POSTED BY POLITICAL
FIGURES IS TRUSTWORTHY."
FOR MORE, I BRING IN SARAH FRIER
WHO COVERS FACEBOOK.
WHAT DO YOU MAKE OF THAT
STATEMENT?
SARAH: I THINK IT IS REALLY
HITTING ON ZUCKERBERG IN AN
INTERESTING WAY BECAUSE
ZUCKERBERG IS TALKING ABOUT --
WE SAW HIM IN GEORGETOWN LAST
WEEK. WE SAW HIM IN THE HALLS OF
CONGRESS SAYING IT IS ALL ABOUT
FREE SPEECH.
THAT ALLOWING POLITICIANS TO
SPEAK ON ISSUES THE MATTER WHAT
THEY SAY IS IMPORTANT FOR THE
MARKETPLACE.
EMPLOYEES ARE HITTING BACK AND
SAYING IT IS NOT ABOUT
CENSORSHIP AT ALL.
IT IS THE WAY FACEBOOK ITSELF
AMPLIFIES CERTAIN IDEAS, ALLOWS
PEOPLE TO PAY TO HAVE THEIR
MESSAGE KNOWN.
ALLOWS PEOPLE TO TARGET VERY
SPECIFICALLY WHO THEIR ADS CAN
REACH AND WHEN THOSE ADS REACH A
VERY SMALL AUDIENCE OF PEOPLE
WHO ARE LIKELY TO BE RECEPTIVE
TO THEM, THERE REALLY IS NOT A
MARKETPLACE OF IDEAS CHECKING
THE POLITICIANS ON THOSE
COMMENTS.
SO, I THINK IT WAS A VERY SMART
INTERNAL LOOK AT THE WAYS THAT
FACEBOOK NOT JUST ALLOWS SPEECH,
BUT AMPLIFIES IT.
FACEBOOK DOES NOT HAVE THIS
HAPPEN AT ITS COMPANY.
IT'S A VERY TRANSPARENT, OPEN
WORKPLACE WHERE PEOPLE ARE
CONSTANTLY TALKING ABOUT ALL THE
ISSUES THAT AFFECT EMPLOYEES.
I'VE NEVER HEARD OF A LETTER TO
EXECUTIVES OF THE SIGNATORIES
LIKE THIS.
IT IS A REALLY BIG DEAL TO SEE
THEM SAY SOMETHING SO FORMAL.
TAYLOR: DO YOU ASSUME THAT
FACEBOOK COMING OUT AND SAYING,
WELL, WE WILL REVIEW THE WAY THE
ADS ARE PRESENTED SO IT IS VERY
CLEAR IF THIS IS A POLITICAL AD
OR NOT -- DOES THAT NOT GO FAR
ENOUGH?
SARAH: IT DOES NOT ADDRESS THE
COMPLAINTS EMPLOYEES HAVE.
CERTAINLY THE WAY THE ADS ARE
DESIGNED AND LABELED IS ONE OF
THEIR TOP COMPLAINTS.
BUT, THEY ALSO WANT POLITICIANS
TO BE TREATED THE SAME WAY AS
OTHERS ON FACEBOOK.
ANY OTHER ADVERTISER ON
FACEBOOK, YOU CANNOT LIE ON YOUR
ADS AND IT GETS TAKEN DOWN.
FACEBOOK IS NOT WANT TO BE IN
THE POSITION OF HAVING TO DECIDE
IF SOMETHING IS TRUE AND THEY
ALSO SAY THEY SHOULDN'T HAVE
THAT POWER.
AT THE SAME TIME, BY STEPPING
BACK AND NOT TAKING ANY ACTION
ON THOSE ADS, THEY ARE ALLOWING
LIES TO SPREAD AND ARE OK WITH
IT. THERE HAS TO BE SOME MIDDLE
GROUND.
I DON'T THINK THAT BASED ON THE
EMPLOYEES PUSHING BACK, BUT ALSO
WE HAVE SEEN ELIZABETH WARREN,
JOE BIDEN, OTHERS PUSHING BACK
AT FACEBOOK.
THEY WILL HAVE TO MAKE SOME SORT
OF MOVE ON THIS.
IT IS UNCLEAR WHAT.
TAYLOR: AMIDST ALL OF THIS, ALL
THE ANTITRUST SCRUTINY'S, DATA
PRIVACY SCRUTINY AROUND
FACEBOOK, THEY ARE COMING OUT
WITH A PREVENTIVE HEALTH CARE
UPDATE, IF YOU WILL, THAT
REMINDS YOU TO MAYBE GET A BLOOD
PRESSURE TEST OR NOT. WHYY
IS FACEBOOK COMING INTO THE
HEALTH CARE SECTOR?
SARAH: FACEBOOK WANTS TO --
WHATEVER FACEBOOK DOES, THEY
WANT FACEBOOK TO BE MORE USEFUL
TO THE PEOPLE WHO ARE USING ITS
PRODUCTS.
NOT JUST FOR CONNECTING WITH
FRIENDS AND FAMILY, BUT ALSO FOR
GETTING THE NEWS, FOR GETTING TO
SELL THEIR COUCHES ON FACEBOOK
MARKETPLACE, FOR MESSAGING, AND
NOW FOR HEALTH.
I THINK THIS IS ANOTHER AREA
THAT THEY CAN POTENTIALLY MOVE
INTO TO GIVE YOU ANOTHER REASON
TO CHECK YOUR FACEBOOK.
WE SHOULD THINK ABOUT IT THAT
WAY.
I THINK THAT HEALTH PROVIDERS
ARE VERY IMPORTANT TO FACEBOOK
IN THAT THEY ARE BIG
ADVERTISERS.
REALLY, THIS IS TRYING TO DO
SOMETHING FOR USERS THAT KIND OF
ALIGNS WITH WHAT THEY WOULD NEED
IN THEIR LIVES.
IF FACEBOOK IS THE INTERNET FOR
PEOPLE ACROSS A LOT OF THE
WORLD.
TAYLOR: QUICKLY, THE COMPANY
SAYS IT WILL PROTECT DATA THAT
YOU ENTER. IS THAT TRUSTWORTHY?
SARAH: IT IS ALWAYS GOING TO BE
BAD OPTICS WHEN FACEBOOK
ANNOUNCES SOMETHING THAT PROBES
DEEPER INTO OUR PERSONAL LIVES
GIVEN ALL THE PRIVACY SCANDALS
OF THE PAST.
IT DOES NOT REALLY MATTER WHAT
THEY SAY ABOUT HOW DATA WILL BE
USED.
THEIR PAST HISTORY WILL COST
THEM CONSTERNATION AND CONCERN
AMONG USERS.
TAYLOR: SARAH FRIER, THANK YOU
AS ALWAYS FOR JOINING.
FINALLY, WORD LATE MONDAY,
TIKTOK OWNER IS MOVING A HONG
KONG IPO AS SOON AS THE FIRST
QUARTER, ACCORDING TO THE
FINANCIAL TIMES.
TIKTOK'S VALUATION HAS
CONSIDERED TO SOAR PAST THAT OF
BAIDU.
LATE ON MONDAY, WE LEARNED THAT
TESLA CEO ELON MUSK'S DEFAMATION
CASE WILL HEAD TO TRENTON LOS
ANGELES IN DECEMBER.
YOU MAY RECALL MUSK AS THEY
JUDGE TO THROW OUT A DEFAMATION
LAWSUIT BY A BRITISH CAVE DIVER
HE CALLED A PEDOPHILE.
MUSK'S LAWYER SAYS THE TWITTER
ATTACK WAS PART OF A SCHOOLYARD
SPAT ON SOCIAL MEDIA.
MUSK'S DEFAMATION CASE WILL
HEAD TO TRIAL IN L.A. IN
DECEMBER.
THAT DOES IT FOR THIS EDITION OF
BLOOMBERG TECHNOLOGY.
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LIVESTREAMING ON TWITTER.
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